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Taking Themselves More Seriously

Izabella Martinez

Izabella Martinez

At first, Izabella Martinez said, she was somewhat intimidated by the prospect of taking college courses when she was only a freshman in high school.

But then, when she got into it, that apprehension soon melted away and was replaced by a host of emotions and feelings, but mostly pride in accomplishment in taking, and doing well in, courses such as Introduction to Computer Technology, English 101, Art, Philosophy, Public Speaking, and what she considers her favorite thus far — College Writing.

“The teacher gave us a lot of freedom to write about what we felt passionate about,” said Martinez, a student at Discovery Early College High School in Springfield, a unique learning center that opened its doors in 2021. “I was able to improve my writing skills while also having creative freedom.”

Martinez believes she’ll have at least 24 college credits by the end of her sophomore year at Discovery. But she’ll have much more than that. She’ll have a higher level of confidence and perhaps something even more important — higher aspirations when it comes to her career and what’s doable, and the wherewithal to get to where she wants to go.

“One thing that we continued to struggle with was the number of people attending college and who were on a path to a living wage. The usual marker for success is graduation, and we were ringing that bell. But we weren’t seeing students entering into high-paying positions right after college, or who were pursuing college, in the way we wanted.”

And this, is a nutshell, is what Discovery High School (DHS), part of the Springfield Empowerment Zone Partnership (SEZP) — an independently governed nonprofit established in 2015 as a collaboration between Springfield Public Schools, the Massachusetts Department of Elementary and Secondary Education, and the Springfield Education Assoc. — is all about.

It uses what’s called a ‘wall-to-wall’ model to build viable future career pathways for students by enabling them to take college classes while in high school — and perhaps even earn an associate degree by the time they graduate — without having to pay for the college courses.

As he talked about the school, why it was created, and its overall mission, Matt Brunell, co-executive director of the SEZP, said the inspiration came in the form of statistics showing that, while Springfield’s high-school graduation rates were improving, the number of students going to college, and succeeding there, were not growing.

Matt Brunell

Matt Brunell says Discovery High School was designed to propel students to achieve a living wage within four years of graduation.

“One thing that we continued to struggle with was the number of people attending college and who were on a path to a living wage,” he explained. “The usual marker for success is graduation, and we were ringing that bell. But we weren’t seeing students entering into high-paying positions right after college, or who were pursuing college, in the way we wanted.”

“Three years ago, we took a hard look at industry and labor trends in the area, and we looked at which businesses were going to be growing over the course of the next several years,” he went on. “And we thought differently about a high-school model that would project and send students on that path to a living wage.”

Elaborating, he noted that DHS was designed to propel students to achieve a living wage within four years of high-school graduation. It does this by providing academic pathways that focus on high-demand careers in technology, computer science, engineering, and teaching.

But mostly it does this by inspiring students to “take themselves seriously.”

There are quotation marks around those words because all those we spoke with at DHS used them early and often.

“What she’s developed is an identity around college, and it’s really sticky.”

Especially Declan O’Connor, executive principal of Discovery, who referenced one student who will have amassed 24 college credits by the end of her sophomore year.

“What she’s developed is an identity around college, and it’s really sticky,” he told BusinessWest. “Kids are just starting to understand that this is real, and they’re looking toward their future, and they’re taking themselves seriously.”

Farrika Turner, assistant principal at Discovery, agreed.

“We’re really excited to see our Black and Brown students not be afraid of college, for their families not to be afraid of college and whether it will be attainable for them, to see parents become interested in returning to college and maybe take some of the classes that their children are taking,” she said. “And to have students see themselves as a college student, not as a high-school student that’s taking a course or two here and there that doesn’t add up to anything — they’re working toward the degree they’re interested in after high school.”

Farrika Turner

Farrika Turner says students at Discovery High are taking themselves, and their prospects for future employment, more seriously.

It will be another two years before DHS graduates a class of students. And it will be several years before those involved can compile real data on the outcome of students. But those we talked with said the early-college model is demonstrating promising results in many settings. Meanwhile, they say it is not too early to say it is succeeding at Discovery — at least when it comes to the very unofficial mission of getting students to take themselves more seriously.

 

Course of Action

As he led BusinessWest on a tour of DHS, O’Connor stopped in one classroom where students were learning how to create a circuit and, ultimately, a very small-scale solar panel, and in another, an Introduction to Digital Media class was ongoing where students were getting their pictures taken and compiling information to create their ‘digital brand.’

As inspiration, they were using a brand created by Ruth Carter, the costume designer from Springfield who has won two Oscars for her work on the Black Panther film franchise.

These are not college courses, he explained, but they are solid examples of how students at the school learn by doing, work together, and gain resolve by creating solutions and solving problems.

And this is what Brunell and others had in mind when they conceptualized this relatively new kind of high school.

“We’re really excited to see our Black and Brown students not be afraid of college, for their families not to be afraid of college and whether it will be attainable for them, to see parents become interested in returning to college and maybe take some of the classes that their children are taking.”

“We wanted to create a very small high school where kids were known, where they were cared for and loved during their time here, and where they could get really personalized attention and see themselves in careers that have been under-represented by Black and Brown folks in this community,” he said.

“Discovery High School is our attempt to take a really critical look at the STEM industries and to get students on a stronger pathway to those jobs,” he went on, adding that the Empowerment Zone board ultimately authorized the school in the spring of 2021, and it opened its doors that fall.

The school has open enrollment and is open to all students, said O’Connor, adding that there is no selection process. Overall, the school boasts a diverse population and draws from across the city. These students represent all levels of academic achievement as well.

“The child who chooses us … they know we are and what we’re about,” he explained. “They choose us mostly because they’re invested in our STEM pathways; they like to game, they like computers, they’re interested in engineering — or at least they think they are — and a lot of our students are those who traditionally didn’t do well in school, but have a big curiosity about technology.”

Now boasting 120 students, with plans to expand to 90 students per grade, DHS, as noted earlier, operates under the Early College model, which, as that name suggests, introduces students to college classes while they are high school. This not only gives them a solid head start when they get to college, said Declan, but it gives them that confidence and pride in accomplishment that Martinez spoke of.

Declan O’Connor

Declan O’Connor, principal of Discovery High School, says students there “gain an identity” by taking college classes.

O’Connor said every student at the school can take college classes, and most of them do, with DHS working in partnership with Holyoke Community College, Springfield Technical Community College, Worcester State University, and Quinsigamond Community College in Worcester. Classes take place at Discovery, online, and on the Quinsigamond campus.

As they take them, they are provided with plenty of support, he noted, adding this is an essential ingredient in this success formula, because they are real college classes, something he needed to be assured about himself.

“When I first started this and as I was learning about early college, I asked, ‘are these real college classes, or are they watered-down college classes that are a version for high-school kids?’” he recalled. “And Worcester State sternly said, ‘these are the same college classes.’ So the expectations didn’t change, but what had to be put in place was just a lot of supports for students.”

And what he’s learned over the past 20 months or so is that the students can handle these classes, academically; it’s the other aspects of that challenge, as they are for actual college students, that prove to be the bigger hurdle.

“These students didn’t have trouble doing the work,” he explained. “The challenge was more just ‘teenager stuff’ — following through, doing your homework, and submitting your assignments. Some of the students will say some of the classes they will take in the colleges are easier than 10th-grade English class.

“It’s really cool to see the shift from when they entered high school — to go from being scared and wondering, ‘what am I going to do with my life?’ to start future-planning and talking about their future in ways that make sense, and the feeling ‘I’m going to make some good money.’”

“A lot of it was just executive functioning,” he went on. “But when it came to the actual content of the classes, they were just fine because what we know about all of our kids is that, cognitively, they all have the capacity to learn.”

 

Learning Experiences

The learning at DHS has a stated purpose, said all those we spoke with — to put students on a path to not just a high-school diploma, but that living wage Brunell spoke of.

And this goes back to that notion of the students taking themselves seriously, an undertaking that comes with that confidence gained from taking those college classes, thus making students more ready not only for their actual college experience, but what can come after it.

“Early college for these students is an identity thing,” he explained. “They develop an identity around going to college, and there’s a lot of demystifying of going to college that happens along the way — they no longer have to wonder what college is like. Maybe they’re the first generation in their family to go to college, and in their freshman year, they can break down that psychological barrier of going to college.”

This ability to establish such an identity is one of the ways the faculty and administrators at Discovery are measuring success, more than two full years before anyone is handed a diploma or earns enrollment at a college or university.

Students at Discovery High

Students at Discovery High participate in a project to create a circuit, one of many examples of hands-on learning at the school.

“When the Empowerment Zone surveyed the schools in the entire country that were getting the strongest results for kids, the most predictive quality of the schools that were propelling kids to earn a living wage was whether or not kids were taking college classes in high school,” Brunell said. “It is far more predictive of college matriculation, of college success, of college achievement, of getting the diploma. If they can, during their high school years, actually spend the time in college-level classes and see themselves as being able to take those classes … this is the biggest element for us.”

Brunell said the state recently started compiling data on the salaries earned by the graduates of specific high schools. Looking out five years or so, he projects this data will show that DHS students are faring better than those in high school with more traditional models.

“We see this as the benchmark for whether or not the school is a success,” he said. “When we look at the average number of college credits earned by freshman and sophomores at Discovery High School, we’re incredibly enthused — this is a leading indicator that the school is on the right track.”

Elaborating, he said there will be several ‘winners’ to emerge from the creation of DHS and schools like it, starting with the students, who can earn up to 60 college credits and, as noted, perhaps even a degree in high school, without having to go into debt (those costs are absorbed by the school’s general-fund budget or philanthropy from groups such as the Barr Foundation and New Schools Venture Fund, as well as, locally, the Davis Foundation).

Other winners are the participating colleges, who gain enrollment, revenue, and, in some cases, future students, as well as area employers, especially those in technology-related fields, who are struggling, as other sectors are, to attract and retain qualified talent.

Another indicator of early success at DHS is the level of confidence exuded by students like Izabella Martinez, said Turner, noting that she and others can see this confidence build and reflect itself in how students see themselves and talk about the future.

“It’s really cool to see the shift from when they entered high school — to go from being scared and wondering, ‘what am I going to do with my life?’ to start future-planning and talking about their future in ways that make sense, and the feeling ‘I’m going to make some good money.’

“We see students come in and say, ‘I just want to graduate from high school, get a job, and help my family,’” she went on. “Now they’re understanding that they don’t have get a job at Geek Squad at Best Buy — ‘I can be a programmer; I can use my skills to go in the military and work in cybersecurity.’ It’s really cool to see that change, that mind shift.”

That’s what happens when young people start to take themselves, and their futures, more seriously.

Features Golf Preview Special Coverage

Staying the Course

Ted Perez

Ted Perez, long-time pro at East Mountain Country Club

When Ted Perez Jr. talks about the 2023 golf season, he uses the present tense — and even the past tense on occasion.

Indeed, Perez, the pro and co-owner of East Mountain Country Club in Westfield, said the season — for his course, anyway — began in January, as it sometimes does; this family-owned club is famous for being open whenever there is no snow on the ground.

But this January was different from just about any other that came before it, said Perez, who said the course was probably open for play all but a few days that month. And it was open most every day the first three weeks in February as well.

March wasn’t as kind, with the course closed several days by snow and play reduced to a trickle on many others, he said, but overall, it’s been a phenomenal start to 2023.

“I’ll call this a non-winter,” said Perez, whose father, Ted Perez Sr., built this course, located just a long par 5 from the runways at Barnes Municipal Airport, 60 years ago. “I wish every winter could have been like this one.”

Elaborating, he said winter golf of this kind is a real boon for the course because the revenue generated isn’t offset by the expenses encumbered most of the rest of the year, everything from cutting the grass to overseeding the fairways to paying the people to perform those tasks. “My father used to say, ‘it’s like finding money on the street.’”

As the 2023 season begins for most courses in the region — a few others were open for play through during stretches of the winter — they are hoping that their springs, summers, and falls are as good, relatively speaking, as Perez’s winter was.

“My father used to say, ‘it’s like finding money on the street.’”

Actually, they’ll settle, if that’s the right word, for what they’ve seen the past few years, a recognized surge in play that started during the summer of 2020, the height of the pandemic, when there was little else for people to do — they couldn’t even play tennis due to restrictions imposed by the state.

That surge continued into 2021 and then 2022, said Jesse Menachem, executive director and CEO of the Massachusetts Golf Assoc., noting that the numbers were down slightly in 2022 from 2021, but still better than the years leading up to the pandemic.

“We saw levels jump considerably in 2020 and into 2021,” he told BusinessWest. “In 2022, we were able to sustain levels and continue to grow. Overall, we’ve been able to retain the new golfers and the golfers who were brought back into the game by the pandemic. Our facilities, our operators, and our organizations are doing a great job of keeping the game sticky, keeping it relevant.”

The questions on everyone’s mind going into the new year are … will this surge continue?, and to what extent? As with the weather — always the biggest question mark heading into a new year — no one really knows the answers, but those we spoke with project another solid year for the local golf industry.

EJ Altobello

EJ Altobello, head pro at Springfield Country Club, is among those projecting the recent surge in the region’s golf industry will continue in 2023.

EJ Altobello, head pro at Springfield Country Club, a private club, said most all signs point to a continuation of current trends (his club now has a healthy waiting list for membership), and he points to Florida, where the first three months of the year have been on par (yes, that’s an industry term) with the past few seasons, as evidence.

“They’re off to a great start,” he noted. “Golf retail is off to a great start, golf rounds are off to a great start, and I think things will go the same way up here — there’s no reason to believe otherwise.”

Steve Elkins, chair of the board at Amherst Golf Club, a nine-hole track owned by Amherst College and managed by the board members, agreed. He said the past few years have been solid, and revenues have helped put the course on more solid ground than it has been in some time.

“We’re in good shape … we’re in as a good a shape as we’ve been in a very long time,” he said, adding quickly that courses have to be careful and smart with their spending to stay in solid shape financially.

On the downside, if it can be considered that, it is somewhat more difficult to get a tee time at some courses, said Menachem, and there are now waiting lists at many private clubs. So accessibility is certainly not what it was in the pre-pandemic years.

But for those in this unpredictable business, those are definitely good problems to have.

 

Green Lights

It’s called Good Friday, Bad Golf.

That’s the name of the first organized golf outing of the year at East Mountain Country Club, and, as that name suggests, it’s played every year on Good Friday, which means that some years, it isn’t played at all due to inclement weather, especially when Easter comes earlier rather than later.

This year, it’s set for April 7, and Perez is hoping his luck with the weather in 2023 holds, because there are 140 signed up for golf and the dinner to follow it. Meanwhile, April 7, or thereabouts, is when most courses in the area project to be open, if not a week or more earlier — a solid head start over most years.

“We saw levels jump considerably in 2020 and into 2021. In 2022, we were able to sustain levels and continue to grow. Overall, we’ve been able to retain the new golfers and the golfers who were brought back into the game by the pandemic.”

Jesse Menachem

Jesse Menachem

And as they open, they’re expecting to see roughly what they’ve seen for nearly the past three seasons — more business than they were seeing in the years leading up to the pandemic. In most cases, much more.

Indeed, through the end of the 2010s, golf was in the doldrums, continuing a downward trajectory that started in the early 2000s. For many, and especially the younger generations, the game was too time-consuming and too expensive, and they were putting their time and money elsewhere.

Public courses struggled to get daily play, often despite attractive specials, and private clubs, many of which had been historically full and boasted waiting lists, had plenty of spots available and were marketing themselves far more aggressively than ever before to bring in new members — and much-needed revenue.

The downward spiral was punctuated by the closing of several courses in the area, including Hickory Ridge in Amherst, Pine Grove in Northampton, and Southwick Country Club. Despite this thinning of the herd, many area courses continued to struggle.

Then, the pandemic came.

Golf was still slow and still comparatively expensive, but suddenly, people didn’t seem to care, or care as much. People of all ages and other demographic categories were looking for things to do, ways to keep active as they were eating and drinking more, and opportunities to socialize — and golf could check all those boxes, to one extent or another.

Then-Gov. Charlie Baker lifted tight restrictions on golf in early May 2020, and for the rest of the year, clubs saw surges in play, memberships, and retail sales.

Elkins said Amherst Golf Club (AGC) received a huge boost from students, most of them from UMass, who were still living in the area but not attending classes in person. Looking for things to do with their time, maybe 30 bought attractively priced memberships at AGC, a semi-private course.

Amherst Golf Club

Amherst Golf Club, a 9-hole track with a long history, has seen an increase in memberships and overall play since the start of the pandemic.

“We got a huge COVID bounce from students who couldn’t attend classes in person,” he said. “It was a one- or two-year bump, and now it’s gone away.”

Still, membership remains solid — it’s currently at about 265, down from the peak but certainly up from the pre-COVID years — and daily play (there’s a $32, play-all-day rate) has been stable as well and certainly helped by the closing of Hickory Ridge (just a mile or so down the road) a few years ago.

 

Different Strokes

The surge in play — and spending at local clubs — continued, and even accelerated, in 2021, despite the loss of maybe two dozen days of play to seemingly non-stop rain.

The skies brightened in 2022 — when obsessive heat was the bigger problem — and those trends continued. Indeed, almost everyone we spoke with said 2022 was down slightly from the year before, but still quite solid and better than pre-pandemic.

“Last year wasn’t quite as good, but right in that same ballpark,” said Altobello, using total rounds and membership, which is at a 15-year high, and his main measuring sticks. He noted that the difference might have been as simple as more people returning the office last year, making it somewhat more difficult to “sneak out for an afternoon round,” as he put it.

Overall, though, the numbers were quite good, and they provided ample evidence that those who picked up the game during the pandemic, or picked it up again after putting it down, were, indeed, staying with it, said Altobello, adding that these increases were across the board, and especially encouraging when it comes to women and young people, two demographic groups that many feel hold the key to the long-term success of the industry.

“The indicators are that they are still here,” he said. “How long they stay … that’s to be determined. But as of right now, they’re still out there playing. We’re seeing more and more women in the game, more and more men in the game, and we’ve had a great increase in our youth programs as well.”

As play picked up over the past few years, there were some changes to the landscape, ones that reflect concerns about the cost of the game and the time it consumes, said those we spoke with. Indeed, the nine-hole outing, or ones that are even shorter, became far more common, and more accepted, than perhaps ever before.

“In many cases, people only have time for nine holes. That’s roughly two and a half hours on a full course, and that’s all the time many people have.”

“Ten or 15 years ago, that wasn’t even a thought,” Menachem said of a nine- or maybe six-hole round. “It was either 18 holes or nothing; now, nine holes is a far more realistic and accepted option for those with families, for those with shorter windows of time to play before work or after work. That is definitely a positive.”

Dave Twohig, the head pro at Amherst Golf Club for more than 40 years, agreed. “In many cases, people only have time for nine holes,” he said. “That’s roughly two and a half hours on a full course, and that’s all the time many people have.”

Amherst actually has two “loops,” as he called them, holes 1-5 and 6-9 — both wind up back at the clubhouse — that people can play if they have just an hour or so and want to get a little play in, and many do just that.

 

Round Numbers

Looking ahead, or at what’s right in front of them, in the case of East Mountain and other courses that have been open for play in Q1, those we spoke with said the outlook for 2023 is colored by optimism.

And the head start many courses were able to get will certainly help, said Menachem.

Indeed, he said that, for tracks like East Mountain and many others, especially in Eastern Mass. and on the Cape (maybe 20% of the state’s courses), the robust first quarter provides needed cash flow, as Perez noted, when there are few, if any, offsetting expenses.

“It’s like found money,” said Menachem. “You’re running on a thin operation, and you’re allowing access to the golf course in the condition that it’s in without much preparation on the maintenance front; it’s not too much of a heavy lift, and the revenue you’re able to derive should completely outweigh the expenses.”

Also, the early, solid start provides a buffer against possible headwinds, such as heavy rain and excessive heat, later in the year, he went on.

Meanwhile, almost all courses should be able to open earlier than what would be considered normal, said Menachem, who, as he spoke with BusinessWest a few weeks back, said 60 to 70 were already open.

Despite all the optimism that prevails within the industry, there are still challenges to be overcome.

Indeed, the ongoing workforce crisis is still making it more difficult to attract and retain help than it has been historically.

“Labor is still a huge issue, especially on the maintenance and operations side of the game,” Menachem said. “It’s not always been attractive to get up early and set up a golf course, and we want to make sure we can support the next generation of staff and make sure wages are competitive with other industries. Meanwhile, being a seasonal sport also has its challenges.”

Elkins agreed, noting that Amherst Golf Club has increased pay rates to remain competitive and hire and retain not only young people, but also some retirees looking to work and stay active.

Meanwhile, the higher cost of … well, just about everything poses stern challenges for clubs, most of which are operating on rather thin margins and without huge reserves to fall back on. In a word, clubs need to be careful, said Elkins, adding that this certainly the case at AGC.

“Making sure that we manage our cash is really important,” he noted. “Like a lot of courses, we’re in good shape, but we’re not going to spend a ton of money on something that’s not core to the course, because it’s risky. We want to make sure we have a good capital reserve and that we spend our money wisely.”

Perez agreed, noting that, despite his great start to 2023, he knows things can change quickly, and he’s learned to reserve judgment until he’s added up all the numbers in December.

“I don’t get too caught up in all the numbers until the end of the year,” he said. “I’ve been doing this a long time, and I know better than to get too excited in March. But it is good to have a non-winter like this one; it beats the alternative.”

 

Staying on a Roll

With the non-winter of 2023 now in the rear view, the region’s golf industry looks forward to the next three seasons.

They do with a spring in their step — figuratively but also quite literally, and optimism that the recent surge the game has enjoyed will continue.

Time will tell if they are right, but all signs indicate that area operators will be able to stay the course — in all kinds of ways.

 

Healthcare News Special Coverage

Second Wind

By Mark Morris

Steve Conca

Steve Conca says he’s seen a post-pandemic uptick in people wanting to take charge of their health.

Editor’s Note:

These are exciting, challenging, and ever-changing times for healthcare and the businesses and individuals providing it. To better inform and educate its readers about the many issues, trends, and developments in the healthcare sector, BusinessWest will be introducing a new, monthly segment that will present content from its sister publication, Healthcare News (HCN) .

This new resource will be called “HCN Monthly Feature,” bringing news and information on the many health, wellness, and fitness issues and developments of today, from both regional and national sources. Each HCN Monthly Feature will have specific themes and points of emphasis — everything from health and fitness (this month) to behavioral health; from cancer care to a salute to the region’s nurses — and it will be made available online at both businesswest.com and healthcarenews.com, as well as via the daily e-newsletters BusinessWest Daily News and HCN News & Notes, making it readily available to subscribers and consumers in the Western Mass. region and beyond. 

For subscriptions, additional information, and to send us your news and story ideas, please visit BusinessWest  and HCN

Marina Lebo remembers what Healthtrax in East Longmeadow looked like during the pandemic — and is glad it looks a lot different now.

“The plastic barriers are down, and the equipment is all back where it was,” said Lebo, vice president of Operations at the club. “We have more cleaning supplies available, but that’s the only difference.”

Fortunately, that return to normal is manifesting in other ways as well — including an increase in activity.

That’s only natural; at the start of the pandemic in March 2020, fitness centers were forced to shut down. Three months later, they were allowed to reopen at 40% occupancy only after installing clear plastic barriers at the front desk, mandating masks for everyone, spacing out exercise machines, and providing lots more sanitizing wipes to clean the equipment after each use.

With Healthtrax membership back to about 70% of pre-pandemic levels, Lebo’s goal is to keep increasing everyone’s comfort level to encourage going to the club as a normal activity again.

Steve Conca, owner of Conca Sport and Fitness in West Springfield, described the last few years as a whirlwind. He’s grateful his business has survived — and even thrived — since the early days of the pandemic.

“We don’t have a huge membership base, probably around 150, and it’s a very tight-knit community where people support each other inside and outside the gym,” he said.

When everything shut down in the spring of 2020, Conca began meeting with clients outdoors and over Zoom. “Everyone stuck with us, which was great. We didn’t lose too many people once we got back into the swing of things.”

Outdoor gatherings and livestreams were options Ashley Brodeur also used to keep her business going during the height of the pandemic. The owner of Active Lifestyle Fitness in Agawam hosted a private group on Facebook Live to keep her members on a regular workout schedule. While she appreciated virtual classes as a short-term necessity, she said, nothing beats the in-person experience.

In fact, shortly after in-person sessions resumed, Brodeur noticed several members getting easily winded from doing the same workouts they were performing during the livestream sessions. “When I asked why, they admitted that they weren’t doing the entire workout at home.”

So everyone was glad to return, she went on. “There is an accountability in having to show up somewhere and having someone watch how you are exercising.”

 

Wake-up Call

Everyone who spoke with BusinessWest pointed out that the pandemic served as a wake-up call about the importance of good health. As their members return to fitness centers, all agree there’s a new emphasis on getting results.

Marina Lebo

Marina Lebo says the rise of flexible and hybrid work schedules has led to Healthtrax being busy at less traditional times.

“I think a lot of people’s minds shifted during the pandemic,” Brodeur said. “Instead of working out to quickly lose some weight, our typical member now seeks a higher quality of life and to avoid becoming an unhealthy person.”

Lebo noted that the most vulnerable people to getting COVID usually have issues with obesity or struggle with other health problems.

“There’s been a realization that, if you stay in shape, you will be better-prepared for all kinds of ailments, and you’ll be less likely to have symptoms over someone who isn’t as healthy.”

For the past year or so, Conca has seen a resurgence in his West Springfield facility due to people taking more initiative with their own health and wellness — especially older people or those who navigated the pandemic with heart disease, diabetes, weight issues, or other health factors, and now want to improve their outlook.

“They weren’t really paying attention to their fitness or health before,” he said. “These are folks who want to take a much closer look at their health.”

Most of Conca’s members are in their mid-40s through their 60s. “We have some folks in their 30s, but they’re not the majority,” he said. “It’s a nice mix of folks, and no one’s here for vanity reasons like getting ready for bikini season. They want to move better, feel better, take care of themselves. When they go on vacation, they want to be able to go on a hike without pain.”

The demand for more results-oriented workouts has meant growth in the personal training and small-group training programs at Healthtrax. Lebo said the small-group training appeals to people who like a dedicated workout at a scheduled time.

“If you’re a biker, golfer, tennis player, runner, obviously you can’t go as fast and hard and aggressive as you did in your 20s or 30s, but you can still go out and enjoy doing it, at maybe a little less intensity.”

“If you have a goal and you start to see results, you are more likely to stick with the training,” she said. “It’s far more effective than going to the gym for weeks, doing your own thing, and not seeing any noticeable results.”

To establish a starting point for fitness, Healthtrax uses a high-tech body-composition machine known as InBody 570. While the user stands on it barefoot and holds the handles, the machine provides a wealth of fitness information that helps a person understand what type of workout would benefit them most.

“For example, someone who is thin might learn they are not as fit as they thought, and the InBody might also reveal a heavy person has a good amount of muscle, so they can concentrate on exercises that burn fat,” Lebo said.

At Active Lifestyle Fitness, Brodeur offers what she calls a 6 Week Transformation Challenge, with an emphasis on strength, cardio health, and flexibility. She emphasized this is not a quick fix, but a results-oriented approach to a healthy and balanced body.

“We developed this program because people told me, ‘I need help. I don’t want to mess around with my health anymore’” she said. “It’s been successful because it centers around the basics of helping people properly move their body and build strength.”

Ashley Brodeur

Instead of just wanting to lose some weight, Ashley Brodeur says, today’s fitness crowd is looking to improve their quality of life.

An emphasis on long-term health comes with many rewards. Conca noted that, while everyone knows the definition of ‘lifespan,’ he talks with members about ‘healthspan’ — the number of years one spends without being hampered by chronic disease — and ‘playspan,’ the number of years one is able to continue to enjoy favorite activities.

“If you’re a biker, golfer, tennis player, runner, obviously you can’t go as fast and hard and aggressive as you did in your 20s or 30s, but you can still go out and enjoy doing it, at maybe a little less intensity.”

Understanding the value of that playspan, and of maintaining the ability to enjoy quality-of-life moments like getting on the floor to play with a grandchild and easily getting back up, puts a real-life emphasis on fitness goals, Conca said, which are more powerful than the numbers attached to weight-loss goals.

“When they come here, a lot of folks are not in a good place; they’re struggling, and there’s a lot of misinformation out there,” he explained, adding that many people have tried different approaches but lacked proper accountability along the way.

“We really personalize it. I’ve been really blessed to help people and have a team around me who feel the same way. It’s exciting because we’re really helping people.”

 

Opportunity Knocks

Lebo has seen a huge change involving when people choose to access her club. In the past, the hours before and after work were consistently busy, while the club was practically a ghost town in the early afternoon. That’s no longer the case.

“We are busy at all different times during the day,” she said. “With more people working from home or on floating work schedules, they might come in after 9 a.m. or after 2 p.m.”

All-day activity has been a positive development because, in addition to seeing activity all day, members no longer experience those congested times waiting to use the more popular exercise equipment.

“It’s also good for our training classes because we can schedule throughout the day instead of trying to jam everyone in after work,” Lebo said.

Whether it’s through personal training sessions, small groups, open gym time, or an introductory, six-week program called Mastering Your Best Self, Conca emphasizes that fitness should not be stressful. In fact, when done properly, it should reduce other stressors in life.

“Everyone’s dealing with something, whether it’s physical stress, financial stress, or family situations, taking care of someone. Everyone’s got a lot of stuff on their plate. So we try not to make fitness another burden for them,” he said.

“We want people to recognize, they have an opportunity to take better care of themselves, and it’s going to make all those things they are dealing with much more manageable. Fitness can be fun, let’s not make it a punishment.”

Special Coverage Technology

The World in Your Pocket

 

It’s staggering how much accumulated knowledge is available with a few taps on a smartphone screen. Whether Apple or Android, countless apps are available to help users with a wide range of tasks, from managing their finances to tracking their fitness goals to getting an education in various topics to making travel easier and more fun.

For this year’s roundup of what’s hot in technology, BusinessWest checks in on what the tech press is saying about some of the most popular smartphone apps.

 

Dollars and Sense

Smartphones have put a world of personal finance in people’s hands. For example, Intuit’s Mint gives users a real-time look into all their finances, from bank accounts and credit cards to student loans and 401(k) accounts.

“Let’s start with Mint’s very high ratings in both the App Store and Google Play,” Nerdwallet notes. “It’s free and syncs many kinds of accounts: checking and savings, credit cards, loans, investments, and bills. As far as the actual budgeting, Mint tracks your expenses and places them in budget categories. You can personalize these categories, which are unlimited. You set limits for these categories, and Mint lets you know if you’re approaching those limits.”

Besides those budgeting features, Nerdwallet notes, Mint may help users pay down debt, save more money, and track goals, while showing users their credit score and net worth. As a bonus, Mint provides plenty of support for using the app, including a detailed FAQ.

As its name notes, You Need a Budget, or YNAB, earns top grades from Investopedia because of the company’s renowned budgeting philosophy and reputation. YNAB says new budgeters typically save $600 in their first two months and more than $6,000 in their first year. It includes customizable reports that break down the user’s income and expenses by category, account, and time frame, with the aim of helping users get their finances in order.

“YNAB allows you to sync your bank accounts, import your data from a file, or manually enter each transaction,” the site adds. “After signing up, you create your first budget and assign every dollar a purpose, such as your rent or car payment. The goal is to eventually get at least one month ahead, so you’re spending money you earned 30 days ago. The company offers extensive educational resources and customer support to keep you on track.”

For investors, Forbes recommends Empower (formerly Personal Capital) for its outstanding reporting options, desktop capabilities, investment-management platform and spending tracking. Empower gives a holistic view of customers’ entire financial picture, from day-to-day spending to tracking portfolio performance.

“The app has several savings tools designed to help build retirement savings and emergency funds and pay down debt,” the publication adds. “It also has excellent advisory tools, including an investment checkup, investment-fee analyzer, financial planning, cash-flow tracking, education cost planning, and real-time net-worth tracking. All of these tools give detailed insights into your current financial picture, while also helping you plan for the future. The list of features may sound overwhelming, but the app is easy to use.”

Meanwhile, CNBC sings the praises of PocketGuard, which, among other features, taking into account the user’s estimated income, upcoming expenses, and savings goals, and uses an algorithm to show how much is available for everyday spending. The app categorizes expenses; syncs to bank accounts and credit cards; and boasts security features like bank-level encryption, PIN codes, and biometric IDs.

 

Beyond the Workout

Moving beyond financial wellness to physical wellness, countless apps are available to offer information on what to eat, how to exercise, and how to stay committed to better habits.

Forbes recommends FitOn, which offers a wide variety of workouts, including cardio, strength, high-intensity interval training, dance, yoga, Pilates, Barre, and more. It even features workouts led by celebrities like Gabrielle Union, Julianne Hough, and Jonathan Van Ness. Classes are available in real time with the app’s live classes feature or through on-demand workouts.

With a live leaderboard and real-time heart rate tracking via Apple Watch, users can track their progress and fitness goals. Upgrading to the Pro version grants users access to more than 500 recipes, live workout video calls, personalized meal plans, and more.

One of the most popular nutrition apps is MyFitnessPal, which offers a wealth of tools for tracking what and how much the user eats and how many calories they burn through activity, according to PC Magazine.

The app is also a top pick of Verywell Fit, which notes that “MyFitnessPal is our pick for best overall fitness app because of its robust food and activity database, easy-to-use logging and tracking tools, library of workouts, and ability to connect to several other apps.” It includes a database of more than 14 million foods, is customizable based on health goals, and offers restaurant menu logging as well.

According to CNET, Nike Training Club provides various workout programs such as body-weight exercises, high-intensity interval training, cross training, yoga, core exercises, and even expert health tips by Nike trainers to keep you on track.

“The workouts are easy to follow because there are video demonstrations of each exercise with the allotted time you should be doing them,” CNET notes. “This keeps you from losing track during your workout and mentally prepares you for the following exercise. The app also connects to your Apple watch to provide health metrics such as your heart rate and logs your activities. The best part of this app is that it’s free and gives you access to many resources no matter if you’re a beginner or more advanced.”

Although Peloton is famously associated with the home-workout bike of the same name, the workouts on the app don’t all require users to have the bike or other equipment, U.S. News and World Report notes, while boxing, running, yoga, and many more types of fitness workouts are available on the app.

Women’s Health agrees, adding that “testers loved the huge choice of workouts available, from strength sessions to yoga to meditation, and found it easy to filter classes on the app by duration and difficulty to find the right one for them. Our team also said they were persuaded to push beyond their usual limits during each session thanks to motivational instructors, who helped keep their form in check with non-stop helpful pointers — though some testers found them a tad too intense for their liking.”

