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Speak Out Act Eases Restrictions on Harassment Claims

By Contributor
Law

Talking Points

By Briana Dawkins, Michael Roundy, and Mary Jo Kennedy

 

Effective Dec. 7, 2022, a new federal law, the Speak Out Act, limits the enforceability of pre-dispute non-disclosure and non-disparagement agreements relating to sexual-harassment or sexual-assault disputes in the workplace. Such agreements that were entered into before an actual dispute arises are now unenforceable.

Brianna Dawkins

Brianna Dawkins

Michael Roundy

Michael Roundy

Mary Jo Kennedy

Mary Jo Kennedy

The Speak Out Act defines a pre-dispute agreement as one that is entered into between an employer and an employee before a sexual-harassment or assault dispute ‘arises’ — that is, before an allegation of sexual assault and/or harassment is made. Often, employers require employees to sign non-disclosure and non-disparagement agreements upon commencement of employment in order to protect confidential or otherwise private employer information. Under the Speak Out Act, these clauses can no longer be enforced with respect to any sexual-harassment or sexual-assault claim that may arise in the future.

A non-disclosure clause is defined in the act as “a provision in a contract or agreement that requires the parties to a contract and/or agreement not to disclose or discuss conduct, the existence of a settlement involving conduct, or information covered by the terms and conditions of the contract or agreement.” A non-disparagement clause is “a provision in a contract or agreement that requires one or more parties to the contract or agreement not to make a negative statement about another party that relates to the contract, agreement, claim, or case.”

A sexual-harassment dispute involves “conduct that is alleged to constitute sexual harassment under the applicable federal, tribal, or state law.” A sexual-assault dispute involves a “non-consensual sexual act or sexual contact, as such terms are defined in [federal criminal law] or similar applicable tribal or state law, including when the victim lacks capacity to consent.”

The act’s protections apply not only to complaints of sexual harassment or sexual assault towards an employee, but also to complaints about sexual harassment and assault involving other individuals. The act’s provisions do not prohibit an employee and an employer from entering a non-disclosure or non-disparagement agreement after a complaint of sexual harassment or assault has arisen. Thus, the act does not prohibit such clauses, for example, in agreements settling sexual-harassment or sexual-assault claims after they are asserted. However, employers should exercise caution, as such clauses in settlement agreements may have significant tax implications for employers under the 2017 Tax Cuts and Jobs Act.

“The act’s protections apply not only to complaints of sexual harassment or sexual assault towards an employee, but also to complaints about sexual harassment and assault involving other individuals.”

The congressional rationale expressed through the language of the act is clear. Many women who experience sexual harassment in the workplace are forced to leave their jobs or their industries, or to pass up opportunities of advancement. According to the congressional findings identified in the act, one in three women face sexual harassment or assault in the workplace, approximately 90% of whom never file a formal complaint.

The congressional findings also state that non-disclosure and non-disparagement agreements between employers and current and former employees, prospective employees, and independent contractors can perpetuate illegal conduct by silencing survivors of illegal sexual harassment and assault. Therefore, Congress finds that prohibiting such non-disclosure and non-disparagement clauses will empower survivors to speak out, hold perpetuators accountable, improve transparency around illegal conduct, and make workplaces safer and more productive for everyone.

The Speak Out Act complements the enactment earlier this year of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFASASHA). That act, which applies to employers subject to the Federal Arbitration Act, prohibits mandatory arbitration agreements between employers and employees for sexual-harassment and sexual-assault disputes. It also applies retroactively to arbitration agreements between employers and employees that have already been entered into containing such mandatory arbitration provisions.

Following the enactment of the Speak Out Act and the earlier EFASASHA, employers are encouraged to be proactive about compliance and should review their template releases and agreements to ensure that pre-dispute non-disclosure and non-disparagement agreements do not violate these laws.

It bears noting that the Speak Out Act does not invalidate non-disclosure and non-disparagement agreements relating to claims which do not involved sexual harassment or sexual assault. Thus, employers may consider including ‘carve-out’ language for pre-dispute non-disclosure and non-disparagement agreements to make clear that the pre-dispute agreements do not apply to later-arising sexual-harassment or sexual-assault claims.

Employers should review their arbitration agreements and any language pertaining to future mandatory arbitration agreements to ensure sexual-harassment and assault claims are carved out from those provisions as well. Such agreements may be revised to include clear language indicating that, with regard to claims of sexual harassment or sexual assault, employee signatories will have a choice — they are not required to submit to arbitrations and may bring their claims in court. Employers may also wish to consider updating sexual-harassment policies in their employment handbooks to include similar clarifications.

In reviewing such employment agreements, confidentiality agreements, arbitration agreements, and employee handbook policies as they relate to sexual harassment and sexual assault for compliance with the Speak Out Act and the EFASASHA, it is recommended that employers seek legal advice and guidance from an experienced employment-law attorney.

 

Briana Dawkins, Michael Roundy, and Mary Jo Kennedy are attorneys in Bulkley Richardson’s Employment Law practice.

Keeping New Year’s Health Resolutions Starts with a Realistic Plan

By
Drew McConaha
Health Care

One Step at a Time

[email protected]

Drew McConaha

Drew McConaha says breaking a fitness plan into manageable steps is key to sticking to health resolutions.

 

Drew McConaha knows all about New Year’s resolutions. And he knows why so many of them fail.

In many cases, it’s a desire to do too much, too quickly, the owner of Train for Life in Chicopee said.

“When they’re setting those resolutions at the beginning of the year, most people want to do everything as fast as possible: ‘I want to get into the gym six days a week,’ or ‘I want to go on the latest diet craze.’ They want to go 100 miles an hour into that. But that doesn’t really work. Fitness is one of those things that needs to be a lifestyle change.”

At a time of year when people traditionally set goals for fitness, nutrition, and other types of wellness — and often leave them behind by February — area health experts told BusinessWest the same thing: starting small is key.

“Most everyone wants to set goals; they say, ‘I want to lose 10 pounds,’ or whatever,” said McConaha, who explained that he works with members to write those goals down, examine them, and then — this is key — setting small action steps to make them more manageable.

“When they’re setting those resolutions at the beginning of the year, most people want to do everything as fast as possible. But that doesn’t really work. Fitness is one of those things that needs to be a lifestyle change.”

“If you come to the gym three days a week for a year, after a year, you’re going to make a huge amount of progress,” he said. “But if you start out going to the gym five days in a row and you haven’t been exercising for 10 years, you’re very unlikely to get back there for week two, because you’re going to be so sore, and that’s unmotivating, because now you can’t move; you can’t go about your daily activities. Lots of times, that’s what derails people when they jump into something at the beginning of the year.”

