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Construction Industry Adds Jobs in December

WASHINGTON, D.C. — The nation’s construction industry gained 30,000 jobs in December despite an overall increase in the industry unemployment rate, according to the Jan. 4 employment report by the U.S. Labor Department. That is the fastest pace of construction employment growth since February 2011. Year over year, construction employment has risen by 18,000 jobs, or 0.3%.  The construction unemployment rate for December was 13.5% (not seasonally adjusted) — up from 12.2% from November, but down from 16% the same time last year. The non-residential building construction sector added 7,000 jobs in December for a total of 12,200 jobs (1.9%) added during 2012. Non-residential specialty trade contractors gained 5,600 jobs for the month, but have lost 25,000 jobs (1.2%) compared to one year ago. The residential building sector added 5,800 jobs in December, but lost 6,600 jobs (1.2%) during the past 12 months. Residential specialty trade contractors added 12,300 jobs in December and have added 36,400 jobs (2.5%) since December 2011. The heavy and civil engineering construction sector lost 700 jobs for the month, but has added 400 jobs during the course of the past year. Across all industries, the nation added 155,000 jobs as the private sector expanded by 168,000 jobs and the public sector shrunk by 13,000 jobs. According to the Bureau of Labor Statistics’ household survey, the national unemployment rate stood at 7.8% in December, the same rate as November’s revised data. “It is tempting to believe the December 2012 employment report bodes well for nation’s construction industry,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Employment growth was widespread, impacting general and specialty trade contractors alike — the largest monthly increase in construction employment in nearly two years. However, industry stakeholders will need to wait at least another month for some clarity regarding construction employment patterns.”

 

Casino Developers Spar over Picknelly

PALMER and SPRINGFIELD — Casino developers in Palmer and Springfield are sparring over which project may claim businessman Peter Picknelly, head of Peter Pan Bus Lines, who initially invested in the Mohegan Sun-backed venture in Palmer before joining Penn National Gaming in a casino proposal in the North End of Springfield. While Picknelly says he is no longer involved with the Palmer deal, his former partners say he remains legally bound to that project, and they have threatened legal action to stop Picknelly from moving forward with Penn-National in Springfield. However, the Penn National project will occupy land currently used for the Peter Pan bus terminal, and Picknelly has said he will be a 50% partner in the development. Picknelly and Penn National say he has no obligation to any other casino effort, and they have threatened a lawsuit of their own if the Palmer group interferes with Picknelly’s pursuit of a casino license in Springfield. The Penn National and Mohegan Sun projects are competing for the sole Western Mass. resort-casino license, as well as MGM Resorts, which has proposed a project in the South End of Springfield.

 

Foreclosures Down in Massachusetts

BOSTON — Fewer Massachusetts homeowners went into foreclosure and lost their properties to lenders in November. There were 295 completed foreclosures in November, a decline of almost 60% from November 2011, according to the Warren Group, a Boston company that tracks real estate. Between January and November, the number of completed foreclosures fell to 7,158, a drop of nearly 8% compared to the first 11 months of 2011. Last year is also likely to have the smallest number of completed foreclosures in the state since 2006, when the housing crisis began. “It’s been quite a positive year for the local housing market,” said Timothy Warren Jr., chief executive of the Warren Group. “An improving employment picture combined with government-backed programs are leading to fewer mortgage delinquencies.” The news added to growing sentiment that the state’s housing market is rebounding. Sales of single-family homes increased to 43,652 during the first 11 months of the year, surpassing the number of sales for all of 2011, according to the Warren Group. Lenders also initiated fewer foreclosures in November. Foreclosure starts dropped to 983, for a 3% decline from the same month in 2011.

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PVPC Issues Top 10 ‘Resolves’ for 2013

SPRINGFIELD — The Pioneer Valley Planning Commission has released its top 10 ‘resolves’ for 2014. In condensed form, these include commitments to: (1) work in concert with a broad array of partnering organizations to support, guide, and complete a regionwide economic-growth study targeted at 500 small and mid-sized Pioneer Valley firms demonstrating significant growth and job-expansion potential; (2) participate in and contribute to a statewide transportation-funding advocacy campaign and strive to ensure that the priority transportation needs and projects of the Pioneer Valley are addressed in an effective, timely, and equitable manner; (3) organize and undertake a regional effort designed to coordinate as well as provide technical assistance to potential
casino host and surrounding communities that are located within the Pioneer Valley region, working with the Mass. Gaming Commission, affected municipalities, casino developers, and other interested parties; (4) organize and launch the PVPC’s scheduled 10-year review and overhaul of the Pioneer Valley Plan for Progress; (5) continue with support provided by the Commonwealth’s District Local Technical Assistance Program to pursue
a variety of municipal shared-service initiatives and planning projects based on a regionwide solicitation process; (6) assist and support the Mass. Department of Transportation and the federal Railroad Administration as these agencies jointly launch the long-awaited ‘Inland Route’ rail-passenger-service feasibility analysis, and help to focus this study on the Boston-Worcester-Springfield east-west rail corridor and its potential to connect these cities and their surrounding areas with New York City and Montreal; (7) prepare, refine, and issue the draft and final versions of seven distinct element plans (e.g., food security, housing, climate change, etc.) which have been developed by the PVPC staff in tandem with work groups that were convened to provide advice, expertise, and feedback; (8) initiate, with 10 project partners, a two-year, $1.9 million Centers for Disease Control-funded Community Transformation Project aimed at improving the health of Springfield residents adversely affected by chronic diseases through healthy food and nutrition programs, physical activities, public-health interventions and infrastructure improvement projects, among others; (9) continue efforts undertaken over the past two years to assist PVPC communities to recover from the June 2011 tornado and pursue measures that could strengthen the level of community resilience to better address and respond to future natural and man-made disasters; and (10) work with state lawmakers and Massachusetts legislators in Washington to shape and advance policy and legislative initiatives at both the federal and state level that support and benefit
the Pioneer Valley and its member communities and residents. The complete list of resolves is available at www.pvpc.org/resources/2013%20resolves.pdf.

 

Construction Industry Loses Jobs in November

WASHINGTON, D.C. — National construction-industry employment fell by 20,000 jobs in November, pushing the sector’s unemployment rate to 12.2%, up from 11.4% the previous month, according to the Dec. 7 employment report by the U.S. Department of Labor. Year over year, construction employment is down by 6,000 jobs, or 0.1%. The non-residential building construction sector lost 4,300 jobs in November. The residential building construction sector lost 6,800 jobs for the month and has lost 15,700 jobs, or 2.8%, since November 2011. Non-residential specialty trade contractors lost 7,400 jobs for the month and have lost 16,000 jobs, or 0.8%, year over year. In contrast, residential specialty trade contractors added 3,200 jobs in November and have added 20,700 jobs, or 1.4%, compared to the same time last year. Heavy and civil-engineering construction sector employment decreased by 3,800 jobs in November, but has increased by 5,900 jobs, or 0.7%, during the past 12 months. Across all industries, the nation added 146,000 jobs as the private sector expanded by 147,000 jobs and the public sector shrunk by 1,000 jobs. The national unemployment rate decreased to 7.7% in November from 7.9% in October. “If there was any question that the construction industry continues to struggle in this economy, [this] Labor Department employment report provided the answer,” said Associated Builders and Contractors Chief Economist Anirban Basu. “In November, the economy essentially wiped out the previous gains that had been registered in the construction industry.” The other major sector to lose jobs in November was manufacturing. The fact that construction and manufacturing both lost jobs is not coincidental, Basu said, as many economic decision makers have adopted a wait-and-see attitude due to the nation’s fiscal cliff and other sources of uncertainty, including geopolitical uncertainty. “While many businesses maintain their standard daily operations, and some even add jobs in the process, larger decisions and investments are put on hold. These decisions often revolve around major investments in plants and equipment. When these types of expenditures are postponed, related industries like manufacturing and construction suffer.”

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Ameristar Withdraws from Casino Competition

SPRINGFIELD — The competition for a winning casino bid in Springfield narrowed to two late last month when Ameristar Casinos dropped plans for a $910 million resort casino on property it owns on Page Boulevard. Although Las Vegas-based Ameristar believed it had the superior proposal for a casino in Western Mass., the company concluded there is not sufficient likelihood that the basis upon which it could be awarded the license to develop and operate a casino in Springfield is favorable enough to warrant its further pursuit. Specifically, the local selection process, various project requirements, and associated costs led to the decision to reserve Ameristar’s resources for other opportunities. Ameristar has not yet made a determination concerning plans for marketing the 40-acre Page Boulevard site, which it says is the largest commercially developable site in Springfield. The site’s size, location, and ease of access to major highways make it attractive for a variety of large-scale developments in addition to a casino. “This was a difficult decision that will unfortunately result in us not being able to bring a world-class casino entertainment facility to Western Mass.” Ameristar CEO Gordon Kanofsky said. “However, I am extremely proud of the efforts of our team members who aggressively pursued this project. We are grateful for the hundreds of meaningful relationships we have built in the Pioneer Valley and the Commonwealth and for the widespread community support we received over the last year while introducing New Englanders to our company.” Mayor Domenic Sarno responded by saying, “obviously the city is very disappointed in Ameristar’s decision to withdraw from the competition to locate a world-class resort casino in Springfield. Ameristar made a strong proposal for an exciting project that would have given our voters a clear choice as to the type of location that would best serve the city. Nonetheless, I am confident that the proposals of MGM and Penn Gaming will create a robust competition resulting in a project that will … revitalize Springfield [and] create thousands of good-paying jobs for our residents and significant opportunities for our business community, with sustainable economic benefits for our great city, but also for Western Mass. and the state. We wish Ameristar the best as they continue their business and pursue other opportunities.”

 

Ludlow Mills Named Priority Project

BOSTON — Lt. Gov. Timothy Murray recently announced that Ludlow Mills, the 170-acre site planned for redevelopment by Westmass Area Development Corp., is among five new projects designated for cleanup assistance through the Patrick-Murray administration’s Brownfields Support Team (BST) Initiative. Ludlow Mills is the only project located in Western Mass. that is involved in the third round of the BST. Ludlow Mills is a mixed-use project with primary focus on commercial and industrial development. The site has environmental-cleanup needs that require further assessment and has received both state and federal grants that have provided site and environmental remediation. In responding to the announcement of the site as a brownfield support priority, Kenn Delude, Westmass president and CEO, said, “Westmass, the town of Ludlow, and our region are pleased by the lieutenant governor’s announcement to include the Ludlow Mills Preservation and Redevelopment project in the BST, and we thank Gov. Patrick and the administration and our legislative delegation for their continued support and assistance. As the largest brownfield mill-redevelopment project in New England, the Ludlow Mills project will significantly benefit from the interdisciplinary work of the BST to address complex and complicated environmental aspects of this project as we work to revitalize the site, retain and grow jobs, and improve the regional economy.” Westmass and HealthSouth recently jointly broke ground on a 74,500-square-foot, 53-bed, LEED (Leadership in Energy and Environmental Design) Silver-certified rehabilitation hospital that will offer all private rooms for patients needing rehabilitative care. The hospital is slated for completion in November 2013. Planning is also underway to develop a $20 million, 83-unit senior-housing complex on the site. Both projects will result in hundreds of construction jobs and hundreds of permanent jobs once completed. Redevelopment of the Ludlow Mills complex over the next two decades will create and retain more than 2,000 jobs and stimulate up to $300 million in private investment. The 170-acre site includes 66 buildings, offers approximately 1,450,000 square feet of space, and is bordered by 1.5 miles of riverfront. Buildout of the project will occur over 15 or more years, and the project will embrace sustainable-development principles and will seek to encourage LEED-quality new construction at the site. Launched in 2008, the BST has coordinated 24 state, local, and federal agencies over the last several years to tackle some of the state’s most complex brownfields and has helped deliver more than $18 million in funding to accelerate cleanup and streamline progress to overcome technical roadblocks.

 

Business Confidence Index Drops on Fiscal-cliff Fears

BOSTON — The Associated Industries of Massachusetts (AIM) Business Confidence Index lost 4.3 points in November to 46.8 as Massachusetts employers found themselves swept toward the ‘fiscal cliff” of drastic federal budget reductions and tax increases. “The tax increases set to take effect unless Congress acts will affect virtually every business, and the automatic spending cuts will hit hard at both defense and non-defense sectors in Massachusetts — and serious macroeconomic effects are also projected,” said Raymond Torto, global chief economist at CB Richard Ellis Group Inc. and chair of AIM’s Board of Economic Advisors (BEA). “After an election that did little to break the deadlock in Washington, we are very close to the edge. Whereas October’s results merely pointed to this concern, November’s treat an adverse outcome as a probability. In October we noted a weak reading for national conditions, while other index components held up well. The November readings are off almost across the board. The main Index dropped well below 50, into negative territory on our scale. Respondents expect conditions to deteriorate over the coming six months. And employers are losing confidence in the situations of their own companies, which we generally interpret as a reaction to rising uncertainty.” Because most survey responses were submitted shortly after the election, Torto added, they do not reflect more recent developments that may signal movement toward compromise in Washington. AIM’s Business Confidence Index has been issued monthly since July 1991 under the oversight of the Board of Economic Advisors.

 

Nation’s Non-residential Construction Spending Rises Slightly in November

WASHINGTON, D.C. — The nation’s non-residential construction industry experienced a modest gain in October as spending increased 0.5% to $571.3 billion, according to the Dec. 3 report by the U.S. Census Bureau. Total non-residential construction spending — which includes both private and public projects — is up 5.1% compared to one year ago. Private, non-residential construction spending increased 0.3% for the month and is up 10.7% year over year. Public, non-residential construction spending increased 0.8% for the month, but is 0.4% lower than the same time last year. Eleven of 16 non-residential construction subsectors posted increases in October, including transportation, up 5.3%; water supply, up 4.3; and lodging, up 3.9%. Ten construction subsectors experienced increases in spending year over year, including lodging, up 29.3%; transportation, up 21.2%; and power, up 19.2%. In contrast, five construction subsectors posted decreases in spending for the month, including communication, down 6.9%; manufacturing, down 2.7%; highway and street, down 2.3%; sewage and waste disposal, down 1.7%; and conservation and development, down 1.5%. Construction subsectors registering decreases in year-over-year spending include conservation and development, down 13.6%; water supply, down 7.2%; highway and street, down 4.8%; communication, down 3.8%; sewage and waste disposal, down 3.8%; and religious, down 3.7%. Residential construction spending jumped 3% for the month and is up 19.4% from the same time last year. Total construction spending — which encompasses both non-residential and residential spending — was up 1.4% for the month and is up 9.6% compared to October 2011. “As the nation approaches its fiscal cliff — a collection of tax increases and spending cuts that kick in at the end of the year — the pattern of recovery in non-residential construction spending has shifted,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Earlier this year, private-sector, non-residential construction spending growth was more robust, but has since declined. This comes as little surprise, as more projects are being put on hold.” He added, “there are two likely scenarios for non-residential construction spending in the U.S. Both scenarios hinge upon the outcome of the fiscal-cliff debate. Under one scenario, the nation falls back into recession, resulting in diminished public and private non-residential construction spending. Under the other scenario, a productive outcome on the fiscal cliff is achieved, and non-residential construction spending accelerates at some point in 2013 and into 2014.”

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Union Station Work Officially Underway

SPRINGFIELD — The long-awaited transformation of Springfield’s historic Union Station into the region’s main transportation hub officially got underway Nov. 20 at a ceremonial demolition held at the Frank B. Murray Street site. Mayor Domenic Sarno, along with U.S. Rep. Richard Neal, Gov. Deval Patrick, and other officials wielding sledgehammers, participated in the event. It signaled the start of demolition of the former baggage-handling building and will pave the way for construction of a 24-bay bus terminal with structured parking above it — the first steps toward reactivating the long-vacant downtown station. “Today represents the start of an important project that will benefit virtually everyone in Western Mass. It’s an exciting day for the Pioneer Valley,” said Sarno. Added Neal, “the successful renovation of Union Station has been a priority of mine for more than 30 years. I have always believed the restoration of this iconic Springfield landmark had the ability to transform the north blocks of downtown. And it will bring a world-class transportation center to the region in the process.” Other specific work to be completed as part of a $48.7 million Phase 1 project, designed by HDR Architecture Inc., includes the restoration of the main terminal building as a passenger center. The first floor will include operations, ticketing, and waiting space for the transit-service providers, as well as transit-related retail. Also, the passenger tunnel will be reopened and restored, linking the terminal building to rail-boarding platforms and pedestrian access to the downtown. When completed, this initial phase will provide connections for the continuation and expansion of services, including local, regional, and intercity buses; Amtrak, commuter, and high-speed passenger rail; and other ground-transportation services. The second phase of the project will emphasize the remaining development of additional transit-related restaurant and retail uses on the first floor and transit-related commercial space primarily on the terminal building’s upper floors, and will expand the new transit center’s parking capabilities. Sarno thanked Neal for his steadfast support of this regionally significant transportation project and for helping the city bring it to this point. “Recognizing that the station’s redevelopment is crucial to the continued revitalization of the city of Springfield, our goal is to transform this property into a sustainable transportation facility, positioning us to better meet the travel needs of the Pioneer Valley in the short and long term,” added Sarno. He also thanked Patrick “for making Union Station a top priority of his administration,” and the Massachusetts Department of Transportation for working in partnership with the city. “Through this cooperation and with funding support from the state, we have achieved tremendous progress as we’ve worked with the Federal Transit Administration to advance this vital project,” Sarno said. Funding for the Union Station project has been assembled from a number of federal, state, and local sources. In July, U.S. Transportation Secretary Ray LaHood was in Springfield to announce the award of a $17.6 million federal Bus Livability grant for the project. The project is scheduled to be completed and operational by 2015.

 

Officials Laud Completion of High Performance Computing Center

HOLYOKE — Gov. Deval Patrick headed a list of academic, political, and business leaders who gathered in Holyoke on Nov. 16 to officially mark the completion of the Massachusetts Green High Performance Computing Center built in the center of this historic industrial city. More than 200 people gathered for the event, which capped more than three years of planning and construction of the facility, which was hailed by several of the day’s speakers as a unique and highly effective collaboration involving higher education, private business, and government. The facility, which carried a price tag approaching $90 million, is a data center dedicated to supporting the growing research computing needs of five of the most research-intensive universities in Massachusetts: Boston University, Harvard University, MIT, Northeastern University, and UMass. The project was funded by those five schools, as well as additional partners Cisco and EMC, the Commonwealth of Massachusetts, and the federal New Markets Tax Credit program. In addition to Patrick, other officials to speak at the program and ribbon-cutting included Holyoke Mayor Alex Morse; Susan Hockfield, president emerita at MIT; Jeff Nick, senior vice president and chief technology officer at EMC Corp.; Larry Payne, vice president, Public Sector, Cisco Systems; Lt. Gov. Tim Murray; and Robert Caret, president of UMass.

 

Nominations Sought for Difference Makers

SPRINGFIELD — BusinessWest magazine will accept nominations for its Difference Makers Class of 2013 until Dec. 30. Difference Makers is a recognition program, started in 2008, that honors individuals and groups that are making an impact in the community and improving overall quality of life in the region. The Difference Makers Class of 2012 consisted of: Charlie and Donald D’Amour, president/COO and chairman/CEO, respectively, of Big Y Foods; William Messner, president of Holyoke Community College; Majors Tom and Linda Jo Perks, officers with the Springfield Corps of the Salvation Army; Bob Schwarz, executive vice president of Peter Pan Bus Lines; and the Women’s Fund of Western Massachusetts. A nomination form is available online at www.businesswest.com/difference-makers-nomination-form.

 

Baystate Working to Reduce Pre-term Births

SPRINGFIELD — The report card is in on premature births, and the grades are far from glowing. The March of Dimes released its 2012 Premature Birth Report Card in November, and while the U.S. pre-term birth rate dropped for the fifth consecutive year in 2011 to 11.7% — the lowest in a decade — the country still earned a disappointing ‘C’ grade. The March of Dimes grades states by comparing their rate of premature births to their 2020 goal of 9.6%. Three states and Puerto Rico earned an ‘F,’ and only four states — Maine, New Hampshire, Oregon, and Vermont — were graded an ‘A.’ Twenty-two states, including Massachusetts, received a ‘B’ grade and are one step away from achieving the goal. Still, “we still have a long way to go,” said Dr. Glenn Markenson, chief of Maternal Fetal Medicine at Baystate Medical Center. More than 500,000 infants are born prematurely in the U.S. each year, and about 10% of all deliveries are scheduled before 39 weeks, according to the U.S. Department of Health and Human Services. Furthermore, a recent study by the Leapfrog Group, a hospital-quality watchdog, shows that U.S. hospitals vary widely in their rates of elective pre-term deliveries, ranging from less than 5% to more than 40%. “Early deliveries should only be an option for medical reasons, when the life or health of mother or baby is in jeopardy,” said Markenson. Under his leadership, Baystate Medical Center has been working to establish strong guidelines to prevent unnecessary pre-term deliveries by induction or cesarean section, and last year the hospital instituted a ‘hard stop’ for any non-medically required elective delivery prior to 39 weeks, and all elective inductions in first-time mothers. Markenson said the practice of elective pre-term birth finally caught many healthcare-quality officials’ attention when more and more studies began to be published showing its potential harm, including a recent March of Dimes report showing that babies born in the 37th or 38th week have a higher risk of dying in their first year than a baby born after 39 weeks. In addition to working with other Massachusetts hospitals to help the state achieve an ‘A’ grade in the March of Dimes rankings, Baystate is helping lead a statewide initiative called the Massachusetts Perinatal Quality Collaborative.

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Three Pitches Accepted by Valley Venture Mentors

SPRINGFIELD — Three out of five ventures to pitch to Valley Venture Mentors have been accepted into the six-month program, which recently added separate tracks to handle the rising number of new and mature startups seeking services from the organization. PeopleHedge, based in Boston and Chicago, was represented by co-founder Damon Magnuski. The company simplifies the process of managing currency risk by allowing customers to select an exchange date, currency pair, and protection amount. InsideOut Solar was represented by co-founder Gregory Margolis. The company was formed by three Mechanical Engineering students at UMass Amherst. They have designed, built, and are testing a solar space-heating panel that slides easily into a standard home window, similar to an air-conditioning unit.Tinville (the Industry Network Village), based in Woburn and pitched by founder Disraeli Abreu, intends to become the premier fashion marketplace for startup and established independent designers. Tinville aims to create an interactive e-commerce site where each designer can host his or her own boutique. All users of Tinville.com will create a custom account on the site; however, fans of the label will have the opportunity to follow, shop at, and receive notifications from their favorite independent designers’ stores. The startups have been accepted into VVM with the expectation that they will successfully complete the accelerator track in six months and graduate to the mentor track, which was recently added to accommodate the rising number of mature ventures who still desire support and mentoring assistance.

 

Three Casino Companies to Vie for City’s Support

SPRINGFIELD — Three casino developers — Ameristar, MGM Resorts, and Penn National — met an Oct. 11 deadline to submit a formal proposal and a $50,000 fee to the city of Springfield. They will now compete for the city’s support in pursuit of casino-development rights in Western Mass. Each company has proposed a gaming resort development approaching $1 billion. Hard Rock International, which had expressed interest in Springfield and explored real estate downtown, did not submit a proposal. The 2011 state casino law allots one resort casino license to Western Mass. In addition to the Springfield projects, Mohegan Sun has proposed a resort in Palmer. On Oct. 11, PennNational released some details and an architect’s rendering for an $807 million gaming complex to be built in the city’s North End. The proposal calls for 3,000 to 3,500 slot machines, poker rooms, up to 100 live table games, and a hotel with 300 to 500 rooms. There would also be restaurants, a spa, a parking garage, and up to 45,000 square feet of meeting and convention space. The proposed 13.4-acre site includes the headquarters for the Republican newspaper and the current home of Peter Pan Bus Lines.

 

SBA Loan Volume Remains High

WASHINGTON — With loan volume steadily increasing for the past six quarters, the U.S. Small Business Administration’s loan programs posted the second-largest dollar volume ever in FY 2012, supporting $30.35 billion in loans to small businesses. That amount was surpassed only by FY 2011, which was heavily boosted by the loan incentives under the Small Business Jobs Act of 2010. In Massachusetts, under SBA’s two flagship lending programs, the 7(a) General Business Loan program and the 504 Certified Development Co. program, loan approvals supported 1,846 businesses with more than $670 million, said Bob Nelson, Massachusetts SBA district director. This ranks Massachusetts fifth out of 68 MBA offices nationwide for total loans approved under 7(a) and 504 combined for the fiscal year ending Sept. 30. The totals for 2012 nationwide include 44,377 loans, $15.5 billion approved under the 7(a) program and $15.09 billion under the 504 program.

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City Issues RFQ/RFP for Casino; Consultant Cleared

SPRINGFIELD — Springfield has issued its Phase I request for qualifications/request for proposals for a proposed destination casino resort development to be located in the city. Through this RFQ/RFP process, the city seeks to pre-qualify enterprises desirous of participating in the city’s Phase II process, the purpose of which will be to select one or more enterprises with whom the city will negotiate a host-community agreement for the development, construction, and operation of a destination casino resort project. Upon the successful conclusion of those negotiations, targeted for the end of April 2013, the final host-community agreement or agreements will be submitted to the City Council for approval and then to the city’s voters. Once approved in this manner, the host-community agreement must be provided to the Mass. Gaming Commission by any applicant for a gaming license.  The RFQ/RFP can be downloaded at www.springfield-ma.gov/casino. “We are excited to formally launch the casino selection process,” said Mayor Domenic Sarno. “We look forward to a robust competition which will determine the company or companies with whom we will enter into a host community agreement. This is an important first step that we anticipate will result in the largest economic-development project in the city’s history, bringing thousands of good-paying jobs to our great city, along with significant opportunities for our business community and sustainable economic benefits for our residents for many years to come.” In other developments, the state Ethics Commission cleared Springfield’s casino consultant of a possible conflict of interest. The chairman of the Massachusetts Gaming Commission had questioned whether that Shefsky & Froelich — a registered lobbyist in Illinois for Penn National Gaming and MGM Resorts, two of the companies seeking a casino license in the city — could be objective in advising Springfield. “We are pleased with the Ethics Commission’s opinion and thank the commission for its time and consideration of this very important matter,” said Cezar Froelich, chairman of the firm, in a statement. “By filing the disclosure forms required by Massachusetts law, we believe we have fully complied with such law in a manner that allows us to provide unbiased advice to the city.”

 

UMass Awarded $308,000 for Life Sciences Project

AMHERST — The Massachusetts Life Sciences Center (MLSC) announced the approval of a $308,000 capital grant to support a research project at UMass Amherst titled “Life Sciences Research & Innovation: Growth Strategy for UMass Amherst in the Massachusetts Bioeconomy.” The project is a formal study of opportunities to catalyze life sciences and life sciences-related economic development in Western Mass. The $308,000 grant will enable UMass Amherst to increase the breadth and depth of industry collaborations; enhance access of other stakeholders to assets at UMass Amherst and in the Pioneer Valley, such as the Pioneer Valley Life Sciences Institute (PVLSI) in Springfield; serve as a connector to the UMass system, the Commonwealth, and beyond; and catalyze the Western Mass. innovation ecosystem, especially in the life sciences. The MLSC is the agency charged with implementing the state’s 10-year, $1 billion Life Sciences Initiative, proposed by Gov. Deval Patrick in 2007 and approved by the Legislature in 2008. The Life Sciences Initiative targets $95 million in capital funding for UMass Amherst to construct an additional building within its new life-sciences complex, in which the school has already invested $270 million in recent years. The data collected during the project will inform UMass Amherst’s and the center’s future life-science-related investment plans in the region, including the building that is targeted for funding in the Initiative. “Gov. Patrick and I want to see positive development within the life-sciences industry for Western Mass.,” said Lt. Gov. Timothy Murray. “With this planning grant, the information gathered will inform our strategy for life-sciences growth in the region and further strengthen our state’s global leadership in this important field.” Added Dr. Susan Windham-Bannister, president and CEO of the MLSC, “as we pursue our mission of accelerating growth in Massachusetts’ thriving life-sciences supercluster, we are very focused on making investments across the entire Commonwealth, including the western part of the state. UMass Amherst is an important partner in that effort, and we are pleased to award this funding to support their forward-looking plans for life sciences growth in the region.”