 

 

So Much to Learn

Countless popular apps focus on education and learning for all ages. For kids, Verywell Family recommends Khan Academy, which collaborates with the U.S. Department of Education and myriad public and private educational institutions to provide a free, world-class education for anyone.

“From preschoolers to high-schoolers, there are few educational apps that can measure up to Khan Academy when it comes to the wide range of courses it offers to students of all ages,” the site notes. “Khan Academy’s YouTube videos cover most subjects at a range of levels: math, science and engineering, arts, humanities (which includes history and social studies), economics, AP courses, and test prep.”

It adds that Khan Academy is popular among students, parents, and educators because its videos are engaging and targeted at visual learners, using photos, maps, and other illustrations, and because it allows students to work at their own pace.

For teachers, Education Corner calls Google Classroom an excellent resource. “It pulls together all of the G-Suite apps (Docs, Slides, Sheets, and Draw). Teachers can create assignments and announcements for individual classes. They can attach worksheets, slideshows, or weblinks (along with many other things) and set deadlines. The work can be marked/graded and returned to students for further work.”

When a student completes work, it gets saved automatically to their Google Classroom class folders in their Google Drive (which are set up automatically). All work is saved securely. Students may submit class comments that are viewable to all students and teachers assigned to that ‘classroom,’ which leads to collaborative working.

My eLearning World touts HOMER as a personalized learning app designed to help younger kids fall in love with learning, featuring more than 1,000 learning activities across all subjects. “From toddlers to second-graders, this educational app is a fit for every eager kid ready to learn something new, especially younger kids early in their development. HOMER is an early learning software designed to help children develop their critical thinking skills. It helps them build their confidence for the future by leading them on their customized educational journey.”

HOMER features a variety of interactive lessons, stories, and activities that are tailored according to the student’s individual skills, age, and interests. “The level of personalization is what really sets HOMER apart from other kids educational apps,” My eLearning World notes, “and it’s why this is our favorite app for keeping children of various ages and skills engaged and learning at their own pace.

For learning another language in the go, Lifewire gives top marks to Duolingo, which “stands out among language-learning apps, and among education apps overall. Duolingo includes dozens of languages, including a couple of fictional ones just for fun. Each language offers a mostly linear path divided into topics of conversation. Each topic presents you with short exercises to familiarize you with the material through spoken and written formats.”

The app encourages users to make a habit of practicing with a reward system and a social component. The rewards can be spent in the app’s store on powerups and fun accessories. Meanwhile, the in-app social network encourages users to invite friends to the app and compare scores.

 

Now Go Away

Thinking about a vacation? PC Magazine says Hopper “is an app you definitely want to use while you’re planning a trip and before you buy any tickets. The mobile-only app tracks flight prices and gives you clear advice on the best time to buy — including through notifications when the price drops. What makes this travel app valuable is its level of detail. It doesn’t just tell you to wait to buy your ticket, but gives you a date when the price will likely rise. You can book through Hopper, too, with a commission fee of a few dollars.”

Travel + Leisure notes that flight prices can fluctuate, making it tricky to decide whether to book right away or hold off. Hopper can remove some of the uncertainty by predicting the best time to find the cheapest fares, saving up to 40%. The app also has a price-monitoring feature so users can select a particular flight and receive alerts if the price drops. They can also compare the prices and amenities of more than 250 airlines and get alerts about airfare flash sales.

For lovers of the great outdoors, Travel + Leisure also sings the praises of AllTrails, noting that “this app will provide you with the area’s best hiking, biking, and running trails. In addition to details on length, starting location, and trail quality, AllTrails includes reviews and photos from a community of hikers and outdoor enthusiasts. You’ll find useful information like what to pack, obstacles you’ll find along the route, and the best scenic spots to check out.”

Finally, Afar singles out TripIt, which automatically tracks confirmation emails for flight itineraries, hotel, or Airbnb bookings; car rentals; restaurant reservations; and even event tickets, then populates those travel plans into an itinerary that be viewed in one place.

“The easy-to-use organizational app makes it simple to share the consolidated information with family or friends, so you can send them your itinerary directly and avoid having to answer repeated texts like, ‘when are you landing again?’ to coordinate an airport pickup,” Afar notes. “TripIt even features a personalized travel stats page for really data-hungry folks who want to know how many trips they’ve taken or countries they’ve visited — and that’s just in the free version.” Meanwhile, the paid version includes extras like real-time flight alerts, TSA wait times, and loyalty reward program updates.

In short, whatever you’re looking to improve in your life, as Apple’s famous ad slogan notes, there’s an app for that.

 

Community Spotlight Special Coverage

Community Spotlight

MJ Adams

MJ Adams, seen with one of Greenfield’s signature bees, says commercial and residential development are equally important downtown.

 

MJ Adams recalled a community event in February 2020 called “A Deliberate Downtown: Growing by Design.”

“Because so many interesting things were happening downtown at that time, and we were getting ready to launch a downtown-revitalization effort, we wanted to engage everyone in the community conversation about downtown,” said Adams, Greenfield’s director of Community and Economic Development.

Then the pandemic struck, the world went into lockdown, and the city pressed pause on its plan, she said. But only a pause.

“The COVID-19 pandemic changed many things about the city’s growth plans for the short term, all of 2020 and most of 2021, but it did not change the grit, determination, and resiliency of our city’s business and government leaders,” Mayor Roxann Wedegartner said in a recent state-of-the-city address, noting that municipal leaders moved forward with construction and revitalization programs, aided by a rush of state and federal money intended to pump life into the economy and infrastructure.

During that time, the city broke ground on a new, $20 million library (set to open this spring), solidified a location for its new $21 million fire station (expected to open early next year), and built a temporary fire station to ensure continued service.

“These projects are a testament to the willingness of Greenfield citizens to fund essential services that serve our city and surrounding communities,” she said, adding to that list a skate park soon to open between Chapman and Davis streets downtown, funded with a combination of state grant money and city capital-improvement funding.

It’s all part of what the mayor calls the city’s ‘rurban’ lifestyle, an appealing combination of urban amenities and a rural feel, all highlighted by a downtown set to undergo significant changes to make it more liveable, walkable, and attractive for businesses and visitors alike.

“Downtown areas throughout the nation are changing; some have dried up completely, while others, like ours, are focusing on recognizing demographic and business shifts and are embracing that change,” Wedegartner said in her address. “We have a robust downtown-redevelopment strategy focused on transformational change incorporating available and new housing, new infrastructure improvements, and retail and commercial opportunities. Here is where we merge our economic-development, infrastructure, and housing efforts into a cohesive plan.”

 

What’s in Store?

A significant element in the downtown mix is the former Wilson’s Department Store site, which is being converted into an intriguing mixed-use development.

The city brought together the Community Builders and MassDevelopment in the acquisition and redevelopment of the former Wilson’s property, originally built in 1882. The redevelopment will create approximately 65 residential rental units and will reactivate prominent first-floor and basement retail spaces through the relocation and expansion of Franklin Community Co-op’s Greenfield store, Green Fields Market.

“In addition to creating much-needed, high-quality housing in Greenfield, relocating and expanding Green Fields Market will provide the community with access to healthy food in an area of Greenfield currently without a full-service grocery store,” said Rachana Crowley, director of Real Estate Development at the Community Builders, when the project was announced. “We’re proud to be a part of this team which will create new housing and employment opportunities and invest in a strong and robust Main Street in Greenfield.”

Adams said attracting a combination of commercial and residential tenants through mixed-use development has been important in the ongoing downtown plan. “What happens downtown, how we perceive it, is how the region perceives us as a community. So we knew we had to work on downtown. And we knew we couldn’t leave Wilson’s sitting empty.”

Jessye Deane

Jessye Deane says Greenfield businesses thrive through connections with myriad agencies that provide technical, financial, and other forms of support.

Adams called upper-story redevelopment “a significant building block in our efforts to create more business development and housing in Greenfield.” But the Wilson’s project is only one piece; another 36-unit development on Wells Street will hit the construction phase soon, and developers are eyeing other potential residential-development sites both within and outside of Greenfield’s downtown sector.

“We know we need to take a look at the missing middle-market supply of housing that serves working people who are not eligible for subsidized housing but are also struggling to find housing in any market now,” she said. “This is an issue for the whole state. Everyone is feeling, quite accurately, that we’ve made progress with affordable rental housing, but now we need to work on other aspects of the market.”

Adams feels like Greenfield is an attractive market for people looking for a place to live because it’s considered more affordable than other communities and boasts strong transit links to the rest of the region and beyond.

A $7.8 million, state- and federally funded multi-modal Main Street improvement project should only lend momentum to that perception, she and Wedegartner believe. The mayor appropriated $288,900 in capital funds for engineering and design of the project, which begins 100 feet to the east of Colrain Street and ends at High Street. The project is on track to be included in MassDOT’s Transportation Improvement Program, with construction slated to begin as early as fall 2026.

“While this project is underway, the city will also be able to upgrade underground utilities, primarily our water and sewer infrastructure. This will save the city money as we will not need to dig up Main Street twice,” the mayor noted, adding that additional grant money is being used to fund a parking-management study for the downtown area.

One significant goal of all this, she told BusinessWest, is to make Main Street more pedestrian- and bike-friendly, including continued efforts to make Court Square a pedestrian plaza. “Route 2A can never be pedestrian-only; Main Street has to be open to all traffic. But there’s significant work being done curb to curb.”

“I’m fond of saying that, in five years, you’re not going to recognize Main Street.”

Wedegartner stressed that development activity in Greenfield extends well beyond downtown. The Planning Department and City Council continue work to rezone about 40 acres across Route 2A from the I-91 Industrial Park as additional industrial space geared to attracting more advanced manufacturers and sustaining existing manufacturers who have run out of space in the current industrial park.

Jessye Deane, executive director of the Franklin County Chamber of Commerce and Regional Tourism Council, said one of the city’s selling points is its balance between that industrial sector and the sorts of small, locally owned shops and eateries that dot the downtown, as well as attractions ranging from Greenfield Garden Cinemas, which recently celebrated its 94th birthday, to Hawks & Reed Performing Arts Center.

Greenfield at a glance

Year Incorporated: 1753
Population: 17,768
Area: 21.9 square miles
County: Franklin
Residential Tax Rate: $19.65
Commercial Tax Rate: $19.65
Median Household Income: $33,110
Median Family Income: $46,412
Type of Government: Mayor, City Council
Largest Employers: Baystate Franklin Medical Center, Greenfield Community College, Sandri
* Latest information available

The owners of Greenspace Co-work, located upstairs from Hawks & Reed, have been bringing local businesses together at a monthly event called Business Breakdown, and Deane has been impressed with what they’re saying.

“The Business Breakdowns are so interesting; we’re hearing how many people not originally from this area chose to start a business in Greenfield because there are so many resources available — partnerships with the chamber and the Franklin County CDC and the city — and how glad they are that they did choose Greenfield.

“Greenfield is the seat of Franklin County,” she added. “When Greenfield does well, all of Franklin County does well. So it’s good to see Greenfield making such a concerted effort to revitalize the downtown.”

 

Partners in Progress

With technical and financial assistance and other resources provided to businesses through agencies like the CDC, Common Capital, the chamber, and others, and workforce-development efforts at Greenfield Community College, Franklin County benefits strongly from a culture of partnership, Deane said.

“It feels like there’s this collective effort to really build on the partnerships; it’s one of the things Franklin County generally does very well,” she explained. “Working through the pandemic, we had effective partnerships, and I’m really seeing those grow as we’re able to share resources and think more strategically about the next generation of Greenfield and what the city should look like.”

That said, “I’ve been really impressed with the energy and momentum I’m seeing in Greenfield,” she told BusinessWest. “We’ve seen the city of Greenfield creating an environment more attractive to businesses, while simultaneously supporting the outstanding businesses we already have to make sure we’re ensuring their success.”

That’s Wedegartner’s goal too, of course, even as she asks people for patience as all the visible signs of progress come together downtown over the next few years, from the new library and fire station to new housing and a more walkable city center.

“I’m fond of saying that, in five years, you’re not going to recognize Main Street,” she told BusinessWest. “It’s going to be so different and so much more vital in so many ways. But it’s going to take time.”

 

Banking and Financial Services

Branching Out

Oumkar Tobaran

Oumkar Tobaran says the human element is critical in banking even amid the rise of online and mobile tools.

At a time when a bank’s customers can conduct business from anywhere with a few clicks, dramatic branch expansion may seem outdated.

But it’s not, Ali Zaidi said, explaining why Chase Bank is looking to double its presence in Massachusetts over the next several years, starting with the opening of a downtown Springfield office on March 7.

“When you think about the important life events that customers go through, whether it be retirement planning, buying a house, or the birth of a child, people still have an appreciation for that face-to-face conversation. That makes an impact,” said Zaidi, Chase’s market director for Western and Central Mass. “And about 75% of our customers that have balances with us still come to the branches. So, clearly, the customers are telling us they would love to have that face-to-face interaction, especially with complex life events.”

Oumkar Tobaran, branch manager for the new location in Harrison Place — which has a long history of housing banks, including Third National Bank and, in recent decades, Bank of Western Massachusetts and People’s United Bank — said the human element is critical.

“With all the technology and innovation we have, think of the amount of things that we can go on our phones to do on a daily basis,” he told BusinessWest. “But the minute something doesn’t go right or the minute you need support or additional advice on something, we want to show that customer service matters, with a physical presence.”

The branch is Chase’s 38th in Massachusetts since opening its first Bay State location in Boston in 2018 — an impressive growth trajectory, and a number the institution is looking to double by 2025, including a location to open this spring in the former Silverscape Designs building on King Street in Northampton.

“This is a central point,” Zaidi said of downtown Springfield, noting that Chase has an office a few miles down I-91 in Enfield, but this is technically the first in Western Mass. “There’s definitely a rich history here on Main Street and its local businesses, as well as larger clienteles with MGM and the Hall of Fame. We’re serving clients of different demographics, and I’m very excited that we were able to secure this spot on Main Street.”

Tobaran said he expects plenty of foot traffic downtown, as well as visits from customers who may have been banking in Enfield or branches to the west, while Chase has been conducting outreach to build a larger base of business in the region.

“About 75% of our customers that have balances with us still come to the branches. So, clearly, the customers are telling us they would love to have that face-to-face interaction, especially with complex life events.”

“We wanted to make sure that we have a convenient place for them to visit because it’s important to be able to interact with the community,” he added. “There’s a lot of development happening in Springfield, and we wanted to be part of that momentum as well.”

Zaidi agreed. “Springfield is a key cog that gives us an entry point into expanding into Western Massachusetts and brings convenience to our customers. Springfield is being revitalized, and I feel we can be an integral part of that.”

He also feels there’s an opportunity to add customers who might already be familiar with Chase through its mortgage products and credit cards. “That’s what people know. So one of our consumer-banking priorities is to be a bank for all and make it easy for people to do business with us. And technology-wise, where customers were able to bank with us remotely, this now gives them a physical location to meet their diverse needs.”

Ali Zaidi

Ali Zaidi says downtown Springfield is the first Chase branch in Western Mass. and the springboard to an eventual doubling of the bank’s branches in Massachusetts.

As he showed off the space at 1391 Main St., from the tellers and ITM machines up front to the various offices further back, Zaidi said the new Springfield branch can do all of that.

“We will help our customers with any needs, and we have more licensed specialist bankers to navigate those complex life events — retirement, financial planning, or just navigating your credit-history trajectory if you’re looking to purchase something down the road. We’re so excited to be providing that face-to-face value, and we’re looking forward to continuing the expansion.”

 

Set Up to Help

This first Western Mass. branch is about 3,000 square feet in size and features a modern, bright design with plenty of natural light, quiet meeting areas, and state-of-the-art banking technology, including those ITMs, which allow a higher withdrawal limit than traditional ATMs, as well as access to Chase professionals.

“For customers who have commercial or small-business banking needs, we have our team of experts, partners who will be working out of here and supporting other branches to connect customers. So it’s a one-stop shop.”

A dedicated Chase Private Client team provides premium banking services, personalized attention, and access to the expertise and investment capabilities of J.P. Morgan to help families reach their goals. Customers may also meet with financial and home-lending advisors and business-banking relationship managers.

“Our retail banking operations are here, and we have our licensed bankers to deal with client management,” Zaidi explained, “and for customers who have commercial or small-business banking needs, we have our team of experts, partners who will be working out of here and supporting other branches to connect customers. So it’s a one-stop shop.”

Tobaran said the open layout will help customers easily navigate what they need. “We will have associates in the lobby greeting clients, interacting with them. And then, depending on the transactions they’ll need to leverage, we can go back here and figure out what we need to help them with,” he explained, gesturing away from the front door toward the offices in back.

“But we equip a lot of our associates with tablets,” he added. “So in addition to helping them back there, however we can help support them face to face, sitting down in the lobby area, we will do that with the resources and tools we have.”

Besides banking business, Chase also wants to connect with Greater Springfield in other ways, Zaidi said, through financial-literacy programs and other types of community outreach.

“The idea is to have our branches be community anchors. So when we think about financial-literacy conversations, be it with young professionals or small-business owners, we want to host workshops and assistance in that space as well,” he explained, noting that Chase is working on several community-development efforts around financial literacy, including a partnership with Western New England University. “So this would serve as an anchor for us where we could do before- or after-hours seminars and events. It makes sense.”

Harrison Place

Harrison Place has been home to several banks in the past, from Third National Bank to the Bank of Western Massachusetts and People’s United Bank.

Tobaran added that the bank’s employees also reflect its region, as the branch hired locally, including people who hail from the Latino and Vietnamese communities, among others.

“We want some familiar faces to be representing Chase, saying, ‘hey, these are the resources we have to help you accomplish your goal.’ It was important for us to get local talent, people who had ties to the community, people who are passionate about giving back and who genuinely want to see Springfield succeed.”

 

Only the Beginning

Zaidi and Tobaran know Chase is making an ambitious surge into a region some have called overbanked, and where community banks have long dominated. But they say Chase is committed to local residents and organizations in much the same way locally headquartered banks are, while also bringing vast financial resources to the table.

“When you think about Chase, we have the resources of a large global corporation,” Zaidi said. “And our vision is, how do we take those resources and localize the solutions for our customers? Our technology and data analysis help us strategize and take a more targeted approach, because all the branches are going to operate differently based on the community-specific needs.”

One example is a partnership with Habitat for Humanity, one of the organizations that will be on hand on March 15 for the branch’s official grand-opening festivities.

“That’s one way Oumkar and his team have been making an impact in the community already,” Zaidi said. “We feel that we can be a valued contributor in that space among all the other banks. The competitive edge that we have is not only through our resources, but with the community aspect that we are trying to drive here.”

Banking and Financial Services

Details, Details

By Matthew Nash, CPA

 

The implementation of the Financial Accounting Standards Board’s (FASB) new lease accounting standard, ASC 842, presents a major challenge for companies that produce financial statements under Generally Accepted Accounting Principles (GAAP).

Matthew Nash

Matthew Nash

After almost seven years since the release of Accounting Standards Update (ASU) 2016-02 in February 2016, these organizations must now work toward implementing ASC 842 for the 2022 fiscal year. This article will provide an overview of the key changes that need to be made in order to ensure compliance with the new lease-accounting standard.

 

What Is ASC 842?

This standard intends to provide visibility on a company’s capital needs and obligations, improve consistency in financial-statement presentation, provide enhanced disclosures to the readers of the financial statements, and improve the comparability of lease practices across entities and industries.

Under the new standard, lessees are required to account operating leases with terms longer than 12 months on the balance sheet, resulting in the recognition of a right-of-use asset and the corresponding liability. Under the previous standard, ASC 840, the only leases that were required to be accounted for on the balance sheet were capital leases, which are now referred to as finance leases under ASC 842. Prior to ASC 842, operating leases required disclosure only in the notes to the financial statements.

Lessor accounting practices remain largely unchanged from ASC 840 to 842.

 

What Qualifies as a Lease Under ASC 842?

To better understand the new lease standard, you must first understand the definition of a lease. A lease is defined as the contract, or part of a contract, that conveys the right to control the use of an identified property, plant, or equipment for a period of time in exchange for consideration.

To simplify this definition, a lease is a physical asset that a company has the right to direct the use of for economic benefit. The most common examples of leases are office space, machinery, vehicles, equipment, and land.

 

What Steps Should Companies Take to Prepare?

To prepare for adoption of this standard, companies first need to account for all their existing leases and thoroughly review the contracts to determine whether they include an operating or a finance lease.

 

Do You Have an Operating Lease or Finance Lease?

If the lease meets any of the following criteria, it will be classified as a finance lease:

• Does the lease transfer ownership at the end of the lease term?

• Does the lease grant the lessee a right-to-purchase option that is lessee is reasonably certain to exercise?

• Is the lease term for the major part of the economic life of the underlying asset?

• Does the present value of the sum of lease payment and any residual value guaranteed by the lessee not reflected in the lease payments equal or exceed substantially all of the underlying asset’s fair value?

• Finally, is the underlying asset of such a specialized nature that it is not expected to have an alternative use to the lessor at the lease term end?

If the answer to all five of those questions is no, then the lease qualifies as an operating lease.

 

Lease Details

After concluding the lease type, it is time to dig into the lease details:

• When does the lease start?

• When does the lease end?

• Are there early termination or renewal options?

• Are there variable expenses related to the lease?

• What is the monthly cost of the lease?

The answer to all these questions is integral to the calculation of the asset and liability to be included in the financial statements. Once the total future lease obligation has been calculated, the obligation will be presently valued using one of three discount rate options. The newly recognized right-of-use asset and liability will then be amortized over the life of the lease, based on the lease type.

For income-statement purposes, operating leases will continue to be classified as lease expense, and finance leases will be split between amortization expense and interest expense.

 

Transition Methods

As part of the initial adoption of the new lease standard, there are certain practical expedients that can be adopted to help make the transition easier. Companies are not required to assess existing lease classifications. Existing operating leases with terms extending beyond 12 months will be included on the balance sheet effective Jan. 1, 2022, the date of required adoption. Existing capital leases will continue to be included with property, plant, and equipment, and will be amortized over the remaining life of the lease.

 

Financial-statement Disclosure Impacts

Aside from the impact on the balance sheet, the standard will also provide enhanced disclosures in the notes to the financial statements. The required disclosure will include qualitative and quantitative disclosures, including descriptions of the existing leases, disclosure of lease expenses as included in the income statement, cash paid for leases during the current year, new right-of-use assets obtained through operating and finance leases, weighted average of discount rate used to present value the lease obligation, and the maturity analysis disclosing the future obligations to be paid.

 

In Conclusion

The new lease standard is expected to have the biggest impact on those companies with a large volume of real-estate leases that have previously been required to be disclosed only in the footnotes to the financial statements. The overall expectation is that most companies with leases will see some impact related to the adoption of the new standard. Because the new standard has a balance-sheet impact, it is recommended that all companies review any financial covenants and proactively work with financial institutions to consider whether amendments to covenants may be required.

There are many intricacies within the new lease standard, and it will be a learning process for all of those involved in preparing their company’s financial statements. The best thing a company can do is take the time to make sure that they fully understand how each lease is written, and to have an open dialogue with their CPA.

 

Matthew Nash, CPA is a senior manager at the Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.; (413) 536-8510.

 

Wealth Management

ESG Investing

By Josh Bedell, CFP, CIMA and Sylvia Callan, CFA

 

As with any new investment trend, a rise in popularity can give way to bad actors.

ESG (environmental, social, and governance) investing is not immune. Recent articles from the Economist, Barron’s, and the Wall Street Journal focus on the rise of ESG investing, and the perhaps predictable attempt by some to capitalize on this trend in a disingenuous and unscrupulous manner.

However, they leave investors who are socially conscious without a way forward in seeking to decipher the good from the bad.

The need couldn’t be more pressing, with ESG investing slated to rival traditional forms of investing in the next several years. With this potential surge in demand, concerns have arisen about how seriously the ESG criteria are being considered.

“Some mutual funds and portfolio managers have taken to slapping an ESG title on a fund or portfolio without doing much of anything to truly incorporate ESG factors into the investment process. This practice of attempting to woo well-intentioned investors, while not actually striving for change, has even earned a sardonic title: ‘greenwashing.’”

Indeed, some mutual funds and portfolio managers have taken to slapping an ESG title on a fund or portfolio without doing much of anything to truly incorporate ESG factors into the investment process. This practice of attempting to woo well-intentioned investors, while not actually striving for change, has even earned a sardonic title: ‘greenwashing.’

Josh Bedell

Josh Bedell

Sylvia Callan

Sylvia Callan

The good news is that the SEC has taken notice, and has proposed some rules that would create consistent standards and disclosure requirements. In addition, the Principles for Responsible Investing (PRI), a globally recognized institution for sustainable investing, tracks the development of regulatory policies in sustainable finance that support ESG investment principles. Over the past year alone, the PRI identified more than 200 new or revised policy instruments that support, encourage, or require investors to consider long-term value drivers in ESG — the main elements of socially responsible investing.

Understanding the evolving landscape in ESG can feel like a daunting task, especially if you have many other things on your plate, like a job, family, and normal day-to-day responsibilities. The good news is, there are some relatively easy steps investors can take to ensure their portfolio aligns with their values.

For starters, mutual-fund families that focus exclusively on ESG and/or socially responsible investment (SRI) funds are more likely to utilize stringent criteria than a traditional fund family that has added one or two ESG funds in recent years. Further, actively managed funds, which incorporate at least some degree of qualitative analysis, tend to evaluate companies more thoroughly than index funds, which simply track a list of ‘approved’ holdings from a third party, though there are exceptions.

Investors without the time or inclination to do this research on their own can turn to a trusted asset manager who takes ESG investing seriously. Dedicated ESG portfolio managers do extensive work in the field, often talking to mutual-fund managers directly, visiting corporate offices, analyzing lists of underlying holdings, and obtaining advanced credentials related to ESG investing.

Ultimately, it pays to have a healthy dose of skepticism. It certainly helped our firm when we decided to offer an ESG strategy for our clients. It required an added layer of scrutiny to ensure that ESG investment principles were clearly defined, closely monitored, and reported in a timely manner.

It could be an encouraging sign that increasing numbers of investors are seeking to effect positive change while also generating competitive — or possibly even superior — returns. A shift of this magnitude is bound to encounter some hiccups along the way.

Far from a reason to abandon the initiative altogether, greenwashing concerns offer an opportunity to further investor engagement, advance regulatory reform, and promote endeavors to improve ESG reporting and investing standards with the potential to benefit us all.

 

Josh Bedell is a financial planner and investment advisor, and Sylvia Callan is a portfolio manager, for Gage-Wiley. Callan has earned the CFA Institute certificate in ESG investing and leads the firm’s ESG efforts. Securities offered through St. Germain Securities Inc., a FINRA member. Gage Wiley is a d/b/a of St. Germain Securities Inc.

Wealth Management

It Shows That Our Pain May Be Followed by Some Gains

By Jeff Liguori

 

According to Google searches, the popularity of the term ‘inflation’ hit its highest peak in at least five years during the second week of August of last year.

Jeff Liguori

Jeff Liguori

For the sake of comparison, the term ‘stock market’ is one of the more popular Google searches. On average, ‘stock market’ is three times more popular than ‘inflation.’ For further comparison, the search for ‘Lebron James’ is regularly much higher than ‘inflation,’ but still not quite as popular as ‘stock market’ on average. Yet, in August of last year, ‘inflation’ bested both terms, by a wide margin.

Higher consumer prices are causing anxiety. The Federal Reserve, with its dual mandate of full employment and low inflation, has been working to ease prices through higher interest rates, which led to weak performance in both stock and bond markets in 2022 — a rare phenomenon when both markets sell off in tandem.

When the Fed raises the federal funds rate, an interest rate that banks charge to one another for overnight lending, it has a ripple effect, putting upward pressure on all interest rates, from mortgages to treasury bills. In turn, all assets get ‘repriced’; stock prices adjust lower (usually) because higher rates often mean profit margins for those businesses shrink, which equates to a lower valuation for that company’s stock price. The repricing of assets has wide-ranging implications and is often disruptive to an economy.

Is the Fed acting appropriately? Wall Street, with no lack of varying opinions, either believes the Fed has overstepped by tightening too quickly and too late, or the Fed should be more aggressive in the next two sessions and then be done. Finding an economist or strategist that thinks Jerome Powell and his crew are precisely doing the right thing is nearly impossible.

Instead of opining on the Fed’s actions — I’m not an economist, more of an ‘investment historian’ — let’s put the discussion in the context of past cycles of rising inflation and what it might mean for investors.

From January 1966 to August 1969, the federal funds rate more than doubled from 4.5% to 10.25%, in what was then seen as aggressive action by the Fed to tame inflation. In August 1969, the Fed reversed course, cutting interest rates as the economy slowed and the country faced increasing job losses. To safeguard the economy, the Fed quickly went from raising to easing interest rates, moving the effective rate back to about 5% in March 1971, as unemployment started to tick up.

But the story doesn’t end there. Inflation was persistent even with a slowing economy because of a burgeoning energy crisis. Once again, the Fed moved to a tightening stance, this time increasing interest rates by more than 300% from the spring of 1971 to the summer of 1973. Interest rates skyrocketed, and stocks suffered badly, declining by more than 40% in the 14 months following the start of that new tightening cycle, before bottoming in October 1974.

Interestingly, interest rates remained historically elevated throughout the 1980s, but stocks managed to do quite well. From the low in October 1974, the S&P 500 had an impressive run until the tech meltdown in 2001, appreciating 460% into late 2000. The data is compelling.

Following the Fed pause in 1974, in 21 of the subsequent 28 years leading up to the tech bubble, stocks generated a positive annual return. The worst year was 1977, when the S&P was down 11.5%, and the best year was 1995, when the S&P 500 generated a positive 34% return. There were eight years in that three-decade stretch when stocks increased by more than 25%.

To put things in perspective: the federal funds rate increased from 2.25% to a peak of 14.3% from February 1971 to July 1974, a total increase of about 230%, a slow and steady move higher in that 40-month period. Beginning in March of last year, the Fed raised rates from a historic low of 0.08% to 4.75%. That may seem milder as the overall level of interest rates is still historically low, but consider the Fed took this action in 11 months, increasing rates by more than 5,000%.

Overall, 2022 was unprecedented, both in the dramatic measures by the Fed and the performance of financial markets. Bond and stock markets haven’t generated a negative return in the same calendar year in almost 60 years. And there has only been one other year since 1960 when bonds had a decline in value of more than 10%, in 2009; however, the stock market appreciated almost 26% that year as the country emerged from the 2008 Great Recession.

So, what if the Fed — irrespective of Wall Street opinions — is doing exactly what needs to be done? And what if the economy avoids a recession? And what if stock and bond prices have already adjusted for a recession that doesn’t materialize (or is mild)? If history is our guide, financial markets can produce healthy returns even in inflationary periods, after some initial pain.

The answer may be as simple as to ignore consensus. Be a contrarian. The pain to our portfolios over the past 18 months may be the first step to higher returns in the near future.

 

Jeff Liguori is the co-founder and chief Investment officer of Napatree Capital, an investment boutique with offices in Longmeadow as well as Providence and Westerly, R.I.; (401) 437-4730.

Wealth Management

Don’t Let Your Gains Be Drained

 

Employment scams climbed to the second-riskiest in 2022, according to a new Better Business Bureau (BBB) report, while online purchase scams remained the riskiest scam type.

Employment scams rose from third-riskiest in 2021 to second-riskiest in 2022, according to a new report from the Better Business Bureau. Employment-scam reports submitted to BBB Scam Tracker rose 23.1% from 2021 to 2022. People also lost more money to this scam type in 2022, up 66.7% from 2021 ($900) to 2022 ($1,500). The median dollar loss for employment scams ($1,500) was significantly higher than that of $171 for all scam types.

Online purchase (shopping) scams remained the riskiest scam type in 2022. Online purchase scams comprised 31.9% of all scams reported to BBB Scam Tracker in 2022, with 74.0% of people reporting that they lost money.

Cryptocurrency scams dropped in 2022 from second- to third-riskiest due to a drop in reported scams, susceptibility (the percentage of those who lose money when exposed to a scam), and median dollar loss.

“Employment scams, which peaked at #1 on our list in 2019, are seeing a resurgence,” said Melissa Lanning Trumpower, executive director of the BBB Institute for Marketplace Trust, which produced the 2022 BBB Scam Tracker Risk Report. “This is a high-touch scam in which perpetrators spend more time with their targets in the hope of stealing more money from each target. Employment scams tied for the highest median dollar loss of all scam types. Home-improvement scams, #4 on our list of riskiest scams, also had a median dollar loss of $1,500.”

More people reported losing money when targeted by websites, social media, and email than other contact methods. Those who were targeted in person reported losing the most significant amount of money ($715), followed by text messages ($579) and phone ($550). Scams perpetrated by text messages increased by 39.6%, from 9.1% in 2021 to 12.7% in 2022.

Scams perpetrated online were more likely to result in a monetary loss than scams targeted via phone or in person. Credit cards remained the most reported payment method with a monetary loss, followed by online payment systems. The payment methods with the highest median dollar loss were wire transfer ($2,700), check ($1,277), and cryptocurrency ($1,135).

The riskiest scam type varied among age groups, with employment scams landing as the riskiest for ages 18 to 34. Online purchase scams were again the riskiest for ages 35 to 64. Home-improvement scams were the riskiest for ages 65 and up.

Military consumers (active-duty military, spouses, and veterans) reported significantly higher median financial losses ($238) than non-military consumers ($163). Active-duty military reported losing significantly more money ($490) than military spouses ($248) and veterans ($200).

The five most impersonated organizations reported to BBB Scam Tracker in 2022 were Amazon, Geek Squad, Publishers Clearing House, the U.S. Postal Service, and Norton.

For more report highlights, visit bbbmarketplacetrust.org/riskreport. Go to bbb.org/scamtracker to report a scam and learn more about other risky scams on bbb.org/scamtips.

BBB Scam Tracker is an online platform that enables consumers and businesses to report attempted and successful acts of fraud. The platform also enables people to search the scam reports to help determine if a scam is targeting them. The platform was upgraded in 2022 with support from Amazon and Capital One.

 

Architecture

Instilling an Entrepreneurial Mindset

 

Western New England University College of Engineering Professor Vedang Chauhan has been named an Engineering Unleashed fellow, a designation that recognizes leadership in undergraduate engineering education by the Kern Entrepreneurial Engineering Network (KEEN), a 50-partner collaborative whose mission is to instill an entrepreneurial mindset within undergraduate engineering students.