That’s where having a coach can make a difference, he added. “We talk about smart goals all the time, having manageable, attainable, realistic goals. Having a very specific, small goal each day instead of focusing on the large goal — say, losing weight — will make it much more attainable.”

Dr. Kathy Mueller, who practices integrative medicine with Trinity Health of New England Medical Group, went even further, explaining a philosophy she shares with patients called ‘tiny habits,’ popularized by behavior expert and author BJ Fogg.

To start the journey toward changing a habit, she explained, “pick something that takes fewer than 30 seconds that builds toward the ultimate goal. Want to exercise in the new year? Instead of saying, ‘I’m going to the gym three times a week,’ try a tiny habit: ‘I’m going to put on my walking shoes,’ or ‘I’m going to put my gym bag in the front of the car.’”

The idea is that, by wearing walking shoes, someone is more likely to go for a walk, and by loading the gym bag in the car, they’re more likely to stop at the gym when out and about. And when they achieve those steps, they can add larger goals, always building on small victories, not frustrating failures, Mueller said. “Practicing tiny habits is clever because it’s built on success.”

In fitness goals, the goal is to move more, she said, so people should just start there. If they want to incorporate pushups, start with two — which often becomes five, then 10, and eventually maybe 50. Setting out a lunchbox by the coffee maker each morning might not lead to bringing a healthy lunch to work every day, but it might have that effect some days, meaning fewer fast-food runs each week.

“There’s this idea that one day you’re a smoker, and the next day you quit. But if you quit over four months, you still quit. Incremental steps work for a lot of people.”

Dr. Kathy Mueller

Dr. Kathy Mueller

“With nutrition, have one fruit or vegetable every time you eat. Want a bagel for breakfast? Great, but have fruit with it,” Mueller explained. “The idea is to anchor your tiny habits to something you’re going to do anyway.”

And for those who want to cut down their alcohol intake — which has risen, on average, for Americans during the COVID-19 pandemic — they don’t have to quit all at once, she added. “Have a glass of water with each beer. You’re still drinking and being social, but you’re cutting your alcohol intake in half.”

 

The How and the Why

It’s a common refrain among health practitioners: you don’t have to do everything; just do something. Even a 10-minute walk twice a day or one 20-minute walk per day can help someone reach a goal of 150 minutes of physical activity per week, said Patrick Schilling, manager of Cardiovascular Rehabilitation and Wellness at Baystate Health.

“We know physical activity feels good, improves sleep, and lowers stress, and taking care of your body may help you feel rejuvenated and will give you the extra energy you need,” he noted. “Don’t forget that children should also be reminded to stay active for at least an hour per day for optimal health. If you just can’t make it to the gym as regularly as you have in the past, you can try to keep moving in other ways. Don’t try to find that parking spot close to the mall entrance; instead, opt for one far away so that you will have to walk more. And take the stairs instead of the elevator or escalator.”

As an integrative medicine specialist, much of Mueller’s work is helping patients change habits and achieve lifestyle changes through complementary therapies. Some are dealing with chronic pain or other ailments, but most are trying to reach certain goals.

“Sleep is essential for our health and well-being, and getting a good night’s rest is important to help strengthen your immune system to fight infections, reduce stress, improve our mood, and to stay energized. Most adults function best with seven to eight hours of regular sleep.”

Dr. Karin Johnson

Dr. Karin Johnson

“Sometimes, people off more than they can chew. They decide to go to the gym for an hour three days a week, then life gets in the way, then it’s twice a week, then once, then the habit’s done,” she said, adding that it’s better to focus on little steps that then become bigger ones.

Take the notion that exercise isn’t impactful if it doesn’t get the heart rate up for an extended time. “That’s garbage. And one fewer cigarette is one fewer cigarette. It helps break a bad habit, as long as you have something to replace it with,” she said, adding that a good strategy is to delay how long you can go without one, and then keep extending that. “There’s this idea that one day you’re a smoker, and the next day you quit. But if you quit over four months, you still quit. Incremental steps work for a lot of people.”

McConaha said it helps many people to not only break down their goals into small, actionable steps, but actually treat those steps like appointments, not just vague intentions.

“If you’ve got a hair appointment, you’re going to show up. If you’ve got a dentist appointment, you’re going to show up at that time,” he explained. “A lot of people say, ‘I’m going to try to go to the gym tomorrow afternoon.’ Well, if you don’t have someone waiting for you there for that accountability, if you don’t have a specific appointment, it’s very easy for other things to get in the way.”

Just as important is understanding the ‘why’ behind a goal, he added.

You say, ‘hey, I want to start working out.’ But what does that mean to you? Why are you doing that? Why is that going to benefit you? How is that going to make you feel? Do you want to be around longer for your kids? Do you want to be able to do certain things you haven’t been able to do in the past? Adding that specific why behind what they’re doing makes a big difference.”

 

The Rest of the Story

Another golden rule for general wellness is to get plenty of rest, said Dr. Karin Johnson, director of the Baystate Health Regional Sleep Program

“Sleep is essential for our health and well-being, and getting a good night’s rest is important to help strengthen your immune system to fight infections, reduce stress, improve our mood, and to stay energized,” she explained. “Most adults function best with seven to eight hours of regular sleep.”

And any set of wellness goals should include taking care of mental health as well, which can especially suffer around and just after the holidays, said Dr. Stuart Anfang, vice chair of Psychiatry at Baystate Health.

“Don’t forget to take care of yourself emotionally as well as physically,” he urged. “Take relaxation breaks when needed; eat and drink in moderation; get plenty of sunlight, which helps avoid seasonal depression; avoid social isolation; and understand that you are not alone in feeling stressed. Volunteering and giving to others less fortunate is a great way to get perspective and feel better about your own situation and stressors.”

At the heart of every effective fitness or wellness plan is knowledge, McConaha said, as going to the gym with no plan or no information about the equipment will only lead to frustration.

“It’s easy to take on too much at once and feel defeated,” he told BusinessWest. “If you come in and do one exercise wrong, and your back doesn’t feel great after that, that’s one more obstacle to something that’s already very challenging for people.”

With the right — meaning realistic — plan, and the knowledge and commitment to follow it, anyone can make positive resolutions that don’t fall away by Groundhog Day, he added.

“Our bodies are meant to move, and no matter what age you’re at, there’s always something you can do,” he said, adding that he’s worked with people from age 7 to 97. “You can walk. You can do very scaled versions of exercises. It’s just matching up the right plan with the right person. The older people get, the more they feel they’re too old to start, but they’re not too old to do the right thing for them, whatever that might be.”