 

Leadership Pioneer Valley Announces 2012-13 Class

CHICOPEE — Leadership Pioneer Valley (LPV) officially kicked off the 2012-13 leadership development class of 40 emerging and established leaders. Leadership Pioneer Valley is addressing the need to build a diverse network of leaders who aspire to work together across traditional barriers to strengthen the region. The new class members will take part in a 10-month program of experiential learning that will take place at locations across the Valley. The field-based and challenge-based curriculum is specifically designed to help the class members refine their leadership skills, gain connections, and develop a greater commitment to community stewardship and cultural competency. “The curriculum builds on the strong feedback from our inaugural class with some adjustments to make this an even stronger program,” explains Leadership Pioneer Valley Director Lora Wondolowski. “The program is divided equally between seminar-style days that will focus on advanced leadership skills and field experiences, where participants will get a hands-on view of communities throughout the Valley. The program also features small-team projects, where class members will address a regional need.” The 2012-13 class members are: Jessica Atwood, Franklin Regional Council of Governments; Jeff Bagg, Town of Amherst; Krista Benoit, Dietz & Co. Architects Inc.; Suzanne Bowles, Alliance to Develop Power/ADP; Nancy Buffone, UMass Amherst; Nicolle Cestero, American International College; Kristin Cole, Greater Northampton Chamber of Commerce; Ayanna Crawford, YMCA of Greater Springfield; Nicholas Criscitelli, MassMutual Financial Group; Laurie Davison, Westfield Bank; Charity Day, Franklin County Regional Housing & Redevelopment Authority; Roshonda DeGraffenreid, Baystate Health; Kyle Kate Dudley, Drama Studio Inc.; Julie Federman, Town of Amherst; Tony Franco, United Bank; Julie Gentile, Hampden Bank; Jeannette Gordon, New England Farm Workers’ Council; Erica Johnson, Pioneer Valley Planning Commission; Lori Kerwood, Cooley Dickinson Hospital; Dawn Koloszyc, Cooley Dickinson Hospital; Ljuba Marsh, Paulo Freire Social Justice Charter School; Dr. Julio Martinez-Silvestrini, Baystate Health; Irma Medina, Holyoke Community College; Donald Mitchell, Western Mass. Development Collaborative Inc.; Georgia Moore, Cooley Dickinson Health Care Corp.; Benjamin Murphy, United Way of Hampshire County; Glenn Posey, Western Massachusetts Electric Co.; Jon Queenin, Specialty Bolt; Jason Randall, Peter Pan Bus Lines; Lidya Rivera, Springfield Housing Authority; Debra Roussel, Town of Amherst; Alfonso Santaniello, the Creative Strategy Agency; Mark Sayre, MassMutual Financial Group; Sarah Schatz, Sarah’s Pet Services LLC; Maureen Trafford, Community Foundation of Western Mass.; Emmanuel Vera, MassMutual Financial Group; Janice Watson, YMCA of Greater Springfield; Tracye Whitfield, City of Springfield; Danielle Williams, GADA; and Anthony Wilson, City of Springfield.

 

MGM Casino Plan

Includes Union Station

SPRINGFIELD —  MGM Resorts International announced that it will include a plan to integrate a revitalized Union Station into its hotel, casino, and entertainment district proposal for downtown Springfield. The newest piece of MGM’s $800 million dining, retail, and entertainment district proposal is in response to the city of Springfield’s initiative to restore the historic Union Station to its full potential. As part of its plan, MGM would locate its regional corporate office and its regional training institute for new employees to Union Station. “Our project isn’t just about one neighborhood or community or interest group,” explained Bill Hornbuckle, MGM’s chief marketing officer and president of MGM Springfield. “It is about helping to create a better future for an entire city, and tying in Union Station is just one example of how we intend to leverage the global strength of MGM to attract new opportunities, growth, and prosperity to every corner of Springfield.” MGM has been meeting with city officials, community leaders, and residents in neighborhoods across the city to discuss MGM Springfield, which was first announced on Aug. 22. Over the course of those conversations, it became clear to the MGM team that restoring Union Station to its former glory was a top priority and major focus for the City of Springfield. “The vision Springfield’s elected leaders and city officials have put forward for Union Station is truly inspiring,” said Hornbuckle. “We’ve heard loud and clear that restoring this landmark is a key priority, and we want to play a leading role in making this a reality.” Hornbuckle said he has personally toured Union Station on multiple occasions, along with Jim Murren, MGM’s chairman and CEO. “The minute we first set foot in that building, we knew this was a place where we had to be,” said Hornbuckle. “We fell in love with the history and architecture, as well as the opportunity to help revitalize passenger rail service in Springfield.”

 

BCBS Names Leaders in Healthcare Access

BOSTON — Eighteen emerging leaders in healthcare access have been named to the seventh class of the Mass. Institute for Community Health Leadership (MICHL), a leadership-development program designed to help high-potential professionals increase their personal impact and enhance their health organization’s influence in the community and the healthcare system. The 18-day educational program takes place over the course of nine months, offering a highly experiential curriculum that includes classroom work, peer-to-peer exchanges, and collaborative learning.  During the program, students develop and implement a project that addresses a healthcare issue impacting low-income and vulnerable people in Massachusetts. MICHL engages participants in exploring the leadership challenges facing healthcare organizations in Massachusetts, identifying and building the capacities and competencies leaders will need to meet the challenges, and fostering collaboration among private nonprofits, public agencies, and academic institutions. The 2012-13 class includes: Rebecca Balder, Health Safety Net director, Division of Health Care Finance & Policy; Melinda Burri, director of Operations, Windsor Street Health Center; Paulette Renault-Caragianes, director, City of Somerville Health Department; Marta Chadwick, director, Violence Intervention & Prevention Program, Brigham & Women’s Hospital; Kevin Coughlin, executive director, Greater Lowell Health Alliance; Holle Garvey, nurse practitioner, Sisters of Providence Health System; Katherine Howitt, senior policy analyst, Community Catalyst; Jacqueline Johnson, chief operations officer, Caring Health Center; Stacey King, director, Community Health & Wellness Program, Cambridge Public Health Department; Joanna Kreil, quality initiatives manager, Mass. League of Community Health Centers; Nancy Mahan, senior vice president, Program Services, Bay Cove Human Services Inc.; Matthew McCall, senior consultant, the Home for Little Wanderers; Anne McHugh, director, Chronic Disease Prevention & Control, Boston Public Health Commission; Lenore Tsikitas, health access and promotion coordinator, Mass. Department of Public Health; Rossana Valencia, clinical policy analyst, UMass Medical School; Jennifer Valenzuela, national director of program, Health Leads; Alyssa Vangeli, policy analyst, Health Care for All; and Cathy Wirth, project manager, Healthy Kids, Healthy Future.

 

Job Gains Remain Elusive in Region, Commonwealth

BOSTON —The Executive Office of Labor and Workforce Development reported that the August 2012 seasonally unadjusted unemployment rates in Massachusetts were down in 17 labor areas, unchanged in three areas, and up in two areas over the month. Over the year, the rates are down in all 22 labor areas. Statewide, the August seasonally unadjusted unemployment rate was 6.4%, down 0.2% from July. Over the year, the statewide unadjusted rate was down 0.8% from the August 2011 unadjusted rate of 7.2%. In August, the Greater Springfield area, which includes most of Hampden County and parts of Hampshire County, saw unemployment fall to 7.8% from 8% in July, and from 8.4% in August 2011. However, the seasonally adjusted statewide August unemployment rate, released on Sept. 20, was 6.3%, an increase of 0.2% over the July figure, and down 1.1% from the 7.4% rate recorded in August 2011. The statewide seasonally adjusted jobs estimate showed a 4,800 job loss over the month. The national unemployment average, adjusted for seasonality, was 8.1% in August.

Briefcase Departments

Nonprofits Work Together to Beautify Zoo Grounds

SPRINGFIELD — Greater Springfield Habitat for Humanity (GSHFH) and the Zoo in Forest Park & Education Center joined together recently to improve the public grounds at the zoo during a volunteer event titled “Habitat Goes to the Zoo!” “Our primary mission is to provide decent, affordable housing to families, usually human families,” said Jennifer Schimmel, executive director of GSHFH. “Although this project falls outside of our typical mission, we are Springfield neighbors with the zoo, and the animals that live there need a little help with their housing as well. GSHFH is very adept at mobilizing and managing volunteers, and we are glad to be leveraging that talent on behalf of the zoo.” John Lewis, executive director of the Zoo in Forest Park, added, “we have spent much of this season recovering from big property damage from the storms of last year. We are so grateful that we were able to connect with Greater Springfield Habitat to put the finishing touches on many of our exhibits.” Habitat volunteers focused on painting 14 wooden buildings and animal sheds, he noted.

 

Blue Cross Blue Shield Awards $75,000 in Grants

BOSTON — To recognize Blue Cross Blue Shield of Massachusetts’ (BCBSMA) 75th anniversary, four not-for-profits each received a $75,000 grant to promote nutrition education and access to healthy foods. The BCBSMA 75th Anniversary Grants were awarded to the Holyoke Food and Fitness Policy Council, the Urban Food Initiative, Project Bread in partnership with Lynn Economic Opportunity Inc., and Boston Natural Areas Network. “For 75 years, Blue Cross has maintained a deep commitment to improving health outcomes and the quality of life for residents of the Commonwealth,” said Andrew Dreyfus, president and CEO of BCBSMA. “Many families continue to face financial hardship as a result of the economic downturn. With growing demand and shrinking resources, the safety-net services they turn to are severely strained. The BCBSMA 75th Anniversary Grants will help advance critical programs in the communities at greatest risk.” The four not-for-profit organizations were selected after a competitive process challenging them to develop programs to improve the lives of struggling families with children school-aged or younger in Massachusetts. Each organization takes a unique approach to advancing the health and nutrition of families facing economic hardship throughout the state. Locally, the Holyoke Food and Fitness Policy Council will implement a comprehensive nutrition education program geared towards influencing the eating habits of nearly 200 kindergarten students and their families located in three critical need elementary schools in Holyoke. The program provides education about eating and growing fresh produce, and includes field trips to local area farms. “Blue Cross’ support makes the Holyoke Kindergarten Initiative possible,” said Anne Cody, Kindergarten Initiative coordinator for the Holyoke Food and Fitness Policy Council. “Here in Holyoke, there is a large Latino population with strong preferences for culturally familiar produce. Thanks to Blue Cross, we can tie the students’ cultural backgrounds to local farming and healthy eating, which is an excellent approach to real and meaningful dietary preferences. We can’t thank Blue Cross enough for making the Holyoke Kindergarten Initiative a full, delicious adventure in local food and farming. Kids learn better when they eat better.”

 

Berkshire Money Management Named

Lead Sponsor of Artswalk

PITTSFIELD — First Fridays Artswalk, which began as the idea of local businesswoman Mary McGinnis and local artist Leo Mazzeo earlier this year, will become the first year-round monthly collaborative arts event in the Berkshires, thanks to a new lead sponsor. The local investment firm Berkshire Money Management has stepped up to the plate to support First Fridays Artswalk, enabling the initiative to continue into the winter and 2013. Berkshire Money Management President and Chief Investment Officer Allen Harris was impressed with the success of First Fridays Artswalk and saw an opportunity to help. “As a business owner, I see the incredible value of the arts and culture for the local economy and for our quality of life,” he said. “When I looked at the early success of the Artswalk and its positive impact for downtown businesses, it was clear to me that this needs to continue throughout the year.” He encouraged other local companies to also step up to the plate and support the event. Ferrin Gallery, who hosted the press conference announcing the new sponsor, was inspired by Harris to donate 15% of any sales made that day to First Fridays Artswalk. The events are held the first Friday of every month from 5 to 8 p.m. in downtown Pittsfield, featuring art shows in more than two dozen galleries, shops, and restaurants, often featuring artist receptions, artist talks, and other special events. McGinnis, owner of Gallery 25 and Mary’s Carrot Cake, has been measuring the direct economic impact in just the first four months of Artswalks. So far, she has documented more than $40,000 in sales of artwork and other items, and she’s not finished contacting businesses. Berkshire Money Management joins other major sponsors of First Fridays Artswalk, including Gallery 25, the Massachusetts Cultural Council/Cultural Pittsfield, and the Berkshire Art Assoc., along with the Berkshire Bank Foundation, Berkshire Heath Systems, Berkshire Theatre Group, and Downtown Pittsfield Inc. Downtown Artswalk partners include Empty Set Projects, Miller Supply, Berkshire Museum, Crowne Plaza, Brix Wine Bar, Marketplace Café, Downtown Pittsfield Inc., the Lichtenstein Center for the Arts, Pateez Boutique, Brenda & Co., Bagels Too, Berkshire Carousel Gallery, Steven Valenti Clothing for Men, Berkshire Community College Intermodal Gallery, Paul Rich  Sons, Spice Dragon, Alchemy Initiative, Art.On.No, Treehouse, Gallery 25, Mad Macs, BINGO!, Wild Sage, Aerus Electrolux, Y Bar, Ferrin Gallery, Circa, the Lantern, West Side Clock Shop, and Berkshire Medical Center. For more information, visit www.firstfridaysartwalk.com.

 

Construction Unemployment Falls

WASHINGTON, D.C. — The nation’s construction industry added 1,000 jobs in August, lowering the unemployment rate in the sector from 12.3% in July to 11.3% last month, according to the Sept. 7 employment report by the U.S. Labor Department. Year over year, the construction industry added 17,000 jobs, or 0.3%, rendering it among America’s slowest-expanding industries. The non-residential building-construction sector lost 2,400 jobs for the month and 4,900 jobs, or 0.7%, compared to one year ago. August employment in the sector stood at 653,200 jobs. Employment in the residential building-construction sector slipped by 1,100 jobs in August, but increased by 5,200 jobs, or 0.9%, during the past 12 months. Residential building-construction employment in August stood at 564,000 jobs. Non-residential specialty-trade contractor employment declined by 6,400 jobs in August and is down by 18,900 jobs, or 0.9%, from same time last year. In contrast, residential specialty-trade contractors added 8,200 jobs for the month and gained 18,700 jobs, or 1.3%, from one year ago. The heavy and civil-engineering construction sector gained 2,800 jobs in August and added 17,400 jobs, or 2.1%, since August 2011. Across all industries, the nation added 96,000 jobs as the private sector expanded by 103,000 jobs and the public sector shrank by 7,000 jobs. Year over year, the nation added 1,808,000 jobs, or 1.4%. The nation’s unemployment rate in August fell to 8.1%, down from 8.3% in July. “The fact that the construction-industry unemployment rate in August declined to 11.3% — the lowest level since October 2008 — seemed to be a pleasant surprise,” said Associated Builders and Contractors Chief Economist Anirban Basu. “But under further examination, this is largely due to former construction workers moving to other industries or leaving the workforce altogether. On a national level, the Labor Department reports a record-high 88,921,000 Americans are not in the civilian workforce. What is more discouraging, 368,000 people simply dropped out of the labor force last month and did not even look for a job. In the non-residential construction category, the news is similar. The sector lost additional employment in August, is down on a year-over-year basis, and posted negative job growth in six of the past seven months.” Basu noted that investors remain concerned by rising energy prices, America’s ‘fiscal cliff’ regarding year-end tax-cut expirations, the November elections, and impending policy decisions regarding interest rates and money supply. “Until at least some of this uncertainty is resolved, the non-residential construction labor market will continue to underperform.”

 

Business Confidence Index Continues to Rebound

BOSTON — The Associated Industries of Massachusetts (AIM) Business Confidence Index added three points in August to 55.2, continuing its recuperation from an 8.5-point plunge in June to 48.3. “What we have seen in the past few months encapsulates the overall course of this economic recovery,” said Raymond Torto, global chief economist at CB Richard Ellis Group Inc. and chair of AIM’s Board of Economic Advisors. “We are beset by persistent uncertainties — the June survey took place at a time of disturbing news from Europe, and of course there are domestic concerns as well — while, at the same time, the recovery is consolidating and prevailing business conditions are generally positive.” Torto noted that midyear drops in both 2010 and 2011 lasted longer than this year’s single month of decline. “We’re already most of the way back to May’s level. The Index is up six points from last August and 7.5 over two years. For the AIM Index as for the economy, progress since mid-2010 has been slow and bumpy, but the overall trend is upward.” The AIM Index, which has appeared since July 1991, is calculated on a 100-point scale, with 50 as neutral; a reading above 50 is positive, while below 50 is negative. The Index reached its historic high of 68.5 on two occasions in 1997-98, and its all-time low of 33.3 in February 2009.

Briefcase Departments

GSCVB Touts Discounts in Updated WOW Value Book

SPRINGFIELD — The Greater Springfield Convention & Visitors Bureau (GSCVB) has produced a new edition of the WOW Value Book, a collection of discount coupons for several of the Pioneer Valley’s leading attractions, restaurants, shops, and more. Offers include discounted admission prices, free restaurant items with the purchase of entrée selections, and shopping discounts. More than 12,500 copies of the dollar-bill-sized book have been printed. Each of the offers highlighted in the coupon book are also available online by visiting www.valleyvisitor.com and clicking “Download WOW Values.” The book offers more than $100 in total savings. According to GSCVB President Mary Kay Wydra, “we got a terrific response to the earlier edition of the WOW Value Book that we released several months ago, and it was our plan to have subsequent editions to allow our seasonal attractions to participate. We created the book for people who came to the region to attend conventions and meetings, to encourage them to visit our restaurants, shops, and attractions in their free time. It also came in handy for people who couldn’t download and print the coupons on our Web site.” Pioneer Valley residents who would like a copy of the WOW Value Book should email [email protected] and provide their name and mailing address, or call (413) 787-1548. The book’s participants include: Adolfo’s Ristorante, Artist Square Group Art Gallery, Bright Nights at Forest Park, CityStage and Symphony Hall, Frigo’s Foods, the Handbag Outlet, La Fiorentina Pastry Shop, Mana Iguana’s, Nadim’s Mediterranean Grill, the Naismith Memorial Basketball Hall of Fame, Petra Hookah Lounge, Springfield Museums, the Student Prince Café and the Fort Dining Room, Zonin’s Deli, and the Zoo in Forest Park, all in Springfield; the Pizza Guy and Six Flags New England in Agawam; the Eric Carle Museum of Picture Book Art and the White Hut in Amherst; Lee Premium Outlets in Lee; the Loft Restaurant & Lounge in Northampton; Renew.calm, Storrowtown Tavern & Carriage House, and the White Hut in West Springfield; Horizons Restaurant & Bar in Wilbraham; the Connecticut Science Center in Hartford; and Friendly’s locations throughout the Pioneer Valley.

 

Survey: Employers Increase Health and Wellness Benefits

ATLANTA — More employers are offering benefits that encourage employees to improve their health, according to a survey released by the Society for Human Resource Management (SHRM) at its 2012 Annual Conference and Exposition in Atlanta. Over the past five years, benefits that reward employees for improving their health have jumped — a sign that organizations are looking for ways to cut business costs and recognize that employees value these benefits. For example, the percentage of employers offering health and lifestyle coaching jumped from 33% in 2008 to 45% in 2012, and rewards or bonuses for completing a health and wellness program increased from 23% in 2008 to 35% in 2012. “Employers recognize that providing employees with the opportunity to improve their health can increase morale, confidence, and productivity,” said Mark Schmit, vice president of research at SHRM. “Organizations continue to look for ways to manage costs as the economy slowly improves. Benefits that encourage healthier behavior are a cost-effective way to keep up employee morale, while healthier employees also help decrease health care costs to employers and employees.” SHRM’s 2012 Employee Benefits Survey found that, while most employee benefits stabilized this year, 73% of HR professionals reported that the economic downtown negatively impacted employee-benefit offerings (11% to a large extent and 62% to some extent). This is more or less the same as in 2011, when 77% said the economy negatively affected benefits to some or a large extent. Because of the economy and recent employment-related legislation, many employers have switched to benefits that shift primary responsibility and control to employees. For example, more employers offer defined-contribution retirement-savings plans (92%) than defined-benefit pension plans (21%) in 2012, putting the impetus on employees to manage their own retirement savings instead of relying on employer-provided pensions. “By shifting primary responsibility in controlling certain health care and financial benefits, employers are recognizing a shift in workplace culture,” said Schmit. “The new plans allow employees have more control over how they save for retirement and manage their health, while reducing costs for employers. These plans are also more flexible, and thus more attractive, to employees who will likely not spend an entire career with one organization.” Employer spending on benefits remained stable this year, with organizations spending, on average, 19% of an employee’s annual salary on voluntary benefits, 18% on mandatory benefits, and 10% on pay for time employees did not work. Paid-time-off plans have become more  popular; more than half of organizations (51%) provide paid-time-off plans, a combination of traditional vacation time, sick leave, and personal days in one plan, up from 42% in 2009. For more survey data, visit shrm.org/surveys.

 

 

Construction Backlog Bounces Back in

Second Quarter

WASHINGTON, D.C. — Associated Builders and Contractors (ABC) reported that its Construction Backlog Indicator (CBI) rose 4.3% in the second quarter of 2012 after declining the two previous quarters. Despite the quarterly expansion, CBI is 0.3 months, or 4.2%, below the second quarter of 2011, and progress in the Northeast region of the U.S remains sluggish. CBI is a forward-looking economic indicator that measures the amount of construction work under contract to be completed in the future. “The CBI accurately predicted both the broader economic softness experienced during the first half of 2012, as well as a flattening of the nation’s non-residential construction recovery,” said ABC Chief Economist Anirban Basu. “The latest CBI data is now projecting gradual acceleration in non-residential construction spending, and perhaps a slight increase in the overall pace of construction activity going forward. Unfortunately, any improvement in non-residential construction activity is likely to remain modest given the ongoing uncertainty regarding America’s fiscal cliff — a number of tax increases and spending cuts that take effect at the end of the year — as well as European sovereign-debt issues and increasingly volatile energy prices. While there is pent-up demand for new construction in the power, manufacturing, and infrastructure segments, the level of economic and political uncertainty remains far too elevated to permit more aggressive non-residential-construction spending recovery in the near term.” During the second quarter of 2012, the Northeast had the smallest gain in construction backlog at 0.05 months for the quarter, and is now at 7.28 months. Across the U.S. average construction backlog rose for all monitored industry segments after declining the two previous quarters. The infrastructure segment registered the largest quarter-to-quarter construction backlog increase, up 1.4 months to more than 10 months — the first time infrastructure backlog has been above 10 months since the second quarter of 2010. Construction backlog in the heavy-industrial category is at its highest level since the first quarter of 2011, but at the lowest level of all the industry segments at 5.92 months. Construction backlog in the commercial and institutional segment is 0.85 months lower than one year ago, and now stands at 7.78 months.

 

Prices of Construction Materials Decline Again

WASHINGTON, D.C. — Prices of construction materials declined 0.7% in July, according to the Aug. 14 Producer Price Index report released by the U.S. Department of Labor. On a yearly basis, construction materials prices are down 0.6% — the first year-over-year decline since November 2009, when non-residential construction spending was at its lowest point. Non-residential construction materials prices also are down, falling 0.9% for the month and 1.2% for the year. Prices for iron and steel dropped 3.7% for the month and are 9.7% lower on a yearly basis. Softwood lumber prices fell 3.7% in July, but are still 5.9% higher than in July 2011. Steel-mill product prices decreased 2.8% for the month and are down 5.9% year over year. Prices for fabricated structural metal products slipped 1% for the month and are up 0.1% during the past 12 months. Prices for prepared asphalt, tar roofing, and siding surged 5.4% for the month, but are still down 3.8% year over year. Non-ferrous wire and cable prices increased 0.5% for the month, but are down 8.9% from July 2011. Prices for concrete products are up 0.3% for the month and are 1.8% higher year over year. Prices for plumbing fixtures and fittings inched up 0.1% in July and are 1.2% more expensive than one year ago. Crude-energy-material prices increased 0.6% in July, the first monthly increase since February 2012. Year over year, crude-energy-material prices are down 19.1%. Overall, the nation’s wholesale-goods prices increased 0.3% for the month and are 0.5% higher than in July 2011. The report “should be viewed by the non-residential construction industry as good news,” said Anirban Basu, chief economist at Associated Builders and Contractors. “Prices of a number of key inputs declined significantly last month, including steel-mill products, iron and steel, and softwood lumber. Lower construction materials prices translate into more attractive project pro-formas, which in turn make it more likely that a project will be financed and move forward. While it is true that last month’s decline in materials prices is a reflection of a still-sluggish economic environment, there are reasons for growing optimism. For example, much of the economy’s lackluster performance can be attributed to ongoing uncertainty emerging from Washington, D.C., including the looming fiscal cliff. If Congress acts soon to create greater certainty around federal budgetary and taxation issues, the level of business certainty would increase meaningfully. That would result in the availability of more risk-seeking capital to finance projects. Anecdotal and survey information indicate that bankers are becoming more aggressive in their lending. Lower and more stable materials prices are associated with less risky construction, and permanent loans and are more likely to attract capital to construction projects. This means that, for the first time in several months, more robust recovery in non-residential construction spending is conceivable. However, Congress and the administration still must act appropriately before capital becomes sufficiently risk-seeking.”

Briefcase Departments

$21 Million Approved for Union Station and PVTA
SPRINGFIELD — Congressman Richard Neal recently announced that nearly $21 million in federal funding has been formally approved for the planned renovation of Springfield’s Union Station, a historic landmark, and the Pioneer Valley Transit Authority (PVTA). Of the $21 million, $17 million will help support the renovation of Union Station into a regional transportation center, which is estimated to cost $45 million. The remaining $3.9 million will be directed to the PVTA to help underwrite maintenance of the local public-transportation system. U.S. Secretary of Transportation Raymond LaHood visited Springfield in late July to tour the historic train station and meet with local officials to discuss the redevelopment project. Neal, who has spearheaded this project since the late 1980s, expressed his satisfaction with the recent funding approval and thanked LaHood for his attention and assistance. “I have been determined to turn Union Station into a modern intermodal transportation center for many years,” said Neal. “Restoring this historic structure and turning it into a thriving 21st-century transportation center has been a top priority of mine going back to my days as mayor of Springfield. I remain convinced that the successful renovation of Union Station can literally transform the northern blocks of downtown Springfield. The renewal of this local treasure has been confirmed with this announcement, and a new generation of travelers will soon be passing though its doors.” Neal reported that $72 million in federal funding is being used to renovate the Connecticut River rail line and bring high-speed rail to Western New England, and more than $100 million is being invested in the local infrastructure. The Springfield Redevelopment Authority owns Union Station, built in 1926. Demolition of a portion of the building will commence late this year, with construction for the new renovations expected in the spring of 2013.

Pro Springfield Media Launches Web Publication
SPRINGFIELD — Pro Springfield Media, a nonprofit organization that was established in 2011 with a campaign to encourage area residents to “say something nice about their city,” recently launched an online publication called Speaking of Springfield. The publication will feature good news about the city — upbeat, up-close, and uplifting stories about residents, businesses, and neighborhoods. A section entitled “Sensations” features city sights, sounds, and signs as part of the editorial content. The publication is being managed and produced by TSM Design with support from local writers, photographers, and videographers. Speaking of Springfield is a free public medium and is funded through the support of corporations, foundations, and individuals through grants, underwriting, and donations. Individuals are encouraged to subscribe to the e-zine in order to be notified when articles are posted by logging onto www.speakingofspringfield.org.

Briefcase Departments

Paid Sick Leave Sent to Study by Lawmakers
BOSTON — Backers of a bill that would require certain employers to offer workers earned paid sick leave acknowledged in recent months that it would be an uphill battle to get the legislation passed this session. They were proven right when the Joint Committee on Health Care Financing sent the bill to a study, according to the House clerk’s office, effectively killing its chances of becoming law this session, with the Legislature planning to recess at the end of July. The paid sick-leave bill was drafted by state Rep. Cheryl Coakley-Rivera and released favorably this year from the Labor and Workforce Development Committee co-chaired by the Springfield Democrat. Paid sick-leave benefits for workers have become a perennial issue on Beacon Hill, backed by a broad coalition of organizations and lawmakers who argue that legislation would improve productivity, reduce turnover in the workplace, and drive down health care costs by allowing people to seek primary care during the day rather than visiting emergency rooms after hours. Many business groups, however, including the Massachusetts Chamber of Commerce, warn that forcing employers to provide certain benefits could discourage hiring at a precarious time for the economy. Coakley-Rivera’s bill would have allowed workers at companies with more than 10 employees to earn up to seven paid sick days a year, while employers with between six and 10 employees would have been required to allow employees to accrue up to five paid sick days. Business, however, strongly resisted mandating sick leave, warning the bill could cost the economy as many as 12,000 jobs and claiming that such policies are best established by employers.

Construction Employment Stagnates in June
ARLINGTON, Va. — Construction employment stalled in June as more former construction workers left the industry, according to an analysis of new federal data released by the Associated General Contractors of America. The lack of current job openings, along with the departure of experienced workers, suggests a potential skilled-labor shortage may be developing, construction association officials warned. “Employment in the construction industry has fluctuated within a very narrow range — 1% above or below the June level of 5.5 million — for more than two years now,” said Ken Simonson, the association’s chief economist. While the latest figure was 14,000 higher than one year earlier, the June 2012 total was just 2,000 higher than in May and in June 2010. “Construction employment has essentially been stagnant for much of the past two years.” Meanwhile, the unemployment rate for former construction workers fell to 12.8%, the lowest June rate since 2008 and much better than the 15.6% rate in June 2011 or the 20.1% rate in June 2010, Simonson noted. He added that, over the past two years, nearly 750,000 experienced workers have either found jobs in other industries, returned to school, retired, or otherwise left the workforce. “It will be hard for construction firms to get those skilled workers back when demand picks back up.” There was little difference among construction segments in terms of recent job gains or losses, Simonson noted. Residential construction added 1,700 total jobs in June and 8,900 (0.4%) over 12 months. Non-residential construction firms lost 600 jobs in June but added 4,300 (0.1%) over 12 months. Within the residential segment, residential specialty trade contractors added 7,600 jobs for the month and 14,100 (1.0%) over the past year, reflecting ongoing strength in multi-family construction. In contrast, residential builders — mostly single-family homebuilders — lost 5,900 positions in June and 5,200 (–0.9%) over 12 months. Non-residential job gains for the year were concentrated among non-residential building contractors, which lost 1,000 jobs in the latest month but added 4,300 (0.7%) over 12 months. Heavy and civil-engineering construction firms shed 2,000 jobs in June and 1,800 (–0.2%) in the past year. Non-residential specialty trade contractors boosted employment by 2,400 since May but only 1,800 (0.1%) since June 2012. Association officials noted that one bright spot for the industry was the 27-month highway and transit bill the president recently signed into law. They said the legislation includes many significant reforms that will allow more existing transportation funds to be invested in highway and transit construction projects, as opposed to unrelated programs. “This measure will certainly help staunch the decline in construction employment among highway and transportation builders,” said Stephen Sandherr, the association’s chief executive officer. “Congress understands that investing in infrastructure is one of the best ways to support growth within the private sector.”