Chauhan is part of a select group of 21 individuals from colleges and universities across the country — and only two from New England — who have been named Engineering Unleashed fellows for 2022. Engineering Unleashed is a community of 4,000 faculty members from more than 350 institutions.

“KEEN supports teaching undergraduate students with an entrepreneurial mindset (EM) so they can create personal, economic, and societal value through their work,” Chauhan said. “I believe in KEEN’s mission and incorporate EM through my teaching. I design project activities for my students that help them develop an entrepreneurial mindset.”

“KEEN supports teaching undergraduate students with an entrepreneurial mindset (EM) so they can create personal, economic, and societal value through their work.”

Vedang Chauhan

Vedang Chauhan

Chauhan is a mechanical engineering professor with a wealth of experience in the field. He received his PhD in mechanical engineering from Queen’s University and has published numerou papers in prestigious journals, demonstrating his expertise in the field. He has also received several awards and grants for his research, which focuses on areas such as mechanics, materials, and manufacturing.

The nomination and fellowship naming process began with Chauhan’s initiative to participate in the Engineering Unleashed Faculty Development National Workshop Program. These workshops are designed and delivered by a collaborative group of subject-matter experts who serve as faculty members within the national network of partner institutions. The workshops attract faculty participants from across the country focusing on the development and application of an entrepreneurial mindset, whether it be in teaching, learning, research, industry, or academic leadership. Chauhan participated in the Integrating Curriculum with Entrepreneurial Mindset (ICE) 1.0 workshop, which connects problem-based active and collaborative learning to the development of entrepreneurial mindset.

“Students enjoy working on the projects and provide positive feedback on how EM activities foster curiosity, connections, and add value to their work,” Chauhan added. “I am thankful to KEEN ICE 1.0 workshop coaches, my fellow faculty members, and my university for all their support. I am happy to be a part of a Kern Entrepreneurial Engineering Network of like-minded educators.”

Working with the facilitators and then the coaches for up to a year, Chauhan completed the work and contributed to the Engineering Unleashed community through an online publication-sharing platform known as engineeringunleashed.com. The workshop coaches nominated a number of candidates, and an independent review committee from the KEEN partner institutions made the final selections.

To amplify the work of these fellows and advance the shared mission, awards are provided to the awardee’s home institutions through the Kern Family Foundation. As an ambassador for entrepreneurial mindset, each fellow will work on a project through their institution with a grant award of $10,000. In total, the colleges received $210,000 in support to recognize efforts in engineering education by their faculty.

The other 2022 Engineering Unleased fellow from a New England institution is Gbetonmasse Somasse, associate professor of Teaching at Worcester Polytechnic Institute.

Commercial Real Estate

This Is Not a Fire Drill

By Brion J. Kirsch and James F. Martin

 

Remember in elementary school when they would have a planned fire drill? The alarm would go off, and students lined up in an orderly fashion and walked single file to the nearest exit and out into the schoolyard. Inside, the school was completely empty.

Brion J. Kirsch

Brion J. Kirsch

James F. Martin

James F. Martin

Obviously, the circumstances are light years apart, but that’s essentially what occurred in office buildings in March 2020. One minute, every room is filled with people working at their desks; next thing you know, the entire place is vacant.

What would always happen after the fire drill — everyone was back at their desks in about 10 minutes — didn’t happen in office buildings. It’s been almost three years. Some are never coming back.

Remote or hybrid work is here to stay, and people’s habits and expectations have changed. As a result, the commercial real-estate market is facing challenging times. In Western Mass., for example, the vacancy rate for office space is of concern to landlords along with the reality of expiring leases for downtown office space. However, the more attractive rental price per square foot of class-A office space in Western Mass. serves as a significant advantage to retaining and attracting tenants when coupled with the lower cost of living in contrast to Eastern and Central Mass.

Thus, there are some reasons for optimism, and potential options for landlords and tenants alike.

The continuing development of multi-family apartment complexes in both the cities and the suburbs is a promising sign. And with the proliferation of shopping from home and consumer subscription services, industrial properties like warehouses and fulfillment centers are in high demand.

 

Options for Tenants

For employers who now have more workspace than on-site workers, subleasing is an interesting option that can both reduce expenses and boost revenue. This requires a conversation with the landlord, but if conducted in good faith, it can be a win-win situation.

With a landlord’s consent, a majority of commercial office leases allow subleasing and partial assignments. But finding an occupant to sublease part of your space is far from the final step; legalities and practicalities abound. The documentation must be specific and thorough as there’s an extra added layer of complexity in these situations.

Taking a contractual agreement between two parties and adding a third opens up room for all sorts of unexpected conflict and misunderstandings. The language in the agreement must be crystal clear.

“With a landlord’s consent, a majority of commercial office leases allow subleasing and partial assignments. But finding an occupant to sublease part of your space is far from the final step; legalities and practicalities abound.”

The biggest concern is historic and/or prospective liability. One party’s transgression may have a direct impact on the other party, even if there is fault on only one side. Something else to consider is the construction of a demising wall for the new tenant’s subleased space. To be up to code, this new area will also need proper access, exits, and restrooms, in addition to other possible requirements, such as a kitchen or metered utilities.

Depending on the terms of the lease, there may even be an express option that simply allows for the reduction in the total area being occupied and would prevent the need to sublease.

 

Options for Landlords

There’s an opportunity now for landlords to make a long-term play by allowing tenants to make modifications to their original lease. The value in this circumstance arrives in the form of an early renewal or extension of the current lease, in exchange for allowing the tenant to sublease a portion of their space or shrink their footprint.

As many business owners have discovered in other industries, incentives are becoming a more crucial part of attracting customers or, in this case, tenants. And just because a space was previously used for one purpose, that doesn’t have to remain the case. Repurposing is an exciting and risky but sometimes necessary option.

Taking an empty office building and converting it to multi-family apartments or mixed-use commercial space is a large undertaking. But the strong demand for housing seems likely to continue, while office space continues on a more uncertain path.

While interest rates and the cost of construction materials both remain high, supply-chain issues are easing, and real-estate profits from the past decade have some property owners’ war chests well-stocked. It’s also likely that property values will begin to fall in the coming months and years.

It’s anyone’s guess how the current confusing climate of high inflation, low unemployment, rising interest rates, and massive tech layoffs will shake out in the coming years. Some say a recession is inevitable; others are optimistic one will be avoided. One thing we do know for sure is that we’re not in elementary school anymore. And this is not a drill.

 

Brion Kirsch and Jim Martin are attorneys at the law firm Pullman & Comley, which has offices in Connecticut, New York, and Rhode Island, as well as Springfield. Kirsch co-chairs the firm’s real estate, energy, environmental, and land use practice and practices in both Massachusetts and Connecticut; Jim Martin is located in the firm’s Springfield office and is a recognized practitioner in the areas of commercial real estate and real-estate planning.

Banking and Financial Services Special Coverage

Forward-looking Statements

Matt Garrity

Matt Garrity

 

Matt Garrity says it was a few years ago, when he was established in his role as executive vice president and chief lending officer at Premier Financial Corp. in Ohio, that he determined that the next logical career step would be to preside over his own bank.

As time went on, and the calls from recruiters started multiplying, the major questions to be answered concerning this ambition were … where, and what?

The ‘where’ involved geographic regions, and Garrity had his preferences, especially the Northeast — he grew up in Lee. As for the what … he desired to be at a bank with a long history, a solid track record, a strong growth pattern, and a plan to continue along that path.

Not long after being encouraged to consider succeeding Kevin Day as president and CEO of Florence Bank, he concluded that all of those boxes could be checked — with authority.

“It’s a perfect fit — this is such a great bank, and it’s got a terrific board,” said Garrity, adding that there many things that stood out about the institution. “From a financial standpoint, this is a very strong and well-positioned bank, and what also came across loud and clear in my conversations with the board was what a great culture this organization has; this is a very customer-focused, community-minded culture that we have here, and a very engaged workforce.”

Garrity, who arrived at the bank in January, takes the helm at a very intriguing time in its history. Indeed, the institution will celebrate its 150th anniversary this year — May 6 is the actual anniversary date. It will mark the occasion in a number of ways and over the course of the year, he said, adding that the planning process is well underway, and details will emerge in the coming weeks.

“We’ll look to continue to grow the bank in Western Massachusetts, looking for opportunities to grow not only in Hampden County, where the bank has started to grow in recent years — we’ll look to continue that strategy — but also with our commercial business within the bank.”

Meanwhile, the institution that started as Florence Savings Bank to serve that growing village has moved well beyond its roots, most recently with a push into Hampden County. Where the next steps in that progression will take place have yet to be determined, but they will likely be in that corner of Western Mass., said Garrity, adding that, like most institutions, Florence is eying controlled, orderly growth, not growth for growth’s sake.

“We’ll want to continue that growth pattern in Hampden County,” he said, noting that branches opened the past several years in Springfield, West Springfield, and, most recently, Chicopee. “That’s certainly on the drawing board for us.”

For this issue and its focus on banking and financial services, BusinessWest talked at length with Garrity about his new assignment and his vision — still very much in the formative stages — for the next 150 years for this Western Mass. institution.

 

Points of Interest

Garrity said he’s spent his entire career in financial services, most of it focused on the commercial-banking side of the spectrum. It was at Premier Financial Corp. that he started taking on additional responsibilities and work in areas “other than the one I grew in,” as he put it, which put him on a path to the corner office at Florence Savings.

Among these areas was residential lending, he said, adding that gaining traction in this and other realms created learning experiences on a number of levels, not just adding lines to a résumé.

“That was a real step in my career,” he said. “Being able to work effectively and work with the team and run that business successfully was something that was really important in my career development.

Florence Bank’s branch on Allen Street

Florence Bank’s branch on Allen Street in Springfield is one of three in Hampden County, where additional expansion is expected in the coming years.

“As careers go on their paths like they do, and your responsibilities begin to grow and you get exposed to new businesses that maybe you weren’t the subject-matter expert in, and you begin to show your ability to effectively manage those businesses and work with the people in those businesses, that’s when you start to think that you can do this on a broader level,” he said, adding that it was several years ago that he considered himself both ready and willing to consider those calls from recruiters asking him to consider bank-presidency positions.

And there were many of them in recent years, Garrity noted, adding that he was, in a word, selective about which ones to pursue.

“Not every bank CEO position was in a part of the country that my wife and I would be comfortable going to, or you really wanted to go to, since we had optionality,” he told BusinessWest. “We were somewhat selective about the ‘where,’ the ‘what,’ and the ‘who’ we would be working with.”

As noted earlier, Florence, now with $2 billion in total assets, checked many of the boxes on his list, especially financial strength, corporate culture, and a long history of service to, and involvement in, the community.

In recent years, that word ‘community’ has come to mean much more than Florence, he said, and its definition will continue to broaden in years to come.

As he talked about the bank’s growth strategy and the next steps in that plan, Garrity acknowledged that there is a great deal of competition in the region, and it comes with institutions of all sizes, from smaller community banks — Florence is still in that category — to very large regional and national banks, like Chase, which just opened a branch in downtown Springfield and will soon open another in Northampton (see story on page 18). But he also acknowledged that banks like Florence need to continue growing at a time when size certainly does matter.

Florence Bank’s branch on Allen Street in Springfield is one of three in Hampden County, where additional expansion is expected in the coming years.

“We’ll look to continue to grow the bank in Western Massachusetts, looking for opportunities to grow not only in Hampden County, where the bank has started to grow in recent years — we’ll look to continue that strategy — but also with our commercial business within the bank.”

 

Taking Things into Account

Florence currently has 12 branches, nine in Hampshire County and those three in Hampden County. Future growth will likely be within that footprint, Garrity said, adding that, while several area banks have ventured into Northern Connecticut, Florence has no immediate plans to follow suit.

“As we look to continue to build the franchise, we’ll be strategic about that and determine what makes the most sense for us, and where the Florence Bank story makes the most sense for the community and for the bank.”

Despite advances in technology and the ability of consumers to do much of their banking remotely, he added, there is still a place for brick-and-mortar branches, for reasons that include everything from quality of service to marketing.

“Branches are more than deposit-taking propositions,” Garrity noted. “Not only do they represent the bank out of the market, it’s a place for outbound activity, for a bank to get out in the community and to make its presence felt.

“I think branch banking is really evolving,” he went on. “For us, that doesn’t mean we need a branch in each and every town and on every corner — that wouldn’t be our model — but we’ll need more in Hampden County to get the most out of our network.”

Within this very crowded banking marketplace, Florence has what Garrity describes as some competitive advantages.

“It gets down to people,” he explained. “As we look at what our strategic advantages are as we compete in these markets, we have terrific people, and that’s always a big strength that we’re going to have. We’re also very locally focused; the deposit dollars that we take in from Hampshire County and Hampden County are being redeployed in Hampshire County and Hampden County, and from a philanthropic perspective, this organization is focused on these communities as well.

Florence Bank’s branch in Chicopee

Florence Bank’s branch in Chicopee is the latest addition to the portfolio.

“Over the past five years, this organization has donated to charitable causes in this region close to $3 million,” he went on. “So there’s a significant commitment that we have, and this is part of what helps us continue to be relevant over these past 150 years. One of the founding principles of the bank back in 1873 was ‘neighbors helping neighbors,’ and that’s as important to us today as it was back then.”

People, meaning the team at the bank, are also a key component in the growth strategy for the commercial-lending side of the ledger, said Garrity, adding that there is no shortage of competition in this realm, either.

“It’s the people that help you stand out, people and the ability to bring solutions. The advantage of working with a bank such as Florence Bank, given our size and what I’ll call our flat structure and local decision making, is we can get the right people around a table to make a good, common-sense answer for our client — a custom solution. That is a distinct advantage that we would have over some of our larger competitors that are more decentralized and a little more pigeonholed from a policy perspective.”

He noted that the commercial market was strong in 2022 because many businesses that were on the fence decided to move ahead before interest rates went up. They did rise, considerably, and these increases, coupled with uncertainty concerning the economy and other headwinds, has slowed the commercial market in recent months, he went on, adding that this is a nationwide phenomenon and one that bears watching in the coming months.

The same can be said for the residential market, which has slowed dramatically in recent months — a 28-year low nationwide, in fact — as a result of rising interest rates and low inventory.

 

Bottom Line

Garrity said he’s spent his first few months at Florence engaging with his team at the bank, looking for opportunities to engage in the community, and “learning the bank,” as he put it.

“I’m asking a lot of questions and listening for the answers,” he noted, adding that what he’s heard so far is that this institution is well-positioned to take advantage of the opportunities that will present themselves in the months and years to come.

“We have a great team, and we have a really good bank in a very good position,” he said. “And we’ll plenty of opportunity to continue to do great things here and great things for our customers, so I’m excited; 150 years is a great accomplishment for this organization — and for this community that has supported us. We have more than 50,000 customers that support this bank in the communities we serve, and we want to continue to serve them for another 150 years.”

 

Special Coverage Wealth Management

Learning Opportunities

By Barbara Trombley, MBA, CPA

One of my most frustrating issues with being a parent is the lack of school education regarding money and personal finance. My children were required to take history, trigonometry, English, and numerous other courses, but they were never required to take a class about personal finance. I would argue that this knowledge is just as important.

This oversight leaves the instruction about personal finance to parents, and many parents are not good with their own money, resulting in generational problems with financial matters.

How can we teach our kids to have good financial habits? What does that mean? Obviously, modeling good financial behavior is an obvious start. Have a budget and stick to it. Contribute regularly to a retirement plan. Do not be afraid to discuss money in front of your kids. Talk about your household income and household bills and how much of your paycheck goes to taxes, retirement savings, and your emergency fund. Discuss vacations, how much they cost, and how you are saving for them.

One of my favorite ways to involve my children in money talks was to take them with me to the grocery store. I would show them how to shop for generic items, compare unit costs and sizes of items, and use coupons. In general, we should take the stigma out of money discussions and make spending and saving discussions easier to have.

Discussions with your children are not the only way to teach them about good financial practices. Here is a list of eight ways to teach good financial habits.

 

• Let your teen earn money. They don’t need to get an actual job, although I would recommend this at some point. Your teen can work around the house, cut the grass, do odd jobs, etc. The idea is to get them used to managing their own money. Once they are regularly earning, you can teach them to set aside money for short-term saving (maybe to purchase a big item), long-term saving (maybe for college), and spending now. If they are receiving a paycheck, it is a great opportunity to discuss taxes and Social Security and Medicare withholdings.

• Open a bank account. It’s a great idea to have a child manage their own savings account. Many little ones start with a piggy bank for odd change. When the birthday or allowance money starts to accumulate, it is time for a bank account. Make sure to have access so that you can monitor the account. When the teen gets their first job, they can have their paycheck deposited in a checking account.

• Get a debit card. When your teen gets a checking account, it is the perfect time to get a debit card. They can practice using it and seeing purchases impact the account balance. Your child can get an online login to their bank account and learn to watch the activity.

• Help them set a budget. Teens are notoriously frivolous. Starbucks, dining out, shopping, video games — there are so many more ways for our teens to spend their money than we had as young adults. Discuss with your teens how many hours they would need to work to buy a grande Frappuccino at Starbucks. Talk about how long they would need to save to go to a big concert. If it is easier to illustrate, find an app for budgeting. There are many available.

• Consider credit cards. This is a tricky one. Each of my children was given an additional card on our account when they were 16. This card came with explicit instructions (from mom and dad) on how and when it was to be used, as my husband and I were ultimately responsible for the bill. Our kids understood that the card could easily be taken away if misused. This was a gentle introduction to credit and allowed them to establish a credit score (see the next tip). You could also start with a pre-paid credit card on which you put a certain amount. When each of our children were juniors in college, we helped them apply for their own credit cards. By this time, their money skills were good, and they understood the importance of paying the bill monthly.

“In general, we should take the stigma out of money discussions and make spending and saving discussions easier to have.”

Barbara Trombley

Barbara Trombley

• Explain credit score. Many teens and young adults do not understand the need to build credit. Emphasize that, by using credit responsibly, your teen will build credit and increase their credit score, which is imperative when it is time to finance a car or a house. Explain how people with the best scores are given the lowest interest rates when looking to make large purchases.

• Discuss compound interest. This topic can apply to both credit cards and investments. Explain to your teen how compound interest (paying interest on the interest from last month’s bill) can make a large credit card balance even bigger over time. Consequently, compound interest is your friend when dealing with investment accounts. Earning interest on the interest generated year over year is how many people grow their investments.

• Discuss paying for college. Another hot topic that too many parents avoid is who is going to pay for college and how. Teens need to be included in the discussion about college tuition and debt from an early age. If expectations are set about how much college costs and how much you can contribute, disappointment with a college choice can be managed. Also, one of the absolute worst financial mistakes a parent can let their teen make is to choose a college without regard to the financial burden on both the parents and the student. Letting an 18-year-old be unknowingly responsible for college debt can set them up for a lifetime of money troubles.

If your teen is really interested, find online classes that teach financial literacy. Also, look for books in your library. Particularly savvy teens can open investment accounts easily online and start investing with a minimum deposit. There are many ways to educate our children, and we need to take the responsibility for their financial education.

 

Barbara Trombley, MBA, CPA is a principal with Wilbraham-based Tromblay Associates; (413) 596-6992. Securities offered through LPL Financial. Member FINRA/SIPC. Advisory services offered through Trombley Associates, a registered investment advisor and separate entity from LPL Financial. This material was created for educational and informational purposes only and is not intended as ERISA tax, legal, or investment advice.

Home Improvement Special Coverage

The Surge Continues

By Elizabeth Sears

Dave Coyne

Dave Coyne (right) says the Home & Garden Show has been beneficial to his business.

A ‘COVID bump.’

That’s what some in the home-improvement industry call that surge in business that accompanied the pandemic nearly three years ago now.

“It’s been kind of amazing; I think the industry had a sort of bump when, sadly, people stayed home and conserved their money and their time outside of their home,” said Deb Kelly, staff designer at Modern Kitchens in Agawam, which specializes in start-to-finish kitchen and bathroom renovations.

“Then, maybe they looked around and thought their home was a little shabby, and they could pick some things up,” she went on. “Since they weren’t taking cruises or going out to dinner as much, they said, ‘let’s do these projects that we’d really love to accomplish.’ We’re still feeling the effects of that; we’re going into a strong 2023.”

Yes, the COVID bump, or whatever one chooses to call it, still has some legs to it, and this bodes well for area businesses across the very broad spectrum of home improvement, many of which are gearing up for the 68th Western Mass. Home & Garden Show on March 23-26 — and expecting to come away from that event with more prospective customers.

Tony Witman, owner of property-management company Witman Properties in Holyoke, said he recognizes that, despite these beneficial trends in this sector, services are not necessarily going to sell themselves — which is where the Home Show comes in.

“Since they weren’t taking cruises or going out to dinner as much, they said, ‘let’s do these projects that we’d really love to accomplish.’ We’re still feeling the effects of that; we’re going into a strong 2023.”

“Many of the services we provide are same-day or next-day, whether it’s plumbing, electrical, HVAC … and I don’t think homeowners get that level of service by just flipping through the internet calling people,” he said, noting that the event offers an immediate response to their inquiries from a professional contractor. “I think there’s value.”

Indeed, it seems the value of the Home Show goes beyond in-person contact. There is a unique human aspect to local clients brainstorming renovations with local home-improvement businesses. That’s where Home & Hearth Remodeling in West Springfield got its motto, “a craftsman who cares.”

“When I interview people, I just look at them and think, ‘is this person a craftsman, and do they care about their work? Do they care about doing a good job? Do they care about getting better in learning? Do they care about the customer who’s home? Do they care about the people they’re working with?’ Those are all important,” owner Dave Coyne explained. “We have a very low turnover, and we generally have pretty experienced people working for us — and they stick around.”

Coyne joined the Home Builders & Remodelers Assoc. of Western Mass. (HBRAWM) — which stages the annual Home Show — when he moved to the area, and said it has been a great resource. He began at the show as a solo practitioner, but as his company has grown, he’s added more staff, and now has “a proper business,” as he called it, and his company has increased its presence at the show, with its booth becoming “a little bit fancier” year after year.

Tom Cerrato

Tom Cerrato says the pandemic-fueled surge in home improvement is still going on.

“We still have just a single booth this year, which we are in the process of refurbishing,” he explained. “Next year, we’re contemplating actually getting two side by side to focus part of the home show on decks and outdoor work, and then the other part on the interior remodeling and additions.”

 

Captive Audience

It’s a plan that reflects the event’s flexibility and opportunities to showcase one’s offerings to an enthusiastic audience, many of them actively shopping for services.

And many vendors are still seeing that COVID (or, perhaps, post-COVID) bump.

“People are still thinking about staycations, right? That buzzword is still out there,” said Andy Crane, executive director of HBRAWM. “Even though COVID is in the rearview mirror, it made people rethink how they’re going to live. A lot of these companies did pretty well during the pandemic, during the height of it, because people were investing in their homes because they weren’t going away.”

And they’re still investing, said Tom Cerrato, branch manager at Kelly-Fradet Lumber in East Longmeadow. “When the pandemic started, we went back and forth on whether we’d even stay in business, but fortunately for us, it turned out to be a boom because there were so many people who stayed home, stopped traveling, and had those extra funds to spend, and fortunately spent it on an industry that benefited us — home improvement and building. It’s been very good for us the last few years.”

In the years Kelly-Fradet has participated in the Home Show, Cerrato said the event has created strong brand awareness among a receptive crowd.

“It’s a good-sized booth, and our presence gives us good branding locally. We get to be top of mind with customers in our market, and a lot of them are making large purchases for their home, decks, windows, kitchens, doors, a lot of stuff. So we like to be in front of them as they start their projects.”

“We get to be top of mind with customers in our market, and a lot of them are making large purchases for their home, decks, windows, kitchens, doors, a lot of stuff. So we like to be in front of them as they start their projects.”

First-time Home Show vendor Witman Properties, is exhibiting this year due to the visibility and tangibility of meeting potential clients, and making that personal connection that others described as being vital to good business.

“There’s so much online marketing, and I think people in general might be getting a little burned out from just looking at their screens and their phones all the time,” Witman said. “We figure it’s a really good chance to get in front of people. A lot of people see our trucks driving around, and they see our signs … but they don’t know who we really are. So it’s a good way to get out there and meet the local people in the communities we service.”

Crane can relate. “I have never bought anything off the internet. I will drive three hours on a Saturday morning to go see a safe in Rhode Island before I buy it off the internet.”

That’s one of the show’s main draws for a company like Eastern Security Safe in West Springfield, Crane explained. “What is the value? If I was Eastern Security Safe, I would say the value is people can touch and feel my safe. They feel the quality. They want to see my face; they want to talk to me and negotiate face to face. You can’t negotiate to a computer too well, and when nothing shows up or something is dented or scratched, you don’t even know who to talk to.”

That’s not to say technology is a hindrance to local businesses gaining customers; sometimes, it is a great help. With the availability of home-improvement inspiration online, clients often come to the Home Show prepared with ideas and visions of what improvements they would like to achieve.

“I think one unique aspect we have is this — a lot of times people have images in their head of what they would like their kitchen or bathroom to look like,” Kelly said. “Many will walk in with their phone starting to scroll and show me things they’ve researched, that they’d like to try to accomplish in their own home.

“That’s where we sit down with them and pull together all those puzzle pieces, and actually physically lay them out on the tabletop — ‘here’s your door, here’s your countertop, here’s the paint color, here’s your tile that we’re going to use,’” she went on. “It really allows them to pull the whole project together and turn it into more of a reality instead of just a pretty picture they found on their phone.”

She went on to note the large volume of contacts Modern Kitchens has made as a result of being a vendor at the Home Show over the years. The company has followed up with all of them, converting many into customers.

“We’ve met some really nice people who were at the Home Show with some project in mind,” Kelly said. “It’s like talking to qualified leads, really.”

 

Get Out There

Crane said the Home & Garden Show is a personal experience in another way: many attendees turn it into a social gathering with family or friends.

Before he was actually in charge of it, “we would go all the time to the Home Show, spend two or three hours, then go to some local restaurant. People consider it a social event.”

The vitality of the Home Show — booth sales are way up (see sidebar on page 33) — accurately reflects the booming prosperity of the industries represented at the show. However, substantial business often means substantial wait times, one downside to this ongoing surge. Clients may find themselves disappointed with long wait times before they see their renovation plans come to fruition — but so far, that hasn’t seemed to deter their willingness to book projects far in advance.

Over the past few years, Kelly said, “people were willing to wait; I think the industry was busy, so people could accept a timeline that was a little further out. When you want to do a project, you’re a little antsy, you make the decision — ‘yes, let’s move forward with this, we have the money, let’s do it’ — and many people who normally would want to have a start date within a couple of weeks have been willing to wait because the industry is busy.”

As a result, Modern Kitchens has been able to schedule a full year’s worth of business from the Home Show. Coyne echoed this experience, having also received large amounts of business from previous shows.

“I get enough business from the Home Show to carry me through the year. We always get plenty of good leads,” he said. “After this last Home Show … I’m not joking, we were probably still following up with leads four months or more afterwards. We have jobs that we are starting in April — we actually have a job that we just started today — that I think came from the Home Show last year.”

The 68th presentation of the Western Mass. Home & Garden Show will take place in the Better Living Center building at the Eastern States Exposition, with displays in the outdoor area. This year’s show hours are Thursday and Friday, March 23-24, noon to 8 p.m.; Saturday, March 25, 10 a.m. to 8 p.m.; and Sunday, March 26, 10 a.m. to 5 p.m.

General show admission is $10 for adults, and children under 12 are admitted free. A coupon reducing admission to $7 can be found on the show’s website. Active military and veterans will receive free admission on Thursday, March 23. Parking on the Eastern States Exposition grounds costs $5 per vehicle.

 

 

 

 

Home Show Has Evolved in Many Ways

 

As Andy Crane perused a list — a very long list — of vendors at the 68th annual Western Mass. Home & Garden Show, he made a point of picking out a bunch that may surprise some attendees.

A chiropractor. A healing and spiritual-development center. Gourmet food producers. Makers of jewelry and accessories.

“That’s a cool theme this year,” said Crane, executive director of the Home Builders & Remodelers Assoc. of Western Mass., which stages the annual show at the Eastern States Exhibition, slated this year for March 23-26. “It’s not just roofing and siding and patios. It’s home life.”

The annual event sees all types of attendees who visit for a variety of reasons, he noted. Attendees typically fall into one of several categories:

• People planning to buy or build a new home, who may visit with builders, real-estate agents, financial institutions, and sellers of component products, such as hardwood flooring, tile, and appliances;

• People planning to remodel or renovate, who may want to check in with all of the above, plus vendors of replacement components such as windows and doors, as well as appliances, wall treatments, and home furnishings;

• Yard and garden enthusiasts, who tend to be interested in lawn and landscaping services; wall, walk, and edging components and materials; and trees, shrubs, flowers, and seeds;

• Committed renters, who have no plans to own a house, but may be interested in space-conservation and space-utilization products, as well as home furnishings;

• Impulse buyers, who flock to vendors of home décor, arts and crafts, cooking and baking products, jewelry, and personal goods; and

• Lifestyle-conscious individuals, who like to check out trendy, high-tech, or time-saving products, as well as home furnishings and products focused on self-improvement, fitness, and health.

It’s those last two categories that many people don’t often think of when they consider who wants to set up shop at the show.

“The Home & Garden Show is really about taking care of you and your family in your home. Quality of life is a good way to put it.”

“B-Well and Thrive is one company that’s going to be very interesting,” Crane said of the Hampden-based wellness practice, which will feature bioenergetic testing, therapeutic crystal mats, and the expertise of holistic practitioner Colleen Mancuso at its booth, among other offerings.

Then there’s Adult & Teen Challenge Greater Boston, which will be on hand to talk about resources to treat addiction, a scourge that affects far too many families in Massachusetts.

“I feel terrible for any family that has to go through that. They often don’t know where to turn,” Crane said. “But here’s at least one company — and there are many more than one — that is addressing it publicly so that people will have someone to turn to.”

Or, on a lighter note, Own Your Own Arcade Game, a national company that … well, the name pretty much describes it: they sell full-size, stand-up arcade games for the home. “They realized they found a niche that works, and they’re buying a booth,” Crane said.

In all these cases and more, from personal health and wellness to just plain fun, vendors aren’t selling building supplies and home-improvement services, Crane added. “The Home & Garden Show is really about taking care of you and your family in your home. Quality of life is a good way to put it.”

Andy Crane

Andy Crane says the Home Show isn’t just about home improvement, but lifestyle improvement as well.

Fran Beaulieu, vice president of Phil Beaulieu & Sons Home Improvement Inc. in Chicopee — and president of this year’s Home & Garden Show — can appreciate the ways in which the event has evolved, as his company has been participating as a vendor for almost seven decades.

“The value has changed over the years,” he told BusinessWest. “Everyone has a smartphone, so they don’t necessarily need a home show, but we’ve noticed something over the past several years: in the early days, it was about generating leads because it was really hard to get in front of everybody. Nowadays, with such a huge customer base, we’re rekindling old relationships.”

He can cite many instances of meeting a former customer for, say, a roofing project, they get to talking, and by the end of the conversation, she’s ordering patio doors.

In fact, about 70% of Phil Beaulieu & Sons’ projects last year were repeat customers, and “we think the Home Show is huge for that because we get a lot of the same people coming back every year and buying something new — not to mention, we do a lot of work for people who have booths. Not everyone is in the roofing, siding, and windows business, so we do work for garage-door guys, and we cultivate those relationships.”

Fran Beaulieu

Fran Beaulieu’s company has been involved with the Home Show for almost seven decades.

Another category of show attendees are those who attend purely for fun, who may arrive without an agenda but often develop ideas for future purchases and home products. Not only might they make a connection on a traditional improvement project, but they might find something unique, in realms like home entertainment, security, and energy efficiency.

“A high point of this year’s show will be energy,” Crane said. “Everyone knows their energy bills have gone up, specifically electricity. Energy is a big buzzword; everyone’s talking about it, and the building industry has to react to it.”

Of course, many vendors are producing not high-tech innovations, but quality craftsmanship in time-honored fields, like American Rustic Woodworks of Spencer. “People are asking for that, too,” Crane said. “It’s beautiful stuff — and where do you go to get it?”

That, in the end, may be the one unchanging draw of the Home & Garden Show — bringing together, in one space, old and new disciplines in every possible aspect of home improvement and, yes, quality of life at home.

“Sometimes it’s hard to get all that on a computer,” Crane said. “Here, you can certainly talk to the salesperson, owner, what have you, and feel like you’re leaving with an answer.”

 

 

 

Architecture Special Coverage

Surveying the Landscape

Robert Ryan

Robert Ryan stands on the green roof of the John W. Olver Design Building.

 

It’s called Valley on Board.

The effort is part of a federally funded project by the Pioneer Valley Transit Authority (PVTA) that involves a comprehensive assessment and strategic planning of transportation routes, services, and facilities throughout the region, one that aims to inform the design of a sustainable transit system to support economic vitality across the Pioneer Valley into the future.

One goal of Valley on Board (VoB) is to develop a route redesign that will serve the PVTA and the Pioneer Valley for at least 20 years into the future while achieving goals such as increased ridership, improved efficiency, and enhanced accessibility and equity of the system.

Since the summer of 2021, graduate students under the guidance of Camille Barchers, assistant professor of Regional Planning at UMass Amherst, have been working with the PVTA on the VoB initiative.

“They did many, many public participation activities to get people’s feedback across the region about what they wanted, what’s working, what’s not working. And they also did mapping of routes to find what areas are served and what areas can be served better,” said Robert Ryan, professor and chair of Landscape Architecture and Regional Planning (LARP), the innovative, cross-disciplinary department at UMass whose graduates — and, often, current students — are impacting communities everywhere in disciplines like urban planning, sustainable living, climate resilience, transportation planning, and others.

“Landscape architects are licensed by the state to do work on designing landscapes — it could be with a building, without a building, campus-planning work, stormwater management, schoolyard design, streetscapes, large-scale open-space planning, that sort of thing,” Ryan explained. “Regional planning is for students who may want to work as municipal planners in the Commonwealth or with a regional planning agency or as a planning consultant; it’s similar to an urban planning degree.”

The Landscape Architecture and Regional Planning department provides professionally accredited degrees (MRP, MLA, BSLA); a sustainable community development degree that UMass touts as one of the most innovative sustainability-focused undergraduate degrees in the country; a skills-based, two-year associate of landscape contracting degree; and a PhD in regional planning. The department’s website claims that “we research, design, teach, and do community outreach to create sustainable solutions to complex problems.”