 

Construction Job Openings Flat in November

By
Daily News Employment Home Builders Home Improvement News Real Estate Real Estate

WASHINGTON, D.C. —The construction industry registered 388,000 job openings in November, according to an Associated Builders and Contractors (ABC) analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey, which defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings declined by 2,000 in November but were up 22,000 from the same time last year.

“Once again, good news is bad news,” ABC Chief Economist Anirban Basu said. “The economy-wide number of job openings remained elevated at approximately 10.5 million in November, virtually unchanged from October’s revised estimate. That’s the key takeaway in a still-red-hot labor market, as many employers continue to aim for expanded capacity to satisfy unmet demand. That is the good news.

“The bad news is obvious,” Basu continued. “Despite raising interest rates during the last 10 months, the Federal Reserve is still grappling with an excessively tight labor market associated with rapid compensation cost increases. To return inflation to its 2% target, the Federal Reserve needs a looser labor market with fewer job openings, higher unemployment, and slower compensation growth. The implication is that interest rates will continue to rise, adding to construction project financing costs and potentially setting the stage for sharp declines in activity in many privately financed construction segments.”

Application Now Open for Local Farmer Awards for Infrastructure Improvements

By
Biz Tips & Industry News Daily News Green Business News

AGAWAM — Farmers in Western Mass. are invited to apply for Local Farmer Awards of up to $2,500. These awards are for capital/infrastructure improvement projects related to growing, harvesting, and processing that will help farms compete in the marketplace. The Harold Grinspoon Charitable Foundation, in partnership with Big Y and with the support of other funders, is entering the ninth year of the awards program, which has helped more than 235 farmers carry out a total of 474 projects.

Some examples of how the awards have been used include electric fencing, no-till equipment, irrigation improvements, frost-free water systems, feed troughs, and shade cloth for greenhouses.

“Farmers don’t typically ask for help,” philanthropist and project founder Harold Grinspoon said. “They are genuinely appreciative of these awards and use the money in creative ways for projects to help their farms grow.”

To be eligible, farms must have gross sales of $10,000 or above and either be a member of buy-local organizations Berkshire Grown or Community Involved in Sustaining Agriculture (CISA) or farm in one the four counties of Western Mass. For a full list of eligibility requirements and application information, farmers are encouraged to visit www.farmerawards.org. The deadline for applying is Jan. 31.

Westfield State to Host Virtual Information Session for Accounting Graduate Program

By
Business Management Daily News Education News

WESTFIELD — Westfield State University will host a virtual information session for the master of science in accounting (MSA) program on Wednesday, Jan., 25 at 6 p.m. via Zoom.

The graduate program is designed to foster leadership skills and prepare students for successful careers in public and private accounting. It allows students to complete the additional 30 credit hours necessary to fulfill the educational requirements for the , (CPA) license in Massachusetts and several other states.

The program offers a foundation curriculum for students who have an undergraduate business degree but lack the necessary coursework in accounting to complete a series of prerequisite courses as part of the master’s program. The advanced curriculum is for students with an undergraduate major or concentration in accounting. It is comprised of 10 courses (the majority are offered in a hybrid format, and certain courses are 100% online) that can be completed in only two semesters. The MSA program offers students flexibility and affordability to achieve a greater degree of sophistication in accounting.

Information-session attendees will have an opportunity to speak with faculty and members of the outreach team about the program and its application process. The $50 application fee will be waived for all attendees. To RSVP, visit www.gobacknow.com. For more information, call (413) 572-8461 or email [email protected].

MassDevelopment Sells 1550 Main to Mittas Holdings and DGP Properties

By
Business Management Commercial Real Estate Daily News News Real Estate

SPRINGFIELD — After 13 years of ownership, MassDevelopment announced it has sold 1550 Main in Springfield to Mittas Holdings, LLC and DGP Properties, LLC, owned by Vidhyadhar “Vid” Mitta and Dinesh Patel, respectively. 1550 Main is a 130,000-square-foot building with a highly visible public plaza and 103 parking spaces below grade, with physical connections via skywalks to adjacent garages.

“Revitalizing underused commercial properties helps bring additional jobs, foot traffic, energy, and economic growth to a neighborhood,” said Housing and Economic Development Secretary Mike Kennealy, who chairs MassDevelopment’s board of directors. “MassDevelopment’s stewardship of 1550 Main has sparked new life in a prominent building in downtown Springfield and demonstrated the value of investing in and modernizing properties to meet the needs of communities today.”

MassDevelopment President and CEO Dan Rivera added that “working with tenants, partners, and the city of Springfield over the years allowed us to cultivate this property to its best and highest use. This type of focused teamwork is how long-lasting redevelopment takes root. It is what makes converting an old federal courthouse into a stunning multi-tenant office building possible.”

In 2009, MassDevelopment purchased 1550 Main from the federal government. On arrival, the property was 70% occupied and in need of significant upgrades. After exceeding all goals, including reaching a current occupancy level of 98%, MassDevelopment put the property up for sale to the CRE market through a disposition process to allow the agency to refocus its investment efforts elsewhere. Current 1550 Main tenants include the Springfield School Department, Baystate Health, the Internal Revenue Service, U.S. Immigration and Customs Enforcement, and regional offices for U.S. Sens. Elizabeth Warren and Ed Markey. The new ownership group will assume all existing lease agreements.

“I want to thank MassDevelopment President and CEO Dan Rivera and his dedicated team for their continued belief and investment in our Springfield,” Mayor Domenic Sarno said. “The property at 1550 Main Street is a key piece to the economic stability of our downtown. Dinesh Patel, Vidhyadhar Mitta, and their team have a proven track record of property ownership, management, investment, and economic development, as they are also the owners of our Springfield Tower Square property at 1500 Main Street since 2018, and oversaw the grand reopening of our iconic Marriott Springfield Downtown Hotel. All of this makes them the ideal owners to continue the advancement and oversight of this important and vital economic-development property. I have the full confidence that they will continue to enhance our downtown Springfield footprint while providing the same quality of investment and management to the existing tenants of 1550 Main Street, including our Springfield School Department.”

Said Mitta, “I thank all public officials and local communities for supporting us to make such investments in Springfield. We will continue to do our best to match MassDevelopment’s role.”

Added Patel, “I am very excited to continue the fantastic job done by the MassDevelopment team. As a local real-estate developer, I also greatly appreciate Mayor Sarno’s support and trust in continuing the success at 1550 Main.”

Barstow’s Farm in Hadley Takes the Long View

By
David Barstow and Denise Barstow Manz
Features Special Coverage

Udderly Innovative

[email protected]

David Barstow and Denise Barstow Manz

David Barstow and Denise Barstow Manz are part of the sixth and seventh generations now carrying on traditions — and creating new ones — at the family farm in Hadley.
Staff Photo

While she grew up on her family’s dairy farm in Hadley and enjoyed that lifestyle, Denise Barstow Manz had no intention of making the 200-year-old operation a career.