Summit Focuses on Academic Advising
SPRINGFIELD — More than 70 community-college faculty and advisors met at the Springfield Technical Community College (STCC) campus to participate in an academic advising summit on June 22 to focus on advising as a collaborative approach. The summit workshops explored national best practices in academic advising, apprised academic advisors of National Academic Advising Assoc. (NACADA) services and resources that support more effective academic advising, and detailed how to improve both individual academic-advising skills and overall campus academic programs. Sessions included topics about career exploration and advising tools, introduced advisors to the Advising Is Teaching program, and discussed important updates to advising software. Keynote speaker Susan Kolls, associate director of Student Account Services at Northeastern University and a member of the NACADA board of directors, said students today are faced with a variety of challenges. They work hard both in and outside the classroom balancing school, work, and families; they struggle with financial issues; and many are in the military, often finishing their schoolwork while in the combat zone. “We’re looking at the whole student,” said Kolls. “None of our students are only students, and if we don’t look at the things that impact them, if we only look at the academic side, we can’t help them with the things outside of school.” Knowing a student’s background, Kolls said, can help advisors understand how a student is better, or less, able to cope with their situation. Through her interactive session, Kolls questioned how to get faculty, staff, and advisors to think about all of the contributing factors that impact a student’s success. According to Kamari Collins, STCC’s director of Academic Advising, the summit allowed advisors from the region to get together and start a conversation. “It was a good way to have everyone focus and strengthen our campus as a whole, and it was a great opportunity for us to share our best practices with our colleagues at the other community colleges.” The summit, made possible through the Board of Higher Education’s Vision Project Performance Incentive Grant, was available to the four community colleges in the Western Mass. Vision Project Exchange: Berkshire Community College, Greenfield Community College, Holyoke Community College, and STCC. This was the first time STCC has hosted the summit.

Hiring Lukewarm in June
NEW YORK — Hiring was lukewarm last month, with employers adding jobs but not enough to bring the unemployment rate down. The economy added 80,000 jobs in June, the U.S. Labor Department reported, barely an improvement from the 77,000 jobs added in May. Meanwhile, the unemployment rate remained at 8.2%. Economists surveyed by CNN Money had expected to see employers add 95,000 jobs and the unemployment rate to remain unchanged. The labor market has been volatile this year, with job growth starting off strong in the first couple months of 2012. Then a disappointing slowdown in the spring led many to wonder whether the recovery was taking a turn for the worse. June’s weak growth added to those fears. The economy needs at least 125,000 jobs added each month just to keep up with population growth. Revisions from previous months also showed the economy gained 1,000 fewer jobs in April and May than originally thought. Overall, the job market has a long way to go to climb out of the deep hole left by the financial crisis. Of the 8.8 million jobs lost, only about 3.8 million have been added back. Roughly 12.7 million Americans remain unemployed, and 41.9% of them have been so for six months or more. Another 88 million out-of-work people were not even counted as unemployed because they didn’t look for a job in the last four weeks.

Briefcase Departments

UMass President Awards $750,000 for Innovative Faculty Research
BOSTON — UMass President Robert Caret recently announced nearly $750,000 in grants to faculty members from the President’s Science and Technology Initiatives Fund to support six promising research projects, which range from creating standards for testing robotic systems to detecting financial fraud in large-scale securities data to developing new skin-cancer imaging technologies. The initiatives showcase a range of innovative research being undertaken by UMass faculty members that contribute to the growth of the Commonwealth’s economy, especially in the science and technology sectors, and extend the boundaries of human knowledge. The grants provide seed funding to accelerate research activity across all five campuses and position researchers to attract larger investments from external sources to expand the scope of their projects. “The Science & Technology fund advances the work of producing the discoveries and technological breakthroughs that will improve lives, create jobs, and preserve our planet,” said Caret. “It supports the ideas and inventiveness of our faculty and fosters a culture of collaboration across all five campuses that attracts investments and underscores our role as an innovation engine for the Commonwealth.” This marks the ninth year the President’s Science and Technology Initiatives Fund awards have been handed out. It’s one of three funds that President Caret taps to help advance the work of UMass faculty members: the other two are the Commercial Ventures and Intellectual Property Technology Development Fund and the Creative Economy Initiatives Fund. Since 2004, the Science & Technology Fund has provided $7.5 million to UMass researchers, which, in turn, has generated $207 million in funding from outside sources for vital research efforts and led to the creation of nearly 20 research centers on the five campuses. UMass’s annual research expenditures climbed to $587 million in fiscal year 2011; that same year the university generated income of $36.5 million from faculty discovery and innovation. To date, the President’s Science & Technology Fund has financed more than 60 projects representing the breadth of academic inquiry at UMass. Locally, a grant project at UMass Amherst called ‘Big Data Informatics Initiative (BDI2)’ focuses on areas such as detecting financial fraud in large-scale securities data, correlating video/audio surveillance data to spot trends or anomalies in real time, and smart-meter data processing by energy utilities. Collaborators include the Massachusetts Green High Performance Computing Center, Holyoke Gas & Electric, MIT, and commercial partners such as EMC, Nokia, GE Global Research, and Yahoo Research. The total awarded was $136,250.

MCDI Transitions to Family Self-sufficiency Focus
SPRINGFIELD — The Massachusetts Career Development Institute Inc. recently announced a transition in its core services that will increasingly revolve the agency around family self-sufficiency initiatives and de-emphasize some workplace-training programs, many of which are now being undertaken at the community-college and vocational-secondary-school level. The move will have the immediate impact of downsizing the organization by 15% of its current workforce. The agency will also plan to relocate to a smaller, more efficient training and educational facility within Springfield as it transitions to a more appropriate operating model, according to Timothy Sneed, executive director of MCDI. The new emphasis at MCDI will be on career counseling and training tracks that are in high demand, eliminating those that are being shifted to other training sources. However, MCDI will continue its vocational training programs that address the growing employer demand in health care through its Certified Nurse Aide/Home Health Aide and Medical Office Professional training programs. Sneed said he anticipates an opportunity for MCDI to grow into other health-related training programs based on employers’ needs. Sneed indicated that, in an effort to focus on program strengths, MCDI is evolving into an agency that supports “family self-sufficiency” and will provide a host of direct and indirect resources in support of the family. “There has been a shift in the funding landscape with respect to vocational training, and most federal and state dollars are targeted at funding community colleges and technical-high-school programs,” said Sneed. “So, in many areas MCDI has been duplicating services with more training funding going to the community colleges and vocational programs at the secondary-school level. We will continue to provide multiple levels of adult basic education and English for speakers of other languages (ESOL) together with career and academic advising. Our support-services strategy will include job-readiness and life-skills training, which is so critical in today’s job market. We will temporarily discontinue our trade programs in culinary arts, precision-manufacturing technology, and sheet-metal welding and fabrication.” He continued, “while this reorganization is difficult, we see this as an opportunity to strengthen our core training programs with a vision of future expansion opportunities. The impact upon a portion of our workforce is truly unfortunate. At the same time, our management and board of directors see this as a positive step in the long-term viability of MCDI and, most importantly, those we serve in our community.”

GSCVB Unveils 2012-13 Pioneer Valley Visitor Guide
SPRINGFIELD — The Greater Springfield Convention and Visitors Bureau (GSCVB) has unveiled the new 2012-2013 Guide to Masachusetts’ Pioneer Valley, which is now available by ordering online at www.valleyvisitor.com. The guide is free of charge and is a collaboration between the GSCVB and the Franklin and Hampshire County Regional Tourist Councils. The guide, a 112-page publication, contains information about some of the region’s top attractions, accommodations, and restaurants. The book offers new features, including a listing of farmers’ markets and expanded listings of attractions, accommodations, restaurants, shopping, transportation, recreational sites, colleges, and prep schools.

Briefcase Departments

Springfield Parking Authority Reorganized

SPRINGFIELD — Mayor Domenic Sarno and Springfield Parking Authority (SPA) Chairwoman Mary E. McNally recently announced several changes at the Springfield Parking Authority. The SPA board has eliminated the position of executive director effective June 30, 2012. Harold King currently serves as the SPA’s Executive Director. Ehsanul Bhuiya will oversee day-to-day operations at the SPA on an interim basis. Springfield Redevelopment Authority Executive Director and former SPA Executive Director Christopher Moskal will temporarily provide management oversight for the SPA. In preparation for a refinancing of the SPA bonds due in June of 2013, and the issuance of a request for proposals (RFP) for the management of on and off street parking currently contracted to Republic Parking and expiring in early 2013, Sarno has directed the City’s Director of Internal Audit Cecilia Goulet, to undertake a review of the SPA’s current financial position and report back to him and the SPA Board of Directors within 60 days.
“Taking better advantage of the economic development capabilities of the Springfield Parking Authority as an essential element in our economic development delivery system is key to our continued success,” said Sarno. “With the current debt of the authority and the conditions of its facilities, especially the civic center garage, it is important for the city to make sure that there is a clear expectation of the SPA, better management and marketing of all on and off street parking in the downtown area and its return to its original role as an economic development tool for the city.” Since last year, the City has been working with the Commonwealth of Massachusetts and MassDevelopment on the issue of parking in the downtown. A study was commissioned by MassDevelopment and was recently presented to the business community by Utile Inc. The study assesses the current parking inventory and demand in downtown as well as locations for potential new parking sites to replace the aging Civic Center garage in the central business district.

 

UMass Family Business Center Forges Partnership with BFF Affiliate Network

AMHERST — The UMass Amherst Family Business Center has joined the Business Families Foundation (BFF) Affiliate Network to work collaboratively on developing additional educational material, supporting business-family communities, and encouraging research in the field of family business. As a philanthropic organization, the BFF supports research and develops and disseminates educational material to family enterprises and professionals working with them to help them be aware of and address their unique growth and development challenges. It has been working for the past decade with a collaborative network of university-based centers for family enterprise and is welcoming new centers to join this affiliate network worldwide. These centers provide a wide range of courses, services, and activities to business family communities and are also providers of BFF’s “Road Map for Entrepreneurial Families” in-class program. “The UMass Family Business Center shares our values and those of our affiliate network members in their dedication and care in serving business-family communities in their region through quality continuous education,” said Dr. Pascale Michaud, president of BFF. Members of the BFF Affiliate Network contribute to the shared goal of increasing awareness of the unique features of family-owned enterprises and entrepreneurial families by offering educational and continuous learning options for business family members, those who advise them, and students in the field who may be helpful in anticipating and dealing with family business growth and development. For more information, contact Ira Bryck at the UMass Family Business Center at (413) 545-4545 or [email protected].

 

U.S. Family Wealth Shrank During the Recession

WASHINGTON — The Great Recession left the median U.S. family in 2010 with no more wealth than it had in the early 1990s, erasing more than two decades of accumulated prosperity, the Federal Reserve announced recently. The median family had a a net worth of $77,300 in 2010, compared to $126,400 in 2007, the Fed announced. The crash of housing prices explained three-quarters of the loss, which was compounded by the loss of income, as the earnings of the median family fell by 7.7% during the same period. The new data comes from the Fed’s release of its triennial Survey of Consumer Finance, one of the broadest and deepest sources of information about the financial health of U.S. families. The latest survey is based on data collected in 2010, and figures are reported in 2010 dollars. The survey underscores the fact that Americans are saving less for future needs and making little progress in repaying debt. The share of families saving anything over the previous year fell to 52% in 2010 from 56.4% in 2007.

 

Briefcase Departments

Youth Summer Jobs Campaign Underway
SPRINGFIELD — The Regional Employment Board (REB) of Hampden County Inc., in conjunction with the FutureWorks and CareerPoint one-stop career centers, is seeking summer-employment opportunities for youth between the ages of 14 and 21. “The demand for youth summer-employment opportunities is great, with so many young people in search of a chance to work, learn, earn, and possibly be mentored,” said Joseph Peters, chair of the REB board of directors, in a letter to area businesses on the Youth Summer Jobs Campaign 2012. There are three ways employers can help: hire a youth, donate money, or become a work site. All youths receive 10 hours of work-readiness skills training before employment. “Youths are referred to you, and you make the final selection,” noted Peters. Also, a minimum donation of $150 is welcome from organizations and businesses to help pay wages for one week for a youth working in a community-betterment project in a park, camp, or nonprofit agency. Peters added that businesses should consider being a work site, and the youth will be paid by the REB. “It’s another great way to cover for employee vacations,” he said. Last year, 205 employers were involved in putting more than 1,200 young people to work. “Your private dollars expand summer opportunities to youth who may not meet the eligibility requirements of government-funded summer-jobs programs, as well as to those with limited family income,” said Peters. For more information, call (413) 787-1547 or visit www.rebhc.org.

Community-wellness Grant Projects Launched
HOLYOKE — Northampton Mayor David Narkewicz and Holyoke Mayor Alex Morse recently joined several state legislators to celebrate the expansion of the Mass. Department of Public Health’s (MDPH) Mass in Motion Municipal Wellness and Leadership Program. There are now 53 municipalities across the state that participate in the program. The Hampshire Council of Governments was awarded the Mass in Motion grant in October and will be partnering with the SPIFFY Coalition to implement efforts around healthy eating, nutrition, and physical activity. The Tobacco-free Living Initiative will be the work of the Tobacco Free Community Partnership, a Hampshire Council of Governments’ program. Targeted communities for this grant are Amherst, Belchertown, Northampton, and Williamsburg. The expansion, funded by a Community Transformation Grant awarded to MDPH by the Center for Disease Control and Prevention, adds Holyoke and communities from Franklin and Berkshire counties to the current Mass in Motion communities in Western Mass., which include Springfield, Lee, Lenox, and Stockbridge. Through unique partnerships and cross-department collaboration, communities will work to develop and implement prevention-based policies, systems, and strategies to encourage healthy eating and active living to help reduce obesity and promote tobacco-free living. Collectively, these initiatives will work with local schools to improve walkability and bikeability to area schools; establish community-design standards to make streets safe for all users, including pedestrians, bicyclists, and users of public transit; improve the nutritional quality of foods and beverages served or available in schools; increase the accessibility, availability, affordability, and identification of healthful foods by working with local retailers to promote healthier food and beverage options; and adopt policies to increase the number of multi-unit properties that are smoke-free. For more information on participating in the project, call Todd Ford of the Hampshire Council of Governments at (413) 584-1300, ext. 121, or Sue Cairn of the Hampshire Education Collaborative at (413) 586-4998, ext. 114.

Service Group Funding Replacement of Trees
SPRINGFIELD — Service Group Inc., the primary Clean and Safe contractor for the Springfield Business Improvement District (SBID), will fund the replacement of 11 trees in the downtown area damaged by last June’s tornado. Service Group, based in Malvern, Pa., is offering the trees as a gift to thank the downtown Springfield property owners who fund the SBID. “We walked the tornado-damaged areas over the summer, and saw that the void left by the lack of trees was stunning,” said Service Group executive Nick Bendistis. “This gift is a pretty obvious way of giving back to a community that we care deeply about. We are an engaged partner in Springfield’s revitalization.” Eleven trees throughout the downtown that were either damaged or destroyed by the tornado have been selected for replacement. The first tree to be replaced is outside of Tower Square by the CVS entrance at 1500 Main St.

Briefcase Departments

Springfield Official
Named to Casino Panel
BOSTON — Bruce Stebbins, business development director for the city of Springfield since September 2010 and a former member of the Springfield City Council, has been named to the Massachusetts Gaming Commission. The five-member panel is now complete. The other members are Chairman Steve Crosby; Judge James McHugh, who served on both the Superior Court and the Massachusetts Appeals Court; Gayle Cameron, a former New Jersey State Police lieutenant colonel; and Enrique Zuniga. Prior to his work with the city, Stebbins worked for the National Assoc. of Manufacturers and the Mass. Office of Business Development.

WMECo Grant Seeks to Boost Industry Competitiveness
SPRINGFIELD — The precision-manufacturing industry in Western Mass. received a major boost recently with the announcement of a $10,000 private initiative to increase the skills competencies of employees. The Regional Employment Board of Hampden County Inc. (REB) received the grant from Western Massachusetts Electric Co. (WMECo) to provide skills-enhancement courses and college-credit courses to 65 incumbent employees of the region’s precision-manufacturing companies. The award will be used as a match to a $150,000 grant received by the REB and its partners represented by the Western Mass. Chapter of the National Tooling Machining Assoc. (WMNTMA), which was announced in October by Secretary Gregory Bialecki of the Mass. Executive Office of Housing and Economic Development. The $150,000 grant from the Massachusetts Technology Collaborative’s John Adams Innovation Institute supports the work of the REB’s Precision Manufacturing Regional Alliance Project (PMRAP), which is focused on generating innovative and creative ideas that will raise the industry’s and region’s economic profile. “We are pleased to make a contribution to education that will stimulate growth for small and medium-sized precision-manufacturing companies,” said Peter Clarke, WMECo president and COO. “The region will benefit from sustained job creation and continued economic development.” In addition to the REB and the WMNTMA, partners in PMRAP include Holyoke Community College, Springfield Technical Community College, the Economic Development Council of Western Mass., and the region’s seven vocational-technical-comprehensive high schools. “The Patrick-Murray administration has made strong investments in growing the Commonwealth’s advanced manufacturing industry,” noted Bialecki. “This grant, in addition to the $150,000 grant from last year, will go a long way to helping give employees the vital training they need to help support their companies’ and industry’s continued growth.”

Forgay Shares Professional Leadership Secrets
LONGMEADOW — Bushido Business: The Fine Art of Professional Leadership is a new anthology featuring Richard Forgay II, president and CEO of Business Leadership Mastery. Forgay joins forces with internationally recognized business icons to share their secrets of success in ways one can immediately apply to business and life for sustainable success. Bushido is the traditional ethical code, or ‘way of the warrior,’ of the Japanese samurai. It is founded on the seven values by which they conducted their life and business of warfare — honesty and justice, heroic courage, compassion, polite courtesy, complete sincerity, loyalty, and duty and honor. Forgay, along with authors and professional speakers Tom Hopkins, Brian Tracy, and Stephen Covey, apply this historical code to the challenges faced by today’s leaders in business, government, education, and other diverse arenas. Forgay noted that the book shares time-proven methods of achieving sustainable success through leadership, team building, sales, marketing, business operations, interpersonal relationships, and customer-service excellence. Forgay’s contribution to the anthology is titled “Mastering the Bushido Code.” “Bushido Business is a moral compass, an authentic expression of individual and organizational values that defines their influence and culture,” he said. With straightforward language and supporting diagrams, Forgay applies the Bushido Code to modern-day professional leaders and actual events. Then he facilitates a structure for readers to apply their own virtues and values to be prepared to do the same in their chosen fields of expertise through a series of self-assessment Bushido Challenges that, if accepted, promise to produce immediate and transformational results. Forgay challenges leaders to embrace their traditional principles and values as the blueprint for major transformation. “Adherence to empowering values is always in vogue,” he said. “Identifying and activating value-based cultural standards of excellence is a way for leaders and teams to embody dignity, trust, and professionalism in their realms of responsibility among those they lead and serve in the business, government, educational, and spiritual communities.” Forgay educates and empowers top executive and entrepreneurial leaders to excel at growing companies where people, productivity, customer satisfaction, and profits thrive in any economy. For more than two decades, he has led and served thousands of people to achieve all-time-high sales and multi-million-dollar revenues, and he has earned international recognition as an effective executive leader in high-pressure, intensely competitive environments in the highest levels of corporate America. For more information on Bushido Business, visit www.businessleadershipmastery.com. Insight Publishing of Sevierville, Tenn. released the book on March 7. It retails for $19.95.

Project Provides Free Interview Clothes
ENFIELD, CT — For many soon-to-be college graduates at Asnuntuck Community College, Stacy’s Closet is a way to relieve some of the stress students with limited resources face, according to Stacy Lanigan, associate director of career services. Stacy’s Closet, now in its sixth year, solicits donations year-round of gently used business clothes from the college’s faculty and staff, as well as the surrounding community. In keeping with the community college’s mission, Lanigan noted that the clothes are also available free to members of the community. She said the college is committed to serving all residents in its service area, which includes Enfield, East Granby, East Windsor, Ellington, Granby, Somers, Stafford Springs, Suffield, and Windsor Locks. Stacy’s Closet accommodates students graduating in June and December. Offerings include shirts and blouses, business suits, shoes, belts, and ties. “We aim to prepare the whole student,” said Katie Kelley, dean of Student Services. “Not just academically, but also for the expectations in the workplace and the interview process.” Donations of clean, professional attire on hangers are being accepted through April.

Construction-industry Employment ‘Sluggish’
WASHINGTON, D.C. — In the week ending March 10, the advance figure for seasonally adjusted initial claims in the construction industry was 351,000, a decrease of 14,000 from the previous week’s revised figure of 365,000, according to the U.S. Labor Department. The four-week moving average was 355,750, unchanged from the previous week’s revised average of 355,750. The advance seasonally adjusted insured unemployment rate was 2.6% for the week ending March 3, a decrease of 0.1 percentage point from the prior week’s unrevised rate of 2.7%. The advance number for seasonally adjusted insured unemployment during the week ending March 3 was 3,343,000, a decrease of 81,000 from the preceding week’s revised level of 3,424,000. The four-week moving average was 3,394,250, a decrease of 25,250 from the preceding week’s revised average of 3,419,500. In related news, Associated Builders and Contractors noted that, despite a loss of 13,000 construction jobs in February, the industry’s unemployment rate dipped to 17.1%, down from 17.7% in January. The nation’s construction industry has added 65,000 jobs, up 1.2%, since February 2011, when the unemployment rate stood at 21.8%. The non-residential building construction sector added 2,000 jobs in February and has added 15,000 jobs, or 2.3% year over year, with employment now standing at 663,200. The residential building construction sector added 2,000 jobs for the month and has added 7,000 jobs, up 1.3%, compared to one year ago, with employment at 573,000. “Predictions for monthly job growth have been on the rise, and February’s performance exceeded those expectations,” said ABC chief economist Anirban Basu. “However, that is only true for the broader economy, not for the construction industry.” Basu added that ABC’s Construction Backlog Indicator, which declined during the fourth quarter of last year, foreshadowed this jobs report and indicates that construction-industry employment is likely to be sluggish in the months ahead. “The good news is that the overall economy continues to mend, implying ongoing recovery in construction spending,” said Basu. “This should eventually translate into more-stable non-residential construction employment growth later this year.” The largest increases in initial claims for the week ending March 3 were in New York (+16,478), California (+4,320), Pennsylvania (+2,859), Texas (+2,116), and Virginia (+1,554), while the largest decreases were in Massachusetts (-2,974), Rhode Island (-1,071), New Jersey (-1,034), Puerto Rico (-562), and Kentucky (-284). Overall, the nation added 227,000 jobs as the private sector expanded by 233,000 jobs and the public sector shrank by 6,000 jobs, according to the Labor Department. Year over year, the nation added 2,021,000 jobs, up 1.5%. The unemployment rate stood at 8.3% in February, unchanged from January.

‘Western Mass. Economic Review 2012’ Available
SPRINGFIELD — Western Massachusetts Electric Co. (WMECo) recently published “Pioneering Futures: Western Massachusetts Economic Review 2012,” reviewing the lifestyle, educational, and business aspects that make the area an attractive region. “Western Mass. offers a prosperous future for businesses looking to move to the region,” said Peter Clarke, president and chief operating officer of WMECo. “WMECo proudly produces this publication in order to expose the many appealing attributes of this unique location.” Clarke noted that some areas covered in the review include the region’s industry mix, business innovation, education and productivity, international trade, and quality of life. The review also compares the region’s ranking in these and other areas to nearby regions and other states. The review can be found at www.wmeco.com/business/growyourbusiness/publications.aspx?sec=nr. Printed copies may be requested by calling (413) 787-9333.

Briefcase Departments

Federal Budget Cuts Would Impact Bay State
BOSTON — With a precarious economic recovery to preserve, currently mandated federal spending cuts of $1.2 trillion over the next 10 years are set to begin in 2013. The Budget Control Act of 2011 requires that these cuts be split equally between defense and non-defense programs, and they include reductions to Medicare and other mandatory spending programs. Assuming that the cuts will be enacted in accordance with the Budget Control Act, MassBenchmarks used REMI, a forecasting and comprehensive economic tool that answers ‘what-if’ questions about the state’s economy, to estimate the potential impact the cuts would have in Massachusetts. MassBenchmarks is published by the UMass Donahue Institute in cooperation with the Federal Reserve Bank of Boston. The Donahue Institute is the public-service, outreach, and economic-development unit of the UMass Office of the President. While Massachusetts relies heavily on federal defense spending, other leading industries would also be substantially affected, including professional and technical services, health care, and social assistance, resulting in approximately 52,000 jobs lost, according to the study. The types of jobs expected to be lost range widely, but on average they require higher levels of educational attainment and are high-paying with benefits. Significantly, they are within the sectors that have allowed the Massachusetts economy to outperform the nation in recent years, a fact that underscores the stakes for the Bay State in ongoing federal budget debates, according to Dr. Martin Romitti, MassBenchmarks managing editor and director of economic and public policy. “A reduction in state employment of 52,000 is more than 20% larger than the entire net increase in employment the Commonwealth experienced during 2011, when net job growth was an estimated 40,500,” said Romitti. “The pattern of these job losses strike at the very heart of the Massachusetts innovation economy. In addition to the 10,000+ federal civilian and military jobs that our model estimates would be lost, other leading industries would be substantially affected.” The study estimates that professional and technical services would experience a loss of nearly 10,000, health care and social assistance would lose more than 6,000. “What is not captured fully by these numbers is the collateral damage the cuts could trigger,” Romitti continued. “There is no way to conjecture what future innovations would be lost without the support to the state’s high-technology sector provided by federal dollars. A large number of important inventions and innovations in modern times can be traced to federal support of research and development.” Dr. Robert Nakosteen, MassBenchmarks executive editor and professor of Economics at UMass Amherst, echoed those sentiments. “These clusters require a critical mass of activity to thrive, and large federal budget cuts threaten this diverse community of firms,” he said. “These budget and job cuts are not inevitable. Congress and the president could finally agree on a grand bargain to rationalize budget cuts and combine them with revenue increases. The allocation of cuts could also be very different than our assumptions in making these estimates, which are based on the sequestration rules and past patterns of sector-specific expenditures in Massachusetts. It is possible, for instance … that a leaner military could depend on more high-technology support systems, favoring the state’s comparative advantage.”

Report: Bank Customer Switching Rates Rise Again
WESTLAKE VILLAGE, Calif. — Consumer backlash against bank fees, coupled with poor service and unmet customer expectations, has fueled increases in defection rates among customers of large, regional, and midsize banks, according to the J.D. Power and Associates 2012 U.S. Bank Customer Switching and Acquisition Study recently released. On the heels of Bank Transfer Day on Nov. 5, 2011, the beneficiaries of the accelerated exodus from larger banks are primarily smaller banks and credit unions. Acquisition of new customers by smaller banks and credit unions has increased by 2.2 percentage points to an average of 10.3% in 2012 from 8.1% in 2011. Among big banks, regional banks, and midsize banks, switching rates average between 10% and 11.3%, while the defection rate for small banks and credit unions averages only 0.9%, a significant drop from 8.8% in 2011. The study, which examines the bank shopping and selection process, finds that 9.6% of customers in 2012 indicate they switched their primary banking institution during the past year to a new provider. This is up from 8.7% in 2011 and 7.7% in 2010. The study finds that, not unexpectedly, fees are the main reason customers shop for a new primary bank. In particular, one-third of customers of big and large regional banks cite fees as the main shopping trigger. “When banks announce the implementation of new fees, public reaction can be quite volatile and result in customers voting with their feet,” said Michael Beird, director of the banking services practice at J.D. Power and Associates. However, according to Beird, customers weigh the price they pay against the value of their experience. “It is apparent that new or increased fees are the proverbial straws that break the camel’s back,” said Beird. “Service experiences that fall below customer expectations are a powerful influencer that primes customers for switching once a subsequent event gives them a final reason to defect. Regardless of bank size, more than one-half of all customers who said fees were the main reason to shop for another bank also indicated that their prior bank provided poor service.” In capturing customers who are shopping for a new bank, several of the more successful banks achieve higher acquisition rates through the use of promotions and cash incentives. Nearly 20% of customers indicate these promotions were the reason they selected their new bank. However, according to Beird, doing a good job for customers is not just about dollars, but also about loyalty and retention. “Only 32% of customers who selected a new bank because of promotional offerings said they definitely would not switch banks again in the next 12 months,” he said. “In comparison, 46% to 51% of customers who chose the new bank because of either good service experience or positive recommendations say they definitely will not leave within the next year.”

Students Protest Community-college
Board Consolidation
HOLYOKE — Occupy Holyoke Community College (OHCC) facilitated a campus-wide student walkout at the college on March 1 as part of a nationwide day of student action. The event took place on the plaza and featured speakers, music, and a speak-out. It was noted that students “are deeply concerned with Gov. Deval Patrick’s plan to consolidate the community-college boards of Massachusetts.” Speakers cited research that indicates that the student voice has been shut out of this decision. Overall, students felt “disheartened” that Patrick would target a plan for workforce development at schools that serve a diverse student population that includes low-income and non-traditional students. Protest organizers noted that a petition circulated that day stated that students will not allow the campus to become a location “simply used for job training.” The petition will be delivered to Patrick’s office in the coming weeks.