To that end, students have worked on greenway rail-trail projects in the region, new park and plaza design and redevelopment, residential design, office-plaza design, and public work for cities and towns, Ryan said, through entities like the UMass Design Center in Springfield, which engages in research and projects to create healthier, more sustainable, more walkable cities.

“That’s the landscape-architecture side,” he went on. “On the planning side, they might work on transportation planning, economic development, or land-use planning for a municipality. Certainly in this region, you often find you’re working in places that are built, so it might be a redevelopment project within a larger town or city.”

Students work on climate-change adaptation planning as well, Ryan said. “With the impact climate change is having everywhere, how can we adapt to that changing climate? And how do we sort of mitigate climate impacts by the development we’re doing?”

He said a combined Landscape Architecture and Regional Planning department may be uncommon in secondary education, but the projects and issues students and graduates tackle lend credence to the model. And those issues are only becoming more prominent.

“The way that municipalities approach this sort of thing has created an evolution of the program as well,” he told BusinessWest. “When you look at city planning these days, the importance of sustainability and some of the environmental focus have shifted in just the time I’ve been here. There are so many sustainability officers doing hazard-vulnerability plans for municipalities, doing climate-change vulnerability plans. I think cities are more attuned to that impact and how they should plan for it.”

Cities are particularly interested in alternative transportation, he noted, from bike lanes and enhanced train and bus service to creating more pedestrian access and walkable downtowns.

“The master planning for many cities is to make them more walkable and use more public transportation to make it more habitable. That’s an equity issue and a safety issue as well, because if you don’t own a car, or you can’t afford a car, and you need to take the bus and then walk to work or school, then you need a safe place to do that. There are a lot of federal funds and state funds to help cities do that.”

 

Evolving Picture

Graduates of LARP work in a number of intriguing fields, some of them centered on climate resilience.

“That’s what I’m most involved in,” Ryan said. “Green infrastructure is using natural systems to clean stormwater to provide climate-change adaptation to cool urban cities, to deal with water cleansing, that sort of thing. That’s a big issue in a lot of our cities that have EPA declarations; we have to clean the water up in the city, to kind of capture stormwater and treat it — instead of a catchbasin, using natural systems like ponds and pools to collect it, allowing sediment to drain out and cleaning the water before it goes into natural water bodies.”

The John W. Olver Design Building, which houses LARP (more on that later), is a good example, he explained. “There’s water that comes off our roof and adjacent parking lots, and then it’s treated in these rain gardens, these sort of swales around the building.”

Some cities are also making an effort toward urban greening, he added, planting more trees along streets to cool the city and make it more aesthetically pleasing for pedestrians.

Another specialized focus for LARP students is preservation of cultural landscapes, such as cemeteries, historic homes, and state parks. Students have been able to work with the National Park Service, the National Forest Service, and state historical groups on such issues.

“As landscapes change, trees grow, things fall down outside, so can you restore that landscape to something that might have been historically?” Ryan asked, pointing to recent efforts in Franklin Park in Boston as one example. “It was designed over 140 years ago. So there’s parts of that park that have changed over time. So which part do you preserve, and which part can you redevelop? Which parts do you change?”

Many students also develop a passion for biodiversity, he added.

“Can we change the design aesthetic of what’s been planted around our buildings and landscapes to plant more native plants and species that will then promote the biodiversity that’s native to the region? You can have your lawn, which is nice and beautiful, but doesn’t have a lot of biodiversity associated with it, or you can replace it with something that’s native plants and trees, and you can increase the biodiversity associated with that.”

The Olver Design Building reflects that priority as well; it’s a former parking lot that how boasts a green roof featuring native plants. But it’s much more than that.

Touted by UMass as the most technologically advanced cross-laminated timber (CLT) building in the country, the structure opened in 2017 to house three academic units: the department of Architecture, the Building and Construction Technology Program, and LARP.

Built of CLT timber and glue-laminated columns, the 87,000-square-foot facility saves the equivalent of over 2,300 metric tons of carbon when compared to a traditional energy-intensive steel and concrete building. It is one of just two buildings in North America using CLT for wind and seismic resistance.

The building has won numerous awards since its opening, from the WoodWorks Wood Design Awards, where it won Jury’s Choice for Wood Innovation, to the American Institute for Architecture’s (AIA) Committee on the Environment Top Ten Awards. Most recently, the AIA cited the building again with one of its 2023 AIA Awards for Architecture.

“The LEED Gold-certified building was constructed with a cutting-edge composite cross-laminated timber system, taking its cues from the Building and Construction Technology department’s research on mass timber,” the AIA noted. “It is the largest such building in the United States, demonstrating the university’s commitment to sustainability and innovation. The building’s envelope functions as a protective weather jacket that shields its wood structure. A durable rain screen enclosure composed of copper anodized aluminum panels and vertical windows suggest the patterns of historic tobacco barns and the region’s forests.”

 

Passion for Preservation

That language, again, reflects the balance of preservation, development, and sustainability at the heart of LARP studies — and the hearts of its students, who often see this work as mission-driven.

“Especially in our graduate programs, people are sometimes changing careers to come back to school via Landscape Architecture and Regional Planning,” Ryan said. “They’re really devoted to making the world a better place, which might include making cities healthier and greener, or dealing with degraded landscapes and healing them and bringing natural systems back. They could be promoting equity in our cities via more affordable housing or transportation. So there are definitely folks who have that passion to come in and do this sort of work.”

They’re also encountering a strong market for job seekers; Ryan says he posts job openings he comes across every day.

“All the firms I talk to are growing, and they can’t find the employees, so graduates are very sought after,” he added. “We do innovation here, but it’s also practical — when you graduate, you can work as a professional in a public or private office and do this work. And we have a lot of examples in our classes where you’re doing work with real clients, not just as an internship, but as a regular class.”

Like those graduate students working to improve transportation — and quality of life — close to home.

Commercial Real Estate Special Coverage

Art of the Matter

Evan Plotkin in the 1350 Conference Center.

Evan Plotkin in the 1350 Conference Center.

Evan Plotkin says he decided to call it the ‘Springfield Room.’

That’s because … most all of the paintings on the walls, courtesy of artist John Simpson and his students, depict well-known personalities who either live in the city or have strong connections to it.

It’s a diverse group that includes Herbie Flores, the long-time director of the New England Farm Workers’ Council, as well as philanthropist Lyman Wood, White Lion Brewery founder Ray Berry, and even Plotkin himself, who has become well-known for his work in recent years to being more people — and more vibrancy — to the city’s downtown.

The paintings, all of which are for sale, are just one of the selling points of this facility, part of what is now known as the 1350 Conference Center, one of Plotkin’s latest efforts to re-envision, and repurpose, the property at 1350 Main St., which he co-owns.

The center is located on the ninth floor, in space that had served as what Plotkin called “an informal art gallery and event space” that was used occasionally for fundraisers and other gatherings. It was not marketed or really open to the public, he said, adding that it has been given a facelift to bring another amenity to existing tenants, hopefully attract others, and bring new meeting space to downtown Springfield.

And Plotkin believes the timing is right for such an undertaking. After more than two years of COVID, he noted, gatherings of all sizes and types are becoming more prevalent as the region continues to move beyond the pandemic, even at a time when most meetings have at least some type of remote component.

“The artwork in here is spectacular, and combining an event space with a gallery made a whole lot of sense.”

“Most meetings are hybrid now,” he noted. “You have people who can attend the meeting live, and there’s an opportunity to bring in others via Zoom. With such formats, your meetings tend to be better-attended, but most groups are gathering in-person again.”

Plotkin acknowledged that there are several meeting spaces in the region, including others in downtown Springfield, but nothing quite like the one he has created.

Indeed, it is different because of the art, he said, but also the location, in the center of downtown, and the amenities, including state-of-the-art equipment and new furniture.

“The artwork in here is spectacular, and combining an event space with a gallery made a whole lot of sense,” he noted. “And the response I’m getting from social media and the tenants who have been up here has been very positive; people are excited about it.”

Meanwhile, the new conference center is not the only intriguing development at 1350 Main St.

Indeed, Plotkin said he has several new tenants coming in that will turn on the lights on floors that have been dark, or mostly dark, for several years.

art adorning the Springfield Room

Just some of the art adorning the Springfield Room at the 1350 Conference Center.

The long-vacant sixth floor is now home to lawyers and support staff with the Committee for Public Counsel Services. Meanwhile, the Department of Children and Families is poised to sign a lease to take the seventh and eighth floors and part of the 15th. In all, roughly 60,000 additional square feet will be under lease by the summer, he said, adding that these new additions should help bring more foot traffic to downtown businesses and help them make a full recovery from COVID.

For this issue and its focus on commercial real estate, BusinessWest talked with Plotkin about the new conference center and other developments, literally and figuratively, at 1350 Main St.

 

Drawing Interest

Plotkin told BusinessWest that he recently took a prospective tenant through the building for a detailed look-see. The last stop on the tour was the re-envisioned ninth floor.

“After going through, they said, ‘where do we sign?’” he recalled, adding that the business in question stages training programs on a regular basis and needs such a facility.

A desire to solicit such responses was one of the motivating factors for renovating the space, said Plotkin, adding that, overall, he believes there is room for additional meeting and event space in the region, especially something that falls into the category of ‘different.’

The art makes it so, he said, adding that the works currently on display are mostly from Simpson, a self-described painter, sculptor, muralist, and teacher, whose works can also be found throughout downtown Springfield, on museum and office-building walls and adorning the sides of buildings as well.

But new works from various artists will be rotated in and, hopefully, sold, said Plotkin, adding that the art gives the space a unique, always-changing look.

There are three rooms in the 1350 Conference Center, he said, listing a larger room ideal for presentations and meetings of up to 200 people, and two smaller rooms, including the Springfield Room, that are designed for smaller gatherings, training sessions, team meetings, and more.

“We’re still just moving the pieces around. We need to get some net gains in the downtown, and the region as a whole.”

The space can be used for a variety of different uses, including fundraising events, annual meetings, and even holiday parties, he went on, adding that he only recently opened the space to the public — the sign outside the entrance went up late last month — and has already had a number of inquiries.

“I’m ready now to get the word out to the public and offer it to organizations across the region as another option; I think it’s going to really take off,” he said, adding that the space will be free to tenants of the building, while there will a fee charged to for-profit businesses and a lower fee to nonprofits.

He expects interest to spread through word of mouth, and noted that the space is just one of several intriguing developments at 1350 Main St.

As noted earlier, three long-vacant floors — six, seven, and eight — will have new tenants. The Committee for Public Counsel Services, which includes the Public Defender division, Children and Family Law, and the Youth Advocacy division, will bring close to 100 people to the building. Meanwhile, the Department of Children and Families will bring an additional 200 people to that address.

As they do so, they will do more than activate some long-vacant space, said Plotkin, adding that these additions should help many downtown businesses that have been impacted by the pandemic and the accompanying trend toward remote and hybrid work schedules.

“We’re bringing 320 people downtown — that should make the restaurants happy,” he said, adding that history has shown the importance of the downtown office towers — especially when vacancy rates are low — to the surrounding business community.

With these new additions, 1350 will approach 70% occupancy, said Plotkin, adding that he is exploring all options for the remaining spaces, which include the 16th and 17th floors (the ‘penthouse’), which were occupied by Disability Management Services until last June, and several retail spaces on the ground floor, including the large space last occupied by Santander Bank.

As he goes about trying to fill those spaces, he reiterated his contention that what the city — and the region — need are positive momentum when it comes to absorption, and less movement by existing businesses from building to building.

“We’re still just moving the pieces around,” he said. “We need to get some net gains in the downtown, and the region as a whole.”

 

Imaginative Stroke

Talking in general terms about Springfield, the region, and its business community, Plotkin said there is an ongoing need to be creative and do more to bring people to Springfield and its downtown.

With the new 1350 Conference Center, he believes he’s doing both.

He considers this an exciting new addition to the landscape, event space that is a work of art. Time will tell if it generates the interest he expects it will, but this is certainly shaping up to be an intriguing brush stroke as he fills in the canvas that is 1350 Main.

 

Community Spotlight Cover Story Features

The Paper City Looks Back — and Ahead

Holyoke City Hall

Go just about anywhere in the Paper City — City Hall offices, manufacturing facilities, the local utility, restaurants, some cannabis dispensaries, anywhere — and you will find pictures of what would be called ‘old Holyoke.’ And some images of the new Holyoke as well.

They’re everywhere. Pictures of the old but still-standing mills, the canals, Mount Tom, High Street in a different age, the Hadley Falls Dam, and especially City Hall, the iconic Gothic Revival structure built in 1871 that is, in many ways, the symbol of this historic city.

These pictures you see everywhere are visible evidence of the enormous pride people from this city, or now doing business in it, take in Holyoke.

You see this this pride in every community in Western Mass., from the small towns in Franklin County to the capital of the region, Springfield. But in Holyoke, it’s … well, different. And it just seems like there is more of it.

This much is made clear in the stories that follow in this special section commemorating the city’s 150th birthday. People from Holyoke take a special pride in being from their city, and for many reasons.

There is history — this is the country’s first planned industrial city. There is architecture. There are landmarks. There are institutions. There is tremendous diversity. There is the St. Patrick’s Day Parade and Road Race. Mostly, though, there are people — those who lived a century and more ago, and those who call it home today.

As the city turns 150, there is much to celebrate, and certainly not all of it is in the past, although the past is what many people like to focus on.

There was a time when Holyoke was a model industrial city producing some of the finest papers and textiles in the world. The mills producing these products created thousands of jobs, enormous wealth, and tremendous prosperity.

The city’s fortunes changed, obviously, as these mills closed or moved south or overseas starting just after World War II. For decades, the city was in decline, even as it remained a center of jobs and manufacturing.

Today, there is a sense of revitalization and vibrancy, with new leadership, especially Joshua Garcia, the city’s first Hispanic mayor, and an economy that is far more diverse and fueled by everything from a surging creative-arts sector to a cannabis industry that found in Holyoke a welcome mat, millions of square feet of old mill space perfect for cultivation and even dispensaries, and inexpensive, green energy.

Another factor powering this revitalization is entrepreneurship. Through the efforts of EforAll, the Greater Holyoke Chamber of Commerce, Holyoke Community College, and other agents of change, Holyoke residents, and especially those making up the minority majority, are creating new businesses, from restaurants to dance studios to fabric shops, that are changing the face of High Street — and the entire city.

These stories and many others are told in the pages that follow. Together, they tell of a city with momentum. A city with vision. A city with renewed optimism about what can be done when people work collaboratively. A city that has a lot to celebrate.

 

Holyoke. Wanna Make Something of It?

By Darby O’Brien

 

Unless you’re from Holyoke, you probably won’t get it.

We’re a little like Southie on the other side of the state. Hardscrabble Holyokers have grit and never quit. Holyoke is a city with soul. It’s a city of neighborhoods. Churchill, Elmwood, the Flats, the Highlands, Oakdale, and Springdale. As Liberty Bank President and Holyoker Dave Glidden says, “you can take the kid out of Holyoke, but you can’t take Holyoke out of the kid.”

Just look at the cast of characters that came out of this place. Start with the famous drummers. Hal Blaine, a Rock & Roll Hall of Famer, played with the legendary Wrecking Crew on 40 number-one hits, and Ronnie Hurst played in Steppenwolf. Holyokers Michael and John Shea wrote the Notre Dame fight song. We have Emmy-winning actress Ann Dowd. Alan Eisenstock was a writer and producer on shows like Mork and Mindy, Sanford and Son, and Family Matters. My nephew, Lenny Jacobson, is another one you’ve seen on the tube, from big-time TV spots to shows like Nurse Jackie, and he just won the 2023 JFK Award.

We’ve also got Neil Sheehan, the New York Times writer who released the Pentagon Papers and won a Pulitzer Prize for his book A Bright Shining Lie, considered to be one of the best books about the Vietnam War. Mitch Epstein is a world-renowned photographer. Frank Leja, who lived down the street from me as a kid, signed as a ‘bonus baby’ with the New York Yankees at 17. To this day, he’s the youngest player ever to appear in the pinstripes. The list goes on. Maybe it’s in the water. We’ve got four reservoirs. They’re all closed for fishing now, but we sneak in and cast a line anyway.

Another thing unique to Holyoke is the game of Pickie. We invented the game in the streets and alleys downtown. Just saw off your mother’s broom for a bat, and grab some Pee Gee balls, and you’re set. It’s always been a sports town. Betsy Frey carries on the family business at Holyoke Sporting Goods, probably one of the last independent sporting-goods stores left. Part of what keeps it going is the boatload of Holyoke merchandise she sells in the store, especially around parade time. You’ve heard about Holyoke’s St. Patrick’s Day parade, right? One of the biggest in the country.

The late “Made in Holyoke” rapper Justin Chavez said, “it’s a city full of pride and hope, a city that’s alive.” My old buddy John Hickey, who was the Water and Power chief, coined the slogan “Holyoke. Best City by a Dam Site.”

Damn right.

 

Darby O’Brien, a Holyoke native, is the owner of the marketing and public relations firm Darby O’Brien Advertising in South Hadley.

Features Special Coverage

Getting a Leg Up

Pedro Arroyo

Pedro Arroyo says the LEDC mini-grant helped him and his sister, Elizabeth Arroyo, secure better signage for their business.

 

Tony Bermudez started his digital-media venture just before the pandemic hit.

And like just about everyone else who was in business at the time, he lost considerable momentum — and opportunities — when the state essentially shut itself down.

Indeed, his business has many components, but specially event video work, and for the first year or more of the pandemic … there were no events, or very few of them, anyway.

Bermudez, again, like many others, slogged his way through to the other side of COVID. But money has always been tight, and that’s why he considers himself fortunate to receive, and is very appreciate of, a mini-grant from the Latino Economic Development Corp. He is one of several to get one of the grants in a first round issued late last year, with another nine grants awarded in a second round just a month or so ago. Another round of grants will be awarded later in March.

‘Mini,’ in his case, means $1,100. But Bermudez was able to use it to secure software and some new equipment, specifically a lighting kit, that will help him take his business, Tony Digital Music & Media, to a higher level.

Beyond the small grant, though, Bermudez has been able to secure invaluable coaching from the LEDC, and through it he has been able to make important connections, including one with Mercy Medical Center that enabled him to secure work to create a video to help address the stigma attached to opioid addiction; work is expected to behind on that production soon.

Bermudez’s story is one of many that help bring to life the work going on at the LEDC, a new agency that BusinessWest profiled last year. Its mission, in simple terms, is to help employees become employers, said Andrew Melendez, director of Operations for the LEDC, and enable small businesses to take the next step.

It does this through a unique model focused on everything from these mini-grants to training programs offered by those coaches that will focus on everything from how to qualify for a business loan to workforce training to mental wellness, and much more.

“Capital infusions — putting money into the hands of small business owners — even if it’s only $1,000 or $2,000, can often make a huge impact, whether it’s a new business or even an existing business.”

As for the grants, they are indeed small, with amounts varying from $1,000 to $3,000 in the first few rounds. But small businesses just getting off the ground can use such funds to take important steps forward, Melendez said.

“Capital infusions — putting money into the hands of small business owners — even if it’s only $1,000 or $2,000, can often make a huge impact, whether it’s a new business or even an existing business,” he explained, adding that the grants are funded through $450,000 in overall support awarded to the LEDC by the state. “They can put that money to use in many different and important ways.”

Such was the case with Pedro Arroyo, who used his $2,500 grant to secure new and better signage for his business, Juguitos Healthy Grab & Go, at its new home on State Street in Springfield.

Arroyo and his sister, Elizabeth, saw a unmet need in Springfield for a place where people could get healthy foods in a hurry and moved forward to meet it, despite the pandemic, which was descending on the area just as they were getting started.

Jason Vásquez

Jason Vásquez envisions his business growing and someday being run by his son, Nazareh.

“We saw an opportunity to provide something that wasn’t really available anywhere in the city,” he noted. “We came together, took a chance and said, ‘let’s try this.’

The stories behind these businesses, and people taking chances — and the grants they’ve obtained — help shed important light on the important work being done by the LEDC, and how it is changing the business landscape in all kinds of ways.

 

Progress Report

It’s called the unrestricted construction supervisor’s license.

Jason Vásquez, owner of Nas Small Repairs, which specializes in small construction projects and repairs to homes and businesses, needs one to take his venture, and his career, to the next level. And he’s using his $1,000 mini-grant to buy the code and regulations books and other materials to help him attain that license.

“I want to enable my small business to grow, and in the future, I’d like to have a program for young people and women to learn about construction and maybe move into the field,” he explained. “And to do that, I need this license and the right personnel behind me.”

Vasquez’s use of his mini-grant is exemplary of the many ways they are being put to use and how important they are to small businesses who need them to gain some momentum with whatever might be written into their business plan.

And the names on the businesses that have received such grants in the most recent round show just how varied these business plans are. That list includes Faded Barber Lounge, Thomas’ Cleaning, 50-50 Food Truck, Agudelo Apiary, Burgos & Son Trucking LLC, and Top-Flight Nutrition.

It also includes Juguitos Healthy Grab & Go, a name that tells you all you need to know (or almost all you need to know), and a venture inspired by personal need.

As Arroyo tells the story, he and his sister, Elizabeth, were both looking to shed some weight and “take back their health,” as he put it, starting with their respective diets.

“It was difficult because I was a videographer, and I was on the road all the time — I didn’t have the time to make prepared meals, and would eat out a lot,” he went on, adding that he and Elizabeth set out to address their own needs, and those of countless others, by creating a business focused on smoothies, juices, soups, sandwiches, and other healthy offerings that, as the sign says, people can grab and go.

The venture started off at 112 State St., a small location that was hindered further by a lack of parking, Pedro said, adding that the business was nonetheless able to thrive at that location, and thanks to $75,000 in ARPA funding secured from the city, he and Elizabeth were able to move into needed larger quarters just up the road, at 133 State St.

The LEDC has provided assistance at many critical junctures, he said, including direction on how to secure ARPA funding from the city of Springfield.

This work in progress is just one of many that the LEDC has become involved with, through technical assistance and coaching, a mini-grant, or both. And it’s just one example of how this agency is trying to change Main Street, or State Street, in this case, by helping more people get into business and put their signs on buildings.

Bermudez isn’t there yet, but he’s moving in the right direction, thanks to many different kinds of support from the LEDC.

As noted earlier, he received a grant that he used to buy equipment that made an immediate impact on his venture, which specializes in video promotion, business presentations and advertising, animation, event photography, and more.

“We saw an opportunity to provide something that wasn’t really available anywhere in the city. We came together, took a chance and said, ‘let’s try this.”

But it has been the coaching, and the connections the LEDC has helped him make, that have been even more impactful, he went on, citing not only the Mercy project, but also a contract in Holyoke to teach video production to young people as just a few examples of how the LEDC has been able to help him seize opportunities.

“They have a great team there, and a forward-looking attitude to help Latino small businesses,” he said, adding that that are dozens of coaches, each with a specific niche, that can help individuals like himself not only create a business plan, but execute it.

Gilberto Amador

Gilberto Amador finds it rewarding to coach small-business owners to greater success.

Gilberto Amador, president and CEO of the Mass 2 Miami Consulting Group, is one of those coaches. He told BusinessWest he and other coaches at the LEDC act as a support network for new and emerging businesses.

He said the process starts with an hour-long meeting at which a game plan is developed for creating momentum and forward progress.

“They leave that meeting knowing what we need to work on,” Amador said, stressing the ‘we’ part of that equation, while emphasizing that the business owner needs to take ownership of the next steps and is held accountable for staying on the set course. “Maybe it’s a business plan, because many people are working on their business but they don’t have a business plan, or it could be marketing … whatever needs to be worked on.

“Sometimes it’s cash flow,” he went on. “You talk to them about cash flow and how their business functions, how they have to pay themselves from their business finances of their business, how to separate business from personal … these are things that a lot of business owners are not aware of or they haven’t been doing, and it’s very important for us to shed some light on these kinds of things so that these become more productive, and successful, businesses in our community.”

 

Bright Ideas

Amador described this work as very rewarding, especially as he sees small-business owners, such as Bermudez, Vasquez, and the Arroyos, take important steps forward and put their ventures on more solid footing.

“Part of being a business coach is really seeing the success of some of the businesses that are coming in,” he said. “They work so hard every day to do what they have to do … and we help them articulate what it is that they want to do and lay out the steps to get there. That’s where the rubber meets the road, and I love working with them because you get to see those lightbulbs go on.”

Turning on more of these lightbulbs is the unofficial mission at the LEDC, which has been busy handing out grants in recent weeks and will continue to do through the course of the year.

But that’s just part of the story. The other, much bigger part is helping these individuals get on a path to success, and stay on that path.

Law Special Coverage

Change at the Top

Jeff Fialky

Jeff Fialky

It’s called Service at the Pleasure of My Partners: Advice to the New Firm Leader.

And as that title might suggest, this book by Patrick McKenna and Brian Burke is intended for those lawyers who have, or soon will have, the title ‘managing partner’ affixed to their business card.

Jeff Fialky, a partner at Springfield-based Bacon Wilson, bought a copy of the book, which presents content built around real-life issues and questions, several weeks ago, after initial talks with Ken Albano, longtime managing partner at the firm, about passing the torch.

He said he’s read it, marked several passages, and dog-eared several of the pages, an exercise he described as just part of the transition process at the firm, one that should be completed by the spring.

“It’s a good resource to hear from other managing shareholders about coping with some of their challenges — what they encountered and what they had to overcome,” he said of the book.

As he takes the helm at Bacon Wilson, Fialky said he believes the firm is well-positioned for the future. It has what all firms this size — roughly 40 lawyers — are looking for in a solid mix of young lawyers, those at the mid-career stage, and several older, veteran lawyers. It also has an established presence in the region through its main office in Springfield and smaller locations in Westfield, Amherst, Northampton, and Hadley.

“The firm is in a phenomenal place,” he said. “We’ve been here for 135 years, and we have a solid foundation for the firm to succeed well on into the future — for another 135 years.”

There are challenges, though, especially when it comes to hiring young lawyers and maintaining that mix of talent. Indeed, there are fewer people graduating from law schools, and the competition for those who do is considerable and becoming more intense with each passing year.

“I felt the time was right for some new leadership, some younger leadership. Jeff is respected by everyone in the firm, and he’s the one that take the firm to the next level.”

“We’ve had significant challenges in retaining and identifying new talent,” he said. “The past few years have been really difficult to find people; it’s been very competitive, with all forms of employees, be it staff members, legal secretaries, administrative assistants, and lawyers. It’s all about supply and demand.”

Fialky said he is looking forward to leading the firm through these intriguing times and continuing a pattern of strong leadership that has enabled Bacon Wilson to continue to grow and expand its presence over the past few decades.

“I’m really excited for the opportunity,” he said. “My first reaction was just humility and comprehending the enormity of the responsibility and feeling really honored and humbled by it. When I came back to Springfield to Bacon Wilson, I was a mid-career transfer; I’d been practicing for a number of years at that point. I was so fortunate to be given an opportunity to start a career, and to think that, all these years later, I’d be in this position is something I would never have contemplated.

“But now that I’m here, I’m really appreciative for the level of responsibility that’s been given to me by my partners and my colleagues,” he went on. “And it’s something I take very seriously, but also with great energy and enthusiasm; I’m really excited.”

For this issue and its focus on law, BusinessWest talked at length with Fialky about his new role and what comes next for one of the most venerable firms in the region.

 

Firm Resolve

As he talked about his practice and large case load, his work in the community, the additional burdens that come with managing partner, and how he will manage it all, Fialky summoned that time-honored axiom ‘if you want to get something done, ask a busy person, and they’ll get it done.’

He has certainly been busy in recent years as chair of the firm’s corporate and commercial department, and also a member of the municipal department. He has also been involved in the firm’s governance and was one of the founders of its executive committee.

Overall, he specializes in sophisticated business, financing, and commercial real-estate transactions, representing the interests of business owners and lending institutions, as well as municipalities and landowners.

A BusinessWest Forty Under 40 honoree in 2008 and consistent finalist for the Alumni Achievement Award established several years later, Fialky joined Bacon Wilson in 2006 after nearly a decade in Eastern Mass., where he held senior attorney positions with some of the country’s most prominent Fortune 100 telecommunications and cable-TV companies. Prior to that, he served as an assistant district attorney in Hampden County after earning juris doctor at Western New England School of Law in 1994.

Albano told BusinessWest that, after six years as managing partner, including the three long and very challenging years defined by the pandemic, he felt it was time for a change at the helm. And he considers Fialky to be a logical and well-qualified successor.

“I felt the time was right for some new leadership, some younger leadership,” he explained. “Jeff is respected by everyone in the firm, and he’s the one that will take the firm to the next level.”

Fialky acknowledged that he takes the helm at an intriguing and challenging time for law firms, which are coping with everything from a difficult hiring market to transitioning to new ways of doing work in the wake of the pandemic, to new technology that tempts consumers to find their legal answers online instead of from a trained attorney.

“Technology, as it pertains to the law, is really interesting and difficult to predict,” he noted. “The legal industry is a trailing indicator of technology; we’re never at the forefront of innovation. The next big question is what happens with artificial intelligence down the road. There’s been quite a bit of recent press of artificial intelligence and service professions like the law and accounting. What’s so interesting about the law is that technology is a platform to accomplish the outcome, and how personal the law is relative to an attorney-client relationship.

“With so many of our clients … while they can pick up the phone, while we can Zoom from 15 miles away, they want to come in, they want to sit down, and they want to talk to their attorney,” he went on. “These are relationships that last decades, throughout people’s lives … you can’t replace that with technology.”

When asked about the management style he will take as he addresses these and other issues, Fialky said it will be one grounded in collaboration.

“That’s how I’ve engaged in our commercial department, where we ask for many opinions before we make a decision,” he explained. “But then, when decisions need to be made, we make a decision and stand by it. That’s how I intend to manage.”

 

Case in Point

Getting back to that book he’s been reading, Fialky said it’s a collection of thoughts from managing partners on subjects ranging from following a successful leader to keeping up morale when a firm is under duress; from creating performance standards to managing one’s time.

Soon, he won’t be reading about such matters, but coping with them in real time.

It’s a challenge he’s looking forward to, one he’s spent a career preparing for, and he knows he will take it on not by himself, but in collaboration with others.

Special Coverage Workforce Development

Fired Up

By Elizabeth Sears

 

Betsy Allen-Manning

Betsy Allen-Manning

Tunde Oyeneyin

Tunde Oyeneyin

Robin Roberts

Robin Roberts

The Women’s Leadership Conference is turning up the heat this year.

When Bay Path University’s signature annual conference returns to the MassMutual Center on Thursday, April 6, the theme will be “Ignite” — an extension of last year’s theme of “Reimagine.” The goal, simply put, is to ignite the post-pandemic professional plans of conference attendees and help turn them into reality.

“Last year, it felt important to bring the community back together to reimagine what may come next that may have shifted over COVID and from being away from the office place,” said Melissa Welch, Communications and Content director at Bay Path and co-chair of this year’s Women’s Leadership Conference (WLC). “That went so beautifully last year, with people in the community coming together to reimagine what came next for them. So this year, how do we build on that? How do we bring that same excitement and motivation back to the community?”

Bay Path President Sandra Doran echoed this sentiment.

“We want them to reignite their passion,” she said. “They’re professional women looking to further their career, looking to further their own professional journey, whether it’s in their existing career or looking outside of that. And this is the place to do it.”

The university’s 26th annual conference will feature TV host Robin Roberts and several other speakers (more on them later). The conference typically draws attendees not only from the Pioneer Valley, but from Eastern Mass., Connecticut, New York — anywhere within driving distance, due to the power of the speakers and the power of community.

“This is a new group, a new community … they’ve got their work community, they’ve got their family community, but now maybe they have a professional-development community. That is incredibly powerful,” Doran said. “If you are a mid-level manager or somebody who’s looking to executive leadership, or somebody who’s just entering into your career, and you’re trying to figure out, ‘what are those skills? What are those attitudes? What’s that growth mindset that is going to propel me to success in the workforce?’ Those are the professionals that you will find in the audience.”

“It’s very much experiential. Some people describe it as transformative. Some people describe it as the only conference they go to in any year because of the value that it brings to them personally as well as professionally. “

She explained that people keep coming back year after year because they’ve experienced growth, and they want to share that growth with others in the room. The conference provides a unique environment — a sort of support system — where professionals can share how they’ve grown in their career, and what comes next on that journey.

And this isn’t a conference where people just come and sit in rows to listen to speakers, Doran continued.

“It’s very much experiential. Some people describe it as transformative. Some people describe it as the only conference they go to in any year because of the value that it brings to them personally as well as professionally. I can’t emphasize enough how this is not a conference where we’ve just got 1,400 chairs lined up in a room. It is not that — everybody sits at a table. Every table is a conversation topic around something to do with personal or professional growth.”

 

Face Value

This is the second year WLC has returned since a two-year absence during the pandemic. With such a deep focus on the experiential quality of the conference, a virtual alternative was simply not an option, so no conference at all was held in 2020 or 2021.

“I think what was telling in the pandemic is a lot of things stopped, so in our case, our conference stopped for two years — and to come back last year and have 1,400 people come … people missed it so much over those two years,” said Karen Woods, Bay Path’s assistant vice president of Brand Strategy, Marketing, and Integrated Communications and WLC co-chair.

In addition to individuals who buy tickets to attend, Woods noted that companies call in inquiring about the upcoming conference far in advance. Businesses eagerly await to hear who the speakers each year will be and buy tables for their employees, knowing the professional-development value the conference holds.

Sandra Doran emphasizes the interactive nature of the conference, which is not a place to sit in rows and just listen.

Sandra Doran emphasizes the interactive nature of the conference, which is not a place to sit in rows and just listen.

Indeed, this year’s keynote speakers come from vastly different backgrounds and careers, but share something in common: the ability to ignite motivation in others.

The conference will begin with a motivational and humorous talk from author and speaker Betsy Allen-Manning that will guide attendees through exercises that aim to set the tone of the conference and ignite a day of learning. The founder of Corporate Culture Training Solutions, a leadership-training company, she specializes in creating positive employee experiences as well as developing leaders who are equipped to handle a hyper-competitive marketplace.

“Success doesn’t necessarily mean the top person in the company,” Woods said of the first keynote session. “Every single one of us needs that secret sauce to our own success, and how do we get there?”

The luncheon keynote talk will be given by Tunde Oyeneyin, a cycling and bike boot-camp instructor from Peloton who has become known for her empowering and motivational cycling sessions.