“The farm was a place that was fun, and I had a really good time playing with my cousins, being around large animals, and being around nature — it was an amazing way to grow up,” she recalled. “And then, as I got older and I started to see the numbers and realized that the farm was a lot of hard work and not an easy path to wealth, I thought that maybe I should go and do something else.”

She attended the University of New Hampshire — in part because of its renowned dairy program, although she chose a different major — and would later move west and work for the National Park Service, with stints at Yellowstone and Glacier National Park in Montana. And it was while on these assignments that she began to rethink what she would do with her life — and why.

“It finally hit me when I was in Glacier,” she said. “I was a trail guide, and I saw these people donating money to preserve these places. And I thought, ‘if everyone’s giving to places like this, who’s taking care of the places we come from?’ I thought about who was taking care of the place I came from that has been in my family for more than 200 years — and I wanted to be part of that story.”

And with that decision, Barstow Manz would also become part — and she stressed that word part early and quite often, because this is truly a family affair — of one the region’s more intriguing business stories: Barstow’s Longview Farm.

“This is a good place to raise a family in a multi-generational business — everyone can see how life works; the goal has always been to leave something for the next generation.”

It’s a story that includes most of the elements shaping the growth, evolution, and resilience of the local economy today. That list includes entrepreneurship, innovation, technology, clean energy, tourism and hospitality, and sustainable agriculture.

They all come together in an impossibly beautiful, picture-postcard setting, the historic Hockanum Village, framed by the Connecticut River and the Holyoke Range, scenery that belies the myriad and ever-more severe challenges facing dairy farmers — and all those in agriculture — today.

It was these challenges — and especially very trying times roughly two decades ago that prompted the sixth and seventh generations of the Barstow family to take the motto that has defined this business — ‘looking forward since 1806’ — to new dimensions.

Barstow’s Longview Farm since 1806.

Evolution and diversification have been hallmarks of Barstow’s Longview Farm since 1806.

Indeed, a family that has always embraced change and diversification (much more on that later) has taken some dramatic new turns in recent years, first with Barstow’s Dairy Store and Bakery, and later, through a partnership with Vanguard Renewables to build one of the first farm-powered anaerobic digesters in New England. Meanwhile, the 450-acre dairy farm produces 19,000 pounds of milk daily and is a member of the Cabot Creamery/Agri-Mark Cooperative; almost all of the farm’s milk is supplied to the Cabot/Agri-Mark facility in West Springfield and is made into Cabot butter and other products.

The anaerobic digester (AD), installed in 2013 and expanded in 2016, converts cow manure — the herd at the farm produces some 9,000 tons of it annually — and food waste into electricity, heat, and fertilizer.

It has become an important revenue source for the farm, but it also makes a statement about what the sixth and seventh generations of this family — and those that came before them — stand for.

“The AD speaks to what we believe in as a family — that we need to lower our carbon footprint and play a role in mitigating climate change,” Barstow Manz said, adding that, for this family, sustainability comes in many forms and means many things, including work to ensure that this business will be there for the next generations.

Her father, David Barstow, director of special projects at the farm, agreed. He said that, while many things have changed at this location — in general, but especially during his lifetime — what hasn’t changed is that concept of preserving, and persevering, for those who will continue the tradition.

“My father and grandfather used to talk about working with horses,” he said, adding that change and advancement are constants on the farm; the key is to embrace that change and be at the forefront of it. “This is a good place to raise a family in a multi-generational business — everyone can see how life works; the goal has always been to leave something for the next generation.”

“We got together as a family and decided that we needed to either diversify or get out of farming completely.”

All of the various components of Barstow’s Longview Farm make for an intriguing tour — one that usually includes lunch on site — and Denise and other family members offer many of them, all year long. More than that, these elements collaborate to create an inspiring new chapter to a story that began when Thomas Jefferson was patrolling the White House — and even a century before that, as we’ll see.

 

Herd It Through the Grapevine

They call it Pasture Day, and it is celebrated the first Saturday in May.

As that name suggests, this is the day when the cows, which have spent the winter in barns, get to head back into the pasture. It’s the unofficial start of spring, and a community event — many visitors, including several families living in the area, will come out, watch the heifers celebrate their first taste of fresh grass, enjoy live music, and have some ice cream.

An aerial view of Barstow’s Longview Farm

An aerial view of Barstow’s Longview Farm in the historic Hockanum Village.

“People kick up their heels and have a good time; they sit on the hill and watch,” said Barstow Manz, who doesn’t have a formal title, but serves as the farm’s marketing director. She also handles the farm tours, manages the dairy store and bakery, handles outreach, and acts as the main grant writer. She used to feed the calves, but the farm now has an automated calf feeder, one of many examples of innovation at this institution.

She said Pasture Day is just one of the many traditions that have lived on at this property since Septimus Barstow, originally from Wethersfield, Conn., acquired the property on the bank of the Connecticut River that was first farmed at least 100 years earlier by the Lyman family.

Originally a crop farm that focused on asparagus, as many farms in Hadley did, as well as squash, corn, tobacco, and other staples, the Barstow’s operation eventually evolved into a dairy farm after the advent of refrigeration, which provided an avenue for selling milk wholesale.

By the 1930s, dairy was the primary focus at the farm, she went on, adding that, with a herd of 300 cows, this is small to mid-sized operation, one that is dwarfed by huge operations in this country and overseas.

It’s one of a dwindling number of dairy farms both in Massachusetts and across the U.S., she said, citing statistics showing that this country loses five dairy farms every day.

“And when you lose those farms, you’re losing a lot,” she went on. “You’re obviously losing food and food security for that community. But you’re also losing open space, which is good for wildlife habitat, groundwater, climate resilience, and food security. And you’re losing that heritage and that connection to your past.”

The reason for such attrition is simple. This is a very difficult business to be in, she said, adding that the federal government controls milk prices, and margins have historically been paper-thin.

“Even though it’s very perishable, milk is marketed on a global scale, so we’re competing against New Zealand, we’re competing against California … and it’s kind of a broken system,” Barstow Manz explained. “The only real way for dairy farmers to make more money is to make more milk, which doesn’t always line up with demand. And we have no control over the price of the product we produce.”

There are only 115 dairy farms left in the Bay State, and there probably wouldn’t be any were it not for the Massachusetts Dairy Tax Credit, which enables them to remain competitive, she said, adding that there are six operations in Hadley alone, a concentration that testifies to the quality of the soil in that region.

In the early years of this century, the milk market essentially collapsed, primarily because of oversupply, she said, calling this a scary time for the Barstow farm and all the others in this market.