Briefcase Departments

Construction Backlog Falls 3.2% in 4th Quarter
WASHINGTON, D.C. — Associated Builders and Contractors (ABC) recently released its Construction Backlog Indicator (CBI) for the fourth quarter of 2011, which declined 3.2% from the previous quarter, from 8.1 months to 7.8 months, but is still up 10.9% compared to the fourth quarter of 2010. CBI is a forward-looking economic indicator that measures the amount of non-residential construction work under contract to be completed in the future. “Overall, the latest CBI numbers indicate a degree of stalling in the recovery of the nation’s non-residential construction industry, likely due to a combination of the soft patch that developed in the broader economy early last year, a number of seasonal factors, and the winding down of federal stimulus projects,” said ABC Chief Economist Anirban Basu. “But the good news is that, given the recent acceleration in economic and employment growth, CBI is positioned to rebound more forcefully during the quarters ahead. In addition, the most recent data reflect the ongoing expansion in privately funded construction activity as opposed to the contraction of publicly funded construction. Basu noted that the nation’s smaller construction firms are gaining an advantage from this shift, in contrast to the decreased construction activity among the larger firms that had benefited from earlier federal stimulus projects and military-base-realignment-related construction.” Regionally, the construction backlog expanded in the Northeast from the third quarter to the fourth quarter, but declined in the South and West, and was essentially unchanged in the middle states. Also, the construction backlog is higher in every region of the nation compared to one year ago. Companies in the south, some of which are located in high-growth states such as Louisiana, Oklahoma, and Texas, reported the lengthiest backlog at 8.9 months, up 14.7% from the fourth quarter of 2010. “The disparity between regional construction activity is on the rise,” said Basu. “One year ago, the difference in backlog between the South region, with the lengthiest backlog, and the West region, with the shortest backlog, was 1.98 months. During the fourth quarter of 2011, this gap rose to 2.81 months, with the South reporting a backlog of 8.92 months and the West at 6.11 months. The South appears to be the region most positively impacted by rebounding non-residential construction, largely due to its central importance to the nation’s energy industry.” Basu added that the West “continues to deal with many issues, including the impact of weak residential real-estate markets and stressed state fiscal conditions, both of which impact the vitality of broader regional economies.”

MMWEC, Utilities Receive Energy-efficiency Grant
LUDLOW — A first-time grant of $200,000 from the state Department of Energy Resources (DOER) will enable three municipal utilities and the Massachusetts Municipal Wholesale Electric Co. (MMWEC) to expand energy-efficiency programs for their commercial and industrial customers. Using the MMWEC energy-efficiency program model, the MMWEC member utilities in Westfield, Chicopee, and Ipswich received grants totaling $142,500, primarily to bolster customer-rebate programs that offset the cost of making energy-efficient improvements. MMWEC received a grant of $7,500 to promote its energy-efficiency program and assist municipal utilities with delivery of related customer services. “This grant is certainly a welcomed contribution to expanding the energy-efficiency services provided by these municipal utilities,” said MMWEC CEO Ronald C. DeCurzio. “We are hoping the allocation of these funds can be expanded in the future to benefit additional municipal utilities and their customers.” MMWEC coordinated the competitive grant-application process for its member utilities in Westfield, Chicopee, and Ipswich, while the Reading municipal utility also received funding for an energy-saving water-heating program. The MMWEC members will use the grants to increase rebates and energy-audit funding for commercial and industrial customers. Generally, the efficiency measures covered include improvements in heating and cooling, windows, boilers and furnaces, lighting, energy-monitoring systems, and insulation. The grants are funded through proceeds from the Regional Greenhouse Gas Initiative, a regional cap-and-trade, emissions-reduction program that has generated more than $150 million for Massachusetts through the sale of emission allowances. “Westfield is delighted to be among the first municipal utilities in Massachusetts to receive a grant from the DOER,” said Westfield Gas & Electric General Manager Daniel J. Howard. “We have worked hard at initiating a program for our commercial and industrial customers that promotes conservation and energy efficiency while expanding existing programs to our residential customers.” Chicopee Electric Light Manager Jeffrey R. Cady echoed those sentiments. “The DOER grant will enable Chicopee to move forward with expanding programs to better serve our customers and help meet our system needs with energy efficiency and conservation initiatives,” said Cady. “Using energy efficiently is essential in delivering a reliable and economic supply of electricity to Chicopee consumers. This grant will keep us moving in that direction.” MMWEC is a nonprofit, public corporation and political subdivision of the Commonwealth of Massachusetts that provides a variety of power-supply, financial, risk-management, and other services to the state’s consumer-owned municipal utilities.

Briefcase Departments

Friendly Is Closing 37 More Restaurants
WILBRAHAM — Friendly Ice Cream Corp. closed another 37 stores recently, including 10 in the Bay State, before emerging from Chapter 11 bankruptcy protection. The chain, based in Wilbraham, has closed about 40% of its locations in Massachusetts and 20% overall (about 100 restaurants in total) since filing for bankruptcy protection last October. Locally, stores in Springfield, Holyoke, and Great Barrington shut their doors. The most recent closings will result in nearly 800 people losing their jobs, the company said. A spokesperson for Friendly said the company restructured leases for some sites, but could not reach agreements with landlords for 37 restaurants and decided to shut them down at the close of business on Jan. 8.

HCC To Acquire
Grynn & Barrett Studio
HOLYOKE — State Sen. Michael Knapik (R-Westfield) and state Rep. Michael Kane (D-Holyoke) recently announced that legislation authorizing Holyoke Community College (HCC) to borrow $7 million from the Mass. Development Finance Agency for the acquisition and renovation of Grynn & Barrett Studios has passed both branches of the legislature and is headed to Gov. Deval Patrick for his approbation. The bill, which was filed last January, will allow HCC to create a state-of-the-art educational facility for the associate’s degree in Nursing and the Practical Nursing and Radiologic Technology programs at the site currently occupied by the Grynn and Barrett Photography Studios. The building is located across from the college’s secondary access road on Homestead Avenue. These funds will provide an additional 22,000 square feet for specialized and general instruction, and will allow the college to repurpose space on campus freed up by the relocation of these programs. In 2008, the Mass. Division of Capital Asset Management (DCAM) commissioned a space-reallocation study, which concluded that HCC was tightly packed, and the current campus would not allow for projected increases in enrollment. The college has pledged to continue to work with DCAM to develop strategies to address space issues in the future. “This legislation will allow Holyoke Community College to prepare more students for careers in nursing and health care to meet the growing demand for qualified workers,” said Knapik. “This will not only be a boost for the college but for the Pioneer Valley as whole, as many of the students and former students live and work within our communities.” A major component of the new facility will be the HCC SIMuCENTER. This program will introduce simulation into the nursing curriculum, providing students the opportunity to learn clinical decision-making skills, refine technical skills, gain competency in recognizing and preventing common medical errors, and practice a wide variety of commonly occurring clinical events and situations. The SIMuCENTER program will also provide a unique opportunity for the creation of partnerships with other community-college nursing programs and local health care providers to further educate current employees. The college will enter into a 30-year financing plan with the Mass. Development Finance Agency, with the loan to be paid off through student fees. The college will implement a three-tier surcharge, including a $150-per-semester surcharge for Registered Nursing, Practical Nursing, and Radiological Technician students; a $100-per-semester surcharge for Pre-Nursing, Pre-Health, and Foundations of Health students; and a $1-per-credit charge for all students. Currently, HCC is the second-least-expensive community college in Massachusetts at $4,050 per year. The average for all Massachusetts community colleges is $4,545 per year. Patrick is expected to sign the bill into law.

Nominations Sought for Woman of the Year
SPRINGFIELD — The Professional Women’s Chamber, a division of the Affiliated Chambers of Commerce of Greater Springfield, is seeking nominations for its 2012 Woman of the Year Award. The award has been presented annually since 1954 to a woman in Western Mass. who exemplifies outstanding leadership, professional accomplishment, and service to the community. The nominee’s achievements can be representative of a lifetime’s work or for more recent successes. Any woman is eligible for nomination, and a chamber affiliation is not required. For more information and a nomination form, visit www.professionalwomenschamber.com or e-mail committee chair Nancy Mirkin at [email protected]. Nomination documents are due by Feb. 10.

Construction-industry
Unemployment Jumps
to 16% in December
WASHINGTON, D.C. — Despite the addition of 17,000 jobs in December, the nation’s construction-industry unemployment rate jumped to 16% last month, a sharp increase from 13.1% in November, but down from 20.7% at the same time last year, according to the Jan. 6 jobs report by the U.S. Labor Department. For all of 2011, the construction industry added 46,000 jobs (0.8%), representing the best industry performance since January 2007. The average annual construction unemployment rate in 2011 was 16.4%, down from 20.6% in 2010 and 19% in 2009. Non-residential building construction employment stood at 662,200 jobs in December, down by 3,000 jobs compared to November, but up 3,000 jobs (0.5%) compared to the same time one year ago. Residential-building construction employment stood at 567,000 jobs in December, up by 3,000 jobs from the previous month and up 4,000 jobs (0.6%) from the same time last year. Non-residential specialty trade contractors added 20,000 jobs in December and have added 12,000 jobs, or 0.6%, during the past 12 months. In contrast, residential specialty trade contractor employment decreased by 3,000 jobs for the month, but is up by 16,000 jobs (1.1%) from December 2010. Heavy and civil engineering construction employment remained unchanged for the month and has added 11,000 jobs (1.4%) during the course of 2011. Across all industries, the nation added 200,000 jobs as the private sector expanded by 212,000 jobs and the public sector shrank by 12,000 jobs. Year over year, the nation has added 1,640,000 jobs (1.3%). The nation’s unemployment rate fell to 8.5% in December, down from a revised 8.7% level in November and down from 9.4% in December 2010.

Briefcase Departments

MassMutual Invests in BMC’s Future
SPRINGFIELD — Massachusetts Mutual Life Insurance Co. (MassMutual) recently made a $3 million contribution to Baystate Medical Center’s capital campaign to support construction of its new facility. “At MassMutual, we recognize the importance of good health and well-being, as well as the benefits of leading a healthy lifestyle,” said Roger Crandall, chairman, president, and CEO of MassMutual. “So it’s only fitting that MassMutual does its share to contribute to this project, as our employees, agents, policyholders, and the community at large in this region will directly benefit from the outstanding care this great facility will provide.” In recognition of MassMutual’s commitment to Baystate Medical Center, Mark Tolosky, president and CEO of Baystate Health, announced the naming of its first phase of the building project; it will be known as the MassMutual Wing. “We are so grateful that MassMutual shares our vision of good health for the community and has so generously provided this support, which significantly helps us to replace an aging infrastructure and continue to meet the health care needs of the people of Western Mass. right here in Springfield,” said Tolosky. The first phase is on schedule and on budget for opening in March 2012. The MassMutual Wing will house the Davis Family Heart and Vascular Center, which includes six surgical/endovascular suites to accommodate advanced, lifesaving cardiovascular procedures, and 32 cardiovascular critical care rooms that will support state-of-the-art medicine and at the same time provide ample room for the comforting presence of patients’ family members and friends. The $296 million project has made a significant economic impact on the region, with job growth for the construction industry benefiting from the addition of approximately 300 new jobs on site since breaking ground in 2009. Approximately 70% of the work on the project has been completed by local and regional businesses. In addition, Baystate expects to add more than 200 permanent clinical and medical positions.

Kennedy Named Chief Development Officer
SPRINGFIELD — Lifelong city resident Kevin Kennedy was recently tapped by Mayor Domenic Sarno to serve as the city’s new chief development officer. Kennedy will manage a consolidated Community Development Department created in 2008 under Springfield’s Finance Control Board. He also will oversee the city’s Housing, Neighborhood, Economic Development, Code Enforcement, and Planning departments, as well as staffing of the redevelopment and industrial-development financing authorities. Sarno described Kennedy in a statement as “exceptionally well-suited for the job of chief development officer.” Sarno added that Kennedy is a “seasoned professional who possesses the knowledge and experience to navigate the economic-development waters on the federal, state, and local levels as well as with the private sector.” Kennedy has served as the chief economic-development assistant to U.S. Rep. Richard E. Neal since 1989. “Kevin Kennedy’s departure is a bittersweet occasion for me,” said Neal in a statement. “While I am sad he is leaving my congressional office, the city of Springfield will once again be the beneficiary of his considerable talents.” Neal cited Kennedy’s work on the State Street Corridor Initiative, the construction of the U.S. Courthouse, the new state data center, and the creation of the Neal Municipal Operations Center as areas where he has demonstrated effective leadership. In related news, Sarno announced that Christopher Moskal of Springfield, who has served as interim chief development officer, now will serve as director of the Springfield Redevelopment Authority. Moskal previously served as executive director of the Springfield Parking Authority. Sarno noted that the two appointments underscore his commitment to supporting the city’s planning and development functions to ensure they are optimally configured for maximum effectiveness. “The city’s ongoing investment in economic development will pay substantial dividends in terms of increasing development activity, stimulating job creation, and expanding our municipal tax base,” said Sarno. Both appointments are effective immediately. Kennedy will earn an annual salary of $125,000, and Moskal will receive an annual salary of $97,950.

Common Capital
Unveils New Focus
HOLYOKE — The Western Mass. Enterprise Fund has expanded its mission, changed its name, and put more capital on the table for local community-development projects, according to executive director Chris Sikes. In a recent announcement at Open Square, Sikes presented the company’s new name, Common Capital, and revealed a new logo, along with the company’s newly expanded role in the region. “It is clear to us that there is ample capital available to fund major change in Western Mass.,” said Sikes. “The challenge is not to access the money, but to help the region absorb that capital and leverage it for the common good.” Common Capital’s new focus, according to Sikes, includes extending lending well beyond small-business microloans, significantly increasing the company’s capital base, and enlarging business-advisory services. To help guide investments, Common Capital has initiated a discovery process to document specific needs within local business and community-development networks. Sikes noted that the process will include a “listening tour” with potential collaborative partners throughout the region to reconfirm community needs and resources. “We have capital and are well-positioned to attract much more,” he said, adding, “our goal is to find new and better ways to put it to use creating jobs, stimulating community development, and improving the quality of life in Western Mass.”

Women’s Fund to Award $150,000 in Grants
EASTHAMPTON — Applications are now available from the Women’s Fund of Western Mass., which will award $150,000 in grants in 2012 to organizations or programs serving women and girls in the four counties of Western Mass. Grants will range up to $15,000. “We look for projects that truly address the root causes, that influence long-term social change for women and girls, particularly around education, economic development, and safety,” said Julie Kumble, director of grants and programs. “Our three grant categories make it easier for organizations to decide where they might best fit in — operating support, project support, and capacity-building grants.” Before applying for a grant, Kumble recommends that applicants listen to a webinar that describes the application process. For more information on the webinar or for an application, visit www.womensfund.net. Since 1998, the Women’s Fund has awarded $1.7 million in grants.

Briefcase Departments

Big Y Acquires Louis & Clark Locations
SPRINGFIELD — Louis & Clark Drug Stores have signed an agreement to sell the assets of two of their pharmacy locations to Big Y Foods Inc. The Louis & Clark Drug Stores at 471 Breckwood Blvd. in Springfield and 459 Main St. in Wilbraham will be operated as Big Y’s Louis & Clark Pharmacies. Louis & Clark will continue to operate their remaining locations. “As a family-owned and -operated company, we are excited to be working with another family-owned and -operated company to continue to serve the needs of our local community. Through our partnership with Big Y, we are able to maintain our local roots,” said Skip Matthews, president of Louis & Clark. Through our partnership with Big Y, we are able to focus our business efforts on the growing fields of home medical equipment and specialty pharmaceutical services, while Big Y focuses on its strength in retail pharmacy.” In addition, Big Y Pharmacies and Louis & Clark will work together to develop Louis & Clark’s ongoing home medical equipment division by offering referrals and consultations to Big Y customers through Louis & Clark’s Medical Supplies and Equipment located at 309 East St. at the corner of Page Boulevard in Springfield, and the satellite Louis & Clark location at 238 Northampton St. in Easthampton. Through the years, Louis & Clark has been one of the region’s premier independent pharmacy and health care solutions providers. This new relationship with Big Y will ensure that continuity of services for these two stores. Louis & Clark Drug Stores were founded in 1965 by Louis Demosthenous and Clark Matthews. The first store, based in Chicopee, was named Airline Drug, but customers and friends commented so frequently on the opportune names of the partners, Louis & Clark, that they soon named the company after the two explorers, Lewis and Clark, who traveled across America in 1804. All current Louis & Clark employees at both locations will have an opportunity to interview for employment with Big Y.

MassCBI Updates Name
BOSTON — The Massachusetts Chamber of Business and Industry recently announced its new identity, the Massachusetts Chamber of Commerce Inc. “At the Massachusetts Chamber, we strive to represent all business interests in and around the Commonwealth,” said Debra Boronski, president and founder of the organization. “While we serve business and industry, the purpose of a statewide chamber of commerce is to increase wealth and prosperity by facilitating the growth of existing businesses and fostering new ones. Simply put, the Massachusetts chamber’s focus is the Commonwealth’s economic well-being.” The organization provides legislative advocacy, marketing, networking, educational, and informational programs for businesses in the state. The chamber also provides managerial services for local chambers of commerce and professional organizations such as the West of the River Chamber of Commerce and the Realtors Commercial Alliance of Massachusetts. For more information, visit www.masscbi.com.

Construction Industry a Lagging Indicator
WASHINGTON, D.C. — The nation’s construction industry lost jobs for a second straight month, shedding 12,000 jobs in November, according to the Dec. 2 jobs report by the Department of Labor. During the past 12 months, the construction industry has added 18,000 jobs, an 0.3% increase. The construction unemployment rate slipped from 13.7% in October to 13.1% in November, and is down from 18.8% in November 2010. Non-residential building construction employment decreased by 1,200 jobs for the month, but has added 9,900 jobs, or 1.5%, from the same time last year. Residential construction building employment decreased by 3,000 jobs for the month and has lost 400 jobs, or 0.1%, compared to the same time last year. In related news, for the week ending Dec. 3, the advance figure for seasonally adjusted initial claims was 381,000, a decrease of 23,000 from the previous week’s revised figure of 404,000. The four-week moving average was 393,250, a decrease of 3,000 from the previous week’s revised average of 396,250. The advance seasonally adjusted insured unemployment rate was 2.8% for the week ending Nov. 26, a decrease of 0.2% from the prior week’s unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending Nov. 26 was 3,583,000, a decrease of 174,000 from the preceding week’s revised level of 3,757,000.

Report: Corporations Paying Few State Taxes
BOSTON — A comprehensive new study, from the Institute on Taxation and Economic Policy (ITEP) and the Massachusetts Public Interest Research Group (MASSPIRG), profiles the 265 consistently profitable Fortune 500 corporations, finding that 68 companies paid no state corporate income tax in at least one of the last three years, and 20 of these corporations averaged a tax rate of zero or less during the 2008-10 period. “Individual taxpayers and Main Street businesses end up having to pick up the tab when these corporations avoid paying their taxes,” said Deirdre Cummings, legislative director for MASSPIRG. The report, “Corporate Tax Dodging in Fifty States, 2008-2010,” was produced by the Institute on Taxation and Economic Policy (ITEP) and recently released in conjunction with MASSPIRG. It examines Fortune 500 companies that filed SEC filings with required information on total state taxes paid that year. Only companies that reported profits in all three years were included in the study. It includes EMC, Raytheon, and Staples, which are headquartered in Massachusetts. “Our report shows these 265 corporations raked in a combined $1.33 trillion in profits in the last three years, and far too many have managed to shelter half or more of their profits from state taxes,” said Matthew Gardner, executive director at the Institute on Taxation and Economic Policy, and the report’s co-author. “They’re so busy avoiding taxes, it’s no wonder they’re not creating any new jobs.” EMC is one company covered in the report. It reported annual profits each year from 2008 to 2010, netting over $2.3 billion during the period, and paid 0.3% in state taxes across the nation. Raytheon is another example, with annual profits netting over $8 billion but paying just 2.3% in state taxes across the country. The report finds that 68 of the 265 companies managed to pay no state income tax at all in at least one year from 2008 through 2010, despite telling their shareholders they made almost $117 billion in pretax U.S. profits in those no-tax years. Some companies, such as DuPont, Goodrich, International Paper, and Intel, paid no net state income tax over the full three-year period. MASSPIRG’s own study last year on the use of offshore tax havens found that household tax filers in Massachusetts pay on average $608 in additional federal taxes to make up for revenue lost due to use of offshore tax havens. “We need to level the playing field,” said Cummings. “Companies should thrive based on how productive and innovative they are, not based on their aggressive tax lobbyists and lawyers and their ability to devise elaborate tax-avoidance schemes.”

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Ameristar Casinos Announces Agreement to Purchase Former Westinghouse Site
LAS VEGAS — In anticipation of the legalization of casino gaming in Massachusetts, Ameristar Casinos Inc. (NASDAQ-GS: ASCA) announced last week it has entered into a definitive agreement to purchase land in Springfield, Mass., with the intent to apply for the sole casino license for Western Mass. and, if awarded, build a luxury hotel and entertainment resort. “This is a great opportunity for Ameristar to build on a one-of-a-kind site within the city limits of Springfield, a city that would greatly benefit from an economic development project of this magnitude,” said Gordon Kanofsky, Ameristar’s CEO. “There are not many attractive new-market growth opportunities for casino companies, and this one in particular fits squarely within the Ameristar business model as an upscale regional destination casino operator.” Ameristar has agreed to purchase the 41-acre site at Page Boulevard and Interstate 291 (the former Westinghouse complex) for $16 million from an affiliate of the O’Connell Development Group Inc., which had anticipated a large-scale retail project on the site. Since Westinghouse vacated the property in 1970, it had been utilized for light industrial purposes, but more recently had been vacant. The buildings on the site are being razed, and the property will be delivered to Ameristar substantially ready for construction. Ameristar’s development plans are preliminary but are expected to include a state-of-the-art casino continuously updated with the newest and most popular slot machines and a variety of table games, a luxury hotel, a diverse offering of dining venues, retail outlets, entertainment and meeting space, and structured parking. “As with all of our other properties, we look forward to partnering with the city and community to ensure our project visually complements the surrounding neighborhood and suitable street improvements are made to accommodate increased traffic in the area,” said Kanofsky. Subject to the satisfactory completion of Ameristar’s due diligence, the closing of the purchase is expected to occur in January 2012. Ameristar Casinos  has eight casino hotel properties primarily serving guests from Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska and Nevada.

Poll: Palmer Resort Casino Favored Over Springfield Venue
WILBRAHAM — By a margin of 61.4% to 42.5%, residents of four Western Massachusetts counties who have visited a casino during the past two years would prefer visiting a Palmer destination resort casino over a Springfield venue, should gaming become legalized. Market Street Research of Northampton conducted the survey from Oct. 20-26. The survey included 350 residents of the four counties with a margin of error between 3.1% and 5.2%, according to Julie Pokela, principle of Market Street Research. “We interviewed those who have visited a casino, and who don’t live in either Palmer or Springfield, determining preference in Western Massachusetts between a possible Palmer or Springfield resort casino,” said Pokela. The survey also found that a large majority of residents of Berkshire, Franklin, Hampden, and Hampshire, 75.8%, have visited a resort casino, while 23.9% have never visited a casino. Of those who have visited a casino during the past two years, nearly half, 48.5%, have visited two or more times. The Mohegan Sun has proposed a resort casino for Palmer on 152 acres of land owned by The Northeast Group, and Penn Gaming recently announced interest in a Springfield casino venue. “One of the considerations was to determine if the public prefers venues ‘in the woods’ such as Mohegan Sun and Foxwoods or in urban areas such as Springfield,” said Paul Robbins, public relations consultant to Northeast. “The survey was designed to determine preference among those in Western Mass. who are located within an hour’s drive of both Palmer and Springfield.”

October Employment “Stable”
WASHINGTON — The nation’s labor market posted stable growth in October, according to Secretary of Labor Hilda L. Solis. “The economy added 104,000 private sector jobs last month, and we also added 102,000 more jobs than had previously been reported in August and September,” said Solis in a statement. The unemployment rate dropped to 9%, its lowest level in six months. “The number of long-term unemployed — defined as Americans out of work for 27 weeks or more — fell by 366,000 in October, the biggest drop since 1948,” she said. Additionally, the jobless rate for African-Americans dropped a percentage point to 15.1%, its lowest level since August 2009. “We’ve now created 2.8 million jobs over 20 consecutive months of private sector growth, including more than 1 million jobs this year alone,” she said. GDP growth in the third quarter was 2.5% — the fastest rate in more than a year and nearly twice that of the previous quarter. Businesses reported significantly fewer layoffs in October. Consumer and business spending are both up, reflecting Americans’ increased confidence in our recovery progress. “Unfortunately, we continue to see job losses in government and construction, both areas where passage of the American Jobs Act would have a direct and immediate effect on job creation,” said Solis. Overall, non-farm payroll added 80,000 jobs in October, reflecting the loss of 24,000 government jobs and 20,000 jobs in construction. “The policies this administration has pursued have added jobs back into the economy, but the pace of our recovery continues to be influenced by the failure of Congress to pass legislation to put Americans back to work,” she said. In the week ending Oct. 29, the advance figure for seasonally adjusted initial claims was 397,000, a decrease of 9,000 from the previous week’s revised figure of 406,000. The total number of people claiming benefits in all programs for the week ending Oct. 15 was 6,781,960, an increase of 103,117 from the previous week. Extended benefits were available in Alabama, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Washington, West Virginia, and Wisconsin during the week ending Oct. 15.

Census: Re-Emergence of Concentrated Poverty in Local Cities
SPRINGFIELD — As the first decade of the 2000s drew to a close, the two downturns that bookended the period, combined with slow job growth between, clearly took their toll on the nation’s less fortunate residents, according to a new report, The Re-Emergence of Concentrated Poverty: Metropolitan Trends in the 2000s, by the Brookings Metropolitan Policy Program. Over a 10-year span, the country saw the poor population grow by 12.3 million, driving the total number of Americans in poverty to a historic high of 46.2 million. By the end of the decade, more than 15% of the nation’s population lived below the federal poverty line — $22,314 for a family of four in 2010 — though these increases did not occur evenly throughout the country. An analysis of data on neighborhood poverty from the 2005-09 American Community Surveys and Census 2000 reveals that: After declining in the 1990s, the population in extreme-poverty neighborhoods — where at least 40% of individuals live below the poverty line — rose by one-third from 2000 to 2005-09. By the end of the period, 10.5% of poor people nationwide lived in such neighborhoods, up from 9.1% in 2000, but still well below the 14.1% rate in 1990. For the Springfield metropolitan area, which includes Holyoke, a total population of 520,801 included 58,565 classified as “poor” while 16,311 were classified as “poor in extreme poverty.” The extreme poverty areas in Springfield cited in the report included the neighborhoods of Brightwood, Memorial Square, McKnight, Old Hill, Six Corners, Lower Liberty Heights and the South End. In Holyoke, tracts considered in extreme poverty were bordered by Interstate 391, Beech Street and the Connecticut River. Local officials have cited the weak economy and job losses as reasons for these extreme poverty neighborhoods. The report noted that in the past decade, the Springfield Metropolitan Area has seen a 2% increase in concentrated poverty neighborhoods.

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Colleges Form Partnership on Workforce Training
SPRINGFIELD — Businesses throughout Hampden and Hampshire counties can now access custom-designed workforce training through a partnership between Holyoke Community College (HCC) and Springfield Technical Community College (STCC). TWO — Training & Workforce Options — is a joint endeavor that provides a single source for customized workforce development and training in the region. HCC President Bill Messner noted that the colleges have offered extensive workforce training and development for decades, but now there is one telephone number and easy Web access for this business resource. STCC President Ira Rubenzahl added that TWO will offer a wide range of training, from computer software and certification preparation to manufacturing; from management skills to ESL in the workplace. “Our goal is to make Western Mass. a more desirable place to grow your business,” said Rubenzahl. Messner added that “both colleges have a long-term track record; it makes sense for us to combine and offer greater efficiency.” Classes will be scheduled at the need and desire of the customer, whether immediately or at some preferred time in the future. TWO can also provide distance classes online if that’s more convenient for the individual employees, or provide an instructor at the business address. Debbie Bellucci, dean of the STCC School of Continuing Education and Distance Learning, noted that contract training can be designed based on an individual company’s specific needs and desired outcomes. For more information on TWO, call (413) 755-6100.