Oyeneyin was a professional makeup artist for 15 years, but after lifting the confidence of her clients through her beauty skills for so long, she realized that her true calling was in motivating others. She became a cycling instructor in Los Angeles and ended up being hired onto Peloton’s instructor team. She trains up to 20,000 riders per day through her live motivational classes. Now, she’s taking to the WLC stage to spark the energy of attendees and bring forward their inner passions.

“When you’re going to ignite new business plans, and you’re going to bring those forward, whether it’s personal or professional goals, you really need to have that ability to trust your gut — to find your voice, to be able to advocate for what’s next in your career,” Woods said.

The day will end with a keynote talk from Roberts, well-known as a Good Morning America co-anchor, Emmy Award and People’s Choice Award winner, author, entrepreneur, and Women’s Basketball Hall of Fame inductee, among other achievements. She’s going from the screen to the stage for a moderated Q&A session with Doran.

“We are so excited to introduce Robin Roberts to our WLC audience,” Woods said. “Everything she has done has been a way to ignite what’s next. From the court, when she played basketball, through all of her interviews, those that she’s spoken with and worked with over the years, to writing books — award winners — she’s the perfect person to end our day.”

 

Breaking Out

The conference will also feature four breakout sessions offering lessons and activities designed to give attendees valuable takeaways that can be applied to their professional lives.

Session A, titled “Forging and Managing the Hybrid Workspace” and led by Alexandra Samuel, will address how attendees can better navigate the hybrid workspace culture that emerged post-COVID. Samuel is an author and digital-workplace expert who seeks to help her audience solve the puzzle of balancing in-person and remote work in hopes of making the now-popular hybrid format a more viable piece of their workday.

Session B is called “Igniting Your Innovation and Understanding Your Onlyness” and will be presented by author and speaker Nilofer Merchant. She will discuss the concept of ‘onlyness’ — identifying what you alone bring to the table that somebody else can’t, what makes you stand out in the workplace, and how to find power in this self-knowledge. Merchant will help attendees discover their ‘onlyness’ and teach them how to socialize it to create real change.

Session C is titled “You’ve Got the Seat at the Table, Now What?” and will be led by Pirie Jones Grossman, a TedX speaker, author, and life-empowerment coach. She will offer an extension to the common conversation of how to reach corporate positions as a woman — and what to do once there. Sharing her research, she will challenge the idea that successful women in the corporate world need to show up like men, instead offering information on the unique leadership instincts and strengths of women’s brains.

Session D is called “The Power of Inclusive Leadership,” and will be led by Juliet Hall, an advisor, leadership consultant, speaker, and author. Objectives of this session include how workplaces can transform their leadership teams to build a strong foundation and promote equity, how workplaces can adjust their internal work teams to create a more inclusive environment for their employees, understanding unconscious bias and microaggressions, and how leaders can remodel internal culture.

For more information on the 2023 Women’s Leadership Conference, visit www.baypath.edu/events-calendar/womens-leadership-conference.

Health Care Special Coverage

Critical Condition

 

 

An “inflection point.” 

That’s what Dr. Robert Roose says hospitals have reached when it comes to their bottom lines and the ongoing challenge of making ends meet at a time when revenues continue to fall and expenses continue to rise. 

Hospitals have perpetually struggled from a fiscal standpoint amid continually rising prices, the need to constantly upgrade technology and innovate, and reimbursement rates from payers that have historically been below 80 cents on the dollar, Roose said. But trends and conditions that existed before the pandemic have only been exacerbated over the past three years, and now, hospitals are at a critical, and extremely challenging, crossroads. 

“There’s no way to sugarcoat it — hospitals and health systems across Massachusetts, and across the majority of the country, are finding themselves struggling in many regards, and at an inflection point where there are going to need to be continued efforts to support hospitals, or there will continue to be systems and hospitals that remain in distress,” said Roose, chief administrative officer at Mercy Medical Center in Springfield, part of Trinity Health Of New England. 

He quantified the situation by noting that Mercy is on a path to lose roughly $25 million for the fiscal year that will end in June, about the same amount as last year. 

“There’s no way to sugarcoat it — hospitals and health systems across Massachusetts, and across the majority of the country, are finding themselves struggling in many regards, and at an inflection point where there are going to need to be continued efforts to support hospitals, or there will continue to be systems and hospitals that remain in distress.”

Dr. Robert Roose

Dr. Robert Roose

“It will be challenging to persist with the current models that are in place in the same ways that we have in the past,” Roose went on. There are a multitude of reasons for that, but the challenges remain significant, and the pathways forward are going to require multiple initiatives and ongoing support from a variety of different angles. 

Dr. Lynette Watkins, president and CEO of Cooley Dickinson Hospital, an affiliate of Mass General Brigham, agreed, noting that COVID put the challenges that all hospitals are facing under a brighter spotlight. 

“The past three years have been particularly challenging,” she said, citing everything from staffing issues to the aging of the population and the pressures they put on hospitals. “What COVID laid bare is that all of these issues are there, and that it’s incumbent on us to be creative, accelerate the solutions, and leverage a lot of the tools that we were in many ways reticent to use, such as telehealth and virtual visits. 

“While this situation has challenged us, it has also provided us with an opportunity to think differently, to treat patients differently, to engage differently — with our patients and with the community,” Watkins went on, adding that she and her team at CDH are working to taking full advantage of that opportunity. 

Spiras Hatiras, president and CEO on Holyoke Medical Center (HMC), concurred. In remarks made to BusinessWest for its annual Economic Outlook, he spoke of both challenge and opportunity, on several fronts, but especially when it comes to workforce issues. 

The ongoing workforce crisis, while it has impacted all sectors, has put healthcare providers, and especially hospitals, at an extreme disadvantage, especially when it comes to nursing and the need to fill vacancies with contract or ‘travel’ nurses, which can cost two or three times what a staff nurse might, Hatiras noted. 

“In healthcare, there is a great deal of concern, and the most concerning part is the continuing shortage of personnel, which has created this market for temporary staffing at rates that are truly outrageous,” he said. “To put things in perspective, we have about 20 nurses on temporary staff that we get through agencies. Those 20 nurses, on an annual basis, cost us $5 million; each nurse costs us $250,000 because the rates are exorbitant — the nurses get a lot of money, but there’s also a middleman that makes untold amounts of money from this crisis. 

“As a nation, the federal government is doing a lot of things — they did some things with railroad workers, they’re helping Ukraine, they’re talking about a lot of things. They should have stepped in and regulated this and said, ‘the pandemic created a tremendous amount of shortage; we cannot allow private companies to go out and profit from that shortage of staffing and bring hospitals to their knees.’ With all this, it’s going to be very difficult for hospitals to cope, and that’s why all our strategy centers around finding a way to attract nurses here.” 

For this issue, BusinessWest takes an in-depth look at the fiscal challenges facing hospitals today, and what must happen for these institutions to weather this severe storm. 

 

Dollars and Sense 

When asked how hospitals arrived at this inflection point, as he called it, Roose said it was a combination of factors, but, as he and others noted earlier, it comes down to an exacerbation of, to borrow an industry term, some pre-existing conditions. 

These include a trend toward outpatient, rather than inpatient, care, which certainly impacts overall revenues, and also shortages on the workforce front, which increase the cost of doing business in many ways, and sharp rises in prices of … well, just about everything, from medications to PPE. 

“What COVID laid bare is that all of these issues are there, and that it’s incumbent on us to be creative, accelerate the solutions, and leverage a lot of the tools that we were in many ways reticent to use, such as telehealth and virtual visits.”

Dr. Lynette Watkins

Dr. Lynette Watkins

“We’ve been dealing with the aftershocks of one of the most significant public-health crises of our time,” Roose explained. “And it occurred at a point where many shifts in healthcare were already underway, including a shift from inpatient care toward the delivery of care in a lower-cost outpatient, ambulatory setting where the trends of consumers, our patients, were beginning to change, but where the reimbursement for those services had not been able to keep up with those changes. This was layered on top of an existing healthcare-workforce shortage. 

“So, the pandemic caused a significant challenge amidst what was already several headwinds that were providing stiff challenges for smaller hospitals across the country to overcome,” he went on, “forcing them to transform, to look differently, to meet those challenges and the needs of our community.” 

Elaborating, he turned the clock back to late 2019 for perspective. He said that there was already significant movement in how healthcare was being delivered. More services were being provided in settings outside hospitals, he explained, with surgeries taking place in outpatient, ambulatory settings. Meanwhile, insurance companies were adjusting as well, covering certain types of procedures, such as joint replacements, only if they took place in those lower-cost settings. 

“With that, inpatient volume was beginning to decline by a few percentage points,” Roose said, adding that those shifts were beginning to accelerate when the pandemic hit. Overall, there has been movement away from the fee-for-service model that had dominated healthcare delivery for decades and a shift toward promoting wellness, he explained, but not enough movement to shelter hospitals, especially smaller community hospitals, from those headwinds he described earlier. 

“It has certainly not kept pace with the dramatic impact on volume and the lack of reimbursement for fee-for-service care that has occurred to make up that gap,” he went on, adding that staffing shortages already existed before the pandemic, but they, too, were exacerbated by COVID and its many side effects. 

Watkins agreed, and, like others we spoke with, she said revenues have certainly improved since the depths of the pandemic, but they are still not at pre-COVID levels. 

And there are many other forces at play that are challenging hospitals, she added, including a shortage of workers at post-acute facilities such as nursing homes, which often leaves patients who are otherwise ready for discharge with no place to go, putting more pressure on hospitals. 

“We have two, three, or sometimes more patients who are ready for medical discharge, but when we don’t have a place to send those patients, so they stay with us,” Watkins said. “And that means that some patients who need to in an acute-care facility are in the emergency room or cannot get in; that’s been a huge, huge challenge.” 

 

Work in Progress 

One of the factors greatly impacting hospital finances is the ongoing workforce crisis, which has certainly increased the cost of providing care. Roose told BusinessWest that, while Mercy’s overall workforce is down perhaps 20%, due to a variety of factors, its workforce costs are still 7% to 8% higher than before the pandemic. 

Indeed, with many positions, not just nurses, hospitals have had to rely on contract employees, which are considerably more expensive than those on staff. 

“In healthcare, there is a great deal of concern, and the most concerning part is the continuing shortage of personnel, which has created this market for temporary staffing at rates that are truly outrageous.”

Spiros Hatiras

Spiros Hatiras

But there are other factors as well, said Watkins, including additional overtime, bonuses needed to attract job candidates, shift bonuses, and more. 

“It’s a huge challenge, and it significantly affected our financial performance, as well as that of other systems in the Commonwealth and across the country,” she said. “And we have to make sure that we are staffed to take care of the patients here that are sicker and that are staying longer.” 

Elaborating, she explained that Cooley Dickinson used very few contract nurses prior to the pandemic, but the need for such personnel has risen dramatically due to retirements, burnout, and individuals simply leaving the profession to do something else. 

These forces have left hospitals to fill the gaps as best they can and, for the long term, focus energies — or even more energies, as the case may be — on attracting and retaining personnel across the board. 

Indeed, Hatiras told BusinessWest that closing the staffing gap is critical because it will bring down the overall cost of doing business and help hospitals cope with lower amounts of COVID relief and revenue levels still below those from before the pandemic. 

“With ARPA funds drying up, we’re going to have pull ourselves up by our bootstraps. So our emphasis is on closing the staffing gap,” he said. “If we can do that, and not bleed money on the expense side, I think we’ll be OK; I think we’re poised to have a good year, as long as we’re able to attract nurses here.” 

Elaborating, he said closing this gap involves making HMC a preferred place to work, one where applicants with choices will want to go — and hopefully stay, thus reducing the high cost of continually filling vacancies. 

“We’re doing OK because we had to respond to what was going on in the market by creating even more attractive reasons for coming here — we raised our rates, we’re enhancing benefits, and at the same time, we’re looking at economic assistance for the lower-earning employees,” he said. “Where it’s more difficult is with the professionals because the dollars are significantly more, so competing just on price is difficult. The key for success — what keeps people here and makes them come here — is the culture of the place, so we put a tremendous amount of effort in the 10 years I’ve been here on creating a good culture. Now, it’s become a differentiator, and we’re pushing it even more. We’re an employer that listens to employees, responds to their needs, and cares. That’s what people want.” 

Roose concurred, and told BusinessWest that the recent challenges that hospitals have faced have put even more emphasis on the importance of people in the overriding task of providing quality care to patients — and the overall success of a provider. 

“Never has it been more apparent, and critical, to realize that people are the vehicles through which we deliver healthcare,” he said. “We do not deliver services that can be provided by machines; we’re reliant upon the great skills of care providers — and we don’t take that lightly.” 

 

Bottom Line 

Moving forward, Roose said, as hospitals cope with these various challenges — and, again, there are many of them — state and federal governments need to step up and continue to provide needed support. 

“The ARPA funding and other sources of relief through the pandemic and beyond, which is greatly appreciated, is not enough to close the gap from the challenges that we have encountered,” he noted. “The cost structure for delivering care has increased so dramatically, the models for fee-for-service care have not shifted quick enough, and the rates from commercial and other payers has not kept up with inflation. 

“So even with all that support, hospitals like Mercy Medical Center are expected to lose about $25 million this year, which is very similar to what it was the year before, and Trinity Health Of New England lost $65 million in fiscal 2022 from operations,” he went on. “And that puts incredible stress on hospitals.” 

Indeed, it does, and these losses, and the forces behind them, explain why hospitals are at an inflection point, and why change is needed if they are to move from critical condition fiscally to something far more sustainable.

Features

Hazen Paper Co.

This Family Business Has Been Innovating for Nearly a Century

President and CEO John Hazen

President and CEO John Hazen

John Hazen figured there was some risk in purchasing his first holographic printer back in 2005. But, as the third-generation co-owner of Hazen Paper Co. in Holyoke, he also saw the potential.

“I always say I was like Jack and the beanstalk,” he told BusinessWest. “Dad sent me out with a bag of beans — ‘grow the business, son!’ — and I bought this crazy thing called a holoprinter.”

But he was determined to build Hazen’s footprint in the world of holographic printing, and plenty of other technology at the company sprung from that first investment.

These days, Hazen regularly wins awards from the Assoc. of International Metallizers, Coaters and Laminators for everything from beverage packaging to annual programs for the Basketball Hall of Fame induction ceremonies and the Super Bowl. The 200-employee company has also been recognized for workforce-development efforts like an internship program with Western New England University that helps engineering students gain experience.

Clearly, Hazen Paper has come a long way from its origins in 1925, when Hazen’s grandfather, also named John, launched the enterprise as a decorative paper converter and embosser. His younger brother, Ted, joined Hazen in 1928 to help manage the growing company, which grew rapidly in the 1930s and expanded into printing and foil laminating by the 1940s.

Ted’s son, Bob, joined the company in 1957, and John’s son, Tom, signed on in 1960, and the second generation dramatically expanded the company, which became known worldwide for specializing in foil and film lamination, gravure printing, specialty coating, and rotary embossing. Hazen products became widely used in luxury packaging, lottery and other security tickets, tags and labels, cards and cover stocks, as well as photo and fine-art mounting.

The third-generation owners, John and Robert Hazen, joined the company at the start of the 1990s, and have continued to grow and expand, with a special emphasis on coating, metallizing, and — of course — holographic technology.

“It really was a startup, a technology startup in an older company. And ultimately, we really reinvented Hazen Paper,” John told BusinessWest. “The holographic technology ended up feeding the old business. So it’s like we installed a new heart in an old body.”

—Joseph Bednar

 

Crave

Nicole Ortiz Has Turned a Love of Food into a Growing Enterprise

Owner Nicole Ortiz

Owner Nicole Ortiz

Nicole Ortiz was born in Springfield, but became intrigued by food during her four years in Cleveland.

There, she worked her first job in a kitchen, prepping and washing dishes in a small Puerto Rican restaurant, and the city’s West Side Market — filled with fresh foods from all over the world — became her favorite place, where she became captivated with food culture, local ingredients, and … food trucks.

After moving back to New England in 2016, she put her business degree and an itch for entrepreneurship to work, enrolling in the HCC MGM Culinary Arts Center, then winning a pitch contest and setting up a successful pop-up restaurant experience at HCC. She bought a food trailer, graduated from both HCC and EforAll Holyoke, and launched a food-truck business called Crave, specializing in modern Puerto Rican cuisine, all in 2020.

“My father is from Puerto Rico, and my mom’s family is from Italy and Finland,” she said. “I think the food we offer is different and unique, and draws inspiration from the many walks of life that I have had the opportunity to experience.”

Despite opening into the teeth of the pandemic, Crave Food Truck was a big-enough hit that Ortiz started sharing storefront space on High Street with Holyoke Hummus early in 2021, where she could prep meals and sell takeout orders. In June, she solely took over the lease, and Crave had a full-service restaurant, which now offers sit-down and takeout service, in addition to the food-truck operation and catering gigs.

Now managing a staff of eight, Ortiz is proud to be part of an ongoing entrepreneurial renaissance on High Street (see related story on page 36).

“We want to build on that and let people know what’s going on down here. Before, this street had a bad image, and a lot of people didn’t want to come down here. We created a High Street Business Association to look at all the businesses here on High Street and get all of us on the same page, working for a common goal — you know, bringing more people down here. That’s really exciting.”

—Joseph Bednar

 

Nick’s Nest

Area Residents Relish Visits to This Holyoke Landmark

Co-owner Jenn Chateauneuf

Co-owner Jenn Chateauneuf

If you’re looking for perhaps the most iconic hot dog this side of Fenway, look no further than Nick’s Nest — a Holyoke landmark since 1921.

What originally started as a simple popcorn cart evolved into the well-known hot dog stand it is today, more than a century later. It started when founder Nick Malfas was told by his wife that the original location looked like a little bird’s nest — and the name ‘Nick’s Nest’ stuck.

The current owners of 18 years are Jenn and Kevin Chateauneuf.

“We always worked in the restaurant business; my husband was a bartender, and I was a waitress,” Jenn said. “We always wanted to venture out and own our own place. I’m from Holyoke, he’s from South Hadley, so obviously we knew of Nick’s Nest. When it came up for sale, we just jumped at the opportunity.”

Nick’s Nest has been at its current location on Northampton Street since 1948, but Jenn and Kevin have since expanded the menu from its original offerings. “Our specialty is hot dogs; when we bought the place, it was hot dogs, baked beans, and popcorn,” she explained. “We’ve added french fries, onion rings, homemade soups … we have homemade potato salad, homemade macaroni salad.”

Nick’s Nest continues to be the area’s go-to destination for hot dogs. In fact, the venerable eatery has won ‘best hot dog’ honors in the Valley Advocate’s reader poll every one of the 18 years the Chateauneufs have owned the restaurant.

In addition to its food offerings, Nick’s Nest has an assortment of branded merchandise including T-shirts and hats that display the name of the establishment along with its slogan — “A Holyoke Tradition” — for patrons to proudly show their love of good food and community.

Though Nick’s Nest has achieved much success over the years, Chateauneuf noted that it hasn’t been without its fair share of trials.

“We try to do a lot for the community because, obviously, they support us,” she said. “They were tremendous through COVID. We’re happy that we’re still standing after those couple of years because a lot of small businesses can’t say that.”

—Elizabeth Sears

 

Star Dancers Unity

This Business Helps Young People Take Positive Steps

Alex Saldaña has made important moves to improve his community — dance moves, that is.

He’s been the owner and operator of Star Dancers Unity on High Street in Holyoke for the past 10 years. He originally became an enrichment dance instructor for Holyoke Public Schools, which is what inspired him to open his own business.

“I pretty much didn’t know what I was getting myself into,” he said. “But it’s just finding the opportunity — to be able to open a center in our community for youth that can benefit from dance services.”

Saldaña knew he wanted to use his background in dancing for good within the community, and he envisioned a space where area young people could go, noting high rates of teen pregnancy at the time of the studio’s opening.

“My inspiration was to be able to help some of those kids get some different activities besides being on the streets or doing things other than being productive in the community,” he said.

Star Dancers Unity currently has 65 students enrolled, said Saldaña, adding that Holyoke has been a great place to run his growing dance studio.

“The community has been supportive of my business, and also the aspect of understanding that I serve not just the youth but families in povery,” he explained. “I try to keep my tuition in a reasonable price range where it could be affordable to all families.”

As an extension of this work, Saldaña has taught salsa and hip hop for Holyoke Public Schools, and has been a visiting teacher in local afterschool and summer programs throughout the region. Currently, he works as a family coordinator for Holyoke Public Schools.

Star Dancers Unity not only participates in dance competitions, but is involved in many community events as well, from Celebrate Holyoke to performances at Holyoke High School for Hispanic Heritage Month.

“We partner up with different art pageants and do things for the schools,” Saldaña said. “When they have cultural diversity times, we also do presentations there.”

Clearly, by creating a safe, inclusive space, Star Dancers Unity is offering young people much more than dance lessons.

—Elizabeth Sears

 

Black Rose Trucking

These Two Women Are Hauling a Load of Ambition

Co-owners Yolanda Rodriguez (left) and Ashley Ayala

Co-owners Yolanda Rodriguez (left) and Ashley Ayala

All Yolanda Rodriguez and Ashley Ayala needed to start a hauling company was … well, a truck. Soon, they will have two. And they’re not stopping there.

That second truck is the result of a successful crowdfunding campaign on Patronicity, bringing in $21,448 from 35 backers, more than their goal of $19,950. It’s an example of growing by thinking outside the box.

“Our long-term goal is to have more equipment and do more transport, which means more employees and growing our company,” said Ayala, the daughter in the mother-daughter ownership team that launched Black Rose Trucking three years ago. “We definitely have big dreams of having a lot of trucks, and being able, in the future, to offer different services than what we do now.”

Rodriguez has been in the commercial trucking industry for a long time, and Ayala eventually caught the bug. “She had a dream of owning her own business,” Ayala said. “She’s passionate about what she’s doing, and that kind of rubbed off on me. So a few years ago, I ended up getting my commercial driver’s license as well. And we decided to make a business out of it. Her dream kind of became my dream.”

COVID-19 delayed the process, and Black Rose didn’t start taking jobs in earnest until early 2021. “We just kept going until everything kind of opened up,” Ayala said.

They haul asphalt and other materials to and from construction sites, as well as doing paving and milling work for contractors and on highway projects, all the while taking pride in their position as women of color in a male-dominated field — and pride in their city as well.

“I was raised in Holyoke, so I see how Holyoke has progressed. And I’ve seen all these small businesses also come about and grow,” Ayala said. “We see these restaurants and other businesses come about that are owned by women of color. You can see every day how they’re progressing, and they’re still around. It’s definitely a nice feeling to be a part of that.”

—Joseph Bednar

 

Holyoke Sporting Goods

This Venerable Institution Helps Foster Team Spirit

Owner Betsy Frey

Owner Betsy Frey

Nothing says ‘team spirit’ quite like matching uniforms, and whether you’re on a sports team, a sales team, or even team Gas & Electric, there’s a place in Holyoke to find your team spirit — Holyoke Sporting Goods.

Originally founded in 1928 in downtown Holyoke by James Clary, the company moved to its current location on Dwight Street under current owner and operator Betsy Frey in 2005.

“It’s in a much easier section of town to get to, we’re right off of the highway, which is convenient,” Frey said. “We have our own dedicated parking lot, which is nice, too; you don’t have to park on the street.”

Holyoke Sporting Goods caters not only to sports teams, but to many area businesses. “We do a lot of schools; we sell their sports equipment and their uniforms,” Frey said. “Then we do leagues like Little Leagues — we’ll supply them with all their baseballs, their equipment, their uniforms. I also do a lot of municipal stuff for the city of Holyoke or the city of Springfield, like Holyoke Gas & Electric, Water Works, Housing Authority, all the uniforms that they wear — they’ll wear shirts and stuff with a company logo on them. So we do all that.”

And with St. Patrick’s Day — along with Holyoke’s famous St. Patrick’s Day Parade — right around the corner, look no further than Holyoke Sporting Goods for related merchandise.

“Right now, we’re doing a lot of stuff for St. Patrick’s Day,” Frey said, “so I have a lot of Holyoke stuff with shamrocks and things like that.”

Frey said she enjoys running a business in Holyoke, adding that she gets a real team-spirit feeling from the city.

“Oh, it’s great,” she said. “Holyoke’s a great place to be in business. The people here are extremely supportive; they like to support their local businesses. I sell a lot of stuff in the store that has ‘Holyoke’ on it or is related to Holyoke. The people in Holyoke are wonderful; they support the business. This is a good community to have a business in.”

—Elizabeth Sears

 

Hadley Printing

For 125 Years, This Holyoke Staple Has Been on a Roll

Owners and brothers Greg (left) and Chris Desrosiers

Owners and brothers Greg (left) and Chris Desrosiers

Hadley Printing has been a family-owned business for 125 years. Currently in its third generation under the direction of brothers Chris and Greg Desrosiers, the commercial printer offers digital printing, offset printing, and mail services to a wide variety of customers in New England.

The business originated in South Hadley, but in 1976, it moved to its current location on Canal Street in Holyoke. When asked about operating a business in the 33,000-square-foot building alongside one of the city’s historic canals, Vice President Greg Desrosiers had a lot to say.

“We’re in an old mill building … it used to be a silk company years and years ago; that’s when it was originated, so we’re kind of in an old silk mill,” he said. “The building itself serves us well — these mill buildings were made really well back in the day; so long as you take care of them, they serve you back really well. Obviously, it has tons of windows with natural light. In a manufacturing setting, that’s really, really welcomed and beneficial.”

Desrosiers noted that many manufacturing settings don’t have any windows to allow natural light to come in, so having the abundant natural light of one of the Holyoke mill buildings is much preferred to the usual dreary setting of four solid walls. The water view of the canal is not only another added bonus for day-to-day working pleasure, but it actually helps with the printing itself — Desrosiers can say with certainty that at least 50% of the company’s power is hydroelectric, but noted the actual percentage is probably much higher than that.

Hadley Printing, with 30 employees working across two shifts, has found another advantage to being located in Holyoke aside from operating out of the former silk mill. The company services customers in Connecticut, Vermont, New Hampshire, the Boston area, and Albany, in addition to local customers, making Holyoke a sweet spot.

“It’s really the crossroads of New England, with 91 and the Mass Pike intersecting right through Holyoke,” he explained. “It’s the center of our customer base. We’re in the middle of who we service.”

Elizabeth Sears

 

International Volleyball Hall of Fame

For a Half-century, It Has Lifted Up Its Sport and Its City

Executive Director George MulryStaff Photo

Executive Director George Mulry

Honor. Preserve. Promote.

Those three simple words reflect a robust, multi-pronged effort to celebrate the sport of volleyball and secure its future, and George Mulry detailed just a few of those prongs. Or spikes, if you will.

“On the honor side, we certainly recognize the inductees and those worthy of enshrinement in the Hall of Fame,” said Mulry, the Hall’s executive director. “But with some of our awards, we’re recognizing local individuals and organizations that are doing great things, not just for the sport of volleyball, but to help move the Volleyball Hall of Fame forward, which in turn helps move the city of Holyoke forward.

“The preserve side is really where we’re focusing a lot of our time now,” he added. “We have our Archival Preservation and Community Access Project, where we’re going through our entire archive, cataloguing it, and trying to digitize it and make it available as a resource library for the area. That will help bring some scholars in, which will give us an opportunity to improve the exhibits that we have and improve some online exhibits as well.

“And on the promote side, we’re not only trying to promote the growth of volleyball, but we want to promote volleyball itself within our region,” Mulry said, listing events like a summer volleyball festival, the collegiate Morgan Classic tournament at Springfield College, and no-cost youth clinics. “We’re just promoting the sport as a whole, while at the same time promoting the Hall of Fame as that vehicle for telling the story.”

From the Hall’s inception in 1971 to the opening of its current facility on Dwight Street in 1984 through today, with conversations taking place about what a future Hall of Fame might look like, Mulry said Holyoke has always been top of mind.

“For over 50 years, the city has really embraced being the birthplace of volleyball and used that as an economic driver for tourism and economic spinoff,” he explained. “There are a lot of really exciting things going on. But it’s the support that we’ve received from the city of Holyoke that really makes the whole thing go.”

—Joseph Bednar

 

Valley Blue Sox

This Team Has Become a Summer Tradition in Holyoke

If you visit Holyoke during the summertime, you might catch the Valley Blue Sox in action at Mackenzie Stadium.

The Blue Sox, originally known as the Concord Quarry Dogs, began in New Hampshire but have since rebranded and have called Holyoke their home for more than a decade now. The team is part of the New England College Baseball League, with players coming from all over the U.S. each summer.

“Having a team in Holyoke is great for us; you have a really loyal fan base, the same fans that usually come to a lot of games, so we get to know the same people throughout the summer in the city,” said Tyler Descheneaux, the new general manager. “The community really rallies around it.”

He went on to explain the team’s national impact as well as local significance.

“The purpose of this league is to try and have players that are trying to make it to that next level, to the major leagues, play summer ball,” he explained. “Our league is ranked as one of the top leagues in the entire country for summer leagues — last year, we were number two in the entire country. It’s a highly coveted league, so a lot of MLB scouts or even college scouts will come to our games to see how these players are.”

The team is going to bat with plenty of new promotions this season, including a partnership with Michael’s Bus Lines on a raffle, with one lucky fan winning a free bus ride for 25 people. Additionally, opening weekend will feature a giveaway of shirts to the first 250 fans who come to the game, and these aren’t just any shirts — the team is debuting a new logo this season, and this will be the first chance for fans to sport the team’s new look.

The Blue Sox are actively involved in the community — on and off the field.

“One thing that we do every summer is we always hold different youth baseball clinics, which usually last a week. We always hold one in Holyoke, and that’s coming up,” Descheneaux said.

With so much in store for the team and the community, this summer seems to be shaping up to be a home run.

—Elizabeth Sears

 

Marcus Printing

For Almost a Century, This Press Has Found Success

The printing industry has seen plenty of changes over the past century, but they’ve only accelerated in the new century, said Susan Goldsmith, president of Marcus Printing.

“Technology in printing has changed more rapidly in the past 20 years than the 100 years before that,” she noted. “We have basically kept up with technology, starting with eliminating film from the printing process and going direct to plate, and then getting into the digital world and most recently expanding into mailing as well as wide-format; we’ve become a little bit of everything to everybody.”

It’s a model that works for Marcus, she added. “We couldn’t be just a standalone digital shop, or a standalone offset shop. We’re a mid-sized print shop. That’s where we’re most comfortable — not printing a million pieces, but we can print 50,000, or we can print two for you. That’s been the niche we always wanted to serve.”

The third-generation family business was established in 1930 by Phil and Sarah Marcus at 32 Main St. in Holyoke, who moved to 109 Main St. in 1942. Back then, it was strictly a fine letterpress printing company, installing its first offset press in 1945.

In 1961, Marcus moved to a 7,000-square-foot space in the former Skinner Mill on Appleton Street. During the next 25 years, it expanded its offset production, purchased the building, and expanded to use all of its 21,000 square feet on three floors. The current location, at 750 Main St., is a 33,000 square-foot facility, all on one floor.

The company’s 30-plus employees pride themselves on customer service, Goldsmith said. “We don’t make promises we can’t keep, and we do everything in our power to get it to you when you need it. And we try to employ as many Holyoke people as we can.”

She’s also proud of her company’s place in the Paper City.

“Holyoke has a great business community, and printing and paper have been at its foundation. We just had a conversation with John Hazen about work our parents did together, and I’m guessing maybe our grandparents. It’s nice to have that long-term connection with the history of what the city is built on.”

—Joseph Bednar

Features

Pride and Promise

Jim Sullivan

Jim Sullivan says Holyokers, like himself, share a deep sense of pride in their community.

Jim Sullivan says he’s not really sure where it comes from. Like most people from Holyoke, he’s just taken it for granted.

He was referring to the immense pride people take in being from this city and, in a great many cases, still living in it.

“There’s been a lot of change over the years, but what hasn’t changed is the spirit of the people,” said Sullivan, president of the O’Connell Companies, which was started in Holyoke and is almost as old as the city itself (it will mark its own sesquicentennial in six years). “There is a very proud heritage in the city of Holyoke, and it still exists today. Even with the youth today — and I like to spend some time with them at the Boys & Girls Club, where I’m a trustee — you get a sense of pride with the folks that you talk to.”

This pride is something that’s almost palpable as you talk with people from this city, and it was referenced by just about everyone we talked with for this special section — in one way or another.

“There’s a saying … as Holyokers, we can talk bad about Holyoke, but you can’t talk bad about Holyoke,” said Gary Rome, owner of Gary Rome Auto Group, another Holyoke native, and someone with a huge presence in the city. “People here are very committed and passionate about their city.”

Beyond this omnipresent pride, Rome, Sullivan, and other business leaders we spoke with see many other qualities in Holyoke — history, tradition, diversity, economic progress, collaboration, energetic new leadership, new businesses, new business sectors (including cannabis and green energy), and something they’ve always seen: opportunities.

As in opportunities for entrepreneurs, for individuals looking for work or a career, for professionals looking for an affordable place to live, and for people aspiring to work for themselves instead of for someone else.

“There’s a lot of entrepreneurial spirit really coming alive in the city,” said Lynn Gray, general manager of the Holyoke Mall, which opened 44 years ago, changing the landscape in the community in many ways. “And that’s exciting because it benefits the city; it benefits everyone in and around the mall, having that entrepreneurial spirit. Moving forward, it’s a great path to be on.”

Meg Sanders, one of those entrepreneurs — she opened Canna Provisions on Dwight Street, part of a wave of cannabis-related businesses in Holyoke — agreed. She said she sees a great deal of vibrancy and entrepreneurial energy in the city, not just in cannabis, but also in the arts, hospitality, retail, and more.

“There’s a lot happening here — Holyoke is a great city that has so much to offer,” she said, adding that downtown is becoming more vibrant and, with many new types of arts and hospitality businesses opening, becoming much more of a destination.

Matt Bannister, senior vice president of Marketing and Corporate Responsibility at PeoplesBank, another Holyoke institution nearly as old as the city (it was founded by silk-mill owner William Skinner in 1885), concurred.

Steve Grande (left) and his son, Ben

Steve Grande (left) and his son, Ben, have engineered a transformation at Meridian Industrial Group.

He cited Gateway City Arts on Race Street, a live-entertainment venue, as an example of a relatively recent arts-fueled resurgence in the city, one that displays the trickle-down effect of such businesses and their ability to spur more development.

“Gateway is an example of the kind of anchor that you can build around,” he explained. “You get some nightlife, and the next thing you know, you have entrepreneurs and food trucks and all that. What’s happened down at Gateway, and what’s happening on Main Street, is that there’s some nice enthusiasm and energy.