David Barstow

David Barstow says his family lives by the farm’s motto, ‘looking forward since 1806.’

“The milk market crashed like no one had ever seen or felt before in this country; we were getting $12 per hundred pounds of milk, when our break-even was $22,” she explained, adding that it was a critical time in the history of the farm, or another critical time, to be more precise.

“We got together as a family and decided that we needed to either diversify or get out of farming completely,” she recalled. “And that’s when we started talking about how we wanted to diversify and who we wanted to include. And we knew that we wanted to be thoughtful of what the next generation was interested in doing and what our strengths are.”

 

A Process of Evolution

Over the next several years, diversification would come in several forms, starting with the dairy store and bakery in 2008, an operation inspired in many ways by Denise’s cousin, Shannon Barstow, who does most of the baking. It’s an operation that would transform the farm into a true destination.

“We’re always trying to be mindful and committed to what’s going to be best for our herd, and also for our land, our workforce, our community, and our food system.”

“We understood that people were going to have to drive here if we were going to get the support and the revenue we needed,” she recalled. “So we did lunch, and we started probably too big for our britches. But we’ve definitely settled into who were are, and we have a really supportive community.”

The dairy-store operation and bakery offers both breakfast and lunch as well as a number of prepared foods — and ice cream. The bakery serves up pies, cupcakes, brownies, turnovers, croissants, scones, muffins, breads, and much more. The facility handles private functions, porch parties, and catering. Meanwhile, visitors can buy Barstow’s beef — everything from tenderloin steaks to ground beef — on site. There’s even a drive-thru for those who want or need to grab and go.

The facility draws visitors from around the corner, but also from across the state and beyond, said Barstow Manz, adding that it has become a real destination and a way to take the Barstow name and products well beyond Hadley.

“Most of our regulars are from Hadley and South Hadley,” she explained. “But we have people who come to us from Eastern Mass. because they love our beef, and from the Berkshires because they love our pies; we draw from all over.

Shannon Barstow

Shannon Barstow does most of the baking at the dairy store and bakery, which opened in 2008.

“We opened this place to save the family farm, and it’s had so many other amazing qualities to it that we didn’t really expect,” she told BusinessWest. “It’s become this time capsule for all these family recipes — most of the stuff that’s in the dairy case is Grandma [Marjorie] Barstow’s recipes. And it’s also a neighborhood gathering space — it’s a space where people can work close to home and also be part of a family farm and a local economy on a small scale.”

Indeed, the dairy story and bakery now employs 15 people and has provided many area young people with their first jobs.

The anaerobic-digestion system, launched at a cost of roughly $6 million, is not a supplier of jobs, but it is, as noted earlier, a supplier of electricity, heat, fertilizer — and also pride for a family that has, through its long history, been innovative.

The conversations about installing such a facility began around the same time the family was opening the dairy store and bakery, she said, adding that the system is another important step toward diversification.

Explaining how it works, she said the system takes the energy potential (methane) out of cow manure and food waste and converts it into enough electricity to power 1,600 homes. The food waste comes from local food producers, including Cabot/Agri-Mark, Whole Foods, the Coca-Cola plant in Northampton, and local restaurants.

The food waste and cow manure, both treated and in liquid form, are put into the digester, which Barstow Manz equated to a large stomach, with the gas from the ‘digestion’ process rising to the top of the nine-story facility. That collected gas combusts in an engine and turns a generator, thus creating electricity.

Heat, one of the byproducts of this process, is used to heat that system, provide hot water in the barns, and heat the eight homes on the property, she went on.

“It’s pretty cool that the system has lessened our reliance on fossil fuels as a business, but also on a personal level in our own homes — we don’t have to pay for oil anymore,” she noted. “We’re also getting a chemical-free fertilizer; that’s because most of what we put in we get back; we just need the gas.”

Like the dairy store and bakery, the AD, the second such system in the state and one of the first in the nation, is a reliable revenue stream at a time when such sources of income are needed in the wake of those razor-thin margins in dairy farming, she said, adding that it became reality through partnerships, such as the one with Vanguard Renewables, and grants from several entities, including the Natural Resource Conservation Service, the U.S. Department of Agriculture, the Massachusetts Department of Agricultural Resources, the Center for EcoTechnology, and other entities.

 

A Butter Alternative

Looking ahead, Barstow Manz said she and others working at the farm have a simple mission — to live up to their motto and continue looking forward.

“We’re always trying to be mindful and committed to what’s going to be best for our herd, and also for our land, our workforce, our community, and our food system,” she said. “Among the dairy farms I’m aware of, we’re been pretty open to accepting new technology and trying new things. We’re always reading and learning and talking to our vets and to our soil agronomists about what we can be doing better.

“I also think it’s cool that the sixth generation has always been focused on the seventh,” she went on, “and the four of us that work here are constantly thinking about what we’re going to leave our kids — what’s in it for the eighth generation.”

If history is any guide, it will be something that can grow and thrive and be sustainable — in every way imaginable.

Yes, You Can Fire That Guy!

By Contributor
Law Special Coverage

Processes, Procedures, Practices, and Protocols Are Kings

By Tanzania Cannon-Eckerle, Esq.

In this new, enlightened era of increased employee rights and employee shortages, many employers are scared to terminate employees in fear of litigation — or of not having enough staff to enable the company to produce at the desired level.

The second question we can save for later, but I will mention now that additional widgets will most likely never justify the havoc that a toxic employee will create.

In my opinion, the answer to the first question is simple: do not fear what you cannot control. You cannot control who goes down to the courthouse to file a complaint. Just be prepared for the battle. So, yes, you can fire that guy (or girl, or them). The question is, should you?

 

Don’t Shoot Before Aiming — Consider Your Goal First

Don’t respond emotionally or consider someone else’s emotional response. Stop and think. Ask, why is this employee on the chopping block (i.e., what did they allegedly do)? How did they get there (was the proper process followed)? Who placed them there (who is bringing this up? Does the person have the authority to raise this issue? Anything nefarious here)?

Notice that I did not ask ‘who’ this employee is. We don’t assess the ‘who’ on the chopping block. It doesn’t matter who did it. It matters what was done, why it was done, whether it was actually done, and whether it rises to the level of termination.

Essentially, assess the conduct. What do you hope to attain by terminating this employee? A safer workplace? Good. To stop disruptions in operations or the beginnings of a hostile work environment? Good. Now prove it.

 

Prove It (in Preparation for the Battle)

If you can’t prove it, abort the mission. Go back to the drawing board. Go to plan B. Joking aside, preparing for appropriate employee terminations is a long game. It starts with consistent application of procedures, processes, policies, and practices. Probably the most important thing is documentation.