UMass Wins Grant to Host $7.5 Million Northeast Climate Science Center
AMHERST — U.S. Secretary of the Interior Ken Salazar recently announced that UMass Amherst has been chosen to lead a consortium of seven universities and host a major new endeavor, the Northeast Climate Science Center, through a five-year, $7.5 million grant. It will support federal, state, and other agencies by studying the effects of climate change on ecosystems, wildlife, water, and other resources in the region. UMass Amherst and partner institutions in Wisconsin, Minnesota, New York, and Massachusetts will together receive $1.5 million core funding each year for five years, with more project-specific funds available. The Northeast CSC is one of eight established by the Interior Department since Salazar founded the program in 2009. The region includes New England and states west to Minnesota and south to Maryland. “Selecting the locations for the final three of our eight climate science centers is a major milestone in our efforts to implement our department-wide climate-change strategy,” Salazar said. “The nationwide network of climate science centers will provide the scientific talent and commitment necessary for understanding how climate change and other landscape stressors will change the face of the U.S., and how the Department of the Interior, as our nation’s chief steward of natural and cultural resources, can prepare and respond.” Specific challenges could include climate impacts on water resources, agriculture and grazing, fish and wildlife responses to climate change, forest resilience, invasive species, protecting migratory fish and waterfowl, sea-level rise, coastal erosion, flood management, and water quality. Funded research is only one benefit of being named a CSC. The designation also positions the university for a future leadership role in regional and national climate research, according to Michael Malone, UMass Amherst vice chancellor for research and engagement. Principal investigator of the new CSC at UMass Amherst is Richard Palmer, head of Civil and Environmental Engineering, with co-principal investigators Raymond Bradley, distinguished university professor and director of the Climate System Research Center; Curt Griffin, professor of Wildlife Ecology and Conservation and co-director of the Environmental Sciences Program; and Keith Nislow, wildlife and fish team leader of the USDA Forest Service Northern Research Station. Bradley noted there is a pressing need for information on how climate change will affect conditions at the local level, which requires studies using high-resolution climate models. “Most studies so far provide broad-scale assessments at the national level,” he said, “but resource managers need more detailed information that is relevant to their specific problems. One of our goals for the new center is to develop this capability.” Palmer said that, to win this major federal recognition, UMass Amherst and its partner institutions demonstrated that they offer unparalleled research strengths and established multi-disciplinary collaborations spanning the Northeast region needed to carry out research on specific regional climate-change effects. Graduate students from many UMass Amherst departments and undergraduates in the Commonwealth Honors College will be involved in the Northeast CSC, including a possible exchange program with other regional centers. In addition to UMass Amherst, other Northeast CSC members are the University of Wisconsin Madison, the University of Missouri Columbia, the University of Minnesota, the College of Menominee Nation in Keshena, Wis., the Marine Biological Laboratory at Woods Hole, Mass., and Columbia University in New York City. According to the Department of the Interior, the eight regional climate science centers extend from a hub at the National Climate Change and Wildlife Center at the U.S. Geological Survey national headquarters. In addition to Interior Department bureaus such as the U.S. Fish and Wildlife Service and National Park Service, other federal cooperating agencies taking part in the CSC program are the U.S. Forest Service and NOAA. State, tribal, landowner, and non-governmental organization interests also will be engaged in identifying science priorities for the CSCs. Other climate science centers are located in Alaska, the Pacific Islands, and the Northwest, Southwest, North Central, South Central, and Southeast regions of the U.S.

UMass Amherst Cops $3M Grant for Science, Math Teacher Development
AMHERST — The School of Education at the UMass Amherst has received a six-year, $3 million grant from the National Science Foundation to create a network that helps train and retain science and mathematics teachers for middle and high schools in Western Mass. The project addresses the critical need for middle- and high-school science, technology, engineering, and mathematics (STEM) teachers through collaboration between UMass Amherst educators — and researchers from the School of Education and the colleges of Natural Sciences and Engineering — and mathematics and science administrators from regional school districts. The participating schools include the Springfield, Holyoke, and Greenfield public schools and the Mahar Regional School District in Orange. The Amherst-based Hitchcock Center for the Environment, a nonprofit organization focused on the professional development of teachers and the education of young people in the sciences, is a key partner in this project. The program is designed to encourage talented students and professionals to pursue teaching careers and develop long-term commitments to teaching students in high-needs secondary schools. This grant was accompanied by $1.5 million in matching contributions from the university and project partners. UMass Amherst faculty involved in the grant are Kathleen Davis, Sandra Madden, and Barbara Madeloni, all of the School of Education’s department of Teacher Education and Curriculum Studies; Stephen Schneider, head of the department of Astronomy in the College of Natural Sciences; and Paula Sturdevant Rees, from the Water Resources Research Center and the College of Engineering. The six-year project supports an engaged community of 20 master teacher fellows — teachers with master’s degrees and demonstrated excellence in teaching currently working in the partner districts — and 20 teaching fellows who are post-baccalaureate students and professionals holding STEM degrees who will earn a teaching credential and teach in a high-needs district. It provides these science and mathematics teachers with community support, licensure, graduate degrees and certificates, and salary supplements while they teach.

Massachusetts Public Higher Ed Enrollment Hits All-time High
BOSTON — The Mass. Department of Higher Education recently released data showing that the state’s public colleges and universities continue to experience substantial enrollment growth, hitting a 10-year record high in 2011. The 2011 Early Enrollment and Long-term Trend Comparisons, presented to the Mass. Board of Higher Education this morning, show a 23% increase in undergraduate enrollment at the state’s community colleges, state universities and University of Massachusetts campuses between fall, 2001 and fall, 2011. The report also shows that selected colleges and universities have witnessed dramatic fall-to-fall enrollment increases in the past year. Framingham State University’s enrollment increased 15%, while Worcester State University’s enrollment grew by 9%. These increases occurred despite a smaller pool of high school graduates across the state due to various demographic changes. “The data tell an important story, namely that our public colleges and universities continue to play a decidedly more important role in educating the future citizens and workforce of the Commonwealth,” said Richard M. Freeland, Commissioner of Higher Education for Massachusetts. “While the numbers are not as dramatic as in recent years, this new analysis shows that our enrollment growth remains consistent and our role in educating the state’s future citizenry and workforce continues to expand.” While the greatest growth in enrollment over the past few years has been at the community college level, this past year saw the highest enrollment increases in the state university segment. Framingham State University President Timothy Flanagan attributes the increase to the university’s own growth plan, accommodation of transfer students, and current economic realities. “Families are seeking value, which they define as high quality academic programs and world class faculty to prepare students for careers and further study,” said Flanagan.

School of Public Health Wins $2.5M Grant, National Recognition
AMHERST — Training to improve the nation’s public health system by strengthening the technical, scientific, managerial, and leadership competence of current and future public-health workers will soon be under way in Springfield, Holyoke, Pittsfield, and the Berkshires, supported by a four-year, $2.5 million grant to the School of Public Health and Health Sciences (SPHHS) at UMass Amherst. Dean Marjorie Aelion, with lead faculty investigators Dan Gerber and Stuart Chipkin, recently announced the U.S. Department of Health and Human Services award to the SPHHS at UMass Amherst, which creates a Public Health Training Center on the campus. Similar awards were also given to Yale, Columbia, and Johns Hopkins universities. Through the center, training will be available to 30 current community health workers in Springfield, Holyoke, Pittsfield, and the Berkshires each year over the next four years. Concurrently, 30 UMass Amherst SPHHS undergraduate student interns will be placed in some of the communities to help administer new programs each year.

Briefcase Departments

Extreme Makeover: Home Edition Coming to Springfield
SPRINGFIELD — A deserving family in Springfield will have their dreams come true in just a few weeks thanks to ABC’s Emmy-winning reality show Extreme Makeover: Home Edition. That family will learn of their good fortune with a knock on the door on Sept. 11, when the show’s team of designers will surprise them with the news that their home will be completely renovated. The build is a race against time involving a team of designers, contractors, and several hundred workers who have just seven days (one week for the actual construction) to rebuild an entire house — every room, the exterior, and landscaping. Normally, a project of this scope would take months, not days. Chicopee-based N. Riley Construction was selected by Extreme Makeover: Home Edition’s producers to be the lead builder on the project. The Home Builders Assoc. of Western Mass. has also signed on to collect donations and help coordinate volunteer contractors. “We look for builders with big hearts, great skills, and a strong connection within their own community,” explained Milan Vasic, the show’s senior producer. “Nick and his crew at N. Riley Construction were the perfect fit.” The build officially kicked off with an announcement by Springfield Mayor Domenic Sarno on Aug. 19. A kickoff pep rally is scheduled for Aug. 30 at 6 p.m. (location TBA) with work beginning on Sept. 11, and continuing around the clock until Sept. 18. “We are thrilled to be part of this project and already have tons of support from the community,” noted Riley. “But we need your help and donations. So please go online and sign up to volunteer and donate.” Organizations and companies that have already signed on include: the city of Springfield, Abide, Ingram and Associates, Southampton Environmental, Durkee, White, Towne, and Chapdelaine, Ondrick, Kohler, Kitchen Encounters, Kraftmaid Cabinets, Silestone, Emtek, Dki, John Pelland Electric, Fontaine Bros., Galen and Sons, Superior Walls, Mvg Home Improvement, Crystal Brook Decorative Concrete, Sherwin Williams, Masterpiece Finishes, Shubee, Contemporary Structures, USG, ABC Supply, Daltile, Baystate Rug and Flooring, Bouchard, Pro-Tech, Select Blinds, Lumber Liquidators, Garvey Communication Associates Inc., James Langone Photography, and Viz-Bang. To donate, volunteer, or for more information, visit www.joinextreme.com/mass. Several families are being considered, and the recipients will be announced on the door-knock date. Local information, including the most up-to-date sponsors’ lists, behind-the-scenes photos, and news flashes, will be posted at facebook.com/emheSpringfield.

State’s Jobless Rate Holds Steady
BOSTON — Massachusetts continues to outperform the nation in job growth, according to the latest statistics from the state Executive Office of Labor and Workforce Development. Employers in the state added nearly 13,000 jobs in July, building on strong gains in the first half of the year, the agency reported. The state’s unemployment rate held steady in July at 7.6%, well below the national rate of 9.1% in July, the office reported. Massachusetts has added more than 50,000 jobs since the beginning of the year.

HCC Plans ‘Working Green’ Training, Certification Programs
HOLYOKE — This fall, the Kittredge Center at Holyoke Community College will introduce new training courses that provide technical skills and a framework for developing sustainable facilities. “Green Facilities Training for Managers” is an introductory course that focuses on practical ideas and a plan of action for businesses to immediately save money. In addition, HCC will offer “Introduction to Cleaning Green,” “Getting to Sustainability Through Changes in Waste Contracting,” and “Introduction to Green Purchasing.” Also, a “Facility Team Green” program is designed for restaurant and lodging establishments. For more information on programming, visit www.hcc.edu/bcs or contact Rachel Bishop-Cook at (413) 552-2730 or [email protected].

Kindergartners to Receive Literacy Packets
SPRINGFIELD — Children entering the Springfield Public School kindergarten programs this fall will receive a special gift thanks to Link to Libraries Inc. Welcome to Kindergarten, the newest initiative by Link to Libraries, will include a bookbag, new book, bookmark, and educational materials that are bilingual. It is hoped that the selected youths participating in the test pilot program will have the opportunity to read their book with their parents or guardians at home. Classroom teachers will be asked to generate discussion among their pupils to gauge if the sharing of the book occurred at home between the parents or guardians and the youths. It will be requested of each teacher to return a brief survey to Link to Libraries to help determine the success and effectiveness of the program. Link to Libraries has donated more than 26,000 books to schools and nonprofit organizations throughout Western Mass. and Northern and Central Conn., and more than 10,000 books to Springfield public elementary schools since its inception in 2008. For more information, visit www.linktolibraries.org.

NH, Maine Join FastLane/E-ZPass Pacts
BOSTON — The Mass. Department of Transportation recently announced agreements with New Hampshire and Maine enabling all three states to impose sanctions on FastLane/E-ZPass toll violators across each other’s state lines. Enforceable penalties now include registration suspension (Maine) and denial of vehicle registration renewal (New Hampshire and Massachusetts). The tri-state reciprocity agreements are the first such agreements in the nation and mark an important step in ensuring toll equity by addressing revenue losses caused by motorists without FastLane or E-ZPass transponders or whose electronic accounts perennially have insufficient funds. “Electronic tolling accounts accounts for about 70% of our toll revenue,” said Jeffrey Mullan, MassDOT secretary and CEO. “These first-in-the-nation agreements allow us to continue to collect tolls more efficiently, to address toll equity issues, and to collect tolls from out-of-state violators.” The agreements will be in force for one year. After that, the agencies have the option to extend the term of the pilot program for up to two additional one-year periods or create permanent agreements. For more details, visit www.mass.gov/massdot.

Briefcase Departments

Business Confidence Index Stabilizes
BOSTON — The Associated Industries of Massachusetts (AIM) Business Confidence Index stabilized in July after drops in May and June, adding a half-point to 50.5. “The index remains near the neutral midpoint of its 100-point scale, and results overall are very similar to what we saw in June,” said Raymond Torto, global chief economist at CB Richard Ellis Group Inc., chair of AIM’s Board of Economic Advisors. “July brought more evidence of a lackluster economy, with the deadlock in Washington adding to the uncertainty about prospects for future growth. The deal reached at the end of the month to end the debt crisis may or may not restore faith in national leadership; it will not end the uncertainty, however, because we don’t know what the impact will be on the economy.” AIM’s Business Confidence Index has been issued monthly since July 1991 under the oversight of the Board of Economic Advisors. Its historical high was 68.5, attained in 1997 and 1998; its all-time low was 33.3 in February 2009. Although the index is up 2 points from last July, and about 10 points over two years, Torto noted, “a more realistic interpretation is that we saw confidence grow steadily from March 2009 to June 2010, and have bumped along since then.”

Baystate to Eliminate
354 Positions
SPRINGFIELD  — Citing continued cuts in state reimbursement and “the government’s inability to properly fund the expansion of health care,” as well as the lingering impact of a weak economy, Baystate Health recently announced a reduction in workforce totaling 354 positions. The cuts, announced on July 20, involve positions held by 169 managers and staff, as well as another 185 vacant, funded positions. Affected employees will receive severance pay and other benefits “in accordance with Baystate Health’s workforce-transition policy,” said Gregory Harb, executive vice president and COO at Baystate Health. “Our leadership carefully reviewed all positions system-wide, and … announced a reduction in our workforce by 354 positions.” Baystate Health, the region’s largest employer, took the action to ensure its financial viability and ability to fulfill its charitable mission, focused on improving the health of the people of Western Mass., said Mark Tolosky, president and CEO of the system. The combination of continued reductions in state reimbursements, inadequate funding of the expansion of health care, and a soft economy is creating dire situations for health care organizations throughout the state, and Baystate Health is not immune from these challenges, he added. Baystate senior leaders project a $25 million budget shortfall in 2011 growing to $54 million in 2012 unless expenses are reduced. Plans are to continue to monitor the situation closely to ensure the long-term viability of the system. “At Baystate Health, we embrace changing models of patient care and health coverage expansion; however, these changes are not based on a properly funded plan,” said Tolosky. “Massachusetts has expanded and enhanced health care for our residents, which we applaud, but the Commonwealth is not paying for these commitments.” Elaborating, he said that health care providers are facing intense pressures to transition to a less costly, highly coordinated, patient-centered model of care amid an environment of continuing underpayments. Massachusetts health care providers are faced with freezes in reimbursements for patient care by Medicaid and other state programs, Tolosky explained, while medical inflation is rising by 3% to 4% annually. The disparity created by decreasing revenues and increasing costs threatens the financial viability of hospitals throughout the Commonwealth. Baystate, like so many others within health care, is being paid less than the cost of the care it provides, he went on. The three hospitals of Baystate Health — Baystate Medical Center in Springfield, Baystate Franklin Medical Center in Greenfield, and Baystate Mary Lane Hospital in Ware — were underpaid $26.5 million by the state government for the cost of care for Medicaid patients in 2010. Medicaid patients represent 26% of the patient population at Baystate’s hospitals, resulting in significant financial loss for care of these patients.

Springfield Sells School Offices to Developer
SPRINGFIELD — The Springfield City Council voted last month to sell the vacant for School Department office building at 195 State St. to CSM North of Acton for $1. In exchange, CSM North must deliver on its commitment to use private funds to develop the site into 30 to 35 market-rate apartments. The School Department moved out of the building a year ago, relocating to the old federal courthouse building. The 195 State St. property is considered one of many efforts by the city to encourage the development of market-rate housing in the city’s central business district, and therefore one of the keys to revitalization of that area.

East Baking Co. Approved for Tax-incentive Program
HOLYOKE — The Holyoke Office of Planning and Development announced last month that the Mass. Economic Assistance Coordinating Council had approved the East Baking Co. certified project. The certified project status allows the company to be eligible for state investment tax credits and local property-tax exemptions. East Baking Co. is relocating and expanding operations to its new facility at 104 Whiting Farms Road, located within the Holyoke Economic Opportunity Area. Prior to the state approval, the Holyoke City Council approved the project, which includes a tax-increment financing agreement. East Baking Co. is a five-year-old Massachusetts company that manufactures baked goods. It counts UMass Amherst and Baystate Health among its many clients. The company outgrew its original location and is consolidating all of its operations at the 28,000-square-foot facility in Holyoke.

Survey: Salaries to Increase — for Some
NEW YORK — Despite ongoing uncertainty, companies are betting on their best workers — and are willing to pay more to prove it, according to a recent survey. After years of stagnant wages, nearly all — 97% — of the 1,200 U.S. employers polled in a compensation survey by Mercer said they plan to increase salaries in 2012. The average increase in base pay is expected to be 3% in 2012, up slightly from 2.9% in 2011 and 2.7% in 2010, the consulting firm said. However, the top-performing employees — just 8% of the workforce — will see their salaries increase by an average of 4.8% next year, the survey said.

Springfield Wins Square Dance Convention
SPRINGFIELD — The City of Homes will become the city of square dancing for a week in 2015, following the Greater Springfield Convention & Visitors Bureau’s successful bid to win a major convention. After a lengthy sales process, organizers of the National Square Dance Convention agreed to bring their event to Springfield for the first time. Nearly 7,000 attendees are expected for the convention.

Big E to Feature Diverse Lineup of Talent, Events
WEST SPRINGFIELD — The 2011 Big E, slated for Sept. 16 to Oct. 2, will feature a diverse lineup of talent this year, including Reba, Blake Shelton, and Darius Rucker. New England’s largest fair will also present two weekday Mardi Gras parades, sponsored by Mohegan Sun; the Big E Super Circus, sponsored by Coca-Cola; along with a assortment of rides, crafts, food, animals, and the best of the old and new that fairgoers have come to expect. The fair opens Friday, Sept. 16 with Be a Kid for a Day — all ages pay the children’s price of $10 — and Military Appreciation Day, honoring the men and women of the armed services; admission is free for military personnel and dependents with ID, as well as veterans with ID (copy of DD-214 or proof of membership to any veterans’ organization). For tickets, showtimes, and detailed information, visit thebige.com; www.facebook.com/thebige; or
twitter.com/the_big_e. Appearing on the Comcast Arena Stage will be:
Reba — Country-music legend and winner of seven CMAs and two Grammys, Oct. 2 at 7:30 p.m. (tickets: $69/$59/$49).
• Blake Shelton — Country sensation with four out of five gold albums, Oct. 1 at 7:30 p.m. (tickets: $39/$29).
• Darius Rucker — Rising country star and former lead singer of Hootie and the Blowfish, Sept. 23 at 7:30 p.m. (tickets: $39/$29).
• Freestyle Motocross — Sept. 16 at 7:30 p.m. and Sept. 17 and 18 at 2 and 7:30 p.m. (free).
• Bowzer’s Rock & Roll Party — John Bauman stars as his alter ego Bowzer, featuring his band, the Stingrays, and a lineup of 50s and 60s bands, Sept. 24 at 7:30 p.m. (free).
• Jake Owen — CMA-nominated, rising country star, Sept. 25 at 7:30 p.m. (free).
• An Evening with Cheap Trick — 70s icons, writer and producer of The Colbert Report theme song, Sept. 30 at 7:30 p.m. (free).
Appearing on the Court of Honor Stage, sponsored by Comcast, will be:
• Extreme Vegas — Spectacular illusions, acrobatics, and more, daily at 11 a.m., 3 p.m., and 8 p.m.;
• Frankie Lymon’s Legendary Teenagers — Sept. 16-22 at 1 and 6:30 p.m.;
• The Buckinghams — “Kind of a Drag,” “Don’t You Care,” Sept. 23-27 at 1 and 6:30 p.m.;
• Yvonne Elliman — Disco diva, Sept. 28-Oct. 2 at 1 and 6:30 p.m.
• Galaxy Girl — Tina Winn, who swings on a 120-foot sway pole, daily at 2, 5, and 7 p.m.

OPAL Real Estate Named Preferred Developer for Court Square Project
SPRINGFIELD – A development group led by local businessman Peter Picknelly has been designated the preferred developer for a project to convert a long-vacant office building on Elm Street at Court Square into a multi-million-dollar project with a mix of retail, office, and residential uses. The Springfield Redevelopment Authority, which owns the six-story office building at 13-31 Elm St. and four connected properties, voted unanimously in July to designate OPAL Real Estate Group of Springfield as preferred developer. The preferred-developer designation is for 120 days and, if successful, would culminate with the sale of the property to the developer. Picknelly is president of OPAL and Peter Pan Bus Lines. The OPAL team also includes Demetrios Panteleakis, managing partner; Robert Schwarz, executive vice-president; and Mark Healy, vice president of brokerage.

Briefcase Departments

Advertising Club
Seeks Nominations for
Pynchon Award
SPRINGFIELD — The Advertising Club of Western Mass. is seeking nominations for the 97th annual William Pynchon Award, the area’s oldest and most prestigious community-service recognition program. Established in 1915, the award honors individuals from all walks of life who go beyond the call of duty to enhance the quality of life in Western Mass. communities. Educators, social activists, philanthropists, clergy, physicians, journalists, and business leaders have received the award in years past. To nominate an individual, submit a one-page letter explaining reasons why the nominee should be considered. Included should be brief biographical information, outstanding accomplishments, service to the community, organizations he or she is or has been active in, and the names, phone numbers, and e-mail addresses of at least three people who can attest to the nominee’s contributions. All nominees will be considered and researched by the Pynchon trustees, comprised of past and present presidents of the Advertising Club. The 2011 award recipients will be announced in early fall. The awards dinner and ceremony will be held on Thursday, Nov. 17, 2011 at Chez Josef in Agawam. Nominations must be submitted by the end of business on Friday, July 22, 2011 to William Pynchon Trustees, Advertising Club of Western Mass., P.O. Box 2823, Springfield, MA 01101 or by e-mail to [email protected].

MacDuffie Property Acquired for School
SPRINGFIELD — The former home of the MacDuffie School in downtown Springfield has been acquired by the owner of several private alternative schools, with the intention of creating a boarding school for inner-city youths. John Foley, who is also the founder of Project 13, a Holyoke-based program that encourages middle-school students at risk of dropping out to stay in school, closed on the property on July 1. He plans to create the Commonwealth Academy, which will be a nonprofit institution with funding from private donors and the government. The MacDuffie campus, which includes some of the oldest homes in the city, was extensively damaged by the June 1 tornado that plowed through the city. Foley said he intends to continue using the homes as residences for the students.

UMass Chancellor to
Step Down in 2012
AMHERST — Before stepping down as UMass President on June 30, Jack Wilson announced that Robert Holub, chancellor of the flagship Amherst campus, will leave that position next year, and sooner if a replacement is found. The announcement came on the heels of a May report in the Boston Globe stating that an evaluation committee recommended against reappointing Holub after his existing contract expires on July 31. In a statement, Holub said he would leave sooner than July 2012 if another chancellor is able to begin before his new term expires.

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Pair Tapped to Head Tornado Recovery
SPRINGFIELD — Gerald Hayes, vice president for administration and finance at Westfield State University, and Nicholas Fyntrilakis, assistant vice president for community responsibility at MassMutual, have been selected to lead the city of Springfield’s long-term rebuilding campaign following the tornadoes of June 1. At a news conference last week, Mayor Domenic Sarno said both men have extensive credentials in urban development and knowledge of Springfield’s history and character. They will serve at no cost to the public. In the wake of the disaster, 22 buildings in the city were demolished, 171 condemned, and more than 1,000 damaged. Hayes and Fyntrilakis will coordinate the tornado-recovery effort until Dec. 31, at which time the arrangement will be reevaluated. The rebuilding campaign, a public-private partnership that will involve the Springfield Redevelopment Authority and DevelopSpringfield, will operate out of a downtown office and will be advertising for a consultant to write a multi-year plan for recovery efforts. Hayes has more than 30 years of economic-development experience, and Fyntrilakis is a former School Committee member and current chairman of DevelopSpringfield.

PVLSI Collaborates with Seahorse Biosciences
SPRINGFIELD — The Pioneer Valley Life Sciences Institute (PVLSI) and its Center of Excellence in Apoptosis Research (CEAR) have entered into a translational-research collaboration with Seahorse Biosciences of North Billerica and Chicopee. Dr. Nagendra Yadava will be the principal investigator for the program at the PVLSI and will receive the title of John Adams Investigator, in appreciation of support from the John Adams Innovation Institute to create CEAR. Alejandro Heuck, an assistant professor of biochemistry and molecular biology at UMass Amherst and a collaborator with Yadava on this project, will also be named a John Adams Investigator. The program will foster shared research between PVLSI scientists and industry partners, to accelerate new products to the market and foster regional economic development. The new project uses intellectual property developed at the PVLSI to create a new reagent kit aiding scientists in quantifying cellular bioenergetics using Seahorse’s XF Analyzer, an instrument that measures different aspects of cell metabolism. “I am delighted to extend our relationship with Dr. Yadava, the PVLSI, and the University of Massachusetts Amherst,” said David Ferrick, chief science officer for Seahorse. “The collaborative research and development performed under this agreement will simplify mitochondrial assays and expand our understanding of the role of mitochondrial dysfunction in aging and disease.” D. Joseph Jerry, PVLSI’s science director, added that the agreement “sets the stage for PVLSI scientists to leverage their intellectual discoveries into new products, fulfilling the institute’s mission for translational research.” Patrick Larkin, director of the Massachusetts Technology Collaborative’s John Adams Innovation Institute, added that “this is exactly the type of project we were hoping for when we invested in the PVLSI. It demonstrates the importance of the institute to the region in providing an interface for the life sciences with local advanced manufacturers.” In related news, Yadava was recently named the Western Mass. Mitochondrial Champion by the United Mitochondrial Disease Foundation, and will serve as an expert on mitochondrial function to researchers and clinicians in the region. Yadava and his team recently published a paper titled “Mitochondrial Dysfunction Impairs Tumor Suppressor P53 – Expression/Function” in the Journal of Biological Chemistry.

Westmass to Finalize Acquisition of Ludlow Mills
CHICOPEE — Westmass Area Development Corporation (Westmass) recently informed the Ludlow Board of Selectmen it planned to acquire the Ludlow Mills property on or about July 1, according to Kenn Delude, president and CEO of Westmass. With a combination of state grants, private debt financing, and equity investments, Westmass has put into place a finance program that will enable the project’s permitting to commence immediately and allow building utility modifications to be made before winter. “After two years of due diligence investigations, we are now prepared to begin our long-term partnership with the community and start work on the project,” Delude said. He noted that the first visible signs of activity will occur in late summer when the Columbia Gas Co. installs a new gas main along State Street. This work will then be followed by the road reconstruction and other related infrastructure improvements. The goal is to have all the roadway improvements completed by December 2012, according to Delude. The improvements will be funded by a $3.7 million state grant the town received under the MORE JOBS program. “Westmass is committed to seeing that Ludlow Mills once again becomes a major contributor to the economic prosperity of our region,” added Delude. He noted that businesses seeking a new or expanded location, whether to lease or own, are encouraged to contact Westmass for more information.

Grants Available to
West of the River
Chamber Members
WARE — The West of the River Chamber of Commerce is taking its mission of helping local businesses to the next level with the launch of a workforce-education initiative. The chamber will award $500 grants to four businesses which can be used for classes, seminars, and workshops that will develop employees’ skills and ultimately help the business. The idea was proposed by the West of the River education committee and is based on the concept that an educated workforce equals a stronger economy. Grants are open to all members of the West of the River Chamber. The winners will be drawn lottery style at the beginning of August. For an application or more information, call (413) 426-7077 or send an e-mail to [email protected]. All applications must be received by Aug. 1. The chamber serves the business communities of Agawam and West Springfield.

Link to Libraries
Donates Books to
Monson Tornado Victims
EAST LONGMEADOW — Link to Libraries recently donated more than 250 new books for youths of all ages to Monson Savings Bank, which will be distributed to tornado victims in town. The books will be distributed to the children left homeless or with tornado damage to homes in the Monson area through the bank, according to Susan Jaye-Kaplan, president of Link to Libraries. “The books donated by Link to Libraries, we hope, will give much needed enjoyment to the families hit by this devastating tornado,” said Jaye-Kaplan. “It is our hope that the children will find pleasure in reading and an opportunity to have time to relax and be relieved of some stress and worry.” The books include reading material for preschool through the teenage years.

Salvation Army Receives Recognition, Financial Gift
SPRINGFIELD — Major Thomas Perks and his wife, Major Linda Jo Perks, both of the Greater Springfield Salvation Army, have been recognized locally with a monetary donation for the organization they manage, as well as by the national office of the Salvation Army. The Affiliated Chambers of Commerce of Greater Springfield honored both the Salvation Army and the YMCA of Greater Springfield during its annual meeting on June 15. Both organizations were recognized for their strong business models and community presence that have had a direct impact on quality of life in the Greater Springfield area. Both also received a check for $1,000. In related news, Perks and his wife were recently honored by the national Salvation Army with pins for 25 years of service. The designation illustrates the tireless efforts of the couple and the organization they oversee. In addition to assisting first responders and victims of natural disasters, the local Salvation Army helps more than 30,000 families throughout the year and more than 6,000 families during the holiday season.