“Overall, there is a good core of solid businesses, and there is a government in place that understands the importance of business development — we have smart people with a good vision,” Bannister went on, adding that the current wave of entrepreneurial energy coupled with large amounts of state and federal stimulus money make this a unique and potentially powerful moment in the city’s history.

For this special 150th-anniversary celebration edition, BusinessWest talked with a number of business owners about what they see today in Holyoke — and what they expect to see down the road.

 

Making Progress

There’s a manhole cover embedded in the floor just inside the main entrance to the property at 529 South East St., near the lower canal in Holyoke.

It bears the name J.W. Jolly, the company that made manhole covers for cities across the country and around the globe at that site more than 140 years ago.

There’s a mat now covering the one in the lobby here because more than a few people tripped over it, said Steve Grande, a former Springfield police officer who bought the business that was operating there, Central Massachusetts Machine, in 2009 and eventually changed the name to Meridian Industrial Group to reflect a broader customer base and product portfolio.

Indeed, this cutting-edge machine shop that he manages with his son, Ben, now specializes in very large parts (up to 30,000 pounds), including components for missiles, submarines, and even NASA’s DART (Double Asteroid Redirection Test) program that famously knocked a meteorite off its orbit a few months back.

Meridian is an example, and there are many of them in this city, where the past, present, and future come together at the same mailing address. And this is one of the many things being celebrated as the city turns 150.

It’s like that at the Canna Provisions facility on Dwight Street, where a dispensary designed to look like an art gallery has been created in an old mill where Yankee Candle once leased space and began its meteoric rise.

It’s like that at the Gary Rome Hyundai dealership on Whiting Farms Road, where a combination car wash and dog wash is taking shape on property that also boasts a solar array and, in his office, pictures of Rome’s father, who started selling cars in Holyoke more than 60 years ago.

It’s like that the O’Connell Companies’ gleaming new headquarters building on Kelly Way, which includes photos of the company’s founder, Daniel J. O’Connell, and his descendants, as well as construction projects undertaken decades ago — specifically the Memorial Bridge reconstruction project and the Rowes Wharf initiative in Boston, that won Build America awards from Associated General Contractors of America.

And it’s like that PeoplesBank’s banking center at 1866 Northampton St., site of the former Yankee Pedlar, a popular restaurant and gathering spot for generations of city residents.

Yes, the past, present, and future come together seamlessly in this city, where change is as constant as tradition.

Lynn Gray, general manager of the Holyoke Mall

Lynn Gray, general manager of the Holyoke Mall, says there a great deal of “entrepreneurial spirit” coming alive in the city.

This change can been seen everywhere — on High Street, where many new businesses have opened in recent years (see related story on page XX); at the mall, where many of the traditional retail stores have been replaced with entertainment-related businesses, such as a trampoline center and a bowling alley; in the countless mills, many of them now occupied by cannabis-related ventures; on Race Street, where Gateway City Arts and other arts- and hospitality-related businesses are now operating; at the historic Cubit Building, now home to apartments and the HCC MGM Culinary Arts Institute, and elsewhere.

What hasn’t changed is the great pride that people take in their city, and the spirit of entrepreneurship that built the community and is fueling its resurgence today. In fact, what business leaders see when they look at the city today is continued progress and revitalization.

Bannister, like others we spoke with, credited Joshua Garcia, the city’s first Hispanic mayor, and Aaron Vega, former state representative and now director of Planning and Economic Development in Holyoke, for creating a business-friendly environment in the city and generating real momentum on several fronts.

“They’re tilling a lot of soil in order to make things happen,” Bannister said. “When you throw a lot of seeds out, you’re never sure which ones are going to take and which ones aren’t, but you’re creating opportunities for things to happen.”

 

No Place Like Home

Those we spoke with said they consider it important not to just do business in Holyoke, but to be actively involved in the community and especially with efforts involving the next generations of Holyoke leaders.

Rome said his family has been doing business in Holyoke for almost a century. His grandfather started with a drugstore, he believes, and then opened a haberdashery. As Rome tells the story, money was so tight that his grandfather’s store and the neighboring shoe store would share a telephone.

Matt Bannister

Matt Bannister credits Holyoke Mayor Joshua Garcia and his administration for creating a business-friendly environment and fueling a surge in entrepreneurship.

“They had a hole in the wall, and they would pass the telephone back and forth through the wall,” he said, adding that things have certainly changed, for both his family and the city. What hasn’t changed is the family’s commitment to the city.

Indeed, Rome, was recently named one of BusinessWest’s Difference Makers for 2023, not only for his success in business — he was recently named TIME magazine’s Dealer of the Year — but for his work within the community, and especially Holyoke. He is a member of the foundation board at Holyoke Community College, and has donated his time, energy, and talent to countless nonprofits, while getting his company involved with them as well.

“When I look at Holyoke today, I see a lot of hope, a lot of passion,” he said. “And I see a strong initiative to let people know about all the good things that are happening in the city, and you can see that first-hand with our mayor and our economic-development team.”

Sullivan, who has been involved with the Boys & Girls Club for more than a decade now, said O’Connell supports a number of organizations and initiatives, from Girls Inc., which found a new home in the O’Connell Companies’ former headquarters on Hampden Street, to Providence Ministries for the Needy.

Gary Rome

Gary Rome, one of BusinessWest’s Difference Makers for 2023, is one of many Holyoke business leaders actively involved in the community.

PeoplesBank, meanwhile, has always been heavily involved in the community — supporting its nonprofits, being the main sponsor to the city’s famous St. Patrick’s Day Parade, and backing the many efforts at EforAll, the chamber, and other agencies to promote entrepreneurship and help others launch their own ventures, a key to the city’s continued progress.

“There’s an awful lot bubbling up,” Bannister said. “You have to wait and see which ones take root and which ones don’t, but we work with the Holyoke EforAll group to drive entrepreneurship because that’s how the next generation of businesses will come up; it won’t be a giant company that you lure here with tax incentives — it will be a whole lot of small businesses that will take off. It’s entrepreneurs at the street level that will drive growth.”

Even some of the relative newcomers to the scene in Holyoke said they realized early on the importance of getting involved, collaborating with others to generate more positive energy in the city, or just choosing the city as a landing spot.

Indeed, Sanders said there were many reasons why Canna Provisions put down roots in Holyoke, literally. Business-friendly bylaws and attractive space were among them, but there was also a desire to positively impact a city that was negatively impacted by the war against drugs and has, as she put it, “such good bones.”

“For us, Holyoke was a perfect canvas to do good,” she explained, adding that, in addition to bringing jobs and a new storefront to the city, the venture is also sparking other new business. Meanwhile, Sanders herself is getting involved with several initiatives, from the 150th-anniversary celebrations to the parade committee.

“Holyoke is an amazing city with so much potential, and bringing awareness to downtown and making sure everyone knows about all the cool things that are happening is very important,” she said. “Downtowns don’t turn around overnight, but it’s helpful if a community gets behind it — we see things turn around faster when everyone gets behind those efforts.”

Grande agreed, noting that he’s seeing progress in the community and is getting involved himself, with everything from workforce-development issues in manufacturing (he’s involved at Dean Tech and, specifically, an ongoing project to market its manufacturing programs) to his work as vice president of the Holyoke Taxpayers Assoc.

“I don’t want to sit on the sidelines and let other people do the heavy lifting,” he said. “We see improvements and excitement; this administration is bringing city officials together, and the real push from the business community is to make the city more attractive to potential new businesses by streamlining the permitting process, addressing crime, and much more. There’s an upward trajectory, but Holyoke has not been an easy sell.”

 

Passion Play

Flashing back more than a half-century to his youth, Sullivan said he and his friends thought Holyoke was “the center of the universe.”

It was only when they got older that their perspective changed — but only somewhat.

For many, it’s still the center of their lives, if not the universe, and the home of their businesses. It’s a unique and special place where the past, even the events of 150 years ago, are never far away and the future seems increasingly bright.

Features Picture This

Photos Past and Present

Holyoke’s rich industrial past, one that earned it the nickname ‘Paper City.’

Holyoke’s rich industrial past, one that earned it the nickname ‘Paper City.’

Old Holyoke Dam

Mountain Park

A view of Mountain Park, the popular amusement park that closed its doors in 1987.

 

Holyoke’s canals gave the city water power — and an identity.

Holyoke’s canals gave the city water power — and an identity.

 

City Hall has become a symbol of Holyoke.

City Hall has become a symbol of Holyoke.

 

One of the horses from the carousel

One of the horses from the carousel at Mountain Park, later moved to Heritage State Park, where it has become a popular attraction.

 

An aerial shot of Holyoke, one of its canals

An aerial shot of Holyoke, one of its canals, and one of its many distinctive mills.

 

The Massachusetts Green High Performance Computing Center

The Massachusetts Green High Performance Computing Center is part of a new era for Holyoke’s business community.

 

This mural created by the artist known as BORDALO II

This mural at 44 Clemente St., created by the artist known as BORDALO II, is part of the Beyond Walls initiative that has changed the landscape in downtown Holyoke and beyond.

 

Features

Getting Down to Business

Brothers Juan (left) and Gilberto Uribe

Brothers Juan (left) and Gilberto Uribe are co-owners of El Paraiso Colombiano restaurant, a true family affair that has found a home on High Street.

Juan Uribe calls it a “family dream.”

He was referring to El Paraiso Colombiano restaurant, an entrepreneurial gambit that is truly a family affair.

Indeed, Juan and his brother, Gilberto, are co-owners and also cook and tend bar. Their father is head chef, and their sister is a waitress. Together, they created and now operate what they believe to be the only Colombian restaurant between here and Hartford, one that opened in the middle of the pandemic, but quickly found its stride nonetheless.

“On grand-opening day, there was a line outside to the corner,” said Juan, adding that, while there have been plenty of challenges with this venture, it has been a huge success to date, drawing patrons from around the block but also across the region and even beyond. “We thought people would come out and support something new, and they have.”

Juan, Gilberto, and other members of the Uribe family are now part of a changing scene on High Street, one of several ‘main’ streets in this city, and also part of an ongoing surge in entrepreneurship that is changing the face of the local business community.

Indeed, where once this city was dominated by large mills that covered several blocks of real estate, it is now marked increasingly by smaller ventures that occupy a storefront or even a desk or cubicle in the incubator space at the EforAll offices, also on High Street.

Jeff Cattell and Joseph Charles are also part of this changing scene. Business and life partners, they launched Paper City Fabrics, a supplier of a wide variety of fine fabrics, in September 2021, and have taken it from an online operation to a storefront on High Street that was most recently home to a law firm. They are completing renovations now and expect to open in the spring.

“Our goal has always been to open a brick-and-mortar storefront,” said Cattell, adding that he and Charles moved to the city four years ago and, after considering several business options, settled on a thrift-store model in what he called the “fiber-arts realm.”

Elaborating, he said the store will accept donations of fabric, everything from cotton to silk, as well as sewing machines and other goods and equipment, and sell them at steep discounts, thus bringing another unique concept to downtown Holyoke and one that speaks to its storied past in many respects.

Paper City Fabrics, El Paraiso Colombiano, and many other new businesses on High Street and beyond, from City Sports Bar to the Artery, a pop-up shop, to Star Dancers Unity (see story on page 50), are, indeed, part of a wave of entrepreneurship in the city, said Jordan Hart, executive director of the Greater Holyoke Chamber of Commerce.

“There’s a lot of old players in Holyoke — there are many established businesses in many sectors, including manufacturing, which has traditionally been our foundation,” she explained. “But we’re seeing a lot of young, new faces as well, people who are investing in our downtown.”

Tessa Murphy-Romboletti, executive director of EforAll Holyoke and its Spanish equivalent, EparaTodos — an agency that is fueling this wave through accelerator programs, pitch contests, virtual workshops, co-working space, and more — agreed.

She said that the chamber, EforAll, and programs like the Transformative District Initiative, which are funneling dollars into storefront-improvement efforts and other programs, are helping people launch new businesses and then weather the many challenges they will face.

Tessa Murphy-Romboletti (left) and Jordan Hart

Tessa Murphy-Romboletti (left) and Jordan Hart say a surge in entrepreneurship has helped Holyoke’s business community become as diverse as the city itself.

These efforts are also making Holyoke’s business community much more diverse, said both Jordan and Murphy-Romboletti, noting that it looks much like the city itself, with many Hispanics and other minority groups taking on risks and putting their names (figuratively and, in some cases, literally) over the door of buildings on High Street and many other roads.

“Holyoke is such a diverse community, and I think we’re both trying to make sure that our business community reflects our community at large,” said Murphy-Romboletti, who is also an at-large city councilor in Holyoke. “That’s one of the great things about the Holyoke chamber now — you go to one of its monthly networking events, and it looks like the community of Holyoke; it’s very diverse, and Jordan has created a very welcoming environment.”

 

Food for Thought

Juan Uribe was driving a truck when he and other members of his family decided to pool their talents and resources and open El Paraiso Colombiano.

And he still drives a truck in the morning and sometimes during the day depending on how business it is at the restaurant, because … well, because he needs two jobs at this stage in his life, especially as the restaurant continues to emerge and build its brand.

But, like other members of his family, Uribe desired to be in business for himself, and with some encouragement and learning while doing from EforAll, the dream became a reality.

Like many such ventures, it started with a passion that would become a business.

“We were born and raised here in Holyoke, and friends would come around; we’d have little events — my grandmother would make empanadas, and my father would cook, my mother would cook, everyone would just love to be in our house,” he recalled. “So we decided to make it a business; we all love to cook, and this is a family business.”

A restaurant operating at 351 High St. had to shut down because of COVID, he went on, adding that, while the timing may not have been perfect for launching a new eatery, the family took the plunge.

Joseph Charles, left, and Jeff Cattell

Joseph Charles, left, and Jeff Cattell, owners of Paper City Fabrics, are part of a changing scene on High Street.
Staff Photos

“We knew we had a good idea going, so we decided to take everything we had and move ahead,” he said. “We knew that, even though there was a pandemic, people still had to eat, and we thought they would come out and support something new.”

That’s the quick version of the story, he said, adding that many pieces to the puzzle had to come together, obviously, as well as a business plan for bringing that ‘something new’ — authentic Colombian cuisine — to Holyoke and the region.

And the learning while doing continues, he said, adding that working for himself is “a lot of work, but it’s something that I love, something that my brother loves. It’s challenging, and it’s hard, but it doesn’t get any better than this.”

Cattell and Charles offered similar sentiments and similar excitement when it comes to being part of the scene on High Street, which is the logical next step for their venture.

“Shopping for fabric is a tactile experience,” Charles said. “Touching and seeing the colors in person and the textures of the fabric is an important part of the buying process.”

The two had been looking for a storefront for more than a year and eventually settled on 330 High St., across the road from El Paraiso Colombiano, a location that affords them the space they need for their retail operation as well as to process donations and create a classroom for sewing lessons. The space has some history — it was once a popular lunch counter — and some intriguing features, such as tin ceilings and a mosaic tile floor that was hidden by carpeting.

“It’s really cool to be able to restore some of that historical perspective,” said Cattell, adding that it’s also cool to be part of a changing dynamic in downtown Holyoke, which is seeing new businesses across many sectors.

Meanwhile, the chamber, EforAll, and other agencies, such as Nuestras Raices, a grassroots urban-agriculture organization, are working collectively to not only create a pipeline of new businesses like these, but help those businesses survive, thrive, and get to the proverbial next level.

For example, EforAll has, in addition to accelerator programs, a number of virtual programs it calls Deep Dives.

In recent months, such dives have been taken into subjects ranging from “Making It in the Food Business” to “Are You Getting All You Can Out of QuickBooks?” to “How to Use LinkedIn to Grow Your Small Business.”

Meanwhile, the chamber, through its many networking programs, is enabling these new small businesses to make the connections they need to grow their portfolios, while also learning from others facing the same challenges.

Indeed, Jordan told BusinessWest that the chamber has an attractive rate for solopreneurs and small businesses, enabling these ventures to be part of a full slate of events that provide invaluable opportunities to not only hand out business cards but also be an active part of a growing, more diverse business community.

Murphy-Romboletti agreed.

“The chamber has created a very welcoming environment, especially for my entrepreneurs who are not familiar with networking and are often so focused on being in the business and not necessarily working on the business,” she explained. “I think the chamber creates this environment where people can step away from the cash register or step away from the kitchen and connect with the community and build those relationships so they can be successful and really be part of the community; that’s been really valuable.”

In addition to helping individuals start a business and move it to the next level, agencies like the chamber and EforAll are working to get them involved in the community and take ownership of efforts to revitalize High Street and, overall, improve the landscape for business in the city.

“Whether it’s a new business or a business that’s been around for decades, we want them to feel like they have the ability to make change and advocate for what they want,” Murphy-Romboletti said. “We’re really being intentional about creating these spaces for them.”

Uribe said that getting involved in the community has been not just part of the business plan, but something important for the family.

Indeed, they are part of the many festivals that place in the city, and Uribe is the founder of the Paper City Food Festival, which staged its second edition last fall on the section of High Street between Appleton and Dwight streets, attracting more than 20 of the city’s restaurants.

“It’s a way for people to come out and see all that this city has to offer,” he told BusinessWest, adding that he engaged the chamber and started the festival to uplift local businesses and celebrate the community’s heritage and diversity.

 

Bottom Line

There was much to celebrate at last October’s food festival, and, similarly, there is much to celebrate with this city’s business community as it turns 150.

There is diversity. There is change. There is vibrancy. And, overall, there is a wider pipeline of new businesses, entrepreneurs like the Uribe family and Jeff Cattell and Joseph Charles.

Together, they are not just filling storefronts on High Street. They are energizing a city and writing an intriguing new chapter in its long and distinguished business history.

 

Features

A Portrait of Resilience

Mayor Joshua Garcia

Mayor Joshua Garcia says Holyokers need to take the long view when it comes to their city and its future.

As he talked about his city and its outlook moving forward, Holyoke Mayor Joshua Garcia first turned the clock back nearly 150 years and did what amounts to a ‘what if?’ exercise.

He was referring to Holyoke’s ubiquitous canals, which were, when they were conceived, no small bit of engineering — and financial — daring.

“It was a risk,” said Garcia, the city’s first Hispanic mayor, who took office in late 2021. “When folks built the canal system … I think about what that conversation might have been like, the divide that might have been going on in this community. You had some who probably said, ‘yes, we need to be proactive and build this system,’ and others who likely said, ‘this is too much money; our taxes are going to go up if we do that, and besides, I’ll be gone in 30 years.’”

Fortunately, those in that first category prevailed, he went on, adding that the canals helped fuel decades of prosperity, jobs, and an enviable quality of life, and they put the city on the map. And as he looks ahead, Garcia believes Holyokers must have that same willingness to take reasonable risks — to be daring, if that’s the right word — and make the necessary investments to continue, and bring to a higher level, an ongoing renaissance in a city that was among the nation’s wealthiest and a model of innovation and manufacturing excellence.

“I’m trying to get people to not think short-term — the investments we make today are not just for next month or next year, but 20 to 30 years out,” he said. “We want to build a middle school, for example, something that would benefit this city for generations to come.”

Long-term thinking is one of necessary ingredients for continued progress in this city, said Garcia and many others we spoke with for this special section commemorating Holyoke’s 150th anniversary. Overall, they said many of the other needed ingredients are already in place, everything from a focus on entrepreneurship to inexpensive and reliable green energy; from a solid, diverse workforce to spaces in which new businesses can get started and eventually grow.

Jeff Hayden, currently vice president of Business and Community Services at Holyoke Community College, previously served in several economic-development posts in the city, including as director of Planning and Economic Development. Nearly a half-century ago, he worked part-time at a Dairy Mart on Dwight Street managed by his father.

He has seen a lot of change over that half-century, and, more recently, a good deal of progress as Holyoke has diversified a business community once dominated by manufacturing, especially paper and textile making.

In the ’90s, manufacturing was still a pillar of the local economy, along with healthcare — there are several facilities providing everything from acute care to behavioral-health services to care to veterans, he noted, adding that, in recent years, diversification has included more retail (the city already boasts the Holyoke Mall), cannabis businesses, and strong growth in the arts and entertainment sectors.

And this diversification has strengthened the economy and made it more resilient, he said, adding that current efforts have been focused on creating opportunities across the board — meaning both jobs and opening the door to entrepreneurship.

Holyoke’s St. Patrick’s Day Parade

Holyoke’s St. Patrick’s Day Parade, this year celebrating its 70th edition, is a great tradition for the city and the many organizations, schools, and clubs that march.

“When I look at where Holyoke is today and where it’s going, it’s clear that its leaders are focused on providing economic opportunity for all, whether they be entrepreneurs who perhaps identify as Latinx or established businesses that have been here for a long time,” he said. “The hope is to help everyone grow, and grow together.”

Aaron Vega, the former state representative who is now serving as director of Planning and Economic Development, agreed.

“Like a lot of cities, we’re at a crossroads,” he said, noting that, while manufacturing has declined in recent years and decades, other sectors have emerged, such as cannabis, IT, and clean energy. One of the keys moving forward, said Vega and many others we spoke with, is that focus on entrepreneurship and helping new small businesses take root, in some cases literally.

“It’s very hard these days to start a small business, but we have a lot of supports for that, like EforAll and the chambers, and people now realize, especially here in Western Mass., that it’s the downtown businesses that create the character in a community,” he said. “So we’re really trying to focus on that; we’re really trying to empower people who live here already to open up their own business.”

 

Something to Celebrate

Like many others we spoke with for this special section, Garcia said the 150th anniversary is a time of reflection, an opportunity to look back at the city’s proud history and ahead to what the next chapters might be.

It’s also an opportunity to celebrate all that Holyoke is — a proud city with a rich history, rich traditions, a diverse population, a legacy of innovation, and other enviable qualities, he said, noting that perhaps the greatest of these is resilience.

Indeed, the city has always displayed the ability to withstand adversity and move on — whether it was the many challenges of becoming the nation’s first planned industrial city or reinventing itself and diversifying its economy when much of the manufacturing moved south or overseas, or, most recently, persevering through the COVID pandemic and its many side effects.

“It’s a celebration of resiliency,” he said, adding that the city will mark the occasion in a number of ways, including a gala, an ‘Eat, Drink, and Be Holyoke’ event, a time capsule that will be placed in City Hall and opened at the 200th anniversary, ‘150th’ merchandise (hats, key chains, etc.), commemorative beers made by local brewers, and much more. “It’s a celebration of everything Holyoke.”

Vega agreed, and noted that one of the driving forces behind the city’s ongoing resurgence is a focus on the arts and culture. He cited businesses such as Gateway City Arts, a live-performance venue, and organizations such as Beyond Walls, which partnered with Nueva Esperanza Inc., a community-development and social-services agency, to honor Holyoke’s designation as a Puerto Rican Cultural District, as well as the city’s rich history and diversity, with the installation of five large-scale outdoor murals.

“When you celebrate culture, people feel more connected to their community, more connected to their neighbors,” he explained. “And when you have the ability to celebrate art, it’s about bringing people into your community, with initiatives like Beyond Walls, the events at Wistariahurst, Gateway City Arts — it’s a celebration of music and arts that invites everyone to come join.”

Aaron Vega

Aaron Vega says Holyoke has many outstanding traits, especially its long history of resilience.
Staff Photo

Beyond the arts, Holyoke is seeing a surge in new businesses on High Street; a strong wave of cannabis businesses of all kinds, including large cultivation facilities; and an influx of data centers, including the Massachusetts Green High Performance Computing Center. And in many cases, the city’s ability to provide lower-cost, green energy is a big reason why many of those businesses found Holyoke.

“Anyone who is looking for cheap electricity and green energy will knock on our door — we’re the first call they’ll make,” said Jim Lavelle, general manager of Holyoke Gas & Electric (HG&E), which can trace its roots to 1902. “It’s an interesting time, to be sure, and we’re getting a lot of inquiries; people like the story of the low-carbon, cheap electricity.”

Interest is across the board, he said, adding that it comes from data centers and cannabis cultivators (both huge consumers of electricity), but also from business owners who want to minimize their carbon footprint, he said, adding that HG&E is working with city officials to help make the most of this asset and many others the city can boast.

Another asset is Holyoke Community College, said Hayden, adding that, historically, significant numbers of city residents have been unable to take full advantage of the employment opportunities in the city because they were qualified for those jobs.

The college has long worked to change that equation through programs that will ready individuals for jobs, be they as nurses, medical assistants, chefs, or, most recently, workers in the cannabis industry. HCC also has a strong track record of students transferring students to four-year institutions.

“I like to say that we help people get a job, get a better job, or help them do their job better,” he said.

 

Traditions Old and New

Getting back to those planned celebrations … the 150th will be just one of a growing number of events in Holyoke this year, said the mayor, noting everything from the famous St. Patrick’s Day Parade later this month to the Fiestas Patronales, which debuted last August — a four-day celebration of the city and region’s Puerto Rican culture and heritage and billed as the largest Latino event in Western Mass.

Jeff Hayden

Jeff Hayden says Holyoke has diversified its business community, strengthening it in the process.

These celebrations, old and new, capture the city’s past, present, and future, he said, adding that they reflect the city, its history, and especially its people.

That’s especially true of the St. Patrick’s Day Parade, which this year will mark its 70th edition, said Karen Casey, president of this year’s event. The 69th parade was three years in the making because of COVID, she said, a tiring, very frustrating experience on many levels.

What the pandemic years did was make those in Holyoke and beyond — this is, after all, a regional event — appreciate the tradition even more, if that’s possible.

“After having gone through what we all went through a few years ago, you saw just how much this meant to everyone,” she explained, referring to everyone from parade committee members to those who watch each year along the parade route. “Everyone just has a greater appreciation for how important this is.

“This is the third-oldest parade in the country, and we work very hard to maintain high standards,” she went on. “Anyone from around Holyoke is very proud of it; they brag about it … it’s a great tradition.”

While the buildup to the St. Patrick’s Day Parade continues, so too does planning for the 150th anniversary, said the mayor, adding that one of the intriguing tasks — and big challenges — ahead is deciding what should go in the time capsule.

Organizers are already thinking about items like one of the Super Bowl programs created by Hazen Paper, a Holyoke High School yearbook, T-shirts, a history of the city, and much more. It may take the shape of a volleyball with a large box inside.

The task of deciding what goes in the limited space in the time capsule is made more complicated by the many aspects of the city’s history and the many objects — recent and more than a century old — needed to tell the story. In many ways, it’s a good problem to have.

But getting back to that matter of resiliency, Vega said that trait is at the heart of the 150th celebration. And it is one shared by the community and the people who have lived here over the past few centuries.

“People talk about Boston Strong in the wake of the marathon bombing, but there’s also Holyoke Strong; it’s about resiliency, and it’s about history,” he said. “People have always come to Holyoke who have been migrants and have had nothing — and they built a life here. That’s what we need to keep remembering. This has always been a place where people come, get that grit, and find a path.

“This is what we’re celebrating as the city turns 150,” he went on, adding, again, that there is so much to celebrate.

Features

Holyoke’s 150th

By Penni Martorell

Happy anniversary, Holyoke! 2023 is the sesquicentennial, or more commonly called the 150th anniversary of the incorporation of the city. It is our good fortune that we, the citizens of Holyoke, will, at long last, will hold an official dedication ceremony for Holyoke’s City Hall, a structure that is not only of notable architecture, but also a fundamental component of Holyoke’s past, present, and future and the foundation of our community.

In a July 1876 article, the Holyoke Transcript reported:

“There ought to be public spirit enough in this city to appropriately dedicate this noble building. There seems to be a small faction opposed to it, but they should not be allowed to present a fitting dedication by those whose money has been spent in the construction of the finest hall in New England.”

That’s right, Holyoke City Hall was never dedicated upon its completion. Apparently, that small faction held out, and other circumstances derailed the building’s official dedication. So, it is only appropriate that we take time now to dedicate this magnificent building as it has stood in service to Holyoke for a century and a half. The official dedication will take place on Thursday, April 6.

Most of the story about City Hall is documented in Holyoke Annual Reports and a lengthy, detailed, unsigned article in the Saturday morning edition of the July 1, 1876 Holyoke Transcript. And as history so often reveals itself in layers, there are likely many more stories about the building. So here is some background information and details about the construction.

The total financial outlay to build this magnificent building, when all was said and done, was $372,000 in 1876. (Additional research done by the Historical Commission indicates that final cost was closer to $500,000 at the time.) In any case, in today’s money, that would be more than $10 million.

The town of Holyoke was established by an act of Massachusetts Congress Chapter 71 and signed into law On March 14, 1850 by Gov. George Nixon Briggs. The town’s first board meetings were held in rented meeting halls like Chapin Hall, Parsons Hall, and the Exchange Hall. A separate selectmen’s office was rented starting in 1861. The largest financial challenges for the town at that time were fees to West Springfield in relation to the contract of separation.

Constructing a building of this size and character was not an easy task, nor was it inexpensive. Delays and contractual issues increased the amount of time and money it took to complete this monumental undertaking. Unfortunately, division arose early on deciding where the building should be located. More delays arose during the building of City Hall and were memorialized in Holyoke’s Building Committee reports.

Fortunately, the city’s incorporation in 1873 brought about the reorganization of elected officials and, most importantly, new Building Committee members who acted quickly and effectively to get the construction work back on track … but it wasn’t a smooth process.

In October 1874, the new Building Committee contracted H.F. Kilburn of New York to serve as architect under the supervision of Watson Ely of Holyoke. In order to facilitate the completion of the building in a timely manner, Ely ordered that everyone that had moved into the unfinished building vacate the building and then closed City Hall during the winter of 1874.

Charles Attwood was the original architect who created the Gothic Revival and Romanesque Revival structural plan in 1871. However, many others contributed structural and decorative details, including local builder Casper Ranger, John Delaney, Ecclesiastical Stained Glass Works, Watson Ely, Henry Kilburn, Kronenberger and Sons, Filippo Santoro, Serpentino Stained Glass, and Samuel West.

Beyond the granite exterior walls, stone steps and pavers, and slate roof, other building materials include random ashlar, galvanized iron, glass, lead, marble, wood, brick, sheet metal, and copper.

One of the most important historical and stately features of Holyoke City Hall is the looming clock and bell tower. The imperial tower stands 225 feet high and houses a bell that weighs nearly 5,000 pounds. The clock’s face is composed of two-inch-thick Belgium milk glass. Sadly, the clock was inoperable and the bell was silent for decades. Thanks to Friends of City Hall, David Cotton, and a team of volunteers, the clock was restored after completing hundreds of hours of repairs, and on July 4, 2018, the clock was lit up and began keeping time again after almost 30 years.

But back to City Hall itself. As of July 1876, it had not been dedicated, and research has not found any indication it was ever dedicated. It’s time to remedy that.

 

Penni Martorell is Holyoke’s city historian and curator at Wistariahurst.

Features

Going with the Flow

By Joseph Bednar

bednar@ BusinessWest.com

Old Holyoke Dam

The city of Holyoke’s website details a series of telegrams sent by one James Mills on Nov. 6, 1848 to a group of industrialists in Boston who had invested in the first dam at South Hadley Falls and were eager to hear of its performance.

“The gates were closed and the water filling behind the dam,” Mills reported at 10 a.m. It would be his only happy missive.

Noon: “Dam leaking badly.”

1 p.m.: “Leaks cannot be stopped.”

2 p.m.: “Bulkheads are giving way.”

3:20 p.m.: “Dam gone to hell by way of Willimansett.”

So, it wasn’t the most auspicious way to begin Holyoke’s new direction as a planned industrial city that harnessed the power of the Connecticut River.

But the builders learned from their mistakes — and built a replacement dam. Like the first, it was also made of wood and completed the following summer. This dam still stands, 150 feet underwater, behind the current, modern stone dam that was put into service in 1900.

This bit of history is just one example of Holyoke not only overcoming challenges, but evolving with them along a winding, intriguing, still-evolving story.

The story actually begins much earlier, with the Indigenous tribes who settled there on the rich, alluvial plain, including the Nonotucks, from whom early European settlers eventually purchased the land that would be incorporated into the future boundaries of Holyoke.

Captain Elizur Holyoke is believed to be the first European to explore the future city. In 1633, he led an expedition up the Connecticut River to explore the potential for settlement. Two years later, based upon his report, European agriculture settlement began in the region. Initially concentrated in Springfield, settlers soon began to migrate to the surrounding areas that would later become West Springfield, Chicopee, and Holyoke. Holyoke was then known as Ireland Parish, a name that would remain in common use until 1850.

When Boston investors saw in the parish industrial potential similar to Lawrence and Lowell — and the energy potential of the river — they set out to create an industrial city on a large scale.

In 1847, taking advantage of the broad plain and the 57-foot drop in the Connecticut River at South Hadley Falls, work began on the planned industrial city. Canals, mills, boarding houses, offices, and a dam were all built by pick and shovel. And on March 4, 1850, Holyoke — with its working dam — was finally separated from West Springfield and designated its own town.

“There was some resistance from the farmers who initially didn’t want to sell their land,” said Penni Martorell, Holyoke’s city historian and curator of Wistariahurst. “But eventually [the investors] won out. They just bought the land and then laid out the plan for the city. The flats area was definitely the working man’s area. The middle area around the canals was where the factories were built, and then the highlands were set aside for retail businesses and homes of the wealthier families.”

 

Strength in Paper

Before the planned-city idea got rolling, Holyoke was mainly an agricultural community with a sprinkling of industry, including a lumber mill on the river.

“The investors had had success in Lawrence, in getting mills set up along the river up there. And then they were like, ‘well, where else can we go?’” Martorell told BusinessWest. “Lawrence and Lowell often lay claim to being the first planned industrial cities. We say they worked it out there, and then they perfected it here in Holyoke. They really took advantage of the 60-foot drop in the river, how to harness that energy and then send it through the canals.”

Holyoke’s development was rapid, with its population surging from about 3,200 in 1850 to 45,000 by the turn of the century and more than 60,000 at its peak in the early 1920s. Textiles were the first major product of the city, quickly followed by paper, which became the dominant force in the city. At one time, more than 25 paper mills were in operation.

By 1885, 12 years after its official designation as a city, Holyoke was the largest single producer of paper of any city in the U.S., producing around 190 tons per day, more than double the next-largest producer, Philadelphia, which produced 69 tons per day despite having a population nearly 40 times its size. By 1900, Holyoke would produce about 320 tons per day, predominantly writing paper, led by American Pad & Paper Co., American Writing Paper Co., and others.

Holyoke also built schools, churches, parks, and many public buildings, including the historic City Hall (see story on page 28). By the turn of the century, Holyoke exerted considerable influence on American life. The Holyoke Opera House was the test location for Broadway plays before moving on to New York. The Easter parade here drew as many spectators as on Fifth Avenue.