Consistent application of the ‘four Ps’ over time may take an investment of time and money into creating them if you don’t already have them, and training managers and supervisors in the art of holding employees accountable.

“Preparing for appropriate employee terminations is a long game. It starts with consistent application of procedures, processes, policies, and practices. Probably the most important thing is documentation.”

Tanzania Cannon-Eckerle

Tanzania Cannon-Eckerle

Among other things, there should be consistent application of all conduct and performance-related policies. There should be consistent application of all of the policies, procedures, and practices associated with managing human-resources functions such as leaves of absence and request for accommodations, as well as employee complaints made and investigated.

All of these should contain a component that enables tracking the underlying data and providing the ability to obtain and distribute the underlying information that supports assertions made. So you want to terminate an employee because he has been to work only seven out of 19 days, and on the seventh day he violated a safety policy and then stole your candy bar? You should be able to show documentation of these occurrences that were created in real time — including, of course, when the company had the initial conversation with him for being absent the first few times, checking to make sure it wasn’t actually a protected leave of absence.

Once you have the documentation, sit him down and tell him that he is being terminated from the job because of his inability to perform and because of his violation of the attendance policy. Have a witness. If you don’t have the documentation, sit him down, put him on notice that he is in the line of fire, and start documenting. Provide him with expectations, and then document it thereafter. Most likely, this will just delay the inevitable, but you never know. Regardless, at least you will have something to take with you into battle.

Make the Business Decision Informed by the Data, and Document It

Please know, you can terminate an employee for any reason at any time so long as it is not an illegal reason. That means you cannot terminate because of an employee’s protected status or activity or in a manner inconsistent with a collective bargaining agreement or other employment agreement.

As such, if you want to terminate a person for business reasons that have nothing to do with the person and everything to do with your business needs, that is OK too. But you should prove it. Do you have the data to back up your decision? You don’t have to have it, but if that person files a complaint, you will want it, and you will want to be able to attest that the business analysis was done prior to the termination. Otherwise, they will scream ‘pretext,’ meaning you just made that up. Plus, doing the analysis first may help you assess the risks of terminating an employee for business reasons.

There are always risks. Is it cheaper to keep him after assessing those risks, or not? That is a legitimate fiscal business concern. There are risks associated with not terminating employees as well. Be sure to document those, too — not just in the business case (e.g., budget concerns), but also in the ‘do I have enough to terminate this employee for conduct?’ case. Some examples: if I don’t terminate, there will be allegations that I did not maintain a harassment-free workplace; or, I terminated another employee for this same behavior last year, and there is no legitimate reason distinguishing this employee from being terminated for the same; or, he keeps violating safety procedures, and someone may get hurt.

 

Terminate with Grace and Pay What You Owe

Be respectful to all employees, including those who are coming and going. He knows what he did to get terminated (if you have done it right). There is no legitimate reason to be rude about it.

Terminating with dignity or grace does not mean that you should not terminate an employee. Once an employee gets to termination, he should have already had an opportunity to cure the conduct or behavior for which he is getting terminated. As such, by the time the writing is on the wall, he should not be surprised. If he is, that might partly explain why he is getting terminated.

Next, make sure you reach out to your employment counsel for assistance with properly preparing a termination package (necessary correspondence, pay requirements, and timing considerations). A misstep here can get you in hot water — triple hot water. Failure to pay an employee what is due at termination has no defense, and the remedy to the employee includes three times the wages due. Call your counsel before terminating.

I know this article is not going to make me popular among some folks. I am not trying to be cold. I am just being practical. Your employees are your life force. I get it. I am one. But they are also human capital. If you manage your human capital like you manage your non-human capital, then you should be able to terminate employees without fear.

Processes, procedures, practices, and protocols are kings. Remember, keeping a toxic employee is more costly, in a variety of ways, than the cost of defending a claim — that is, if you have your ducks in a row. So get your ducks in a row. Plus, the remainder of your staff will appreciate the decision. Heck, the terminated employee may appreciate it in time; sometimes it just isn’t a good fit. Cut them free to find their better role. In the case of the business decision, your shareholders or business partners will appreciate your fiscal responsibility.

 

Tanzania Cannon-Eckerle, Esq. is chief legal and administrative officer for the Royal Law Firm; (413) 586-2281.

Doctors Urge Caution in a Season of Flu, RSV, and COVID

By
Health Care Special Coverage

Riding Out a ‘Tripledemic’

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Two years ago, flu took a vacation.

Dr. Mark Kenton remembers those days — but they were no vacation for emergency doctors, who had dealt with almost a year of COVID-19 and the hospitalizations and deaths that it caused, with vaccines just beginning to emerge.

But influenza, and respiratory syncytial virus, also known as RSV? There was almost none to be found, mainly because masking and isolating had become the norm, cutting off the potential for spreading these common viruses.

“With COVID, we had people masking, home from school, and we had no flu; there was no RSV,” said Kenton, chief of Emergency Medicine at Mercy Medical Center in Springfield. “In fact, Mercy didn’t have one ICU case of flu. Then, when we started to normalize, these viruses made their way back.”

So much that the prevalence of flu and RSV this year, combined with a still-lingering COVID threat — albeit one that has been muted by vaccinations — has combined for what has been called a ‘tripledemic’ this winter.

“It seems like the RSV population this year is much larger than in the past, which complicates things,” Kenton said. “We’re definitely seeing a lot of influenza, even in patients who have been vaccinated, and we’ve actually been seeing a lot of pneumonia. There are a lot of respiratory complaints this time of year, because it spreads through schools with kids at the end of the term, and parents may not want to keep the kids home.”

Because COVID still has a presence, he explained, when somebody comes in with a respiratory complaint, they’re tested for that as well as for influenza and RSV, a common respiratory virus that usually causes mild, cold-like symptoms, but can be more severe in certain patients.

“With COVID, we had people masking, home from school, and we had no flu; there was no RSV. Then, when we started to normalize, these viruses made their way back.”

Dr. Mark Kenton

Dr. Mark Kenton

“We were seeing a lot of RSV a few weeks ago, but it seems that may be tapering off now,” Kenton added, noting that Mercy has seen both children and adults with RSV, a condition that can be especially precarious for infants. “We worry about them getting RSV; a lot of local hospitals have been inundated with pediatric RSV.”

Indeed, RSV is the most common cause of bronchiolitis and viral pneumonia in children under age 1. The Centers for Disease Control and Prevention (CDC) reports that approximately 58,000 children under age 5 are hospitalized each year with the infection. Most infants are infected before age 1, and virtually all children have had an RSV infection by age 2. RSV can also affect older children, teenagers and adults.

Spiros Hatiras says he’s not sure who came up with that phrase ‘tripledemic.’ He’s quite sure, though, it wasn’t someone in healthcare.