Briefcase Departments

AIM Business Confidence Index Slumped in May
BOSTON — The Associated Industries of Massachusetts (AIM) Business Confidence Index dropped 4.4 points in May to 51.7 as state employers confronted a slowing economy and continuing uncertainty about the course of recovery. “The results mirror the national news,” said Raymond Torto, global chief economist at CB Richard Ellis Group Inc., the chair of AIM’s Board of Economic Advisors (BEA), in a statement. “A series of economic reports is telling us what AIM members were seeing in mid-May — disappointing growth and job creation, weakness in manufacturing and real estate, and declining consumer confidence locally and nationally, along with renewed turmoil in the euro zone and its impact on financial markets.” The economy, Torto added, “as we’ve often noted, is getting better but remains far from healthy, so it will be subject to relapses like this. The factors at work now are very similar to those that produced a dip in confidence last spring, with some added concerns about East Asia.” AIM’s Business Confidence Index, issued monthly since July 1991, uses a 100-point scale to judge business conditions, with 50 as neutral. Its historical high was 68.5, attained in 1997 and 1998; its all-time low was 33.3 in February 2009. “The index has been in positive territory for the past eight months, and it is up 12.7 points over two years, with most of its gain in late 2009 and early 2010,” Torto noted. “The economy, though clearly in stronger and more stable condition than it was in 2009, has yet to achieve sustained, robust growth.” All of the sub-indices based on selected questions or respondent characteristics gave ground in May along with the main index. The Massachusetts Index of business conditions prevailing within the Commonwealth dropped 1.5 points to 48.2, while the U.S. Index of national conditions fell 1.6 to 44.3. Since March 2010, the state indicator was ahead 4.1, and its national counterpart up 3.0 points. The Current Index of conditions prevailing at the time of the survey was off 4.2 points at 49.7, while the Future Index of expected conditions six months ahead lost 4.5 to 53.7. The Company Index, which measures survey respondents’ overall confidence in the situations of their own operations, dropped 6.6 points in May to 54.7. The two other company-specific sub-indices also fell, the Sales Index by 6.8 to 54.1 and the Employment Index by 6.0 to 51.9. Confidence was off among both manufacturers (-3.2 to 54.6) and other employers (-5.5 to 47.7); it also fell both in Greater Boston (-3.6 to 43.0) and outside the metropolitan area (-6.5 to 49.0). There was no clear pattern of responses by size of company. The monthly Business Confidence Index is based on a survey of AIM member companies across Massachusetts, asking questions about current and prospective business conditions in the state and nation, as well as respondents’ own operations. On the Index’s 100-point scale, a reading above 50 indicates that the state’s employer community is predominantly optimistic, while a reading below 50 points to a negative assessment of business conditions. A number of component sub-indices are derived by analyzing responses to selected questions or those of particular groups of respondents.

State Leading Growth Rate
BOSTON — The U.S. International Trade in Goods and Services report by the Commerce Department’s U.S. Census Bureau and the U.S. Bureau of Economic Analysis recently showed that U.S. exports of goods and services in April 2011 increased 1.3% from March 2011 to a record $175.6 billion, with record exports of both goods ($126.4 billion) and services ($49.1 billion). The monthly export values for U.S. industrial supplies ($43.4 billion) and capital goods ($41.0 billion) was also the highest on record.  U.S. imports of goods and services decreased 0.4% over this period to $219.2 billion, causing the U.S. trade deficit to decline 6.7% below March figures to $43.7 billion in April. “Over the past six months, the economy has added more than a million private-sector jobs, and exports — boosted by the president’s National Export Initiative — are helping us do that,” said U.S. Commerce Secretary Gary Locke in a statement. “President Obama announced several new commitments that will help 500,000 young Americans get the credentials they need to succeed in the manufacturing industry. Preparing Americans for good-paying jobs in the manufacturing sector will not only strengthen the economy and put people back to work, but will help us compete in today’s 21st-century global economy.” Locke noted that April is the second consecutive month of record export growth, and while there may be bumps on the road to recovery, he added that the administration is making the economy more competitive by fostering new jobs in new industries, and helping to educate and train workers to fill them. In Massachusetts, the state’s economy grew 4.2% in 2010, ranking it fourth in the nation in economic growth, according to the Commerce Department. The technology and health care industries have fueled the state’s growth, allowing Massachusetts to recover faster than the nation as a whole. Across the region, Vermont ranked second after Massachusetts with 3.2% growth, followed by Connecticut with 3.1%, Rhode Island with 2.8%, Maine with 2.1%, and New Hampshire with 1.3%.

Briefcase Departments

State Adds 3,200 Jobs
in March
BOSTON — The Executive Office of Labor and Workforce Development recently reported the total unemployment rate in March was 8%, down two tenths of a percentage point from the February rate. The rate remains below the national rate of 8.8% and is seven tenths of a percentage point less than the rate in March 2010. The preliminary March job estimates show 3.213 million jobs in Massachusetts, an increase of 3,200 jobs. The private sector added 4,400 jobs. The largest gain in employment occurred in leisure and hospitality, while construction had the largest growth rate. Job gains were also posted in professional, scientific and business services, information, manufacturing, and education and health services. Trade, transportation, and utilities; government; financial activities; and ‘other services’ lost jobs. The March job gain follows a revised 14,400-jobs gain in February, previously reported as a 15,400-job gain. Over-the-year, jobs are up 34,100 (+1.1%) with private-sector jobs up 38,600 (+1.4%). Jobs have now been added in each of the past six months. The three-month average seasonally adjusted total unemployment rate was 8.2% and the six-month average was 8.3%. Over-the-year, 31,100 more residents were employed, and 21,500 fewer residents unemployed. Trends for the labor force, unemployed residents, employed residents, the unemployment rate, and jobs continue to indicate improvement for the Commonwealth’s economy. The March estimates show 3,221,700 Massachusetts residents were employed and 281,800 were unemployed, for a total labor force of 3,503,500.  The labor force increased by 2,100 from 3,501,400 in February, as 8,400 more residents were employed and 6,300 fewer residents were unemployed over the month.

$1.5M Gift Establishes Research Center at PVLSI
SPRINGFIELD — The Pioneer Valley Life Sciences Institute, a scientific partnership involving UMass Amherst and Baystate Medical Center, has received $1.5 million from the Rays of Hope Walk Toward the Cure of Breast Cancer to establish a new center devoted to breast cancer research. The donation to create the Rays of Hope Center for Breast Cancer Research will be delivered over five years beginning this year, and is intended to broaden and expand the breast cancer research already taking place at PVLSI. With new technology now in use at the institute, researchers can generate, capture, and analyze data on a much larger scale, making it possible to integrate and coordinate the work of multiple investigators for greater and more rapid progress in answering research questions. “The naming of this center is yet another indication of the enduring legacy that Rays of Hope and all its participants have created in our community,” said Carol Baribeau, director of annual fund and events for the Baystate Health Foundation, in a statement. “On the basis of their own experience, our Rays of Hope walkers are creating hope for future generations by supporting research that could take us much closer to a cure for the disease.” Breast cancer affects one in eight women. A major research goal of the new center is examining links between obesity and breast cancer. It is believed that obesity and metabolic syndrome, a complex illness whose symptoms include obesity, hypertension, and early indications of diabetes, can increase breast cancer risk; given increasing obesity rates in the U.S., there is concern about an accompanying increase in breast cancer diagnoses. “We are just beginning to unlock clues as to whether obesity and breast cancer may be linked, and what those links could mean for prevention, diagnosis, and management of the disease,” added UMass Amherst faculty member Joseph Jerry, science director for PVLSI and co-director of the new center. “With this more robust support to our continuing research, we are provided significantly improved tools for answering important questions about the cellular and metabolic processes that cause lesions and tumors to develop.” One of the strengths of the new center will be its multidisciplinary approach, combining Baystate Medical Center’s resources and expertise in medical specialties such as oncology, endocrinology, and pathology with UMass Amherst’s strengths in polymer and other sciences and bio-epidemiology. Bringing these strengths under one roof allows researchers to approach the complex and intertwined biological processes behind diseases like obesity, diabetes and breast cancer in an integrated and disease-focused fashion, rather than breaking out individual pieces and causative factors and looking at them one by one.

Constellation Energy Partnering with Holyoke G&E
HOLYOKE — Holyoke Gas & Electric Department (HG&E) and Constellation Energy of Maryland recently announced the development of a new 4.5-megawatt solar installation that will generate electricity for the municipally owned utility’s 18,000 customers in Holyoke. The system, which is scheduled for commercial operation this summer, will be among the largest solar installations in New England and the largest in Western Mass. Constellation Energy will build, own, and maintain the system, and HG&E will purchase all of the electricity generated from the solar panels under a 20-year power purchase agreement at a fixed cost that is less than projected market rates. “HG&E is committed to continuing to provide our customers with cost-competitive and clean electricity,” said James M. Lavelle, manager, HG&E, in a statement. “HG&E currently offers its customers some of the lowest retail electric rates available in the Commonwealth and has a carbon footprint that is 25% of the average New England utility. Through this solar-power-purchase agreement with Constellation Energy, we are able to ensure affordability and price stability for our customers, and promote Holyoke as a more attractive location for new and existing industry, with no upfront capital expenditure.” HG&E’s solar power system will be comprised of 18,400 SolarWorld photovoltaic ground-mounted panels at two locations, and is expected to produce nearly 5.5 million kilowatt-hours of electricity each year. Generating the same amount of electricity using non-renewable sources would result in the release of 3,950 metric tons of carbon dioxide or the equivalent emissions from 755 passenger vehicles annually. “Large-scale solar generation is an attractive option for municipal utilities to manage volatile energy costs for their customers and meet renewable energy goals,” added Michael D. Smith, senior vice president of green initiatives for Constellation Energy’s retail business. “In states like Massachusetts with strong market-based incentive programs, Constellation can provide solar power to municipal utilities at a rate that is significantly less than electricity from other generation sources, which benefits both the environment and power customers’ bottom lines.” Constellation Energy, a Fortune 500 company, currently owns and operates approximately 60 megawatts of solar installations that have been completed or are under construction throughout the country. For more information, visit www.constellation.com.

State Workers’ Compensation Rate Saves Businesses $65M
BOSTON — The Patrick-Murray Administration’s vommissioner of Insurance Joseph G. Murphy has signed an agreement that holds workers’ compensation rates at current levels, saving businesses $65 million in proposed increases. The agreement between the Workers’ Compensation Rating and Inspecting Bureau (WCRIB), the Division of Insurance’s State Rating Bureau, and the attorney general’s Office holds rates at current levels until at least September 2012. The WCRIB had originally asked for an overall 6.6% increase. “Our goal at the Division of Insurance is to make sure that these rates are fair, they protect workers, and that they do not overly burden employers,” said Commissioner Murphy in a statement. “This agreement does all of those things.” Last year, an agreement with WCRIB cut overall rates 2.4%, instead of increasing them 4.5% as originally requested. That agreement also saved approximately $65 million in annual workers’ compensation insurance premiums. Traditionally, WCRIB files rate proposals every two years, but last year’s agreement included a required filing in the next year. Holding down workers’ compensation rates complements other efforts by the Patrick-Murray Administration to bring down insurance costs. The administration’s work to contain health insurance costs saved small businesses and working families $106 million in the last year. The three-year-old reform of auto insurance has delivered hundreds of millions of dollars in savings to drivers across the Commonwealth.

MMWEC: Connecticut Energy Tax “Unfair Burden”
LUDLOW — A proposed Connecticut tax on electric generation is “at the very least unfair” because it would cost Massachusetts consumers more than $9 million a year while Connecticut consumers pay nothing, according to the Mass. Municipal Wholesale Electric Company (MMWEC), which owns 4.8% of Millstone Unit 3, a nuclear power plant in Connecticut. Proponents of the tax, which is being proposed to address a Connecticut budget shortfall, say that the tax will not be passed on to Connecticut consumers by the electricity generators required to pay it. The proposed tax, which is working its way through the Connecticut General Assembly, would tax nuclear generation from Millstone at 2 cents/kilowatt hour, raising about $330 million a year in tax revenue for Connecticut from Millstone. Other proposed taxes on power plants that use oil and coal would raise about $10 million a year.  MMWEC resells its share of electricity from Millstone Unit 3 at cost to 27 Massachusetts municipal utilities. Those 27 utilities provide electricity to approximately 265,000 customers in Massachusetts. Based on the electric output of Millstone Unit 3 and MMWEC’s ownership share of that output, the proposed tax on Millstone generation would cost MMWEC, its Millstone project participants and their consumers approximately $9.3 million a year, according to David Tuohey, director of communications and external affairs at MMWEC. Because MMWEC and its municipal utilities are nonprofit, public entities with no profits to absorb the tax, the Connecticut tax would be a direct pass-through to consumers, Tuohey said.

Howdy Award Finalists Named
SPRINGFIELD — More than 40 individuals from across the Pioneer Valley are finalists for the 2011 Howdy Awards for Hospitality Excellence, sponsored by the Greater Springfield Convention and Visitors Bureau (GSCVB). The finalists were recently honored at a reception to recognize front-line employees in the hospitality industry for providing outstanding service to their guests and customers. The finalists, who represent a variety of businesses, organizations and activities from throughout Hampden, Hampshire and Franklin counties, now move up to the next level of competition — judging by a group of recognized industry professionals from outside the region. The winners will then be announced and honored at a gala dinner and awards presentation on May 10 at the Log Cabin Banquet & Meeting House in Holyoke. A Spotlight Award, which recognizes individuals or organizations that have made a significant contribution to the tourism industry in the Pioneer Valley, will also be presented that evening. Tickets to the gala are $65 per person, and $625 for a table of 10. For more information, call the GSCVB at (413) 755-1345. The GSCVB, an affiliate of the Economic Development Council of Western MA, is a private, nonprofit destination marketing organization dedicated to promoting the Pioneer Valley for meetings and conventions, group tours and leisure travel. For more information, visit www.valleyvisitor.com.

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Applicants Sought for Leadership Institute
EASTHAMPTON — The Women’s Fund of Western Massachusetts has created the Leadership Institute for Political Impact to develop future leaders in civic affairs. The institute is now accepting applications for the 2011-12 training cycle. The organization encourages women to think seriously about becoming more involved as civic leaders in their communities and running for office, according to Carla Oleska, CEO of the Women’s Fund. Focusing on areas such as community organizing, the legislative process and policy-making, fund-raising and campaigning, and running for office, the institute gives women the tools and confidence they need to become political leaders. At each training session, a woman working at the elected level presents her experiences. The initiative “perfectly links” the foundation’s emphasis on social change with leadership development, added Oleska in a statement. “We believe that a critical way to address the problems facing our communities is to engage the talents and the input of women at all levels and in all sectors of decision making.” The year-long commitment will begin for new members in September; however, applications are being accepted through June. Applications are available on the foundation’s Web site, www.womensfund.net.

Architect Chosen for Union Station Project
SPRINGFIELD — Boston-based HDR Architecture has been chosen to oversee designs for long-dormant Union Station, which is slated to be renovated into a multi-modal transportation center. The announcement was made at a press conference in Springfield City Hall on April 4. Donald Warner, senior vice president of the company, said construction work on the $70 million project is slated to begin in the summer of 2012 and be completed in 2015. Plans call for renovations to the 200,000-square-foot main terminal building and a refurbished passenger train platform. The existing freight building will be razed and replaced with a 23-bay bus terminal and parking garage.

Bankruptcy Filings Fall 6%
WASHINGTON, D.C. — The number of Americans filing for bankruptcy dropped 6% in the first quarter of 2011 compared to the previous year, two industry groups announced recently. Monday. The number of filings in the first three months of 2011 dropped to 340,012, down from 363,215 filings recorded in the first quarter of 2010, according to data from the American Bankruptcy Institute and the National Bankruptcy Research Center. “Though bankruptcy filings are still elevated, consumers continue to take steps to reduce debt levels and shore up their finances,”said ABI Executive Director Samuel Gerdano said in a statement. The bottom line is that the sharp increase in bankruptcy levels in recent years might be starting to level off, and perhaps even decrease. Personal bankruptcy filings had been climbing steadily since 2007, when the U.S. fell into a deep recession that left millions of Americans unemployed. In 2005 Congress amended the Bankruptcy Code, making it more difficult for Americans to file and sparking a rush to file by October 2005, when the amendments kicked in. In 2005, bankruptcy filings totaled more than 2 million.

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Multiple Factors Drive Construction Prices Higher
WASHINGTON, D.C. — For the fifth consecutive month, prices for construction materials increased, rising 1.1% in February, according to the March 16 Producer Price Index (PPI) report by the Department of Labor. Year-over-year, construction materials prices are up 6.1%. A number of categories experienced significant increases in materials prices in February. Steel-mill product prices jumped 4.7% for the month and are up 13.3% year over year. Iron- and steel-producer prices were up 2.8% in February and are up 16.8% over the last 12 months. In addition, prepared asphalt, tar roofing, and siding increased in cost by 0.6% for the month and are up 2% over the past 12 months. Categories in which prices declined include softwood lumber, down 2.7% in February, but up 0.2% compared to the same time last year. Crude-energy prices increased 0.9% for the month and are unchanged from the same time last year. Overall, the nation’s wholesale prices jumped 1.6% in February, the largest increase since June 2009. Year over year, wholesale finished-goods prices are up 5.8%. Anirban Basu, chief economist at Associated Builders and Contractors, noted that the data reflects a weakening U.S. dollar, ongoing expansion in the global economy, and unrest in the Middle East. He added that the current data does not reflect the recent events in Japan.

Gender Gap
Widening in
Retirement Confidence
SPRINGFIELD — Retirement plan investors had a “good year overall”; however, it appears that economic uncertainty and market volatility have contributed to lower levels of investing confidence and generally more conservative investing behavior among participants. MassMutual’s Retirement Services Division conducted an online survey between Nov. 15, 2010 and Jan. 15, 2011 of 1,517 participants in retirement plans on the MassMutual platform. MassMutual’s data indicates that men believe the stock market will improve vs. decline in the next 12 months at a ratio twice that of women. Overall, only 37.3% of participants are confident in making their own investment decisions. However, women were significantly less confident in making their own investment decisions (25.9%) compared to men (44.1%). At the same time last year, the percentages were 32.8% for women and 47.8% for men. The survey indicates that anxiety about having adequate savings to retire is increasing. Among participants who made a change in their approach to investing in the last 12 months, 61.7% became more conservative compared to 38.3% who became more aggressive.
‘A Closer Look at the Berkshires’ Contest
PITTSFIELD — The Quality Printing Co. is once again sponsoring “A Closer Look at the Berkshires” photography and art contest. The 2012 full-color calendar will feature the top 12 winners of the contest. Application forms are available at most Berkshire County libraries, as well as area Chambers of Commerce, the Prime Outlets in Lee, the Berkshire Mall, the Berkshire Visitors Center in Adams, and numerous photo and framing-supply stores throughout the region. Full-color photos, transparencies, slides, paintings, and digital images with a horizontal format are being accepted. Cash prizes totaling $1,050 will be awarded, and all entrants will receive a 2012 calendar. The deadline for submissions is April 29. For more information, contact June Roy-Martin, manager of communications, at (413) 442-4166, ext. 119, or [email protected].

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Average Starting Salary for Class of 2011 Up 3.5%
BETHLEHEM, Pa. — For the first time since 2008, a college class is beginning the year with an average starting salary offer that is on the rise, according to results of a new survey conducted by the National Assoc. of Colleges and Employers (NACE). The overall average salary offer to a class of 2011 bachelor’s-degree graduate is $50,034, up 3.5% over last year at this time, according to NACE’s Winter 2011 Salary Survey report. For the Class of 2011, this is the latest sign of improvement in the college job market. Employers responding to an earlier NACE study reported plans to increase their college hiring of the class of 2011 by 13.5% over the previous year, and monthly polls conducted by NACE show hiring remains in positive territory. While not all categories of majors posted increases to their average salary offers, the increases seen in the Winter 2011 Salary Survey report far outweigh the decreases. That’s a significant improvement over last year at this time. Currently, 67% of disciplines posting a change this year are showing an increase. Last year, the opposite was true, as 63% of disciplines indicating a change to staring salary offers were projecting them to be decreases. Among the disciplines in the Winter 2011 Salary Survey report, business majors fared the best; their average offer rose almost 2% to $48,089. Accounting majors saw their average salary offer rise 2.2% to $49,022, and the average offer to finance majors rose 1.9% to $50,535. Business administration/management graduates saw a slight decrease to their average starting salary offer, which fell 2.3% to $44,171. Meanwhile, the average offer to marketing majors dipped by 1.3% to $41,948. Among the technical disciplines, computer-science majors posted a small increase; their average salary offer rose almost 1% to $61,783. Salary offers to engineering graduates as a group remained nearly level — a 0.3% increase to $59,435 — but some of the individual majors fared far better. Electrical-engineering majors saw their average salary offer jump 4.4% to $61,690, while mechanical-engineering graduates also saw a healthy increase — 3.8% — for an average salary offer of $60,598. Conversely, chemical-engineering and civil-engineering majors saw their average salary offers fall. The average offer to chemical-engineering graduates dipped by 0.8% to $64,641. Meanwhile, civil-engineers fared worst among their engineering peers; their average offer dropped 7.1% to $48,885. Data is limited for liberal-arts majors, but, as a group, their average offer is up 9.5% to $35,633. This is in sharp contrast to last year, when they watched their average offer fall almost 11%. The Winter 2011 Salary Survey report is the first look at salaries for the Class of 2011. NACE will continue to monitor salary offers to the current class and will release its next salary report in April with the Spring 2011 Salary Survey.

Employers Needed for Youth Summer Jobs Campaign
SPRINGFIELD — The Regional Employment Board (REB) of Hampden County Inc., will host its fourth annual Employer Outreach Breakfast on March 25, 7:30 to 9 a.m., at the Sheraton Springfield Monarch Place Hotel, One Monarch Place. The event launches Youth Summer Jobs Campaign 2011, spearheaded by the REB, FutureWorks and CareerPoint one-stop career centers, and the YMCA of Greater Springfield. Last year 158 employers across Hampden County were involved in putting 1,100 youth to work, and organizers are hoping to broaden their base of employers this year. Businesses can get involved by hiring youth, donating money, or becoming a work site. Pre-registration is required for the free event that will outline how businesses can help a young person this summer. For more information, contact Kathryn Kirby at (413) 755-1359 or [email protected].

Agency Purchases Paramount Theater
SPRINGFIELD — The Paramount Theater, a historic Main Street property, has been purchased by the nonprofit New England Farm Workers Council. A check for $54,000 was recently delivered by Paramount co-owner Steven Stein to the city’s License Commission to pay off a delinquent tax bill, paving the way for the purchase of the building, according to Heriberto Flores, council president. Stein is co-owner with Michael Barrasso of Paramount Realty Investment LLC. With the sale now complete, both men will remain at Paramount for several months, ensuring a smooth transition, added Flores. Flores noted that the Paramount purchase was privately funded and did not involve public funding. Future development at the Paramount by the nonprofit agency includes touring stage productions and national musical acts, in addition to focusing more on local talent, added Flores.

February Jobs Growth Shows Some Strength 
WASHINGTON, D.C. — The recent U.S. Bureau of Labor Statistics report of a 192,000 February increase in payrolls shows employment has rebounded from a disappointing start to 2011, according to the Conference Board. The Conference Board is a global, independent business membership and research association working in the public interest. While the increase in employment continues to lag the pickup in the broader economy, the Conference Board notes it is “encouraging” to see the job numbers moving in the right direction. It was also noted that, once officials account for the recovery from January’s weather effect, February’s gains hardly suggest an acceleration relative to the slow trend of about 100,000 jobs per month during the second half of 2010. The Conference Board concluded that, assuming an aggregate productivity trend, including government, of about 1.5%, the economy would need to grow well beyond 3% in order to double the trend to an average of 200,000 jobs over the next couple of months. With a shrinking government, a stagnant construction sector, and a small manufacturing base, only consumer spending can generate that kind of improvement in hiring, the Conference Board added.

Improved Job Prospects Trump Rising Prices
ANN ARBOR, Mich. — Consumer confidence rose to its highest level in three years in February, according to the Thomson Reuters/University of Michigan final index of consumer sentiment. Higher-income households were responsible for all of the February gain over the prior month. The Sentiment Index rose by 9.7% among households with incomes above $75,000, but fell by 1.4% among lower-income households. The difference was due to more-favorable job and income prospects among upper-income households. Also, news about recent economic developments was much more favorable than any time in the past six years. Greater job gains dominated the news, and consumers anticipated significant gains in employment during the year ahead. The favorable job news completely dominated rising concerns about higher food and fuel prices. The Sentiment Index was 77.5 in the February 2011 survey, up from 74.2 in January and last February’s 73.6. The February reading was the highest since 78.4 was recorded in January 2008. The February gains were concentrated in the Current Conditions Index, which rose to 86.9 from 81.8 in January and last February. The Expectations Index, a component of the Index of Leading Economic Indicators, rose to 71.6 in February from 69.3 in January and last February’s 68.4. The minimum monthly change required for significance at the 95% level in the Sentiment Index is 4.8 points; for the Current and Expectations Index, the minimum is 6.0 points.

Tax Cut Fails to Boost Economy In Early 2011
WASHINGTON, D.C. — The U.S. Commerce Department’s Bureau of Economic Analysis recently released data on personal income and outlays for January, noting personal income increased 1.0%, exceeding private-sector expectations of a 0.4% rise. Wages and salaries, the largest component of income, rose 0.3%, perhaps hampered by more severe than usual weather in some parts of the country. Real consumer spending edged down 0.1% in January but has already risen 0.8% at an annual rate above its fourth-quarter average. U.S. Commerce Department Chief Economist Mark Doms noted that personal income surged in January, largely as a result of the Middle Class Tax Relief Act. Doms added that, by lowering employee contributions for Social Security, workers have more take-home pay. This increased spending capacity should boost the U.S. economy and employment in 2011, he added. In other news, the Commerce Department recently released the second estimate of gross domestic product (GDP) for the fourth quarter of 2010. Real GDP grew 2.8% at an annual rate, less than expectations and revised down from the 3.2% advance estimate. The downward revision reflects a wider trade deficit, reduced state and local government spending, and lower personal consumption. Doms noted that the U.S. economy is continuing to expand, with increased growth at the end of 2010 and further strengthening expected in early 2011. Doms added that steps taken by the Obama administration to create jobs and help U.S. businesses grow, including the Middle Class Tax Relief Act, should encourage continued economic expansion.

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2011 AIM Global Trade Award Nominations Open
BOSTON — The Associated Industries of Massachusetts International Business Council (AIM-IBC) has announced its call for nominations for the 16th annual Global Trade Awards, which recognize Massachusetts firms, institutions, and public agencies of all sizes that have demonstrated excellence in international trade. This year, a new award category will recognize a globally owned company that has positively impacted the Massachusetts economy. Kristen Rupert, executive director of AIM-IBC, noted in a statement that, “this year, we are focusing attention on the value of internationally owned companies, as their significant presence in the Commonwealth has led to the creation or retention of around 170,000 jobs.”Award winners will be honored at AIM’s Annual Meeting & Luncheon on May 13 at the Waltham Westin Hotel.  The deadline for nominations is March 18.  Entry forms are available online at www.aimnet.org/international. Since 1996, the Global Trade Awards have recognized more than 60 Massachusetts companies, institutions, and individuals. The AIM International Business Council helps Massachusetts employers engage in international trade and expand their global business activities. Through seminars, referrals, and e-newsletters, the AIM International Business Council provides companies with resources they need. For more information, visit www.aimnet.org/international.

UMass Research Spending Breaks $500M Mark
BOSTON — Research expenditures at the University of Massachusetts reached $536 million in fiscal year 2010, topping the $500 million mark for the first time in the school’s history, according to a statement by President Jack Wilson. Research spending increased by $47 million, rising from $489 million in fiscal year 2009 to $536 million in fiscal year 2010. The additional $47 million represents a 9.5% increase in research expenditures over the previous year. The research numbers, preliminary at this point, will be submitted to the National Science Foundation later this month. “Part of what makes the University of Massachusetts a world-class university is the sustained effort we have made in the past decade to increase research funding throughout all five of our campuses,” said Wilson. “The research work of our faculty is rocket fuel for the state’s innovation economy.  It is saving lives, cleaning the environment, and stoking economic development in Massachusetts. Our success in this area is the result of the hard work of the faculty, the leadership of the chancellors and their teams, and the encouragement and guidance we have received from our board of trustees.” With 9.5% growth in research spending, total research expenditures at UMass have been growing at a rate that exceeds the national average. Research expenditures have risen from $320 million in fiscal year 2003 to $536 million in fiscal year 2010. “Research activity at the University of Massachusetts has grown sharply over the past several years, and the Commonwealth and all of its citizens benefit from it,” added Wilson.  “The funding we have received creates new companies and new jobs in the state. It provides students with the kind of skills they need to be competitive in the workforce — and most of those students will stay here in Massachusetts to put that knowledge to work in the Commonwealth.” Most of the research that takes place on UMass campuses is externally funded, with the federal government providing research funding through the National Institutes of Health, the National Science Foundation, and other agencies. According to the new report, preliminary fiscal year 2010 research expenditures by campus were: Amherst, $169 million; Boston, $51.3 million; Dartmouth, $26 million; Lowell, $57.4 million; and Worcester, $232 million. The university’s research-expenditure accomplishment comes on the heels of the recent announcement that UMass is now the eighth-ranked university in the nation in terms of income derived from the licensing of faculty discoveries and products. According to the Assoc. of University Technology Managers, UMass, with more than $71 million in income generated in 2009, was the top Massachusetts university in this ranking. Annual intellectual-property income rose from $20 million in fiscal year 2003 to $71 million during fiscal year 2009.