A number of industrial inventions arose out of the city in the late 19th and early 20th centuries. The first and most prominent hydraulic testing lab in the U.S., Holyoke Testing Flume, performed 3,176 tests to establish turbine efficiency from 1870 to 1932. Other pioneering developments included the first use of Hans Goldschmidt’s exothermic welding process in the Americas in 1904, by George Pellissier and the Holyoke Street Railway. In electronics, the world’s first commercial toll line, between the city’s Hotel Jess and a location in Springfield, entered service in 1878. Holyoke was also home to Thaddeus Cahill’s New England Electric Music Co., which, in 1906, demonstrated the telharmonium, the world’s first electromechanical instrument, a predecessor of the synthesizer.

Meanwhile, the availability of water power enabled Holyoke to support its own electric utility company and maintain it independently of America’s major regional utilities. The city was thus a rare unaffected area in the Northeast blackout of 1965.

But the city’s second century has been a complicated story, Martorell said.

“It was boom and bust. So every time there was a bust, the wealthier people were able to prepare for that. But the lower-income people were not able to prepare. They would move on to wherever there was work. So it was a bit of transience at certain points. The paper industry kind of morphed into other industrial spaces.”

 

Northern Migration

Beginning at the end of World War II, the city’s demographics began to change, as an influx of Puerto Ricans and other Latino groups began to migrate to the Northeast U.S., driven largely by the Farm Labor Program initiated by the U.S. Department of Labor, which recruited Puerto Rican laborers to work on agricultural land; in the case of Holyoke, many worked on tobacco farms and arrived in the city in search of better job opportunities at the mills, as previous generations had.

“In Springfield and Holyoke, housing was inexpensive, you had access to 91 and 95, and a lot of them had an agricultural background and were looking for farm work,” Martorell said of the Puerto Rican influx. “So between Hatfield and the tobacco fields along the Connecticut River, they were able to find work pretty quickly once they got here.”

By 1970, the number of Puerto Rican residents numbered around 5,000; however, by that time, many faced a city economy that was struggling. Holyoke’s mills had closed due to the changing economic landscape of early globalization and deindustrialization; from 1955 to 1970, half of all industrial jobs vanished. Despite economic and social difficulties, however, the population grew significantly, and today Latinos form the city’s largest minority group, with the largest Puerto Rican population per capita of any American city outside Puerto Rico proper, at 44.7%.

As for those old industrial buildings, their use is evolving.

“The Skinners, who made silk, sold their company to Indian Head Mills, which was a conglomerate going around buying up textile mills in the late 1950s or early 1960s. They bought the company and then shut it down a few years later,” Martorell said. “And many of the other paper companies had already gone out. Parsons Paper was the first paper company in Holyoke, and they closed their doors in 2005. So that was a pretty good run.”

A few specialty paper and printing companies remain, but today, many of the old mills along the canals are being repurposed, from cannabis cultivation, manufacturing, and retail operations to the entertainment venue known as Gateway City Arts.

Martorell said change has been a constant in Holyoke, but so has a feeling of promise.

“People in Holyoke love Holyoke. People are committed to being here, and they want to see good things happen for the city,” she told BusinessWest. “And I think the last two mayors have really tried to make an effort to rebrand the city in a more positive way and say that the challenges that we’ve had in the past have made us stronger and more diverse. So we embrace that and celebrate that.”

 

Some information for this article was adapted from the city of Holyoke’s written history and from Wikipedia.

Law

Sound Advice

 

By Trevor Brice, Esq.

 

Trevor Brice

Trevor Brice

On Jan. 24, the Equal Employment Opportunity Commission (EEOC) released new guidance for employers on how and when to accommodate applicants and employees with hearing disabilities.

The guidance covers when an employer may ask an applicant or employee questions about a hearing condition and how it should treat voluntary disclosures of a condition, what types of reasonable accommodations applicants or employees with hearing disabilities may need, how an employer should handle safety concerns about applicants and employees with hearing disabilities, and how an employer can ensure that no employee is harassed because of a hearing disability or any other disability.

This guidance is an update to the original guidance that the EEOC released regarding accommodations for deafness and hearing disabilities in the workplace on May 7, 2014.

 

Questioning Employees and Applicants on Hearing Disabilities

In general, before offering an individual a job, avoid asking the applicant about hearing disabilities or any disabilities or requiring an applicant to have a medical examination before a conditional job offer. However, the limited exception to this general rule is if an applicant has an obvious impairment or has voluntarily disclosed an impairment, and the employer reasonably believes that the applicant will require an accommodation to complete the application process or to perform the job because of the condition.

If this is the case, the employer may ask if the applicant will need an accommodation and what type. However, as a best practice in the pre-offer stage, it is prudent for an employer to stick to questions about the applicant’s ability to perform the position’s essential functions, with or without reasonable accommodation, such as whether the applicant can respond quickly to instructions in a noisy, fast-paced work environment.

After making a conditional job offer, an employer may ask questions about the applicant’s health (including questions about an applicant’s disability, including deafness and hearing disabilities) and may require a medical examination as long as all applicants for the same type of job are subjected to the same requirement.

For current employees, an employer may ask disability-related questions or require an employee to have a medical examination when the employer knows about a particular employee’s medical condition, has observed performance problems, and reasonably believes that the performance problems are related to a medical condition. However, the EEOC notes that employers should take precautions in this situation, as performance problems often are unrelated to a medical condition, and the problems should be handled in accordance with the employer’s existing policies regarding performance.

Regarding hearing conditions for current employees, an employer also may ask an employee about a hearing condition when it has a reasonable belief that the employee will be unable to safely perform the essential functions of the job because of it. Further, an employer may ask an employee about their hearing to the extent necessary to support the employee’s request for accommodations, to enable the employee to participate in a voluntary wellness program, or to verify the employee’s use of sick leave related to a hearing condition if the employer requires all employees to submit a doctor’s note to justify their use of sick leave.

 

Possible Accommodations and Safety-Related Exclusions

The EEOC suggests several reasonable accommodations that could be suggested or employed for hearing-disabled individuals. This non-exhaustive list includes a sign-language interpreter for use in interviews or during employment, assistive technology (including video relay or video remote interpreting services, hearing-aid-compatible telephone headsets, etc.), appropriate written memos and notes, note-taking assistance, work-area adjustments (moving a desk away from a noisy area, for example), time off, altering non-essential job functions, and reassignment to a vacant position.

Employers should remember that there is no magic word for requesting a reasonable accommodation; an individual simply has to tell the employer that he or she needs an adjustment or change at work because of an impairment. Employers do not have to provide reasonable accommodations if doing so would be an undue hardship, meaning that providing reasonable accommodation would result in significant difficulty or expense. Additionally, employers do not have to eliminate an essential function of a job, tolerate poor performance, or excuse violations of conduct to provide reasonable accommodations.

There is another consideration for employees with hearing disabilities. Employers may also exclude an individual with a hearing disability from a job for safety reasons when the individual poses a direct threat, which is defined as a significant risk of substantial harm to the individual or others because of a disability that cannot be eliminated or reduced through reasonable accommodations. If an employer believes there is such a direct threat, the employer should conduct an individualized assessment of the individual’s present ability to perform the essential functions of the job.

Considerations should include the duration of the risk, the nature and severity of potential harm, the likelihood that the potential harm will occur, and the imminence of the potential harm. The harm must be serious and likely to occur, not remote and speculative. Finally, the employer must consider whether any reasonable accommodations, such as the ones above, would reduce or eliminate the risk of direct threat. The EEOC provides examples of how this balancing test should work.

If employers have questions relating to this balancing test, or regarding the new guidance for hearing disabilities or disabilities and reasonable accommodations in general, it is prudent to contact legal counsel in order to avoid any potential liability.

 

Trevor Brice is an attorney who specializes in labor and employment-law matters at the Royal Law Firm LLP, a woman-owned, women-managed corporate law firm that is certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council.

Features

A Changing Landscape?

 

By John Gannon, Esq.

 

John Gannon

John Gannon

Last month, President Biden gave his State of the Union address, during which he hyped the legislative accomplishments made during his time in the Oval Office. One of the topics that made the list: non-compete agreements.

Specifically, the president discussed the Federal Trade Commission’s (FTC) proposed rule to ban all non-compete agreements in the workplace. The rule could affect the employment terms of more than 30 million American workers.

 

Background

As many readers are likely aware, Massachusetts state law already restricts the use of non-compete agreements in the workplace. The Massachusetts Noncompetition Agreement Act (MNAA), which was passed back in 2018, prohibits non-compete agreements with non-exempt employees. In addition, non-compete agreements are enforceable only if an employee is terminated for cause. Under the MNAA, non-competes generally must be limited to 12 months, and must be supported by garden leave (i.e., paying the employee some amount of money during the non-compete period).

The MNAA does not prohibit agreements restricting employees from soliciting business with customers or clients, nor does it impact non-disclosure agreements meant to protect dissemination of trade secrets. And non-compete agreements entered into after the effective date of the MNAA — Oct. 1, 2018 — are not affected.

On Jan. 5 of this year, the FTC proposed its own rule that would ban all non-compete agreements, with limited exceptions. The proposed rule also bans ‘de facto’ non-competes, which could include anti-solicitation and non-disclosure agreements, depending on how they are written.

According to the FTC, “when employers use non-compete clauses to restrict workers from moving freely, they have the power to suppress wages and avoid having to compete to attract workers. Based on existing evidence, non-compete clauses also reduce the wages of workers who aren’t subject to non-competes by preventing jobs from opening in their industry.” The FTC estimates that “the proposed rule could increase workers’ earnings across industries and job levels by $250 billion to $296 billion per year.”

 

The Proposed Rule

The FTC’s proposed rule would ban all non-compete agreements between employers and employees, as well as independent contractors. The rule defines a non-compete as “a contractual term between an employer and a worker that prevents the worker from seeking or accepting employment.”

This is not limited to traditional non-compete provisions that limit an employee from seeking work with a competitor. The rule would encompass post-employment restrictions that ostensibly prohibit the employee from seeking future employment. Certainly, an argument could be made that overly broad non-solicitation or non-disclosure agreements have the effect of prohibiting a worker from going to work elsewhere.

Unlike the MNAA, the FTC’s proposed rule would rescind all employment non-compete agreements currently in place. It would also require employers to inform employees currently subject to a non-compete agreement that the agreement is no longer valid.

 

Strong Resistance

Not surprisingly, the FTC’s proposed rule does not sit well with businesses.

Calling the rule “blantantly unlawful,” the U.S. Chamber of Commerce noted that, “since the agency’s creation over 100 years ago, Congress has never delegated the FTC anything close to the authority it would need to promulgate such a competition rule.

“Attempting to ban non-compete clauses in all employment circumstances,” the chamber went on, “overturns well-established state laws which have long governed their use and ignores the fact that, when appropriately used, non-compete agreements are an important tool in fostering innovation and preserving competition.”

The FTC has invited public notice and comments on the proposed rule through March 20. Businesses and others can submit comments at www.regulations.gov/document/FTC-2023-0007-0001. After the close of this comment period, the FTC will publish a final rule, incorporating the input it receives.

This will just be the beginning. After the rule is issued, employers and trade associations are certain to challenge the rule in court. Ultimately, the legality of this rule may be decided by the U.S. Supreme Court, which is precisely what happened with the recent rule proposed by OSHA mandating a COVID ‘vaccine-or-test’ policy for larger employers. This rule was struck down by the Supreme Court earlier this year.

 

Next Steps for Employers

Many businesses in Massachusetts went through a non-compete process and procedure review back in 2018, due to the MNAA. However, employers need to understand that the proposed FTC rule goes beyond traditional covenants banning employees from working for competitors post-employment. It would be wise for employers to review non-solicitation and non-disclosure agreements currently in place to be sure they will be enforceable should the FTC’s proposed rule become the law of the land.

Businesses should also enhance any agreements meant to protect trade secrets and/or client relationships with suitable policies and procedures. This involves making sure confidential information stays confidential by limiting data access to ‘need-to-know’ groups. It also involves implementing polices geared toward ensuring that sensitive company information stays on site and cannot be accessed on an employee’s personal device.

Finally, employers should carefully follow the progress of the FTC’s proposed rule and work with legal counsel in drafting or enforcing non-compete and non-solicitation agreements going forward.

 

John Gannon is a partner with the Springfield-based law firm Skoler, Abbott & Presser, P.C., specializing in employment law and regularly counseling employers on compliance with state and federal laws; (413) 737-4753; [email protected]

Features

Petition Denied

By Michael McAndrew, Esq. and Michael Roundy, Esq.

 

Michael McAndrew

Michael McAndrew

Michael Roundy

Michael Roundy

The courts have widely established that cannabis businesses, even if compliant with state cannabis laws, are not protected by federal bankruptcy laws because they operate in a federally illegal industry. But can an employee of a cannabis business who has no ownership interest in that business file for bankruptcy individually under Chapter 13 of the Bankruptcy Code?

This question was answered with a resounding ‘no’ by the U.S. Bankruptcy Court for the District of Massachusetts in its recent decision in In re Blumsack, when the court dismissed such an employee’s bankruptcy petition in its entirety.

The would-be debtor, Scott Blumsack, had worked in the Massachusetts cannabis industry since 2021. At the time of the decision, he was the general manager of a cannabis business that manufactured, retailed, and wholesaled cannabis and cannabis products legally under Massachusetts law. In this role, Blumsack supervised employees, set up the retail operation, managed all aspects of the retail operation, and regularly acted as a ‘budtender,’ a role in which he regularly distributed cannabis to his employer’s customers. He was appropriately licensed under Massachusetts law to dispense cannabis, but had no ownership interest in his employer’s business.

In 2021, Blumsack filed a voluntary petition for reorganization under Chapter 13 of the Bankruptcy Code and submitted a plan of reorganization in which he proposed making payments to creditors out of the salary that he earned working in his employer’s cannabis operation. In the alternative, he proposed a plan for reorganization that would be funded out of his wife’s retirement funds, which arose from her wages unconnected to the cannabis industry.

In response to Blumsack’s proposed plans, the bankruptcy trustee moved to dismiss his bankruptcy petition, arguing that the proposed plans of reorganization could not be confirmed because the debtor’s activities in connection with his employment violate federal law. By working for a cannabis retailer, Blumsack had violated, and continued to violate, federal law by distributing cannabis and conspiring with his employer to violate federal law. The trustee argued that confirmation of the debtor’s plan would necessarily require the trustee to administer proceeds derived from such illegal activity.

Blumsack countered that, if the court adopted the trustee’s reasoning, any employee of a marijuana-related business (such as web designers and warehouse workers serving companies in the industry) could also be deprived of bankruptcy protections because of the cannabis industry’s wide-spectrum contributions to the state’s economy.

The court disagreed. Describing the case as one of “apparent first impression” because no on-point decisions had been found, the court noted that, for approval of a Chapter 13 plan of reorganization, the plan is required by statute to be submitted “in good faith and not by any means forbidden by law.” If a plan is not submitted in good faith, it may be dismissed “for cause.” Although neither ‘good faith’ nor ‘cause’ are defined in the bankruptcy code, both terms have been interpreted in case law throughout the country.

The Bankruptcy Court in this case held that, because Blumsack’s proposed plan of reorganization was funded by wages that were derived from participation in a cannabis retail operation and he continued to engage in the cannabis industry — federally illegal activity — while his bankruptcy case was pending, the plan was not proposed in good faith and was proposed by a means forbidden by law. Specifically, the court found that Blumsack’s job duties “require that he act in violation of federal criminal statutes.” Because of this, his plan would require the Chapter 13 trustee to “knowingly administer wages derived from an active participant in a criminal enterprise.” As such, the court could not find, under an objective standard, that the petition had been filed in good faith.

As a result, the Bankruptcy Court dismissed Blumsack’s petition for cause, noting that a lack of good faith is well-established grounds for dismissal for cause. The court also dismissed Blumsack’s alternative proposed plan for reorganization, despite the fact that it was to be funded by money not derived from the cannabis industry, because even under such a plan, Blumsack “objectively lacks good faith” by seeking the benefits and protections of federal bankruptcy law while simultaneously continuing to earn income from conduct that violates federal criminal law. In short, his plan, however funded, was tainted by his continued federally illegal activity.

While Blumsack’s counsel warned of a slippery slope, the court was unpersuaded and stated that it “must decide only the case it has before it.” The Bankruptcy Court made clear that its decision was cabined to the particular facts of this case, and that questions of good faith require a case-by-case analysis. Nonetheless, it is likely that other courts may take their cues from this decision to prevent others employed by cannabis companies or by companies serving the cannabis industry from filing for Chapter 13 bankruptcy.

How far will the reasoning of the court extend? To employees who do not directly participate in distributing cannabis products? To service providers who generate their own income by serving cannabis clients and thereby assisting them with their federally illegal activities? The Bankruptcy Court’s decision provides no guidance on these issues.

Absent congressional decriminalization of cannabis, issues at the intersection of state and federal laws affecting the cannabis industry will continue to be addressed on an ad hoc, case-by-case basis by federal regulatory agencies, prosecutors, and courts. For now, we can add individual bankruptcy protections to the growing list of complex issues affecting those working in, or for, the cannabis industry.

 

Michael McAndrew is an associate, and Michael Roundy a partner, at the Springfield-based law firm Bulkley Richardson.

Workforce Development

Learning Experience

 

Aundrea Paulk

Aundrea Paulk says no one should think they know everything about leadership.

Aundrea Paulk says many of her friends and colleagues call her a “sponge.” And she likes to use that phrase herself.

She believes it conveys what she considers to be a real and almost unquenchable thirst for knowledge and insight into how she can be a better leader, a better entrepreneur — and a better person.

“I like to learn … and I don’t think anyone gets to, or should get to, a place where they get comfortable and think they know it all when it comes to leadership,” said Paulk, director of Marketing & Communications for Caring Health Center in Springfield and owner of her own event-planning business called Soiree Mi. “Leadership is so expansive, and not only here at the Caring Health Center, but with my own business, I want to make sure that I’m constantly filling my well with knowledge so that, as a leader, I can show up in my best capacity, but also give those nuggets, as they call them, to others that are looking to grow their own leadership skills.”

It was this ongoing quest for knowledge — and desire to pass on those ‘nuggets’ — that prompted Paulk to put her name into consideration last fall when BusinessWest was gifting a slot at the two-day, immersive Dulye Leadership Experience (DLE) in the Berkshires.

Her self-nomination was one of many received by the magazine, and it certainly resonated with those deciding who would partake in this program of intense learning, networking, and professional development.

Paulk, a member of BusinessWest’s Forty Under 40 class of 2022, said she made the very most of her experience and came away with nuggets to share, a better appreciation of the need to sell herself and not just her company — or companies, in this case — and, overall, some solid takeaways on how to be a better, more effective leader.

“After completing the Dulye Leadership Experience immersion training, I learned how to better lead my department and, more importantly, how to recognize the strengths that I already have and better utilize them,” she said. “As the owner of Soiree Mi, it is important that I tap into those strengths to grow my business to develop relationships and gain partnerships that will enhance the overall community. These partnerships have allowed Soiree Mi to move from its infancy stage into an established, successful entity.”

Elaborating, Paulk said she and her staff recently conducted their own day-long retreat at Caring Health Center, and a good portion of the agenda focused on topics that were brought up at the DLE immersion training, including well-being, improved communication, and “networking with a purpose.”

 

Dive Right In

The DLE, as noted earlier, is a two-day, immersive program. It was conceived by Linda Dulye, founder of Dulye & Co., which helps leaders and their organizations cultivate magnetic cultures where employees want to stay and grow. During a painfully slow period for the company in the fall of 2008, their height of the Great Recession, she created the DLE, a nonprofit organization, to help recent college graduates be more workforce-ready and able to form relationships and sell themselves.

Over the years, the DLE evolved, and programming shifted to attract, develop, and retain young professionals in the Berkshires. The descriptions of the programs offered during the immersion provide real insight into how it helps attendees grow professionally and thrive in the modern workplace.

“The workplace has become more diverse, dispersed, digital, and dynamic,” reads the summation for a program titled “Create Connections for Differences.” “These changes create opportunities for growth, learning, and creativity, but they also cause disconnection. This session reveals strategies for working across and with differences to increase effectiveness, belongingness, creativity, and communication.”

A program called “(Re)train Your Communication Muscle” was described this way: “The pandemic has atrophied our social muscles — so much so that many find it difficult to interact with others. We have to retrain ourselves to work better. Fortunately, these muscles are resilient.”

The session was led by Marc Williams, communications coach and author of the books Beyond Limitations and The Rules of Engagement for Public Speaking. Paulk said she found the session helpful, and Williams even more so, especially when it came to the broad assignment of branding herself and building that brand.

She said one assignment attendees were given was to evaluate and update their professional LinkedIn page, and to fully understand its importance when it comes to their ‘brand.’

“We had to assess what we thought other people did without asking them, by just looking at their profile,” she explained while recalling the exercise. “What we found is that most of us don’t use our LinkedIn pages unless we’re looking for a job — that’s the only time people really go in and update it.

“That’s not what we should be doing,” she went on. “We should be making sure our professional and personal brand are on point. He [Williams] assessed and provided great feedback and evaluation of my page and how I can improve it.”

But the session she found most compelling, and the one that probably yielded the most ‘nuggets,’ she said, was one titled “Create a Culture of Well-being Within Your Team,” led by Andrea Lein, a self-described “positive psychology expert.”

“More employees are citing well-being as a key factor in deciding where and how they choose to work,” reads the brief description. “Experts believe we are transitioning to the next global crisis: a mental-health pandemic. Are you and your organization ready?”

Paulk said the session gave her plenty to think about when it comes to being ready, and it is prompting her to be more proactive on this issue.

“I always thought of well-being as self-care and the physical side of the equation,” she told BusinessWest. “I forgot about the importance of social well-being, communication as well-being, how we talk to one another; is it positive?”

Elaborating, she said that, while she still asks her staff members how their weekend went, she now looks to go deeper and find out how people are doing with their physical health, their financial health, their mental health, and how they are faring as they try to balance life and work.

 

Knowledge Is Power

Overall, Paulk said her willingness to take part in the leadership immersion program is a logical expression of her desire to continue learning and refine and build upon her leadership skills, something she believes all young professionals — and even those not quite so young — should be doing.

“The importance of continuing to develop your skills is critical to you as a human being and to what you want to put out in the world, the legacy you want to leave behind,” she explained. “If I stay stuck in a way of thinking or in the way I show up, I’m doing a disservice to myself; I’m doing a disservice to those I’m supposed to be in charge of and help grow.

“That’s why I continue to learn,” she went on. “I feel like there’s never a time in my life — I don’t care if I’m 100 — that I want to stop learning, and learning in different ways.”

That’s why she wanted to be at the Dulye Leadership Experience in November, and that’s why she’s a sponge, always looking to fill her well with knowledge.

Construction

View from the Top

From left, Web Shaffer, Hubert McGovern, and Dewey Kolvek on one of the plant floors at OMG Inc.

From left, Web Shaffer, Hubert McGovern, and Dewey Kolvek on one of the plant floors at OMG Inc.

The past three years — spanning the pandemic and all the ways it has impacted industry, from supply chains to workforce challenges — have been rough on businesses of all kinds.

But for OMG Inc., it’s been a different story.

“I want to say three-quarters of the business is re-roofing,” said Web Shaffer, senior vice president and general manager of the firm, which encompasses two main divisions: OMG Roofing Products and FastenMaster. “So, while it’s not entirely recession-proof, when your roof goes, you can patch it for a little while, but you can only do that for so long.”

OMG President Hubert McGovern agreed. “You either get a bucket, or you get a new roof.”

And the bucket isn’t the ideal choice for a large company — think of an Tesla factory, a Target store, or an Amazon warehouse — with plenty to protect under that roof.

Meanwhile, 2020 found people stuck at home, not going on vacation, and, in many cases, investing in their homes, said Dewey Kolvek, OMG’s senior vice president of operations. “During the pandemic, it was crazy, with everybody battening down the hatches. A lot of people were at home, looking around, and saying, ‘you know, maybe we should remodel our bathroom. Maybe we should remodel the kitchen. Oh, let’s put a deck out in the back.’”

OMG Roofing Products, which manufactures and supplies roofing fasteners, adhesives, and rooftop drains, pipe supports, and solar mounts, as well as proprietary installation technology for the flat-roofing market; and FastenMaster, which develops fastening and adhesive products used by remodelers, deck builders, residential framers, home builders, and floor installers, both benefited from this environment.

“We’re not making basic drywall screws or something like that. If we have a new product, it’s got to have a feature, a benefit, a patented intellectual property, and something the customer wants.”

And during a time of global supply-chain issues in 2021 and 2022, “we grew out of control, and we couldn’t keep up,” McGovern said. “These last two years have been record years for the company because of the demand. It’s finally starting to settle, but we’ve been under the gun to produce as much as possible, as fast as possible, for probably two and a half years.”

Kolvek recalls it all vividly. “For a period there, we were on 24/7 for two months, just to try to put a dent in it. It was brutal.”

OMG is no stranger to growth spurts. After launching in 1981 as Olympic Fasteners, by 1987 it was manufacturing 100 million fasteners a year. In 1993, the company became Olympic Manufacturing Group — hence the OMG acronym — and in 1997, it was acquired by Handy & Harman, which was later taken over by a public company called Steel Partners. Throughout its history, OMG has grown about 10% a year, on average, through organic growth, constant product development, and a series of acquisitions.

Today, OMG boasts more than 650 employees — about 450 of them at its Agawam campus, which spans 480,000 square feet over a half-dozen buildings — and records about $400 million in annual sales. Its three other plants are located in Addison, Ill., Charlotte, N.C., and Rockford, Minn., in addition to field salespeople located across the U.S. and overseas. The company estimates that around 65% of all commercial, industrial, and institutional buildings in the U.S. that have been built or reroofed within the past 25 years have one or more of its products on their roof.

“The good news about roofing is, people need roofs,” McGovern said. “So if you have a decent building, you’re not willing to let it just deteriorate; you’re going to get a new roof if you need it. Or you’re going to have a lot of buckets and be running around like a chicken with your head cut off every time it rains.”

 

Hot Stuff

During BusinessWest’s recent visit to OMG’s factory in Agawam, Shaffer pointed out a Chinese advertisement for RhinoBond, the first non-penetrating, induction-based roof-attachment method in North America, which OMG introduced in 1999.

“RhinoBond is a global leader in induction heat welding, and a leading-edge technology in the commercial roofing industry,” he noted. “So we make stuff in Western Mass. and export it to places like China, which is pretty cool. It usually goes the other way.”

McGovern said OMG has a family of about 20 patents on its induction roofing technology, which uses heat to meld the roofing membrane to a fastener plate without having to puncture the membrane with a screw. “It’s a different way of doing roofing — and we lead the market with that.”

On an aerial photo of the Agawam campus, he pointed out a building dedicated to research and development that houses about 30 employees, mainly engineers, who work on developing new products. Over the years, the company’s developments have included TrapEase, the first composite deck screw that does not mushroom; OlyBond Insulation Adhesive, a two-part, low-rise polyurethane foam; OlyBond500 canisters, a new method of applying adhesive, and many more.

OMG’s patented heat-induction system

This flat roof will use OMG’s patented heat-induction system, which requires no screws to pierce the membrane.

“A lot of the growth has come from looking at our customers and saying, ‘what else can we sell these guys that will help them build a better roof?’” Kolvek said. “And that’s where you see our drains come in, or the solar mounts and other things. Those accessories have helped grow the business, as well as new technologies that cannibalize some of our original product line or allow a more premium solution to builders.”

Shaffer agreed. “We’re really getting out there to the customer and saying, ‘how can we help you? What are your challenges you’re facing?’ And maybe we can bring a solution to the table.”

FastenMaster in particular has been introducing new products at a brisk pace, as evidenced by an innovation award it received from Home Depot in November, for its Cortex Hidden Fastening System, which is used to build a deck with fully hidden hardware and fasteners. That kind of continuous development is possible only by staying atop and even spearheading industry trends, McGovern said.

“Some of the technology is changing, but we’ve changed some of the technology with our products,” he noted. “And we’re not making basic drywall screws or something like that. If we have a new product, it’s got to have a feature, a benefit, a patented intellectual property, and something the customer wants.”

“We’re in Western Mass., and we’re all vying for the same pool of workers. So what makes you different than someone else you’re competing against for that same labor?”

Clearly, customers do want them — not only domestically, but in a place like China that’s known much more for its imports to the U.S. than its exports from stateside manufacturers. “You don’t see that a lot in any industry — maybe in some more high-tech ones,” Kolvek said. “But in the construction industry, there’s a lot more imported product. So we have to be different — and better. That’s the bottom line.”

And when OMG develops a successful product, similar products will follow, as with the OlyBond canisters. “We introduced that technology to roofing and, it took off — tens of millions of dollars of sales in a very short period of time,” McGovern said. “Now everybody has a canister technology.”

OMG’s Cortex Hidden Fastening System

Last year, Home Depot gave one of its three innovation awards to OMG’s Cortex Hidden Fastening System.

“In business, that’s what happens,” Shaffer added. “If you’re successful like Tesla, well, somebody else is going to come out with electric cars. They’re not going to let you just do that forever. So you’ve got to move on and innovate again, which is what that whole R&D building is all about.”

And being first to market is important when operating on a global scale, McGovern said. “Then it’s everyone else playing catch-up.”

A key element in OMG’s success has been its embrace of lean manufacturing concepts, Kolvek explained.

“We have a pretty robust continuous-improvement program where we want all employees to be engaged with that thought: what is a better way? How do I improve efficiencies? Can I work safer? Can I work faster? You know, really just instilling people to understand the principles of driving the waste out of everything that we do. There’s always an alternative, and we have to pursue that to stay competitive and stay out in front.”

Shaffer agreed. “How do we compete globally from Western Massachusetts, which is not an industrial region? It’s the innovation plus lean operations keeping costs down and improving that value proposition to the end user. Managing costs and innovating — that’s how we succeed here in Western Mass.”

Focus on People

McGovern said the importance of employees is also reflected in initiatives ranging from tuition reimbursement and financial-wellness programs to company picnics, subsidized healthy meals, and physical-wellness programs such as yoga, massage therapy, and a gym and fitness trainer on site.

“These are all things that enhance people’s lives, that aren’t necessarily attached to the working piece of the company. But if people feel better about themselves, if they’re financially well, if they’re physically well, then we know they’re going to be a better employee. We win, and they win.”

Such efforts are even more important at a time when businesses of all sizes struggle to recruit and retain talented workers.

“It’s a huge issue. That’s why we spend a lot of time and money on it,” McGovern said. “We want the best employees, and we want them to stay. And it’s not an easy market.”

The goal has been to create an employee-centric culture, Kolvek added, and the proof of that model’s success is OMG’s continued growth.

“Management will walk the floor every day, in different areas of the company, just to find the pulse: ‘what are your challenges? What can I help you solve? Do you need anything from me?’ Maybe we’ve got to make an investment somewhere, and who better to highlight that than the person who’s dealing with that challenge day in and day out?

In addition, “you have to differentiate yourself from your competition,” Kolvek said. “We’re in Western Mass., and we’re all vying for the same pool of workers. So what makes you different than someone else you’re competing against for that same labor? If you have employee programs where people see value and benefit, they’re going to be more inclined to come here, stay here, and make a career here.”

Accounting and Tax Planning

The Goal Is Efficiency

 

Financial reporting isn’t all about profits. Not-for-profit entities can also benefit from implementing formal accounting processes. From preparing budgets and monitoring financial results to paying invoices and handling payroll tax, there’s a lot that falls under the accounting umbrella. Are these tasks, and others, being managed as efficiently at your organization as they could be?

 

Start with Invoicing

A good first step toward accounting-function improvement is creating policies and procedures for the monthly cutoff of recording vendor invoices and expenses. For instance, you could require all invoices to be submitted to the accounting department within one week after the end of each month. Too many adjustments — or waiting for employees or departments to weigh in — can waste time and delay the completion of your financial statements.

Another tip about invoices: it’s generally best not to enter only one invoice or cut only one check at a time. Set aside a block of time to do the job when you have multiple items to process.

You also may be able to save time at the end of the year by reconciling your balance-sheet accounts each month. It’s a lot easier to correct errors when you catch them early. Also, reconcile accounts payable and accounts receivable subsidiary ledgers to your statements of financial position.

 

Think Through Data Collection

Designing a coding cover sheet or stamp is another way to boost efficiency. An accounting clerk or bookkeeper needs a variety of information to enter vendor bills and donor gifts into your accounting system. You can speed up the process by collecting all the information on the invoice or donor check copy using a stamp. Route invoices for approval in a folder that lists your not-for-profit’s general-ledger account numbers so that the employee entering data doesn’t have to look them up each time.

The cover sheet or stamp also should provide a place for the appropriate person to approve the invoice for payment. Use multiple-choice boxes to indicate which cost centers the amounts should be allocated to. Documentation of the invoice’s payment should also be recorded for reference. And your development staff should provide the details for any donor gifts prior to your staff recording them in the accounting system.

 

Optimize Accounting Software

Many organizations underuse the accounting software package they’ve purchased because they haven’t invested enough time to learn its full functionality. If needed, hire a trainer to review the software’s basic functions with staff and teach time-saving tricks and shortcuts.

Standardize the financial reports coming from your accounting software to meet your needs with no modification. This not only will reduce input errors, but also will provide helpful financial information at any point, not just at month’s end.

Consider performing standard journal entries and payroll allocations automatically within your accounting software. Many systems have the ability to automate, for example, payroll allocations to various programs or vacation-accrual reports. But review any estimates against actual figures periodically, and always adjust to the actual amount before closing your books at year end.

 

Ongoing Review

Accounting processes can become inefficient over time if they aren’t monitored. Look for labor-intensive steps that could be automated or steps that don’t add value and could be eliminated. Also, make sure that the individual or group that’s responsible for the organization’s financial oversight (for example, your CFO, treasurer, or finance committee) promptly reviews monthly bank statements and financial statements for obvious errors or unexpected amounts.

 

This article was prepared by Whittlesey, one of the largest regional accounting firms in New England, specializing in the areas of accounting, audit, advisory, and technology.

Cybersecurity

Guessing Game

 

NordPass, a password manager that provides users with an encrypted password vault, recently released its annual report on the most commonly used — and, therefore, most easily cracked — passwords.

The most common password globally? That would be ‘password.’ The rest of the top five: ‘123456,’ ‘123456789,’ ‘guest,’ and ‘qwerty.’