“It had to be someone in the media — they’re the ones who like to attach names to things like this,” said Hatiras, president and CEO of Holyoke Medical Center.

But it’s as good a term as any to describe a convergence of COVID, flu, and RSV. In some parts of the country, this convergence is filling hospitals and putting additional strain on staffs already taxed by shortages of nurses and other healthcare professionals. But Hatiras told BusinessWest he hasn’t really seen much of any of the above at his hospital — from the individual ailments to the additional strain on people and resources.

Indeed, he reported very few, if any, COVID cases, noting that there isn’t anyone in his hospital solely because of COVID, though some are there for another reason and test positive for COVID. Meanwhile, he reports few cases of RSV, and flu numbers that are similar to previous years and nothing out of the ordinary.

The Emergency Department is crowded, he acknowledged, but not because of this tripledemic; rather, it’s because fewer staff members — a result of the ongoing workforce crisis, especially in healthcare — are tending to what would be considered a normal amount of patients.

“Because there were so few cases of RSV in the first two years of the pandemic, most infants and toddlers did not get the natural immunity that their body would have produced if they had natural illness. That left a larger number of children more vulnerable to getting RSV illness, which is what we are seeing now in the community.”

Dr. John O’Reilly

Dr. John O’Reilly

Kenton has observed the same phenomenon in the workforce. “So many nurses in this profession are either retired or gone on to something else,” he said. “This is everywhere, across the board. Every hospital is dealing with staffing issues. Even with [patient] volumes overall being down, when you get the tripledemic, it’s become a significant strain on resources within the hospital.”

 

What Is RSV?

Flu is a common term, and most people are now well-versed in COVID, but not everyone knows what RSV is, and how it deviates from other respiratory ailments.

While RSV results in mild, cold-like symptoms for most — a runny nose, nasal congestion, cough, and fever — for some, especially infants and older adults, it can lead to serious illness, though only a small percentage of young patients develop severe disease and require hospitalization, said Dr. John O’Reilly, chief of General Pediatrics at Baystate Children’s Hospital.

“Those hospitalized often have severe breathing problems or are seriously dehydrated and need IV fluids. In most cases, hospitalization only lasts a few days, and complete recovery usually occurs in about one to two weeks,” he explained.

Those who have a higher risk for severe illness caused by RSV include premature babies, very young infants, children younger than age 2 with chronic lung disease or congenital heart disease, children with weakened immune systems, and children who have neuromuscular disorders. Other at-risk groups include adults age 65 and older, 177,000 of whom are hospitalized and 14,000 of whom die from RSV each year in the U.S.; people with chronic lung disease or certain heart problems; and people with weakened immune systems, such as from HIV infection, organ transplants, or certain medical treatments, like chemotherapy.

The COVID pandemic has had a big impact on the normal pediatric respiratory illness cycles, O’Reilly noted. “Early in the pandemic, masking and social distancing helped to limit the spread of respiratory viruses such as RSV. Because there were so few cases of RSV in the first two years of the pandemic, most infants and toddlers did not get the natural immunity that their body would have produced if they had natural illness. That left a larger number of children more vulnerable to getting RSV illness, which is what we are seeing now in the community.”

There is no vaccine yet to prevent RSV infection, but there is a medication, called palivzumab, that can help protect some babies at high risk for severe RSV disease, O’Reilly noted. Healthcare providers usually administer it to premature infants and young children with certain heart and lung conditions as a series of monthly shots during RSV season.

“Don’t go out or attend gatherings if you are sick. Take COVID-19 tests if you think you have COVID-19 symptoms. Frequent hand washing can also help prevent the spread of respiratory infections. Wash your hands often with soap and water for at least 15 seconds and consider carrying a hand sanitizer with you at all times. Open windows for ventilation. Practice proper cough etiquette. And, because there is more sickness at this time of year, refrain from sharing utensils or drinking cups.”

The severity of symptoms can vary depending on the age of the child and whether he or she has any chronic medical problems, such as asthma or premature birth. Bacterial infections such as ear infections and pneumonia may develop in children with RSV infection.

At first, it’s all about symptom management for young children with RSV, O’Reilly said, including keeping the child hydrated and the fever under control. “If a child is having high fevers without relief for multiple days, or increased difficulty with breathing, such as wheezing, grunting, or ongoing flaring of the nostrils is observed along with a child’s runny nose and cough, then a call to your pediatrician is warranted.”

Part of the reason why RSV is a common virus in children is the fact that it can be easily transmitted. It can spread directly from person to person — when an infected person coughs or sneezes, sending virus-containing droplets into the air, where they can infect a person who inhales them, as well as by hand-to-nose, hand-to-mouth, and hand-to-eye contact. The virus can be spread indirectly when someone touches any object infected with the virus, such as toys, countertops, doorknobs, or pens, and can live on environmental surfaces for several hours.

The CDC’s advice on limiting the spread is the same as any virus-prevention measure: covering coughs and sneezes with a tissue or sleeve, washing hands often with soap and water, avoiding touching one’s face, disinfecting surfaces, staying home when sick, and avoiding close contact with sick people, as well as kissing, shaking hands, and sharing cups and utensils with others.

“The good news,” O’Reilly said, “is that most infants and children overcome RSV infections without any long-term complications, as RSV infections can often be relatively asymptomatic and even go unnoticed.”

 

Safety First

After almost three years of COVID, it’s easy to push those common-sense cautions aside, but that would be a mistake, said Dr. Vincent Meoli, Massachusetts regional medical director at American Family Care, which operates urgent-care clinics in Springfield and West Springfield.

“We know there is a significant amount of COVID fatigue as we enter our third year of the pandemic, but vigilance is still important, both to protect those most at risk of developing complications and to minimize the impact on our healthcare system,” he said, noting that area hospitals saw high rates of RSV admissions early in the season.

“We saw a tremendous reduction in flu cases during the height of the pandemic because people were wearing masks and isolating,” Meoli said. “Now that society has opened up again and masks are no longer required in most places, we anticipate the number of flu cases to increase.”

Kenton emphasized that, while flu and RSV might be more prevalent now, COVID hasn’t gone away. According to the CDC, about 350 people in the U.S. still die every day from COVID, and about six out of every seven of those are unvaccinated.

“I always say, vaccinate, vaccinate, vaccinate. It’s been proven that, with vaccination from COVID, you’re still able to get COVID, but you’re less likely to die,” he told BusinessWest. “Are you going to feel sick? Yes, absolutely. But you’re less likely to be hospitalized and die from it. It’s still present, unfortunately. I think it’s always going to remain present for us in combination with the flu and RSV. So definitely get the flu vaccine every year, too.”