Personal-bankruptcy Filings Rise 8.5% in State
BOSTON — Personal-bankruptcy filings in Massachusetts jumped almost 9% in 2010, compared to 2009, according to a new report from the Warren Group, publisher of Banker & Tradesman. There were 17,496 Chapter 7 bankruptcies filed in Massachusetts last year, an 8.5% bump from the 16,118 filed in 2009, and a 45% hike from 12,034 in 2008. Chapter 7 of the U.S. bankruptcy code is the most common option for individuals seeking debt relief, and accounted for 75% of Massachusetts’ bankruptcy filings last year. The fourth quarter saw the slowest quarterly bankruptcy pace of 2010, with 5,423 filers statewide seeking some kind of bankruptcy protection under Chapters 7, 11 and/or 13, compared to 5,350 in the fourth quarter of 2009. The second quarter experienced the most bankruptcy volume, with a combined 6,193 filings. Chapter 7 bankruptcy filings also accounted for almost 75% of all filings tracked by the Warren Group in the fourth quarter. Chapter 7 bankruptcy filings totaled 4,008 in the fourth quarter, a 4.8% decrease from 4,212 during the same period in 2009. People filing under Chapter 7 bankruptcy can eliminate most debt after non-exempt assets are used to pay off creditors. In contrast, Chapter 13 requires debtors to arrange for a three- or five-year debt-repayment plan. Filings under Chapter 13 of the U.S. bankruptcy code surged 52% to 5,392 in 2010, from 3,547 in 2009. The number of Chapter 13 filings rose 26.5% to 1,359 in the fourth quarter of 2010, up from 1,074 filings during the same period in 2009. Chapter 11 filings, which are used for business bankruptcies and restructuring, also rose in 2010; filings increased 10.2% to 237, up from 215 in 2009. Filings decreased in the fourth quarter, however. A total of 56 Chapter 11 bankruptcies were filed in the fourth quarter, down from 64 during the same period in 2009. A total of 23,125 filers statewide sought protection under Chapters 7, 11, and/or 13 of the U.S. bankruptcy code in 2010, up from 19,880 in 2009.

Small Grants Available for Connecticut River Improvement
SPRINGFIELD — Nonprofits, municipalities, and schools within the watershed of the Connecticut River in Massachusetts and Connecticut are invited to submit project proposals that will result in improved river-water quality, ecosystem health, public awareness, and recreational access to the Connecticut River. This project is a joint effort by the Pioneer Valley Planning Commission, the Capitol Region Council of Governments, the Franklin Region Council of Governments, and the Connecticut River Estuary Regional Planning Agency, which serve the towns in the Connecticut River watershed. Proposals are due March 18. For more information, visit www.pvpc.org. Funding for this project has been provided by the National Oceanic and Atmospheric Administration.

UMass President Praises Obama Decision to Invest in Higher-Ed Innovation
BOSTON — UMass President Jack Wilson recently praised President Obama’s decision to propose the creation of a $123 million fund aimed at fostering reform and innovation in higher education. Wilson called the proposed “First in the World” fund a “farsighted effort to foster educational innovation and to set the stage for long-term national economic growth.” Wilson added that the proposal is consistent with the principles Obama enunciated in his State of the Union address when he said the U.S. must “win the future” by investing in education and by maximizing the capabilities of every student and citizen. Wilson serves as chairman of the National Board of the U.S. Department of Education’s Fund for the Improvement of Postsecondary Education (FIPSE). FIPSE’s mandate is to improve post-secondary-educational opportunities across a broad range of concerns. Through its various grant competitions, FIPSE seeks to support the implementation of innovative education-reform projects, to evaluate how well they work, and to share the findings with the larger education community. The funding for the higher-education-innovation fund, which also seeks to increase college-completion rates, was proposed when Obama unveiled his 2012 federal budget.

Smith & Wesson Receives Tax Break
SPRINGFIELD — With a commitment to add 225 full-time jobs and invest millions of dollars in its plant on Roosevelt Street, Smith & Wesson recently received tax incentives totaling $600,000 over a five-year period. The City Council approved the special tax agreement on a vote of 12-1. Councilor Timothy Rooke voted no because he felt the firm had not met hiring obligations in a financing agreement from 1995. John Judge, Springfield’s chief development officer, called the vote a “big win” for the city, adding that it would set the stage for “bigger and better things” from the company. Councilors noted that the new agreement outlines clearly the requirements that the firm must follow, and that reviews will be done to ensure that guidelines are met. John Dineen, vice president of finance for Smith & Wesson, noted during the council meeting that the firm looks forward to working with the city as it has for the past 159 years. Dineen added that Smith & Wesson will begin filling the new jobs within the next month.

State Businesses Report Record Exports in 2010
BOSTON — Global demand for technology products was good news for state businesses, as exports rebounded in 2010 to the highest level since 2008. High-tech instruments, machinery, and equipment rose 11.3% to more than $26 billion, according to the World Institute for Strategic Economic Research (WISER). WISER, based in Leverett, noted that only in 2008 did state firms sell more than $28 billion in overseas sales. Andre Mayer, senior vice president for research at Associated Industries of Massachusetts, noted that the state’s gains fell “far short” of national export growth. Mayer added that the state’s growth lagged behind the nation because its largest trading partners — Canada, Japan, and Europe — are nations recovering slowly from the global recession. The top export market for Massachusetts products in 2010 was the United Kingdom at $3.2 billion.

Briefcase Departments

West of the River Chambers Leaves ACCGS; Affiliates with MassCBI
EAST LONGMEADOW — The West of the River Chamber of Commerce (WRC) recently announced its newly developed management relationship with the Mass. Chamber of Business & Industry Inc. (MassCBI), of East Longmeadow, severing its ties with the Affiliated Chambers of Commerce of Greater Springfield (ACCGS) that go back 40 years. The WRC, which serves the cities of Agawam and West Springfield, will be managed by MassCBI under the leadership of Debra Boronski, whose organization will oversee all of its management needs. “The WRC is the primary advocate and resource for business in Agawam and West Springfield; we felt it was time to take a new direction in the management of our chamber in a way that best suits the needs of our members,” said Remo Pizzichemi, vice chair of the West of the River Chamber. “We will remain a local, independent chamber of commerce representing Agawam and West Springfield businesses and will continue to offer our members the local benefits they have always enjoyed as well as the lobbying and legislative expertise of Ms. Boronski.” The new management relationship with the Massachusetts chamber will extend current benefits by offering WRC members access to the MassCBI monthly Legislative Newsletter which provides up-to-date information on laws and regulations that impact their business. “I am pleased to welcome the West of the River Chamber and its 250 member businesses to MassCBI,” said Boronski, “and look forward to working with the WRC board, committees, and leaders of its member companies, many of whom I have a long history with.” In 2008, the West Springfield and Agawam chambers of commerce were combined to form the WRC. The chamber hosts a number of meetings and events each year, including FoodFest West, a golf tournament, educational seminars, networking events, and debates for candidates in Agawam and West Springfield, and has recently launched a manufacturing committee. ACCGS President Jeffrey Ciuffreda said member businesses that are part of the WRC will continue to be represented through ACCGS until their current membership expires, which is different for each member. “We welcome these businesses to renew their memberships with ACCGS to continue the high level of service they have come to expect from the chamber,” he noted. “ACCGS continues to believe in its original mission and philosophy — the business community is best served by a regional approach, speaking in one voice to government representatives, policy makers, other businesses, and business-related organizations. The ACCGS will continue to speak out with a singular voice on issues facing businesses throughout Greater Springfield. The action taken by the WRC Board of Directors will have no impact on the services, member benefits, educational programs, legislative advocacy, or networking opportunities provided by ACCGS to its member base. Despite the WRC board’s decision, it is business as usual for the ACCGS.”

Caret Named to Lead UMass System
BOSTON — The Board of Trustees of the University of Massachusetts recently unanimously elected Robert Caret president of the five-campus university system. Caret, the president of Towson University in Maryland, will succeed retiring UMass President Jack Wilson, who steps down on June 30. “After conducting an exhaustive search, we selected a president with the qualifications, the character, and the vision to lead our university system forward and to build upon the strengths of our world-class university system,” said James Karam, head of the search committee and acting chair of the UMass Board of Trustees, in a statement. “It is an honor to have been asked to lead this world-class and world-renowned university system,” said Caret in a statement. “The University of Massachusetts is one of the nation’s premier public research universities and provides a beacon of hope and opportunity for so many.  I look forward to building upon its tradition of excellence in academics, research, and public service.” Caret, 63, has been the president of Towson University since 2003. He served as a faculty member, dean, executive vice president, and provost of Towson University for 21 years before leaving to assume the presidency of San Jose State University in 1995. Caret is credited with helping to reinvigorate the San Jose State University campus, and he championed a joint city/university effort to build the Martin Luther King Jr. Library there. As president of Towson University, Caret has created partnerships with regional business, nonprofit, and civic organizations in Maryland.  He became a founding member of the Maryland Business Council in 2004 and serves as the honorary chairman of the Maryland Council on Education. He is a member of the Board of Directors of the CollegeBound Foundation, the Board of Governors for the Center Club, the Governor’s Workforce Investment Board, and the P-20 Leadership Council.  He also serves on the Board of Directors for 1st Mariner Bancorp and on the Board of Advisors for Evergreen Capital LLC.  He was inducted into the Baltimore County Chamber Business Hall of Fame in 2006 and was awarded the Towson University Hillel Gesher Award in 2010. Caret is a member of the University of Maryland Foundation Board of Directors. He recently served on the NCAA Presidential Task Force on the Future of Intercollegiate Athletics and is a member of its Presidential Advisory Group and Football Academic Working Group. He also has served on the American Flag Foundation Board of Directors, the Board of Directors of the American Council of Education (ACE), and the Board of Directors for the American Assoc. of State Colleges and Universities (AASCU).  He currently serves on the executive steering committee of the AASCU Millennium Leadership Initiative (MLI). Caret has authored many articles on chemistry, chemical education, and higher education for business and professional publications. He is the co-author of four textbooks in the fields of organic chemistry and allied health chemistry. The Maryland Chapter of the American Chemical Society recognized Caret’s achievements by honoring him with the George L. Braude Award in 2005. He is a native of Maine who received his Ph.D. in organic chemistry from the University of New Hampshire in 1974 and his bachelor of science degree in chemistry and mathematics from Suffolk University in 1969.  Caret’s honorary degrees include a doctor of humane letters degree from San Jose State University (2004) and National Hispanic University (1997) and a doctor of science degree from Suffolk University (1996). Current UMass President Wilson is retiring from the presidency after eight years to return to teaching.  He will become the distinguished professor of Higher Education, Emerging Technologies and Innovation at the University of Massachusetts Lowell.

More State Residents
Lost Homes to
Foreclosure in 2010
BOSTON — The number of completed foreclosures in Massachusetts jumped almost 32% in 2010 to 12,233, up from 9,269 in 2009, but did not surpass the record 12,430 foreclosures recorded in 2008, according to the latest report from the Warren Group, publisher of Banker & Tradesman. The number of foreclosure petitions, meanwhile, declined 14.3% to 23,933 last year from 27,928 in 2009. “It’s a big concern that more homeowners lost their homes to foreclosure in 2010 than in the prior year,” said Timothy Warren Jr., CEO of the Warren Group, in a statement. “One bright spot is that fewer people entered the foreclosure process compared to a year ago. This is despite a slumping economy and high unemployment. These statistics for petitions to foreclose are skewed by lenders who slowed their foreclosure processing in the last four months of the year. It’s important to remain cautious heading into 2011, and not assume we are out of the woods yet.” Foreclosure petitions — the first step in the foreclosure process in Massachusetts — dropped dramatically in December. A total of 733 starts were recorded, a 64.4% drop from 2,060 in December 2009. Petitions also dropped from November 2010, when there were 1,109 starts recorded. The number of foreclosure petitions exceeded 2,000 for eight months in 2010, falling below that level for the past three consecutive months. In December, there were 481 foreclosure deeds, a nearly 44% drop from 857 deeds recorded in December 2009. Foreclosure deeds represent completed foreclosures. Deeds bumped up in December from a month earlier; there were 418 recorded in November. Foreclosure deeds reached their highest point earlier in the year, peaking at 1,391 in March. Both foreclosure petitions and deeds dropped in the fourth quarter. A total of 2,969 foreclosure petitions were recorded in the fourth quarter of 2010, down almost 53% from the 6,293 petitions during the same period in 2009. Foreclosure deeds dropped to 1,456 in the fourth quarter, a 41.1% decline from 2,473 deeds in the fourth quarter of 2009. The fourth quarter marked the slowest activity for both petitions and deeds this year. Year-to date petitions were down in every county except Nantucket County. A total of 88 foreclosure petitions were recorded in 2010, up almost 9% from 81 in 2009. On the contrary, deeds also increased in every county in 2010, except Nantucket and Dukes counties. There were 12 completed foreclosures in Nantucket County in all of 2010, down from 25 in 2009. Dukes County saw no change in its foreclosure deeds in 2010 — there were 38 completed foreclosures in both 2009 and 2010. The Warren Group also tracked a large increase in auction announcements in 2010. A total of 29,227 auction announcements were tracked in 2010, a 50.6% increase from 19,441 in 2009. Auction announcements in December totaled 1,076, a 50% drop from 2,152 in November, and also declined 44.3% from 1,931 during the same month in 2009.

Director Sought for Leadership Pioneer Valley
SPRINGFIELD — Leadership Pioneer Valley (LPV), a new regional leadership initiative for the 69 communities and three counties (Hampshire, Hampden, and Franklin) that comprise the Pioneer Valley, has launched its search for a program director. The director, who will be the first to hold this position, will oversee an array of LPV program activities, most importantly the recruitment of emerging, diverse leaders to strengthen the region by fostering a sense of community pride, responsibility, and dedication. Leadership Pioneer Valley is an advanced leadership-development program housed within the Pioneer Valley Regional Ventures Center Inc., the companion nonprofit of the Pioneer Valley Planning Commission. LPV was established last year to recruit, develop, and support succeeding generations of the region’s leaders through dynamic education and civic-engagement programs that foster the skills, collaboration, and commitment needed to build a healthy, vibrant, and culturally competent Pioneer Valley. The new program director will begin work with the aim of recruiting LPV’s first class for fall 2011 and continuing to direct its efforts. The job description for LPV program director is available at www.pvpc.org. Interested candidates must submit a cover letter, résumé, and three references via email by Feb. 1 to Search Committee Chair Ron Ancrum at the Community Foundation of Western Massachusetts; the address is [email protected].

Housing Market Remains ‘Very Volatile’
WASHINGTON — Permits for new homes jumped 16.7% in December compared with private-sector expectations of a 2.9% increase, according to the latest data on new residential construction in December from the Commerce Department’s U.S. Census Bureau. Scheduled changes in building codes in January in California, New York, and Pennsylvania may have been responsible for much of the December increase, as builders sought to obtain permits ahead of the code change. Housing starts declined 4.3% compared with private-sector expectations that they would remain virtually unchanged. “Today’s data show that the housing market is still very volatile from month to month,” said U.S. Commerce Secretary Gary Locke in a statement. “This administration is keenly focused on expanding employment and economic growth, and as job creation progresses, the incomes of the American people will strengthen and help put the housing market back on track.”

Briefcase Departments

Denver Stepping Down as Chamber President
SPRINGFIELD — After 14 years as president of the Affiliated Chambers of Commerce of Greater Springfield, Russell F. Denver recently announced he is leaving that post in the coming weeks to pursue other professional opportunities. Denver, an attorney, noted that he feels now is the opportune time to step down and bring in someone else with a fresh perspective. Citing his accomplishments, Denver noted in particular the Urban Land Institute’s work that has been done in the city. Before leaving his post, Denver plans to complete work on zoning revisions for the city, as well as the new “Make It Happen” marketing campaign for Springfield. Jeffrey S. Ciuffreda, vice president of government affairs for the Affiliated Chambers, will serve as interim president. Currently, the Affiliated Chambers of Commerce have approximately 1,200 members and an annual budget of $300,000. The Affiliated Chambers include the Springfield Chamber of Commerce, the West of the River Chamber of Commerce, the East of the River Chamber of Commerce, and the Professional Women’s Chamber of Commerce.

Springfield Leadership Institute Registration Underway
SPRINGFIELD — Registration is underway for this year’s Springfield Leadership Institute (SLI), which represents a 37-plus-year collaboration between the Affiliated Chambers of Commerce of Greater Springfield and the Western New England College School of Business. Institute alumni represent many accomplished and distinguished leaders in business, education, government, and nonprofit communities. The 2011 Springfield Leadership Institute, which begins on Feb. 17, will challenge participants to think in new ways and to analyze their own strengths and organizational challenges within a dynamic economy. SLI is taught by Western New England College faculty, who will introduce participants to emerging leadership theory and best practices. A segment on ‘Leadership Presence’ is being added this year along with the institute’s continued emphasis on problem-solving at the executive level. Case studies have also been updated for the 2011 program. The program meets every Thursday from 1 to 4:30 p.m. in the TD Bank Conference Center, 1441 Main St. Participants in SLI learn how to be more effective leaders and how to have the power to make an important difference both in the workplace and in the community. Contact Lynn Johnson at (413) 755-1310 or at [email protected] for more information.

2011 Woman of the Year Nominations Sought
SPRINGFIELD — The Professional Women’s Chamber of Commerce, a division of the Affiliated Chambers of Commerce of Greater Springfield, is seeking nominations for the 2011 Woman of the Year Award. The award has been presented annually since 1954 to a woman in the Western Mass. area who exemplifies outstanding leadership, professional accomplishment, and service to the community. The nominee’s achievements can be representative of a lifetime’s work or for more recent successes. Any woman in the Pioneer Valley is eligible for nomination, and a chamber affiliation is not required. To obtain a nomination form, visit www.professionalwomenschamber.com or e-mail committee chair Michelle Cayo at [email protected]. The deadline for nominations is Feb. 11.

Call for ADDY Award Submissions
SPRINGFIELD — The Advertising Club of Western Massachusetts (ACWM) welcomes submissions for its 2011 ADDY Awards from individuals and organizations throughout Hampden, Hampshire, Franklin, and Berkshire counties. The annual competition recognizes creative excellence in all media, including print, broadcast, interactive, out-of-home, and public-service advertising. The ADDY Awards competition is a three-tier (local, regional, and national) competition conducted annually by the American Advertising Federation (AAF). ACWM is the only AAF-member club in the New England district. A panel of advertising experts will select winners in Springfield on Feb. 11. All entries must be registered online. For information on submission guidelines and a direct link to commence the submission process, visit www.submitandrepresent.com. The deadline for mail submission is Jan. 31. In-person submissions will be accepted on Feb. 4 from 9 a.m. to 5 p.m. in the Berkshire Bank community room, 1259 East Columbus Ave., Springfield. For more information, call the Ad Club at (413) 736-2582.

Unemployment Hits 20.7% in Construction Sector
WASHINGTON — Despite a slight drop in the nation’s unemployment rate, the construction industry ended 2010 with a jobless rate of 20.7%, according to the Jan. 7 report by the U.S. Labor Department. The construction industry lost 16,000 jobs last month and 93,000 jobs, or 1.6%, compared to December 2009. While the unemployment rate was up from 18.8% last November, it is down from 22.7% in December 2009. The average annual unemployment rate for the construction industry in 2010 was 20.6%, compared to 19.0% in 2009 and 10.6% in 2008. The non-residential building construction sector lost 400 jobs in December, but was up by 5,700 jobs, or 0.8%, from the same time one year ago — the first year-over-year growth since August 2008. Employment in that sector was 688,300 in December on a seasonally adjusted basis. Employment in heavy and civil engineering construction decreased for the second straight month, down 12,700 in December. However, employment in that sector was up by 18,100 jobs, or 2.3%, from December 2009. Specialty trade contractors gained 3,300 jobs last month, but the segment is down 79,000 jobs, or 2.2%, from the same time last year. The residential-building construction sector shed 5,900 jobs for the month and 37,000, or 6.2%, for the year. The nation gained 103,000 jobs in all industries in December, with the bulk of job growth in leisure and hospitality, up 47,000 jobs; education and health services, up 44,000 jobs; and trade, transportation, and utilities, up 31,000 jobs. Year-over-year, the nation has gained 1,124,000 jobs, or 0.9%. The nation’s unemployment rate dropped to 9.4% in December from 9.8% the previous month. “The nation’s construction industry should be glad to see 2010 in the rearview mirror, as the sector ended the year on a dismal note,” said Associated Builders and Contractors Chief Economist Anirban Basu in a prepared statement. “It is noteworthy that heavy and civil engineering has lost jobs for two consecutive months, which may be a reflection of the steadily slowing impact of federal stimulus spending. For much of the past year, that segment had been adding jobs. The expectation is that the nation will continue to add jobs. However, the construction sector is poised to underperform in the year ahead due to a number of factors, including dwindling direct impact from stimulus spending and the ongoing malaise in commercial real estate. With a national unemployment rate now at 9.4% — the lowest rate since May 2009 — this is an indication that the labor market is improving reasonably quickly. However, this does not seem to be the case with the construction industry, as today’s numbers may be a reflection of numerous factors in the economy, including still-subdued confidence among business owners and decision-makers.”

Uptick in Car Sales Sends Optimistic Sign
DETROIT — U.S. automakers will take a victory lap at the Detroit auto show this month after a measurable recovery from years of losses, a shrinking of market share to Asian rivals, and the bankruptcy troubles of Chrysler and General Motors (GM), according to Edmunds.com. GM posted a $2 billion third-quarter profit and then launched a public stock offering in November, while Chrysler increased its market share in 2010 and will introduce two new models this month at the auto show. Also, Ford was able to regain the number-two spot in the U.S. market from Toyota in 2010 when it saw its share grow for the second consecutive year. Overall, U.S. auto sales rose 11% last year to 11.6 million vehicles. Sales forecasts predict sales of 12.5 to 13.5 million units in 2011, and Toyota hopes its prospects are good for big gains despite its recent recalls. “If [the Detroit Three] can make money at depression-level sales, it tells you something dramatic has changed,” said David Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich., in a prepared statement. “If we get back to 13, 14, 15 million units, this is going to be an astonishingly profitable business.” In the coming months, automakers are also expected to revamp their lineups with ‘green’ cars that will meet new emissions standards. Toyota will be expanding its Prius hybrid with the introduction of a new wagon, Tesla will be showing a luxury electric sedan, and GM launches its subcompact, the Chevy Sonic, as well as a compact Buick and the plug-in hybrid Chevy Volt. However, “the risk to the marketplace is that consumers aren’t asking for these,” said Rebecca Lindland, an analyst with IHS Automotive. Hybrid auto sales fell last year to 2.4% of the U.S. market from 2.8% in 2009, according to Autodata. The North American International Auto Show is open to the public Jan. 15-23.

Link to Libraries Receives Grant
EAST LONGMEADOW — The Service League of Springfield (Philanthropic Management–Bank of America) has made a $1,000 grant to Link to Libraries Inc. The organization will use the grant to offer Senior Connections, a Link to Libraries read-aloud program for children in the Holyoke and Springfield areas who are enrolled in preschool programs. The program is conducted in collaboration with Loomis Communities and Reeds Landing residents. The residents will team up with Link to Libraries educators and volunteers to offer preschool-age children reading programs locally during the spring and fall. Susan Jaye-Kaplan, co-founder of Link to Libraries, noted in a statement, “this collaboration is yet another partnership with local residents and agencies to enhance the reading skills of children of all ages and to make a connection with talented adults who reside in our community and want to remain active.” The Link to Libraries Senior Connection will be managed by Roberta Hillenberg-Gang of Longmeadow, who serves on the organization’s advisory committee. For more information, visit www.linktolibraries.org or call (413) 224-1031.

Briefcase Departments

Smith & Wesson to Add 225 Jobs in Springfield; Net Sales Rise Slightly
SPRINGFIELD — In the third quarter, Smith & Wesson made the strategic decision to relocate its Thompson/Center Arms operations from Rochester, N.H. to the company’s facility here. Approximately 225 jobs are expected to be added to the local economy with the Rochester relocation initiative. This relocation is designed to provide the company with increased operational efficiencies through the optimization of the company’s manufacturing footprint and increased synergies generated in fixed, marketing, and administrative costs. The bulk of the $9 million of estimated cash outlays associated with the relocation will occur in the second half of fiscal 2011, and those outlays are expected to be recovered in approximately 24 months. The relocation is scheduled to commence in January and conclude by November 2011. In other news, Smith & Wesson Holding Corp. recently announced that total net sales of $96.3 million for the second quarter decreased $13.4 million, or 12.2%, from net sales of $109.7 million for the comparable quarter last year. Indications are that the consumer firearm market has moderated further following the significant increase that started in the company’s third quarter of fiscal 2009. In the second fiscal quarter of this year, sales in all handgun and tactical rifle product lines, except premium products, were flat or lower than in the prior year quarter due to a more competitive environment and a trend toward more value-oriented products. Hunting products were the exception and increased 26.3% over the prior year’s comparable quarter on improved sales of black-powder products and the company’s new bolt-action rifles.

AIM Index Off in November, Retains Most Gains
BOSTON — The Associated Industries of Massachusetts (AIM) Business Confidence Index lost 3.2 points in November to 52.1, but held on to most of the gains from its record 7.7-point rise in October. The sub-indices based on selected questions or respondent characteristics all lost ground in November, though most gave back less than half of their October gains. The current index of conditions prevailing at the time of the survey was off 2.6 points at 50.6, while the future index of expected conditions six months ahead dropped 3.5 to 53.5. Andre Mayer Sr., vice president of communications and research for AIM, noted that employers are disappointed by the pace of recovery and are aware of considerable risk in the economy, but see conditions slowly improving and expect improvement to continue over the next six months. The Massachusetts Index of business conditions prevailing within the Commonwealth fell 2.6 points to 47.5, remaining above the U.S. Index of national conditions, which lost 5.8 (after a 12.3-point gain in October) to 43.0. On the year, the state indicator was up 9.0, its national counterpart up 6.3. Mayer added that survey respondents have rated the state’s economic climate better than the nation’s through this downturn and recovery. The monthly Business Confidence Index is based on a survey of AIM member-companies across Massachusetts, asking questions about current and prospective business conditions in the state and nation, as well as for respondents’ own operations. On the index’s 100-point scale, a reading above 50 indicates that the state’s employer community is predominantly optimistic, while a reading below 50 indicates a negative assessment of business conditions.

UMass Trustee Chairman Steps Down
AMHERST — University of Massachusetts Board of Trustees Chairman Robert J. Manning stepped down as the leader of the 22-person UMass governance board on Dec. 8, saying it would be beneficial for the university to have new leadership as it enters a period of transition. Manning noted in a statement that the university is “embarking on a transition phase” that is significant to UMass, and as his term winds down at the end of this academic year, he cannot sign up for another five years. Manning, who has served as chairman of the board for three years, noted of his tenure, “it’s been a remarkable experience for me.” Manning added that he was stepping down from the chairmanship and from the board effective immediately. Gov. Deval Patrick will appoint the next chairman, according to Manning.

Poll: Strong Support for Resort Casino
PALMER — A recent public-opinion poll commissioned by Northeast Realty Associates and conducted by Market Street Research of Northampton shows overwhelming support for the establishment of a resort-style casino destination on acreage across from the Mass. Turnpike entrance on Route 32. The survey, conducted in mid-November, indicates 64.8% of Palmer residents support the development of a resort-style casino on land owned by Northeast Realty, while 30.3% are opposed with 4.9% undecided. Mohegan Sun currently holds a 99-year ground lease with Northeast to develop the property into a destination resort casino should gaming become legalized in Massachusetts. Earlier this year, the state House and Senate passed legislation calling for three resort casinos in the state, stipulating one of the venues for Western Mass. While final agreement on the legislation is stalled, Gov. Deval Patrick has consistently supported the development of three resort-style gaming venues, including a Western Mass. destination.

Spalding Hoophall Classic Teams Named
SPRINGFIELD — Springfield College’s Blake Arena will be setting for the 10th annual Spalding Hoophall Classic Jan. 14-17, representing 46 teams from 17 states. The nation’s premier high school event will showcase its strongest field in its history with elite matchups including Dallas Lincoln High School (Dallas, TX) vs. Findlay College Prep (Henderson, NV), Oak Hill Academy (Mouth of Wilson, VA) vs. Milton High School (Milton, GA), and St. Patrick High School (Elizabeth, NJ) vs. Bishop Gorman High School (Las Vegas, NV). Numerous games from the 2011 Spalding Hoophall Classic will be televised nationally. Other programs scheduled to participate include DeMatha Catholic High School (Hyattsville, MD), Christ the King High School (Middle Village, NY), St. Thomas More School (Oakdale, CT), and St. Anthony High School (Jersey City, NJ), coached by Bob Hurley, Sr., who was inducted into the Hall of Fame in August. The 2011 event continues its tradition of talented players by featuring more than 20 of the ESPNU’s Top 100 in the class of 2011.