In the U.S., ‘guest’ takes the top spot, followed by ‘123456,’ ‘password,’ ‘12345,’ and ‘a1b2c3.’

Clearly, not a lot of effort is going into creating such passwords, and it doesn’t take a hacker much time — mere seconds, actually — to defeat them.

Popular films and TV shows also rank among the past year’s most popular passwords, including ‘batman,’ ‘euphoria,’ and ‘encanto.’

“While the worst passwords might change every year, human beings are creatures of habit,” NordPass notes. “Every year, researchers notice the same pattern — sports teams, movie characters, and food items dominate every password list.”

Here are a few tips from the Federal Trade Commission (FTC) to create strong, secure passwords.

 

Make Your Password Long and Strong

That means at least 12 characters. Making a password longer is generally the easiest way to make it stronger. Consider using a passphrase of random words so that your password is more memorable, but avoid using common words or phrases. If the service you are using does not allow long passwords, you can make your password stronger by mixing uppercase and lowercase letters, numbers, and symbols.

 

Don’t Reuse Passwords

Use different passwords for different accounts. That way, if a hacker gets your password for one account, they can’t use it to get into your other accounts.

 

“While the worst passwords might change every year, human beings are creatures of habit. Every year, researchers notice the same pattern — sports teams, movie characters, and food items dominate every password list.”

 

Use Multi-factor Authentication When Possible

Some accounts offer extra security by requiring something in addition to a password to log in to your account. This is called multi-factor authentication. The something extra you need to log into your account fall into two categories: something you have, like a passcode you get via an authentication app or a security key; or something you are, like a scan of your fingerprint, your retina, or your face.

 

Consider a Password Manager

Most people have trouble keeping track of all of their passwords. The longer and more complicated a password is, the stronger it is, but a longer password can also be more difficult to remember. Consider storing your passwords and security questions in a reputable password manager. To find a reputable password manager, search independent review sites, and talk to friends and family for ones they use. Make sure to use a strong password to secure the information in your password manager.

 

Pick Security Questions No One Else Can Guess

If a site asks you to answer security questions, avoid providing answers that are available in public records or easily found online, like your zip code, birthplace, or mother’s maiden name. And don’t use questions with a limited number of responses that attackers can easily guess, like the color of your first car. You can even use nonsense answers to make guessing more difficult — but if you do, make sure you can remember what they are.

 

Change Passwords Quickly If There’s a Breach

If a company tells you there was a data breach where a hacker could have gotten your password, change the password you use with that company right away, and on any account that uses a similar password. And if someone is using your information to open new accounts or make purchases, report it and get help at identitytheft.gov.

 

Bottom Line

“Passwords are the locks on your account doors,” the FTC notes. “You keep lots of personal information in your online accounts, including your email, bank account, and your tax returns, so you want good protections in place.”

Features Special Coverage

A Journey Continues

Suzanne Parker, left, and Yadillete Rivera-Colón

Suzanne Parker, left, and Yadillete Rivera-Colón in the new home of Girls Inc. of the Valley on Hampden Street in Holyoke.

An adventure.

A struggle.

An experience.

A journey.

Suzanne Parker used all those terms and others that would be considered synonyms, usually with more than a hint of understatement in her voice, to describe the process of taking Girls Inc. of the Valley to the doorstep of opening its new headquarters facility in Holyoke.

The journey, adventure, or whatever she wants to call it is far from over. In fact, construction is still in what would be considered phase 1. But most of the really hard work — and there has been a mountain of it — is now behind Parker, executive director of this nonprofit, and countless others who have been involved.

Thus, they can focus even more of their energies on making this facility all that they hoped it could be when people first started thinking about a new home more than seven years ago.

Indeed, Parker noted that the ceremonial ‘thermometer’ erected on a sign just outside the property on Hampden Street needs to be adjusted to reflect that 92% of the stated $5 million fundraising goal has now been met. Meanwhile, work continues inside on the various spaces that will define this facility, from a community room to a maker space to a teen lounge.

The work to create a new space for Girls Inc. began in earnest out of necessity — specifically, the knowledge that a 40-year lease on property the nonprofit was leasing in downtown Holyoke was expiring and would not be renewed — and brought Parker and other leaders of Girls Inc. to countless properties in or near downtown Holyoke in search of the perfect fit, knowing that such a thing probably didn’t exist.

But they found something close in the former headquarters of the O’Connell Companies on Hampden Street, a building, or at least portions of it, that date back to the late 19th century.

“Throughout this journey, we have gained a great deal of visibility, and people have been able to learn about who we are, what we do, and why Girls Inc. is so important to this region. It’s been a great opportunity to tell our story and get people involved.”

Retrofitting the multi-level structure, complete with many unique spaces, has become a labor of love for those involved with Girls Inc. — and so much more.

Indeed, for many of the girls who are members, it has been a unique, hands-on learning experience, with real-life lessons in everything from marketing to fundraising to architecture. In fact, several girls worked directly with lead architect Kuhn Riddle to design one of the spaces in the new home.

The ‘thermometer’ measuring donations to the Girls Inc. campaign needs to be updated to reflect that more than 90% of the needed $5 million has been raised.

The ‘thermometer’ measuring donations to the Girls Inc. campaign needs to be updated to reflect that more than 90% of the needed $5 million has been raised.

Meanwhile, this quest for, and the building of, a new home has been a tremendous opportunity for Girls Inc. to gain exposure, make new connections, and strengthen existing ones, said Parker, adding that this work is ongoing as the nonprofit works to raise that remaining 8% of the funds needed.

“Throughout this journey, we have gained a great deal of visibility, and people have been able to learn about who we are, what we do, and why Girls Inc. is so important to this region,” she said. “It’s been a great opportunity to tell our story and get people involved.”

And, in many ways, the project has been a means to celebrate and promote women in all kinds of businesses who have been involved in this endeavor. That list includes those working in fundraising, finance, law, architecture, and construction, as we’ll see.

This has also been a study in perseverance, said Yadilette Rivera-Colón, an assistant professor of Biology at Bay Path University, BusinessWest Forty Under 40 winner, and current Girls Inc. board chair, noting that the many inherent challenges in a project like this were magnified greatly by the pandemic, which made every aspect of the work more difficult.

Summing it all up, Parker said that, while there is much to do, a celebration of all that has been accomplished — and learned — is in order. And Girls Inc. will do that in March as it marks the passing of the 90% milestone in fundraising, as well as the completion of the first phase of construction. There will be tours and an opportunity to make more connections and more friends.

It will be an occasion to celebrate what’s been done and what this new home will be — and there is much in both categories.

 

Home Work

As she talked about the search for a new home and the many properties she and others toured during that lengthy process, Parker paused, glanced skyward, and let out a heavy sigh, body language that pretty much told the story.

“There was a four-year period where I was visiting nearly every building in the city of Holyoke,” she told BusinessWest, adding that, while many were attractive in some respects, none could really check all the boxes she wanted to check.

One was seemingly perfect in most ways, but had little if any parking, she said. Other property makeovers into a permanent home for the agency were simply out of the agency’s price range. And a great number simply needed way too much work to fit the bill.

Eventually, some properties graduated beyond the tour stage and into the exploration, or feasibility, stage, and that further consideration meant investments in time, energy, and sometimes money, she explained. And as the vetting process continued, there were often hard decisions about if and when to let go and move on to something else.

“To have to decide not to go ahead with it is a big decision,” she explained. “You’ve invested time and energy and resources into that, but you have to make a decision … that this is not the one. But you don’t know if the one is out there. There were lots of hard decisions to make.”

The property on Hampden Street didn’t exactly check all the boxes, either. Indeed, its front door is literally a five-foot sidewalk away from a very busy street, said Parker, adding that there were infrastructure issues as well.

But those few shortcomings were all but lost in everything else the building provided — from ample parking at a lot just a few hundred feet away to a backyard; from easy access to a nearby public park to 16,000 square feet of intriguing space Parker described as a “blank canvas” that would enable Girls Inc. to accomplish its primary goal of bringing all of its staff and programing under one large roof.

The property became available somewhat unexpectedly in 2020, at the height of the pandemic, and in many respects because of it — its owners had decided it would not be viable as office space moving forward with the advent of remote work. After some due diligence, those at Girls Inc. decided their search was over.

Some of the new and innovative spaces at the new home of Girls Inc

Some of the new and innovative spaces at the new home of Girls Inc. of the Valley include a teen lounge (seen here), a maker space, and a community room.

But the laundry list of challenges certainly wasn’t, especially with the way the pandemic slowed many aspects of this broad endeavor or prompted a full pause.

First, let’s back up a bit.

Our story starts back in 2016, with the knowledge that a new home was needed, said Parker, adding that an initial fundraising campaign, with a goal of $3 million, was launched in 2018 — long before a suitable space had been found. And the campaign got off to a great start, with gifts from the Kendeda Fund and the Elaine Nicpon Marieb Charitable Foundation.

“We were doing well,” said Parker. “And then, the pandemic hit, and we had to take a pause from the campaign. But the campaign steering committee continued to meet regularly throughout that time; we figured out how to use Zoom, we met virtually, and they kept meeting month after month.

“I think some people might have pulled the plug on a campaign,” she went on. “But we kept working.”

And this work enabled Girls Inc. to push ahead after all its due diligence on the Hampden Street property and eventually commence work in the spring of 2022, bringing a long-held dream that much closer to reality.

Cynthia Medina Carson, an executive recruiter, talent consultant, and leadership coach now living in New York, is one the campaign co-chairs and a Girls Inc. alumna who grew up not far from its original home. She remembers walking into what was then a new space for Girls Inc. back in the early ’80s.

“The approach has been, ‘we’re not going to make this for you without you.’ Every part of the process involves the stakeholders; they have to be part of it, so that, in the end, this will be a building we will all be proud of.”

She also remembers thinking that setting aside space for girls was somewhat radical at the time — but very important. It gave girls a place to go, things to do, and opportunities to learn. She said that space — and the programs staged in it — was so important to her development that she signed on to get involved in finding and creating a new home.

“I know there’s a lot of afterschool programs and online stuff, but having the actual physical space where people can congregate and be who they need to be around people who advocate for them and champion them is a very unique thing to have for women,” she said. “So it was very important for me to get involved in this project.”

And like the others we spoke with, she said this has been a challenging journey, but an invaluable learning experience as well.

“It was hard and crazy, and it wasn’t the journey everyone thought it would be,” she noted. “We ended up where we needed to be, but it was hard; it was intense.”

 

Designs on Growth

As Parker and Rivera-Colón led BusinessWest on a tour of the facilities, they stopped in a number of the emerging spaces. In each one, they talked about how they would enable Girls Inc. to serve more girls and expand its mission.

The renovations were scheduled to enable significant amounts of program space to be ready this summer, said Parker, adding that, given the property’s prior uses as a home to lawyers, engineers, and other professionals, minimal work will be needed to prepare the space for the agency’s staff and administration.

These emerging spaces include:

• A community room, a large space suitable for both small- and large-group activities. It will be the site of healthy-living programming, including dance, active games, yoga, and meditation;

• Maker space, which will be the cornerstone of the Eureka! program, where eighth-grade girls begin a five-year journey toward possible careers in STEM fields. The space will be educational and fun, with hands-on activities; and

• A teen lounge, a space for teen girls to call their own. A relaxed and empowering environment, it will be loaded with college-readiness resources and will host a diverse range of teen-centered programs.

The renovation work at the agency’s new home — and many stages of the process that came before it — have, as noted earlier, provided learning experiences for girls involved with the agency, said Parker, noting that teens gave tours to donors and potential donors.

The red hard hats

The red hard hats at the home of Girls Inc. reflect a project that has been an adventure and a learning experience on many levels.

Meanwhile, some of the Eureka! program teens learned about architecture and design from the team at Kuhn Riddle, led by president Aelan Tierney (one of BusinessWest’s Women of Impact for 2022), and actually made one of the design decisions on one of the spaces — a lobby area outside of the teen center.

Overall, nothing about the new home for Girls Inc. has been finalized without the input of they main stakeholders: the girls themselves, said Rivera-Colon, adding that this includes the location of Parker’s office.

“The approach has been, ‘we’re not going to make this for you without you,’” she explained. “Every part of the process involves the stakeholders; they have to be part of it, so that, in the end, this will be a building we will all be proud of. Everyone has had input, from the youngest girls up to Suzanne, which I think is incredible.”

While offering tours and providing input on the new space, girls have also seen women at work on every facet of this project, which was another goal and another part of the learning experience, said Parker, adding that many area women professionals have been integral to this project.

That list includes Tierney at Kuhn Riddle; attorney Rebecca Thibault with Doherty Wallace Pillsbury & Murphy, a former Girls Inc. board member; construction managers D’Lynn Healey and Ta Karra Greene with Western Builders, the general contractor for the project; Vicky Crouse, president of Commercial Lending at PeoplesBank; and Julie Cowan, vice president of Lending for MassDevelopment.

These professionals serve as role models, said Parker, adding that, from the start, this project was to be women-led and girl-focused.

“It’s been incredible the number of women involved in leadership roles on this project,” Rivera-Colón said. “And it wasn’t by accident.”

Summing up the feelings of most people involved with this project, she added that “we’ve been so long in planning and executing all this that it doesn’t seem real that we’re finally here. But we are.”

 

Bottom Line

Given the words used by Parker and others to describe this long and difficult process, one can see why those involved would certainly not want to do this any time soon.

The good news is they won’t have to; the property on Hampden Street will suit the needs of Girls Inc. for decades to come.

While acknowledging that fact, all those involved also recognize that, as challenging as this journey has been, it has also been rewarding on countless levels. And it encapsulates all that this thriving agency is all about: enabling girls to learn, grow, and reach their full potential — together.

Considering all that, this has certainly been an exercise in building momentum for Girls Inc. — figuratively but also quite literally.

 

Accounting and Tax Planning Special Coverage

Save and SECURE

By Dan Eger

The SECURE Act, or Setting Every Community Up for Retirement Enhancement Act, was signed into law in December 2019. This legislation made it easier and more affordable for individuals to save for retirement by introducing new rules and incentives that promote long-term savings.

The SECURE Act also supports small businesses by making it easier for them to offer retirement plans to their employees.

Overall, the SECURE Act aimed to make retirement savings more accessible and secure for Americans of all ages and economic backgrounds.

The 2019 legislation included changes that affected traditional 401(k)s and IRAs, such as expanded eligibility for opening a Roth IRA, new requirements for minimum distributions from retirement accounts, and incentives for small businesses to offer retirement plans. The law also included provisions to benefit those who are retired or disabled, such as increasing the age at which a person must begin taking required minimum distributions from 70½ to 72.

Legislation commonly referred to SECURE 2.0 Act (the Consolidated Appropriations Act of 2023) was signed into law on Dec. 29, 2022. The SECURE Act 2.0 bolsters the benefits offered in 2019’s version, making it more enticing for employers to provide retirement plans and improve employees’ retirement prospects along the way.

What follows is a summary of some of the provisions, but keep in mind that the act includes more than 90 provisions that potentially affect retirement-savings plans.

 

Mandatory Automatic Enrollment

Effective for plans beginning after Dec. 31, 2024, new 401(k) and 403(b) plans must automatically enroll employees when eligible. Automatic deferrals start at between 3% and 10% of compensation, increasing by 1% each year to a maximum of at least 10%, but no more than 15% of compensation. Participants can still opt out.

“Overall, the SECURE Act aimed to make retirement savings more accessible and secure for Americans of all ages and economic backgrounds.”

 

Automatic Escalation

Beginning in 2025, for new retirement plans started after Dec. 29, 2022, contribution percentages must automatically increase by 1% on the first day of each plan year following the completion of a year of service until the contribution reaches at least 10%, but no more than 15%, of eligible wages. Governmental organizations, churches, and businesses with 10 employees or fewer, as well as employers in business for three years or fewer, are exempt from this policy.

 

Expanded Eligibility for Long-term, Part-time Employees

Under current law, employees with at least 1,000 hours of service in a 12-month period or 500 service hours in a three-consecutive-year period must be eligible to participate in the employer’s qualified retirement plan. SECURE 2.0 reduces that three-year rule to two years for plan years beginning after Dec. 31, 2024.

 

Increase in Catch-up Limits

Effective after tax year 2024, SECURE 2.0 provides a notable rise in the amount of contributions for those aged between 60 to 63. Generally, the additional catch-up limit for most plans is $10,000 and only $5,000 for SIMPLE plans. These amounts are subject to inflation adjustment just like the normal catch-up contributions. Furthermore, those more than 50 years old are eligible for increased contribution limits on their retirement plans (known as ‘catch-up contributions’). For 2023, the maximum catch-up contribution amount has been set to $7,500 for most retirement plans and will be subject to inflation adjustments.

 

Rothification of Catch-up Contributions for High Earners

For plans that permit catch-up contributions, high earners ($145,000 in paid wages from the employer sponsoring the plan the preceding year, indexed to inflation) can no longer enjoy the privilege of tax-deferred catch-up contributions, as their contributions need to be characterized as designated Roth contributions.

 

Treatment of Student-loan Payments for Matching Contributions

Starting in 2024, student-loan payments can be treated as part of your retirement contribution to qualify for employer-matched contributions in a workplace retirement account. Employers will have the flexibility to provide contributions to their retirement plan for employees who are paying off student loans instead of saving for retirement.

 

Emergency Savings Accounts

Starting in 2024, retirement plans will have the option of providing ‘emergency savings accounts’ that allow non-highly paid employees to make after-tax Roth contributions to a savings account within their own retirement plan. Employers may automatically opt employees into these accounts at no more than 3% of eligible wages. Employees can opt out of participation. No further contributions can be made if the savings account has reached $2,500 (indexed), or a lesser limit established by the employer. The Department of Labor and/or the Treasury Department may issue guidance on these provisions.

 

Withdrawals for Certain Emergency Expenses

Penalty-free distributions are allowed for “unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses” up to $1,000. Only one distribution may be made every three years, or one per year if the distribution is repaid within three years. Penalty-free withdrawals are also allowed for small amounts for individuals who need the funds in cases of domestic abuse or terminal illness.

 

Federal Contribution Match

Starting in 2027, low-income employees can gain access to a federal matching contribution of up to $2,000 each year that will be deposited into their retirement savings account. The matching contribution is 50% of the contributions, but it decreases according to income — for example, married taxpayers filing jointly between $41,000 and $71,000, and single taxpayers between $20,500 and $35500.

 

Required Minimum Distributions

Beginning Jan. 1, 2023, the age for required minimum distribution (RMD) from an IRA is increased to age 73. Starting in 2033, the RMD age will be 75. (IRA owners turning age 72 in 2023 would not be required to take RMDs in 2023.) Furthermore, the penalty for not taking your RMD has been decreased from 50% of what was required to be withdrawn to 25%, and even further down to 10% if corrected within two years.

 

Facilitation of Error Corrections

The act expands the self-corrections system, allowing more types of errors to be fixed internally without having to amend returns in the Employee Plans Compliance Resolution System.

 

Immediate Incentives for Participation

At this moment, employers use matching contributions as a means to motivate employees to save for their retirement. Beginning in 2023, employers can incentivize employees with gifts cards or other small monetary rewards to increase engagement, although any financial rewards should be small and cannot come from retirement-plan assets.

In summary, the SECURE Act 2.0 provides many new benefits and opportunities to save for retirement. It allows employers to offer more flexible contributions and encourages employees with incentives to become engaged in their own financial health. With reduced penalties and expanded self-correction rules, this act gives Americans more control over their retirement savings, allowing them to become better prepared for their future.

As always, it’s important to consult with your advisor for advice, as guidance and changes to provisions are expected, and everyone’s situation is unique.

 

Dan Eger is a tax supervisor at the Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.; (413) 536-8510.

Cybersecurity Special Coverage

Defense Mechanism

 

The numbers are staggering. According to Cybersecurity Ventures’ 2022 cybercrime report, the cost of cybercrime is predicted to hit $8 trillion in 2023 and will grow to $10.5 trillion by 2025.

The impacts on businesses are already well-established. According to security.org, one in every six businesses that fell victim to cyberattacks faces ransomware, and about half of them pay the ransom. And according to a report last year by Security Intelligence, the share of data breaches caused by ransomware grew 41% in the previous year and took 49 days longer than the average breach to identify and contain.

A study conducted last year by Positive Technologies among financial organizations, fuel and energy organizations, government bodies, industrial businesses, IT companies, and other sectors found that cybercriminals are able to penetrate 93% of company networks and gain access to local network resources.

Such breaches, obviously, affect personal data. In 2020 alone, data breaches exposed more than 37 billion personal records, 82% of which came from only five breaches, security.org notes. Data breaches affect not only companies and organizations, but also the people whose information is in the exposed records. And identity-fraud losses in 2020 cost its 49 million victims $56 billion in total, or roughly $1,100 per victim.

“Cyber insurance premiums are climbing, and it’s becoming increasingly difficult for companies to afford or obtain coverage.”

Clearly, the threat is real, and growing. Here are a few trends to consider when looking at the cybersecurity landscape, and what tech media and organizations are saying about them.

 

Rising Threats, Rising Liability

With the rise in cybercrime has come increased risk for businesses, and that means a much larger cybersecurity sector. According to security.org, the global cyber insurance market was worth $7.8 billion in 2020 and is likely to grow into a $20 billion industry by 2025. About 75% of all cyber insurance premiums are for businesses, and the rest for individuals. But that could be shifting as well.

So, too, is the responsibility companies bear for their own data security, Forbes projects. “Cyber insurance premiums are climbing, and it’s becoming increasingly difficult for companies to afford or obtain coverage,” the publication notes. “To negotiate insurance premiums and better risk coverage, businesses will be required to present evidence across a broad spectrum of security areas in order to prove compliance with leading cybersecurity standards and best practices.”

Organizations will begin to conduct enterprise risk assessments that highlight the maturity level of their cybersecurity program and proactively address any underwriting concerns, it continues, noting that risk assessments can help determine decisions around insurance gaps, limits, and coverage.

“With the distinct possibility of a global recession on the horizon, we expect to see ransomware attacks spike in 2023. However, larger organizations in regions heavily impacted during the ransomware boom are the most prepared for this wave after investing time and money in fighting back.”

As for those internal efforts, Forbes also notes that cybersecurity has become too complex for many organizations to manage on their own, and most companies don’t have the skills or resources to manage a full-fledged security operations center (SOC). For these reasons, many businesses will be forced to think creatively and could decide to outsource their day-to-day security operations.

Locally, one such SOC is being developed at Springfield Union Station, part of a state- and federally funded project announced in November to establish a Cybersecurity Center of Excellence at the site, which will also include a ‘cyber range’ for training.

Mary Kaselouskas, vice president and chief information officer at Springfield Technical Community College (STCC), which will manage the center, noted recently that “a lot of companies don’t have the resources for a fully operational SOC, or can even afford to have managed SOC operations,” so the need for a local SOC is clear.

 

Zero Trust on the Rise

One way businesses are increasingly curtailing cyber threats is through a concept called ‘zero trust.’

According to IBM, the idea, developed by John Kindervag in 2010 while a principal analyst at Forrester Research, is a broad framework that promises effective protection of an organization’s most valuable assets. It works by assuming every connection and endpoint is considered a threat.

Essentially, a zero-trust network logs and inspects all corporate network traffic, limits and controls access to the network, and verifies and secures network resources. A zero-trust security model ensures data and resources are inaccessible by default, and users can only access them on a limited basis under the right circumstances, known as least-privilege access. The strategy also authenticates and authorizes every device, network flow, and connection.

“As hybrid work became a way of life, more organizations have started adopting zero-trust frameworks, meaning all users, apps, and devices that request access are assumed to be unauthorized until proven otherwise,” Security Intelligence notes. “Organizations with a zero-trust approach deployed saved nearly $1 million in average breach costs compared to organizations without zero trust deployed.”

 

Connecting the Globe

Perhaps no cybersecurity trend has been bigger in the last several years than the scourge of attacks related to the supply chain. Analyst firm Gartner predicted that, by 2025, 45% of global organizations will be impacted in some way by a supply-chain attack.

“Cyber criminals look for organizations or industries teetering at the edge and then make their move to tip them over,” said Charles Henderson, an IBM global managing partner and head of IBM Security X-Force. “Last year, we saw that with manufacturing — a strained industry viewed as the backbone of supply chains. With the distinct possibility of a global recession on the horizon, we expect to see ransomware attacks spike in 2023. However, larger organizations in regions heavily impacted during the ransomware boom are the most prepared for this wave after investing time and money in fighting back.”

Global threats often require a global response, which is why, last year, the U.S. State Department announced the launch of the Global Emerging Leaders in International Cyberspace Security (GEL-ICS) Fellowship, in partnership with the Meridian International Center.

The fellowship will support the development of a diverse global network of future cyber policy leaders who share the U.S. and other partners’ vision for cyberspace, and is designed to equip emerging leaders from the governments of these foreign partners with the knowledge and global connections to be advocates of the framework of responsible state behavior in cyberspace, as affirmed by the United Nations General Assembly.

The first cohort of 20 to 25 government officials will engage in a year-long program on international cyberspace policy in 2023. Fellows will visit Washington, D.C., New York City, and San Francisco to engage with U.S. and international leaders from government, industry, and civil society. They will also participate in a series of thematic webinars to support continuing education and foster networking among the fellows and stakeholders.

Additionally, fellows will reconvene on the margins of the 2023 Internet Governance Forum hosted in Japan to mark the end of the program. With each year, fellowship alumni will form a growing, global network of proponents for a stable and secure cyberspace for future generations.

 

Good Time for a Job Search

If there’s a plus to the increasing cyber threat landscape, it’s an explosion in job opportunities. Even at a time when the IT industry is seeing massive layoffs, cybersecurity appears to be a safer harbor than other tech careers.

The global cybersecurity workforce grew to encompass 4.7 million people last year, reaching its highest-ever levels, according to a workforce study by ISC2. However, the same study found there is still a need for more than 3.4 million security professionals, an increase of more than 26% from 2021’s numbers.

The U.S. Bureau of Labor Statistics projects similarly robust need, estimating that the number of cybersecurity jobs will grow by 35% between 2021 and 2031. According to Cyberseek, of those 3.4 million professionals needed globally, about 770,000 opportunities are in the U.S. alone.

Education

It’s Not Simply Academic

Hubert Benitez

Hubert Benitez says AIC strives to create a sense of belonging for students.

With high-school graduation numbers down in the U.S. and college enrollments following suit, Hubert Benitez says higher-education institutions must take a multi-pronged approach to enrollment management and their “overarching value proposition.”

“The academic portfolio of all our institutions across the region are very strong. So the students have options: wherever they will go, they will receive a sound education,” said Benitez, who began his tenure as president of American International College (AIC) last spring. “So, having said that, what truly differentiates one college from another?”

To answer that question, he pointed to a report called “AIC Reimagined 2022-2027,” which considers how to rethink strategies in six different pillars, including academics; student life, engagement, and support; fiscal growth; internal and external community engagement and development; diversity, equity, inclusion, and belonging, and athletics.

Take the first pillar, academics. “We realized, post-pandemic, that we have to reimagine our academic enterprise and what the collegiate experience is all about,” Benitez told BusinessWest. “We have to rethink how we offer education. Students learn differently, and they want to attend college in a different way. We have a lot of non-traditional students coming back to education, people who, post-pandemic, want to retool themselves for a career change — adult learners, students who have family commitments. If we are to address their needs, we really have to rethink how we offer our academic portfolio.”

Colleges and universities everywhere are having similar conversations about how to attract, and then shepherd to graduation, a smaller pool of potential college students than in past decades, due largely to changing demographics.

“The return-on-investment case has been made over and over again. The economics have been quite clear for a long time: people with a college degree earn over a million dollars more over their lifetime than those who don’t have one.”

According to the National Student Clearinghouse Research Center, undergraduate enrollment at U.S. colleges fell by 1.1% in fall 2022 compared to 2021, a pace of decline that’s nearly returned to pre-pandemic rates. In between was a year, 2020, when enrollment dropped 3.4%, followed by 2.1% in 2021. The net effect of those years is an enrollment total that’s down close to 7% from 2019.

“The trend for higher-education enrollment had been on the decline, but this was certainly exacerbated by the pandemic years,” Elms College President Harry Dumay said. “But things are coming somewhat back to normal these days for us.”

That’s reflected in some healthy numbers for Elms’ various segments, including first-time freshmen, traditional transfer students, and especially graduate students; the only segment that has seen some erosion is transfers from community colleges, which were hit hard by the pandemic.

A stabilization of enrollment makes sense, despite the high cost of college, Dumay said. “The return-on-investment case has been made over and over again. The economics have been quite clear for a long time: people with a college degree earn over a million dollars more over their lifetime than those who don’t have one.”

What Elms and many other schools are now doing is providing more flexibility for adult and non-traditional students, such as stackable, short-term certificates that ease the way to gainful employment and accumulate toward a degree down the line.

However, he noted, beyond the economics, what shouldn’t be undervalued is the formative aspect of college, especially for the shrinking 18-22 age demographic. “Whether you go full-time or part-time, whether residential or commuter, there is something that happens in those years — forming character, learning to think critically — which affects the value.”

Benitez said culture is a key element of AIC’s message to prospective students and their parents.

“One differentiator is how we create a sense of belonging for the students. It’s very important to today’s students,” he explained. “When they arrive on campus, they need to feel like they belong. I truly believe AIC provides that value to any student from any background because we have intentionally created an environment where every single student feels like they belong.”

Once enrolled, he added, “we follow the student along their educational journey, providing support services at every single stage of their academic journey.”

“If any students are struggling for any reason that would keep them from persisting and staying enrolled at college, we have a whole team dedicated to helping them work through that.”

Darcey Kemp

Darcey Kemp

In fact, that’s a key element of one of the six pillars, and it’s important, especially for first-generation college students, to have the peace of mind offered by such supports.

“For a parent who did not have the opportunity to attend college, leaving his or her child in an environment where they don’t know if they’re going to feel right has to be daunting,” Benitez said. “We try to approach parents and students alike, making them understand that’s important to us. I hope they are relieved when they come here and feel the caring environment.”

 

Support System

Springfield Technical Community College (STCC), whose enrollment figures are up slightly from last spring, is also heavily focused on culture and student support, said Darcey Kemp, vice president of Student Affairs.

“There’s no one-size-fits-all approach,” she added. “Our students are individuals, with individual experiences.”

The support starts early, with outreach to high-school students to help them with applications, placement testing, financial aid, choosing class schedules, and more. “We come to you,” Kemp said, noting that STCC also invites guidance counselors to campus so they can gather information to bring back to their schools.

Aware of the impact the pandemic had on men of color, who dropped out disproportionately during that period, STCC also created the Male Initiative for Leadership and Education (MILE), a program that provides inclusive academic support, mentoring, and community-engagement opportunities to male students, particularly Black and Latino students. Participants connect with professionals who serve as mentors throughout the student’s time at the college, helping them stay on track to reach their degree goals.

That can be a challenge at many institutions. The Education Data Initiative reports that first-time undergraduate freshmen have a 12-month dropout rate of 24%. Among first-time students in bachelor’s-degree programs, almost 26% do not earn their degree; among all undergraduate students, around 40% drop out.

The economic impact can be significant; the same report notes that college dropouts make an average of 33% less income than those who hold bachelor’s degrees, and college dropouts are almost 20% more likely to be unemployed than any degree holder.

That’s why student advisors at STCC work closely with students to make sure they’re taking the classes they need to achieve their degree goals, and why the college regularly looks back five semesters and reaches out to anyone who has paused their education and not returned during those two and a half years, to talk about what supports they might need to continue, and what steps to take to re-enroll.

“We need, in higher education in general, to invest time and energy into resources that help students reach their personal and academic goals,” Kemp said. “It’s an individualized conversation for each student.”

Dumay said 44% of Elms students are Pell-eligible, meaning they come from low-income families, so it’s important that they succeed. “You don’t want to come to Elms and not graduate, whether with debt or without debt, because of the investment of time. It’s really important we help our students graduate.”

With a student graduation rate and a first-year retention rate higher than the national average, that effort has paid off, he added. “There are a variety of things we put in place to ensure we help students be successful, including a physical Center for Student Access, but also supports like coaching.”

Benitez said 50% of AIC’s student body is Pell-eligible, and many are the first in their family to attend college. “We have a number of programs for first-generation college students that include very basic things like time management, how do you learn, how do you study, how to you financially plan? This is often new to them, so helping them navigate their college experience is very important to us.”

STCC’s Center for Access Services helps students tackle issues such as homelessness and food insecurity that could hinder their ability to get an education and climb the economic ladder.

“If any students are struggling for any reason that would keep them from persisting and staying enrolled at college, we have a whole team dedicated to helping them work through that,” said Kemp, adding that the STCC website also has a ‘chat now’ feature for student questions on anything from admissions to financial aid to understanding the Blackboard learning-management system. “It’s another way to demonstrate to students that we will engage with them in any way they want to engage with us.”

 

Rolling with the Changes

In short, Kemp said, “it’s important that we continue to share with students that there are opportunities to manage all the things they have going on. If a working parent wants to go to college, they can; they don’t have to choose between taking care of the family and obtaining a degree.”

That proposition is easier now, she added, with the program flexibility — in person, hybrid, or fully online — that emerged during the pandemic.

Benitez believes academic institutions today need to serve as engines for workforce development, and in AIC’s case, the impact is local, as most of its students hail from the region, and many stay and work here after graduation.

“We ask our business partners, what do you need in a graduate? What is the skillset, the competency set? And how are we going to revise and reimagine our academic offerings so it’s responsive to the workforce needs of this region?”

Because young people today plan to change jobs many times, one role of colleges is to teach them to be lifetime learners, he added, so they can easily adapt to their changing environment; in some cases, they’re training for jobs that don’t even exist yet. “We should prepare the groundwork for them to learn as they grow,” Benitez said.

Dumay told BusinessWest that the past few years have been a difficult time for all colleges, one in which they’ve had to be prudent financially. But he believes those efforts to tighten up and adapt are worth it.

“We’re providing a tremendous service to the general public — not just Elms, but all colleges like us — by helping the citizenry, both young people and not so young, get a foot on the economic ladder. That benefits all of us,” he said.

“If higher education struggles, the entire economy struggles,” he went on. “We are certainly staying strong, and the help that has been provided by the federal and state government helped a lot of colleges remain strong. But it is still a challenging time for higher education, and we want to remain healthy and strong so we can serve our students.”

To do that, Benitez said, requires a willingness to do things differently — in other words, to reimagine a college education. He believes the alternative, stagnation, is unsustainable.

“Academic institutions must be able to adapt to the current times, to meet the student where they are,” he said. “That’s critically important in these times.”