Connecticut has long occupied a distinctive position in the U.S. economy — small in geography, but large in talent, innovation, and economic diversity. From its highly educated workforce and concentration of advanced industries to its strategic access to major markets, the state offers a unique environment for companies seeking long-term, sustainable growth. Yet too often, businesses selecting new sites or expanding operations begin their search with a narrow question: Where is the cheapest place to operate? Although cost is undeniably a factor in any business decision, it should not be the primary driver, especially now, when technology and automation drive business success. In fact, choosing a location based solely on cost can undermine a company’s ability to grow, attract talent, innovate, and remain competitive over time.

A more strategic approach, and one that Connecticut exemplifies, begins with a deeper question: Which location’s assets best align with the function we need this business unit to perform? This shift in thinking encourages companies to match their operational needs with local strengths: workforce capabilities, industry clusters, transportation infrastructure, academic research, supply-chain connectivity, and overall quality of life. When businesses approach location strategy this way, they not only reduce long-term risk but also position themselves for higher productivity and stronger returns.

Connecticut’s Asset-Driven Advantages

Connecticut’s economic potential stems from several interlocking assets that support the full spectrum of modern industry. First, the state has one of the most educated workforces in the country. With major universities, research institutions, and a steady pipeline of STEM graduates, Connecticut consistently ranks at the top for workforce quality. Companies in aerospace, bioscience, insurance and financial services, advanced manufacturing, and technology rely heavily on specialized talent, and Connecticut delivers.

Connecticut’s location is strategically unmatched, situated directly between New York City and Boston, giving companies access to two of the world’s most dynamic economic centers while avoiding many of their operational challenges and, yes, high costs. For companies that depend on proximity to clients, partners, investors, or distribution networks, the state’s highways, commuter and freight rail access, ports, and airports make it easy to compete regionally, nationally, and globally.

Lastly, Connecticut has cultivated strong industry clusters, groups of interconnected companies, suppliers, academic partners, and research organizations. Aerospace and defense firms benefit from decades of engineering expertise centered around companies like Pratt & Whitney, Sikorsky, and Electric Boat. Bioscience companies — especially in the fields of gene therapy, medical research, and pharmaceutical development — leverage the resources of Yale, UConn, and a growing network of labs, incubators, and startups. Insurance and fintech firms tap into the highest concentrations of actuarial and financial talent in the country. The next generation of AI-enabling quantum computing research and development is centered around Yale, one of the first and few quantum institutes in the world. These clusters are not incidental; they generate innovation, reduce barriers to collaboration, and accelerate the development of new products and technologies.

Due to Connecticut’s size, we are often referred to as the “One Phone Call State,” which is also a strategic advantage for our businesses. Our strong business networks and uniquely accessible governmental structures allow any company to be quite literally one call away from the right person to address their needs.

Why Cost-Based Decisions Fall Short

Companies often believe that choosing a low-cost location will increase profitability and reduce expenses, but in practice, businesses that prioritize cost above all else often face hidden long-term challenges. Labor shortages, low workforce skill levels, limited infrastructure, and weak industry connections can increase training costs, slow R&D, disrupt operations, and make hiring more difficult. Over time, these issues erode the very savings that motivated the move. Companies who located operations overseas have come to understand that costs balance out eventually, and markets that were once low cost inevitably, and quickly, experience cost increases.

In contrast, when a company aligns its location with the capabilities it needs to innovate and compete — be it engineering expertise, logistics connectivity, proximity to research labs, or a dense network of industry peers — it reduces operational friction and enhances performance. Productivity rises, innovation accelerates, recruiting becomes easier, turnover decreases. In many cases, the right environment creates opportunities that far outweigh cost considerations.

Connecticut as a Case Study in Asset Matching

Connecticut’s economic development strategy emphasizes this idea: helping companies find the right home based on the assets it needs to be successful and thrive long term. When a biotech firm chooses Connecticut, it is choosing the state because it offers access to world-class researchers, clinical trial networks, wet-lab space, and highly specialized talent. When an aerospace manufacturer expands here, it benefits from decades of precision engineering expertise, established supplier networks, and deep institutional knowledge that cannot be replicated in lower-cost regions. When an insurance company locates here, they find a welcoming regulatory structure that was purpose-built for the industry. And when technology firms set up operations in the state, they do so to access a skilled workforce, proximity to major markets, and a supportive innovation ecosystem.

A Smart, Asset-Driven Future

As the economy evolves, companies that make location decisions based on long-term strategic fit, not short-term savings, will lead their industries. Connecticut’s assets support this kind of thinking. The state’s educated workforce, depth of research capacity, industry clusters, and strong quality of life position it as an ideal location for companies that want to grow intelligently, innovate continuously, and build resilience.

Choosing a location intentionally, based on what a region offers rather than what it costs, is the strategic way to make a location decision. It is a foundation for lasting competitive advantage. Connecticut proves this every day.