Hartford, Connecticut - Economy

Economy

Hartford is the historic international center of the insurance industry, with companies such as Travelers, Aetna, The Hartford, The Phoenix Companies, Uniprise and Hartford Steam Boiler based in the city, and companies such as Lincoln National Corporation having major operations in the city. The area is also home to U.S. Fire Arms and United Technologies.

From the 19th century until the mid-20th century, Hartford was a major manufacturing city. During the Industrial Revolution into the mid-20th century, the Connecticut River Valley cities produced many major precision manufacturing innovations. Among these was Hartford's pioneer bicycle (and later) automobile maker Pope. As in nearly all former Northern manufacturing cities, many factories have been closed, relocated, or reduced operations.

Despite the city's lengthy history with the insurance industry, various insurers have recently left Hartford and moved their operations to other locations, including to some of Hartford's suburbs. Citing the tax structure in the city and parking shortages, MetLife recently vacated several floors in CityPlace, Connecticut's largest office building, and joined CIGNA in a large suburban campus in Bloomfield, Connecticut. Lincoln Financial has recently cut its Hartford workforce, while Travelers elected to construct a sprawling training complex in Windsor, Connecticut, just north of the city. Originating from the acquisition of the travel protection division of Travelers, Travel Insured International operates out of East Hartford, Connecticut. Additionally, the Fortune 100 MassMutual Company recently relocated its Hartford operations 16 miles north to Enfield, Connecticut. The Hartford's life insurance division is primarily located in nearby Simsbury, Connecticut.

At the same time, many companies have moved to or expanded in the central business district and surrounding neighborhoods. Aetna announced mid-decade that by 2010 it would move nearly 3,500 employees from its Middletown, Connecticut offices to its corporate headquarters in the Asylum Hill section of the city. Travelers recently expanded its operations at several downtown locations. In 2008, Sovereign Bank consolidated two bank branches as well as its regional headquarters in a nineteenth century palazzo on Asylum Street. In 2009, Northeast Utilities, a Fortune 500 company and New England's largest energy utility, announced it would establish its corporate headquarters downtown. In the same year, work began at the southeastern corner of Constitution Plaza on the AI Technology Center, the future headquarters of the eponymous engineering firm. AI's chief executive helped finance the building, the first commercially leasable structure in Connecticut to be certified at the platinum level under the US Green Building Council's LEED (Leadership in Energy and Environmental Design) program. Other recent entrants into the downtown market include GlobeOp Financial Services and specialty insurance broker S.H. Smith. CareCentrix, a patient home healthcare management company, is moving into downtown from East Hartford, where it will add over 200 jobs within the next few years.

Hartford is a center for medical care, research, and education. Within Hartford itself the city includes Hartford Hospital, The Institute of Living, Connecticut Children's Medical Center, and Saint Francis Hospital & Medical Center (which merged in 1990 with Mount Sinai Hospital).

Following the housing market decline, Hartford renters are finding cheap and declining rent averages in relation to national trends. “Declining rents are affecting not only Hartford but also other markets in Connecticut and across the country as employers remain restrained about hiring. Connecticut's unemployment now stands at 9.1 percent, below the nation's 9.7 percent.”

According to a 2011 study from Brookings Institute Global Metro Monitor, Hartford has the highest GDP per capita of the cities listed, with $75,086.