Hartford, Connecticut – A Cost Competitive Location For Technology Companies

The MetroHartford Alliance engaged leading national accounting and consulting firm CohnReznick to compare the tax and lease costs in Hartford, CT vs. other U.S. insurance and financial services markets.

Sponsored by

Metro Hartford Alliance

Connecticut Insurance + Financial Services

Hartford and Connecticut have surpassed expectations, standing out for hosting a significant number of corporate headquarters, including 14 Fortune 500 companies. Notably, the state holds a prominent position in the Insurance and Financial Services sector and is regarded as the “Insurance Capital of the World.” According to the 2023 Best State Rankings by U.S. News and World Report, Connecticut achieved the sixth-highest ranking for its business environment and an overall 16th best state ranking.

Hartford, Connecticut
Skyline of downtown Hartford, Connecticut. (Credit: Adobe Stock)

 

In the complex process of site selection, companies consider multiple criteria, such as market size, availability of labor force, access to capital, regulatory framework, distribution networks, supply chain, quality of life, and numerous other factors. Hartford’s reputation for competitiveness in business costs, cost of living, and labor markets enjoys national recognition, and this reputation will continue to attract attention to the region.

Both individual and business taxes, along with various other government-imposed costs, significantly influence the business climate of a state, impacting its growth potential and capacity to attract businesses. These costs, when coupled with office lease rates and the cost of living for individuals, also play a crucial role in shaping corporate site location and expansion.

Hartford, Connecticut
(Credit: Adobe Stock)

The MetroHartford Alliance (MHA) collaborates with companies to facilitate their establishment and growth within the region and state. This initiative requires providing companies with comprehensive information about available buildings and sites, utility infrastructure, transportation options, labor availability, business expenditures, and various other essential factors.

In 2021 and again in 2023, MHA engaged with CohnReznick, leveraging their State and Local Tax (SALT) expertise to scrutinize meticulously the business costs incurred by companies situated in the Hartford Region. This analysis aimed to gain a deeper understanding of how these costs contrast with those of peer states and metropolitan regions.

The region’s strengths in these areas, coupled with insights derived from the study, underscore that the Hartford Region and Connecticut present a cost-effective and enticing environment for both retaining and attracting businesses.

In addition, regulatory support from the state of Connecticut, combined with a business-friendly environment, has encouraged the presence of insurance giants and startup technology firms alike. This support, coupled with a culture of collaboration, knowledge-sharing, and mentorship, has positioned Hartford as a global thought leader in insurance trends, risk management practices, and policy development.

Hartford, Connecticut
(Credit: Adobe Stock)

 

In 2022, the MetroHartford Alliance forged a trade agreement with the British Government, aimed at assisting UK companies in their quest for a North American market presence and guiding them to opt for Hartford as their preferred destination for establishing their U.S. headquarters. Witnessing substantial growth in the region, encompassing not only Insurtech and Fintech enterprises but also various other technology companies, the CohnReznick SALT team expanded its analysis to encompass the cost implications for non-insurance companies or general Class A office users.

Hartford’s unique designation as “The Insurance Capital of the World” is further underscored by its commitment to embracing emerging technologies and adapting to industry shifts. Its blend of tradition, innovation, strategic location, and collaborative spirit makes it an unparalleled destination for professionals, entrepreneurs, and thinkers shaping the future on a global scale.

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