Briefcase Departments

Growth Projections Remain Sluggish
WASHINGTON — The National Assoc. for Business Economics (NABE) recently noted that survey panelists made only modest revisions to their forecasts for the November report compared with their October projections for economic growth, according to NABE President Richard Wobbekind, associate dean of the Leeds School of Business at the University of Colorado. Wobbekind noted that projections for real GDP growth remain sub-par through the first quarter of 2011, but accelerate gradually through the forecast period. For next year as a whole, GDP growth is expected to be moderate. Factors restraining growth going forward include ongoing balance-sheet restructuring by consumers and businesses, and a diminished contribution to GDP growth from inventory restocking and government stimulus. Confidence in the expansion’s durability is intact, but panelists remain concerned about high levels of federal debt, a continuing high level of unemployment, increased business regulation, and rising commodity prices. To a large extent, the latest NABE forecast reflects the view that the economy will struggle against financial headwinds; 40% of survey respondents — compared to 37% in October — characterize the expansion as “sub-par with severe wealth losses and onerous debt burdens inhibiting spending and lending.” In contrast, 28% of respondents feel that “the economy will overcome its headwinds, and behave more in line with a traditional business cycle expansion: real output will grow at a rate above potential, and households and businesses will boost discretionary spending.” The likelihood of either stagflation or the economy slipping back into recession is viewed as relatively low. Also, consumer spending is expected to remain modest throughout the forecast horizon due to weak job gains, persistently high unemployment, and negligible growth in household net worth. This year’s holiday retail sales are still expected to be weak, rising only 2.5% from those of last year. Roughly half of the panelists expect the personal saving rate to fall over the forecast period, while the other half of the panel is divided as to whether it will rise further or stay at roughly the same rate. Additionally, labor market conditions are expected to improve slowly. Monthly payroll gains are forecast to average less than 150,000 until the latter half of 2011, at which time gains will improve at a range of roughly 150,000-170,000. Joblessness will remain high, with the unemployment rate persisting at over 9.5% or higher through the first quarter of 2011 before easing — but only slightly — to 9.2% by year-end 2011. This will mark the weakest post-recession job recovery on record. Panelists estimate the current long-run or natural rate of unemployment at 5.8%, up by one-half-percentage point since 2007.

Colonial Theatre, Berkshire Theatre Festival Team Up
PITTSFIELD and STOCKBRIDGE — The boards of trustees for the Colonial Theatre in Pittsfield and Berkshire Theatre Festival (BTF) in Stockbridge recently announced a partnership that will combine resources to strengthen the cultural vitality in the Berkshires. The partnership will stage performances and festivals interchangeably at the two historic theaters and BTF’s Unicorn Theatre. The Colonial and BTF will retain their boards of trustees and create a new board to oversee all operations. Staff activities of both organizations will also be integrated to produce efficiencies and reduce costs.

Calendar Sales Support Schools
AMHERST — The 2011 edition of the educational calendar When I Grow Up I Want To Be is now available at several local venues, according to Carroll G. Lamb, executive director of the Institute of Black Invention & Technology Inc. The calendar features color photographs of preschool-age children expressing their desire to be like significant black achievers in science, technology, engineering, mathematics, and other fields. Biographies of these achievers are included in the calendar. Donations from businesses and individuals and calendar sales enable the gift of calendars to elementary school classrooms in Springfield, Amherst, and Hadley. Calendars are available at Olive Tree Books-N-Voices, 97 Hancock St., Springfield; Helen’s Hairum Salon in Tower Square, Springfield; A.J. Hastings, 45 South Pleasant St., Amherst; and Food for Thought, 100 North Pleasant St., Amherst. For more information, visit www.tibit.biz.

Bright Nights Featured
on MSN
SPRINGFIELD — Bright Nights at Forest Park is featured at msn.com in an article titled “Everything is Illuminated.” The holiday-lighting display is first on the list of 10 lighting displays in the U.S. and Canada. The article notes that Bright Nights “adds a little color to the wintry staging with Dinner with Dickens, Supper with Santa, carriage rides, and an engine tour from Hartford to Springfield.” Bright Nights runs nightly from Dec. 8 through Jan. 2, starting at 5 p.m. Bright Nights is sponsored by the Spirit of Springfield with the Springfield Department of Parks, Buildings and Recreation Management. For more information, call (413) 733-3800 or visit www.brightnights.org.

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Moen Named President and CEO of SPHS
SPRINGFIELD — Daniel P. Moen, president and CEO of Heywood Hospital in Gardner, Mass., has been named the new president and CEO of the Sisters of Providence Health System (SPHS). Moen, who will assume his new position in January 2011, will succeed Dr. William Bithoney, who has been serving in an interim capacity since the prior CEO, Vincent McCorkle, left the organization in June 2010. Moen was selected after a nationwide search by the Sisters of Providence Health System’s board of trustees. “Daniel Moen is a well-respected, pragmatic health care leader with many years of experience managing complex hospital operations,” said Dr. David Chadbourne, board chair of SPHS. “He is an excellent choice to lead the Sisters of Providence Health System. We are confident his talents will not only help sustain our rich legacy of providing high-quality and compassionate care, but will also help us reach new levels of service to our community.” Moen brings more than 28 years of senior leadership experience in health care in the state of Massachusetts; for 23 of these years he has served as a CEO. Since 1990, he has served as president and CEO of Heywood Hospital, a 125-bed, full-service community hospital based in Gardner. Under Moen’s leadership, the hospital has added key inpatient and outpatient services, initiated a major capital-expansion project, and built outstanding relations with its community. Prior to joining Heywood Hospital in 1990, Moen served for 10 years in progressively responsible leadership positions with Holden Hospital in Holden, Mass., including two years as its president and CEO. “We are pleased to have Daniel Moen join the Sisters of Providence Health System,” said Judith M. Persichilli, president and CEO of Catholic Health East, of which SPHS is a member. “He has extensive experience in the Massachusetts health care environment, an impressive track record of high performance in challenging times, and a strong commitment to the mission and core values of the Sisters of Providence Health System and Catholic Health East. We look forward to Dan’s contributions; we are convinced that he will prove to be an important asset to our entire health care ministry.” Moen earned a master’s degree in health administration from Clark University and UMass Medical School, a bachelor’s degree in management from Worcester State College, and an associate’s degree in radiologic technology from Quinsigamond Community College, all in Worcester. He is also a past chair (2006-07) of the Mass. Hospital Assoc., helping to lead that organization in the midst of groundbreaking health care reform legislation. “I am honored to be selected for this important role,” said Moen. “It will be a privilege to serve the Sisters of Providence Health System, Catholic Health East, and the Western Mass. community.”
AIM Business Confidence Index Surges in October
BOSTON — The Associated Industries of Massachusetts Business Confidence Index shot up 7.7 points in October to 55.3, its highest level since August 2008. Raymond G. Torto, Global Chief Economist at CB Richard Ellis Group Inc. and chair of AIM’s Board of Economic Advisors (BEA), noted the monthly gain was “unprecedented” in the 19-year history of the index, adding, however, that “we must regard it cautiously.” Nevertheless, he noted, there are reasons to take the improvement in employer sentiment seriously. Torto said the October result in effect returns the state, after a three-month gap, to the upward trend of the first half of the year, and is based to a considerable extent on a less negative, and probably more realistic, assessment of prevailing conditions in the national economy. He added that Massachusetts employers remain predominantly positive about conditions for their own operations, and they now expect significant improvement in the business climate generally over the next six months. Even in that timeframe, however, Torto foresees conditions approaching neutral, rather than rapid, expansion. The AIM index was up 12 points from its level of October 2009, and 13.9 over two years. It reached its historic low at 33.3 in February 2009, and its all-time high of 68.5 on two occasions in 1997 and ’98. Among the component sub-indices, the U.S. Index of national conditions led October’s rise with a gain of 12.2 points to 48.7, while the Massachusetts Index of conditions within the Commonwealth added 7.7 to 49.4. The Current Index, assessing overall conditions at the time of the survey, was up 7.1 points in October to 53.2, and the Future Index of prospects for six months ahead gained 8.5 to 57.0, while the Future Index edged up three-tenths to 48.4. In the past year, the Current Index has picked up 10.5 points, while the Future Index has gained 2.5. The sub-indices relating to respondents’ own operations all rose in October. The broadest of them, the Company Index, was up 5.8 points, and the Sales Index was up 5.5, both at 58.9, while the Employment Index added 2.3 to 53.7. Confidence levels moved up together among employers in Greater Boston (+7.6 to 54.4) and those elsewhere in the state (+7.6 to 56.7). The monthly Business Confidence Index, initiated by AIM’s Board of Economic Advisors in July 1991, is based on a survey of AIM member-companies across the state, asking questions about current and prospective business conditions in Massachusetts and the nation, as well as for respondents’ own operations. On the Index’s 100-point scale, a reading above 50 indicates that the state’s employer community is predominantly optimistic, while a reading below 50 points to a negative assessment of business conditions. A number of component sub-indices are derived by analyzing responses to selected questions or those of particular groups of respondents.

Pilot Energy-saving Program Underway
SPRINGFIELD — Western Mass Saves, a pilot energy-efficiency program, was recently launched by Western Massachusetts Electric Company (WMECO). The program helps customers manage their electric use and rewards energy savings with points that can be redeemed at national and local merchants. Under Western Mass Saves, selected customers receive printed reports in the mail that provide personalized recommendations to reduce and track their home-energy use. The report also shows customers how their energy use compares to the average use in their community. While selected customers will receive printed reports, all customers are eligible to participate through the Web site, www.westernmasssaves.com. Under the one-year pilot program, customers can log into the Web site for personalized online electric-bill savings advice. Customers can also review more than 250 ways to reduce their energy consumption, design an individualized energy-savings plan, track the results, and earn rewards. The program is a partnership among WMECO, Efficiency 2.0, RecycleBank, and SmartPower.

Art & Soles Gallery Open
to the Public
SPRINGFIELD — The Springfield Business Improvement District announced that the popular six-foot sneaker sculptures known as Art & Soles have moved indoors for the holidays. The 20 painted sneakers will be prominently displayed in the Art & Soles Gallery, located at 1391 Main St., at the corner of Main and Harrison Avenue. The space is being donated by owner Glenn Edwards. The sneakers will be auctioned off at a later date. The gallery will be open to the public Monday through Friday from 10 a.m. to 4 p.m. (Thursdays until 8 p.m.), and also on Saturdays from 10 a.m. to 2 p.m. In addition to the 20 sneakers, artists will have other merchandise available. Art & Soles is a public art project created by a team of volunteers, including the Greater Springfield-UMass Amherst Partnership, TSM Design, and the Springfield Business Improvement District.

Business Hiring Still Lackluster
WASHINGTON — In the week ending Nov. 6, the advance figure for seasonally adjusted initial claims was 435,000, a decrease of 24,000 from the previous week’s revised figure of 459,000. The four-week moving average was 446,500, a decrease of 10,000 from the previous week’s revised average of 456,500. The advance seasonally adjusted insured unemployment rate was 3.4% for the week ending Oct. 30, a decrease of 0.1 percentage point from the prior week’s revised rate of 3.5%. The advance number for seasonally adjusted insured unemployment during the week ending Oct. 30 was 4,301,000, a decrease of 86,000 from the preceding week’s revised level of 4,387,000. The four-week moving average was 4,388,250, a decrease of 35,750 from the preceding week’s revised average of 4,424,000. The advance number of actual initial claims under state programs, unadjusted, totaled 449,905 in the week ending Nov. 6, an increase of 28,808 from the previous week. There were 531,743 initial claims in the comparable week in 2009. The advance unadjusted insured unemployment rate was 3.0% during the week ending Oct. 30, unchanged from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,745,901, a decrease of 13,638 from the preceding week. A year earlier, the rate was 3.8%, and the volume was 4,961,610. The total number of people claiming benefits in all programs for the week ending Oct. 23 was 8,624,679.

Briefcase Departments

Six Vie for Project Manager Services for Union Station
SPRINGFIELD — The City of Springfield recently received six responses to the Springfield Redevelopment Authority’s (SRA) request for owners project manager (OPM) services for the Union Station Regional Intermodal Transportation Center. The services requested also will apply to the transfer of funds from the Pioneer Valley Transit Authority for a portion of the project. The SRA owns Union Station, including the former terminal and adjacent baggage building and the site of the former Hotel Charles, and is retaining the services of an OPM to represent its interests in the design and construction of the proposed transportation center. The firms interested in the project are Arcadis US Inc. of Atlanta, Ga., with a Springfield office; HEERY International Inc. of Burlington; the Louis Berger Group Inc. of Needham; SKANSKA USA Building Inc. of Boston; URS Corp.-New York of Boston; and Western Mass. OPM Services, LLC of Holyoke. Those that meet the minimum qualifications stated in the request will be evaluated and ranked by a review committee designated by the SRA governing board. Top-ranking firms may be interviewed by the committee, which then will submit its list of the top three firms to the governing board. The process is expected to take four weeks. The fee for services will be negotiated between the SRA and the selected firm. Plans call for restoring the main terminal building and using the adjacent site of the former baggage-handling building for construction of a 23-bay bus terminal with a 400-space public parking garage located on the upper levels.

August Retail Sales Up
WASHINGTON — The U.S. Census Bureau recently announced that advance estimates of U.S. retail and food services sales for August, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $363.7 billion, an increase of 0.4% from the previous month, and 3.6% above August 2009. Total sales for the June through August 2010 period were up 4.7% from the same period a year ago. The June to July 2010 percent change was revised from +0.4% to +0.3%. Retail trade sales were up 0.5% from July 2010, and 3.7% above last year. Non-store retailers’ sales were up 10.5% from August 2009, and gasoline stations were up 9.6% from last year. The Advance Monthly Retail Sales for Retail and Food Services for September is scheduled to be released Oct. 15.

Energy-efficiency Training Courses Set
BOSTON — The Mass. Clean Energy Center (MassCEC) recently announced the second round of weatherization workshops under the MassGREEN Initiative, which provides energy-efficiency workforce training for individuals and contracting firms throughout the state. Four state community colleges will host the program’s course for people with little or no background in weatherization concepts or practices, including entry-level workers and residential construction trades seeking to expand their knowledge and services in energy efficiency. Upcoming local training sessions are planned at Springfield Technical Community College, One Armory Square, from Sept. 30 to Dec. 16; and at Greenfield Community College, Franklin County Technical School in Turners Falls, from Sept. 30 to Nov. 20. Successful graduates of the course will be prepared to take the Building Performance Institute Installer exams for air sealing and dense packing, which are up-to-date insulation techniques. For more information on the class schedule, visit the web sites of the local colleges. For more information on MassCEC, visit www.masscec.com

Briefcase Departments

AIM’s Business Confidence Index Stumbles in July

BOSTON — The Associated Industries of Massachusetts Business Confidence Index dropped 5.2 points in July to 48.5, falling below 50 — neutral on its 100-point scale — after moving into positive territory in May and June. This is the index’s most significant monthly setback since it bottomed out in February 2009, according to Raymond Torto, global chief economist at CB Richard Ellis Group Inc. and chair of AIM’s board of economic advisors. Despite 14 gains in the previous 16 months, Massachusetts employers’ doubts about the strength and staying power of the economic recovery have been evident throughout, and those concerns are now coming to the fore, he added. Torto noted there are global as well as domestic issues in play; the fate on the euro, for example, will affect Massachusetts exports. The quarterly Massachusetts Consumer Confidence Index, released by Mass Insight, showed similar backsliding. Mostly due to concerns on jobs, the July Consumer Confidence Index fell 19 points to 61, its lowest level since last year. Torto added that weakening consumer confidence, nationally and here in Massachusetts, is a grave concern for employers because there can be no real economic recovery unless consumer spending picks up. AIM’s Business Confidence Index has been issued monthly since July 1991. Its historical high was 68.5, attained in 1997 and 1998; its low was 33.3 in February 2009. The Index was up 3.7 points from July 2009 and 4.1 over two years, but down 6.5 from July 2007. All of the sub-indices based on selected questions or respondent characteristics lost ground in July along with the main index, but there was marked variation in the magnitude of the declines. The Current Index of conditions prevailing at the time of the survey was off 2.2 points to 49.1, while the Future Index of expected conditions six months ahead plunged eight points to 48.1. The Massachusetts Index of business conditions prevailing within the Commonwealth fell 6.1 points to 41.7, but remained above the U.S. Index of national conditions, which lost 6.6 to 38.2. The Company Index, which measures survey respondents’ overall confidence in the situations of their own operations, was down 3.9 points in July to 55.0. The Employment Index held up well, edging off eight-tenths to 53.7, but the Sales Index dropped seven points to 54.4. Confidence was lower in July among manufacturers (down 4.3 to 52.5) and among other employers (down 6.2 to 44.2). Manufacturers were more likely to call current conditions for the companies ‘good’ (50% to 35%), were more positive about sales and employment, and foresaw less deterioration of conditions ahead. Respondents outside Greater Boston were slightly more confident (down1.6 to 49.5) than those within the metropolitan area (down 7.9 to 47.8). Employers of all sizes were less confident in July, with an especially steep decline among small companies. The monthly Business Confidence Index is based on a survey of AIM member companies across Massachusetts, asking questions about current and prospective business conditions in the state and nation, as well as for respondents’ own operations.

Former Mastex Site Chosen for Computing Center

HOLYOKE — After months of speculation, state officials revealed announced recently that the former Mastex Industries Inc. facility on Bigelow Street would become the site for a highly anticipated high-performance computing center. Gov. Deval Patrick, flanked by state and local officials, including Holyoke Mayor Elaine Pluta, U.S. rep. John Olver, and UMass President Jack Wilson, made the announcement, calling this “one of the most excitinjg developments in Western Massachusetts.” The project, which will entail an initial investment of $168 million, has a number of partners, including the state, UMass, MIT, Harvard, Boston University, Cisco Systems, and EMC Corp. Officials expect that the center will create only about 20 full-time positions, but that the computing capacity may eventually lure other companies and perhaps government agencies to the area.

Callaway Announces More Job Cuts at Chicopee Plant

CHICOPEE — Callaway Golf Corp. announced recently that it will substantially reduce its workforce in Chicopee over the next 12 to 18 months as it continues to expand golf ball and club manufacturing operations at its location in Mexico. The cuts are expected to leave the plant, which employed roughly 600 people as recently as the fall of 2008, with 150-200 workers. In a prepared statement, the company, Callaway cited a softness in the golf industry as one of the reasons for the move to Mexico.

Bay State Continues to Add Jobs

BOSTON — Massachusetts employers continued to add jobs for the sixth consecutive month in July, continuing a pace of growth that is well ahead of the nation’s. The state gained more than 13,000 jobs in July, while data revisions showed that employment growth in June, nearly 3,000 jobs, was far stronger than initially estimated, according to the Executive Office of Labor and Workforce Development. The state unemployment rate held steady at 9%.

Legislation Reduces Health Care Costs for Small Businesses

BOSTON — Governor Deval Patrick recently joined legislative leaders and small business owners to sign legislation that could save small employers up to 12% on insurance premiums, increase transparency among providers and insurers, and improve the quality of health care for residents across the state. The law also makes small businesses eligible for savings on health care premiums, and will allow them to be able to pool their resources and establish cooperatives for the purpose of purchasing health insurance. As part of his efforts to control skyrocketing health care costs, Patrick has instructed the Division of Insurance to review rates from carriers using the Division’s existing authority..

Briefcase Departments

State’s Economy Outpaces That of the Nation

BOSTON — The Bay State’s economy expanded twice as fast as the nation’s during the second quarter of the year, boosted by federal stimulus spending, demand for technology products, and the strongest job growth since the so-called miracle years of the 1980s,UMass reported recently. In its quarterly journal Benchmarks, UMass reported that the three-month period ending June 30 was the fourth consecutive quarter in which the state outpaced national economic growth. Analysts, however, warned that the state’s economy is likely to slow as stimulus programs fade and a weakened national recovery tempers economic growth here. “Government spending has played a much greater role in stimulating growth and encouraging consumer spending,” Robert Nakosteen, an Economics professor at the UMass Isenberg School of Management, told the Boston Globe. “Going forward, however, government stimulus is waning, and it is far from certain that private-sector spending will take up the slack.” The state’s economy grew at a 6.4% annual rate last quarter after expanding at a 4.1% rate in the first quarter and 6% at the end of last year, according to UMass. Nationally, economic growth was a sluggish 2.4% annual rate in the second quarter after expanding 3.7% in the first quarter and 5% in the fourth quarter of 2009, according to the U.S. Commerce Department.

Tech Park Releases Economic-impact Report

SPRINGFIELD — The economic impact of the Springfield Technology Park adjacent to Springfield Technical Community College is positive, according to recently released results of a report by the Center for Economic Development at UMass. The economic-impact report indicates that the nearly 900 jobs at the park create an additional 1,267 jobs in the regional economy due to the multiplier effect. Some $1.4 million is pumped into the local economy due to park management’s policy of favoring local contractors and service providers. In addition, the report indicates an estimated payroll of $37 million and estimated capital investments over the past three years of $4 million. Principal investigators and authors of the study are Zenia Kotval, Ph.D., and John Mullin, Ph.D., from UMass. The 15-acre park was founded in 1996 through an act of the Massachusetts Legislature and is the only technology-based business park connected to a community college in the U.S. The secure, gated site is a center of innovation with more than 70% tenant companies involved in the tech and engineering sectors.

AMICCON Organizers Move Event to Nov. 16

SPRINGFIELD — Organizers of the Advanced Manufacturing & Innovation Competition and Conference (AMICCON), www.amiccon.com, have moved the event from Sept. 23 to Nov. 16 in order to better respond to and convert the overwhelming response it has received from manufacturers, their supply chains, state organizations (from Massachusetts and Connecticut), and the business community as a whole. “We expected a good response to the AMICCON project, but the initial high caliber of participation set the bar very high,” said co-founder Ellen Bemben. “It is now clear that a few more weeks after the Labor Day holiday are necessary in order to satisfy the additional interest that those nationally acclaimed manufacturers are generating for a greater event.” Top companies in their industry sectors have confirmed their participation and support, including original equipment manufacturers (OEMs) such as Smith & Wesson, Callaway Golf, Savage Arms, FloDesign, and PolyOne, and precision manufacturers like B & E Precision Aircraft Components, D & S Manufacturing, United Plastics Group, and Boyd Technologies. With the momentum of media coverage, from Springfield to Chicago and beyond, preparations for the June 2011 national Advanced Manufacturing Innovation Competition are on schedule with co-chairs Paul Silva of Angel Catalyst in South Hadley and Michael Gurau of Clear Venture Partners in Freeport, Maine. Private investment firms are already offering their support for the unique competition with a $50,000 purse.

Construction Backlog Edges Higher

WASHINGTON, D.C. — Associated Builders and Contractors (ABC) recently reported that its latest Construction Backlog Indicator (CBI) increased to seven months in May, a 27% increase from January of this year. CBI is a forward-looking indicator that measures the amount of construction work under contract to be completed in the future.

Among the regional highlights: compared to a year ago, all regions but the South experienced a rise in backlog; the Northeast reports the lengthiest backlog at roughly 7.5 months, the highest level for this region in the history of the survey; and the Middle States report the shortest backlog at roughly 6.6 months. ABC is a national association with 77 chapters representing 25,000 merit-shop construction and construction-related firms with 2 million employees.

Former Finance Control Board Official Pays Penalty

SPRINGFIELD — The state Ethics Commission approved a disposition agreement in which former Springfield Finance Control Board Deputy Director Stephen Lisauskas admitted to violating G.L. c. 268A, the conflict-of-interest law. Pursuant to the agreement, Lisauskas paid a $3,000 civil penalty. The law prohibits a state employee from knowingly, or with reason to know, using or attempting to use his official position to secure for himself or others unwarranted privileges or exemptions that are of substantial value and which are not properly available to similarly situated individuals. Lisauskas did not file a written disclosure with his appointing authority to dispel the appearance of a conflict of interest. The agreement notes that, by using his position as SFCB deputy director, he steered the city of Springfield into investing with Merrill Lynch, when Lisauskas had a friendship with one of the vice president/brokers. Merrill Lynch was given approximately 60% of the city’s investment money to invest and subsequently invested approximately $13 million in risky, mortgage-backed securities which were not on a ‘legal list’ of investments. Those securities lost nearly all of their value. In January 2008, Merrill Lynch agreed to reimburse the city $13.7 million to cover its investment losses and legal fees.

Seminars Slated for Small-business Owners

WARE — The Quaboag Valley Community Development Corp. is offering seminars for small-business owners and entrepreneurs this fall who want to learn to promote their business. Seminars planned include ‘Growing Your Business Through Marketing and Advertising,’ Sept. 22 and 29, 6 to 8 p.m., in Charlton; and ‘Social-media Networking,’ Sept. 16, 5:30 to 7:30 p.m., in the Sturbridge area. For more information, call (413) 967-3001.

School Conversion Plan Dropped Due to Funding

WESTFIELD — The planned ‘academic village’ at the Westfield Normal School on Washington Street has been dropped due to lack of funding, according to Juan Cofield, president of Boston Realty Associates. Cofield noted that the original plan was to create housing for 90 Westfield State University students. Cofield’s firm would have leased the finished project to Westfield State. College officials will now work with the Mass. State College Building Authority (MSCBA) to determine if converting the school site can still be accomplished. MSCBA is responsible for all dormitories on state-college properties.

Union Station Project Back On Track

SPRINGFIELD — The Federal Transit Administration (FTA) recently lifted a freeze on funding for the Springfield Redevelopment Authority’s (SRA) $71 million Union Station project. The freeze was imposed in 2005 after an audit questioned spending by the Pioneer Valley Transit Authority (PVTA) for the intermodal transportation project. With SRA as the lead agency on the project, once all forms are now completed on the federal level, the project should get back on track. The Union Station project proposal includes space for the PVTA, commuter rail, intercity bus operations, Amtrak, and office space related to transit. In addition to federal funding, the project has state and private funding in place. In other news, an FTA study recently estimated at $77.7 billion the cost of bringing systems into a state of good repair. FTA’s National State of Good Repair Assessment Study, requested by the U.S. Department of Transportation, provides a comprehensive study of the nation’s rail and bus transit systems and notes that infrastructure development is needed to rebuild America.

Weston Solutions Expresses Interest in Belchertown Parcel

BELCHERTOWN — For the next several weeks, the town’s Economic Development Industrial Corp. will be working with MassDevelopment to determine if a Pennsylvania-based corporation has the experience and resources to develop the former Belchertown State School property. Weston Solutions Inc., which has a regional office in Connecticut, has expressed an interest in developing the site to build shops, offices, housing, and an assisted-living facility. A letter of interest has been signed with the town that allows the company to investigate financing, contamination, and construction issues facing Parcel B of the site.

Briefcase Departments

$45.5 Million Broadband Investment Coming To Western Mass.

BOSTON — U.S. Sen. John Kerry, U.S. Commerce Secretary Gary Locke, U.S. Rep. John Olver, U.S. Rep. Richard Neal, and Gov. Deval Patrick were in Greenfield recently for an announcement ceremony to celebrate the $45.5 million federal investment to bring broadband to Western Mass. In recent weeks, Kerry had joined his colleagues in announcing that the Massachusetts Broadband Institute will receive $45.5 million for investment in broadband technologies for 123 underserved or unconnected towns in Western Mass. Currently, millions of Americans lack broadband service because it is either unaffordable or not accessible. In Massachusetts, an estimated 100 small towns — many of them in the western part of the state — are underserved; a few of these communities have no access at all. In communities throughout the region, broadband access connects families to each other, students to educational opportunities, first responders to citizens in times of crisis, job applicants to employers, patients to medical care, and small businesses to customers. The service area contains more than 1 million residents, more than 44,000 businesses, at least 2,100 community anchor institutions, and 3,429 square miles. MassBroadband 123 will create or retain almost 3,000 jobs, half from building and managing the network and half from economic development in these disadvantaged areas and the rest of the region. Under the terms of the federal grant, two-thirds of the broadband project must be completed by 2012, and the entire network built in 2013.

AIM’s Business Confidence Index Rises

BOSTON — The Associated Industries of Massachusetts (AIM) Business Confidence Index added 2.2 points in June to 53.7, continuing its movement into positive ground. The index topped 50 — neutral on its 100-point scale — in May for the first time in more than two years. Massachusetts employers report that current business conditions are now “mildly favorable,” and they are optimistic though “not exuberant” about continued improvement, according to Raymond G. Torto, global chief economist at CB Richard Ellis Group Inc. and chair of AIM’s board of economic advisors. Torto added that employers see Massachusetts’ business conditions keeping pace with or surpassing national conditions, in contrast to the experience in the recovery phase of recent past cycles. The AIM Index was up 4.8 points from its level of June 2008, and within a half-point of its readings from three and four years before. The highest reading in its 18-year-plus history was 68.5, attained on two occasions in 1997-98; its all-time low was 33.3 in February 2009.

Enshrinement 2010 Plans Underway

SPRINGFIELD — The Naismith Memorial Basketball Hall of Fame has announced a weeklong “Celebration of Basketball” festival leading up to Enshrinement 2010, scheduled Aug. 7-14. Organizers believe this year’s enshrinement will include the largest number of Hall of Famers ever assembled in Springfield. Highlights of the week include: a monument unveiling at Mason Square, where the first game of basketball was played; the inaugural Hoops & Heroes Tournament, a first-responders tournament with local and regional representation from police, fire, and other agencies benefiting Special Olympics Massachusetts; a Wheelchair Basketball Celebration at the Hall featuring the USA Gold Medal-winning Wheelchair Paralympics Team; a Children’s Day featuring basketball clinics with NBA and collegiate players; a 96-team AAU National Tournament presented by the Chris Paul Foundation, and many other public events surrounding the induction of the Class of 2010. For a complete list of all events or to purchase tickets, visit www.hoophall.com.

Arts & Soles Project Features Giant Sneakers

SPRINGFIELD — Community leaders and artists were on hand July 8 to welcome the arrival of 20 six-foot-high sneakers to be installed around the downtown area once they are decorated. The huge fiberglass footwear will serve as canvases for artists chosen through the Arts & Soles public art project to answer the question, “What Makes Springfield Great?” The event also celebrated the opening of the Main Street studio, a site vacant for years, which will provide a creative space for the participating artists, who hail from Springfield, UMass Amherst, and around the Pioneer Valley. Artists have until the first week of August to finish their sneakers, which will be installed at various locations around downtown. After three months, the sneakers will be auctioned off at a community event to bene