Dr. Armando Paez, chief of the Infectious Disease Division at Baystate Health, said vaccination is a must, but it’s important to maintain other precautions as well during the tripledemic.

“Don’t go out or attend gatherings if you are sick. Take COVID-19 tests if you think you have COVID-19 symptoms,” Paez said, adding that, during the holiday season and after, people are traveling and potentially spreading viruses. “Frequent hand washing can also help prevent the spread of respiratory infections. Wash your hands often with soap and water for at least 15 seconds and consider carrying a hand sanitizer with you at all times. Open windows for ventilation. Practice proper cough etiquette. And, because there is more sickness at this time of year, refrain from sharing utensils or drinking cups.”

Kenton said there’s nothing wrong with turning down an invitation to a gathering where people are sick — or if there’s a possibility of introducing sickness into that house. “If someone in your house is sick, don’t go to someone else’s house, especially if they have co-morbidity conditions; getting RSV on top of that can cause them to end up hospitalized or potentially die.”

He also reminds people that COVID has an asymptomatic period between infection and symptoms, so if someone in a household tests positive, not only should the infected individual isolate, but it’s a good idea for others in the house to avoid gatherings for a few days until they know they’re negative, to avoid spreading the virus to someone else.

Meoli noted that, for those who do plan to attend gatherings — especially with people at high risk for COVID, like the elderly, children, or people who are immunocompromised — testing for COVID the day before or the day of the gathering can provide some extra reassurance.

“Talk to a healthcare provider if you have any concerns about vaccines, symptoms, or testing,” he added. “COVID-19, flu, and RSV all have the potential for complications, hospitalization, or death.”

It’s certainly a triple threat, area doctors say, but taking simple precautions can help keep families safe and patients out of the hospital — or worse.

Economy Shows Progress, but Workforce Remains a Challenge

By
Economic Outlook

Reasons for Optimism — and Concern

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Chris Geehern says there’s been a slight but significant uptick in the Business Confidence Index issued each month by Associated Industries of Massachusetts (AIM).

That increase is one of the many reasons why he and others are … wait for it … cautiously optimistic as the calendar turns to 2023. That phrase has been put to heavy use in recent years and recent months, especially with so much uncertainty regarding the economy due to forces ranging from COVID to inflation to an ongoing workforce crisis.

“If the workforce grows 1.5% and the number of jobs grows by 21% or 22%, as they’re projecting, we have a problem — a big problem.”

Chris Geehern

Chris Geehern

But as the state and region put 2022 in the rear view and focus on a year with even more uncertainty, there are some reasons for optimism, said Geehern, executive vice president of AIM, and that is reflected in the numbers he’s seeing.

“Our members seem pretty confident about the prospects for their own companies,” he said. “And they are reasonably confident about the state and national economies. There are certainly lingering concerns about interest rates and about whether there will be a soft landing or not. But, by and large, we’re finding that Massachusetts companies are resilient, and they seem to be navigating this kind of economic cycle pretty well right now.”

Elaborating, he said unemployment remains comparatively low, and the state’s economy grew in the third quarter, albeit slowly, after two quarters of negative growth — another positive sign. “So, by and large, employers don’t seem to be deeply concerned by the short-term economic cycle.”

Bob Nakosteen, a semi-retired Economics professor at UMass Amherst, agreed. He told BusinessWest that, in addition to growing optimism, inflation is starting to cool, a sign that the Fed’s decision to aggressively raise interest rates may — that’s may — be working. It could also be a harbinger of lower rate hikes in the future, which would certainly help business owners and consumers alike.

“And I think inflation is already a lot lower than is being reported,” said Nakosteen. “The month-to-month figures are pretty low … I think inflation is going to drop, maybe not dramatically, but considerably in the next few reporting periods.”

Elaborating, he said ‘dramatically’ would be a drop to the 2% target set by the Fed (at its height, inflation was closer to 8%), while ‘considerably’ would be to the 3% to 4% range, which is what he expects.

“And if that’s the case, then the Fed is going to ease off on interest rates,” he said, adding that such actions should bolster the stock market and the economy as a whole as the dramatic increases in the cost of borrowing start to ease.

Meanwhile, there are other signs that the picture is improving and the odds for recession in 2023 are moving lower, said Nakosteen, adding that the labor market remains quite strong, and the Atlanta Federal Reserve’s projections for GDP in the fourth quarter are for 3.2% growth — this on top of what has been a strong Christmas season for retailers.

“The signals just aren’t there for a serious recession — or even for a recession at all.”

Bob Nakosteen

Bob Nakosteen

“I think that economic growth is going to slow down, and if we do get into a recession, it will be a mild one,” he said, adding quickly that his track record with projections is decent but not spectacular. “What continues to amaze me is the strength of the labor market; unemployment is still at or just over 3% both nationally and in this state, and in Western Mass. as well. “The signals just aren’t there for a serious recession — or even for a recession at all.”

But while there is cause for some optimism, there are many concerns as well, especially when it comes to the workforce.

Indeed, in 2022, it became obvious to most in business that the problems seen in 2021 when it came to companies being able to fill positions with qualified help were certainly not temporary in nature. They persisted into 2022, and in some cases were exacerbated.

Now, there is what Geehern, summing up the thoughts of AIM’s members, called “deep concern” about what has become a workforce crisis in this state.

“‘I can’t find the people I need to make my business grow’ has become part of the vernacular in this state,” he said, noting that, as part of the Business Confidence Index survey, AIM asks an open-ended question, along the lines of ‘what are you worried about?’

And, increasingly, owners of businesses large and small are worried about workforce.

“I would say that 75% to 80% of the responses to that question every month have to do with talent acquisition, talent retention, and the availability of workers,” he said. “And the concern is that this isn’t the function of an economic cycle; it’s really a deep, structural inflection point for the Massachusetts economy.”

As he explained why, Geehern cited some rather alarming statistics from the Massachusetts Department of Economic Research, which projects that the number of jobs in Massachusetts will grow by 22% between now and 2030. Meanwhile, projections from various economists indicate that the state’s workforce will grow 1.5% by 2030.

“If the workforce grows 1.5% and the number of jobs grows by 21% or 22%, as they’re projecting, we have a problem — a big problem,” Geehern said. “This was going on anyway — it’s partially a function of demographics — but it’s been exacerbated by the newfound independence that remote work has given to employees.”

Given this unsettling math, Geerhern said there are things the state and individual employers must do to make themselves more attractive — not just to businesses, but to workers on all levels.

“Traditionally, we’ve focused on what creates the environment where businesses can start and grow in Massachusetts, and we’re still committed to that,” he said. “But at the same time, we also recognize that you have to create a quality of life that makes people — workers — want to live here in Massachusetts. And that means looking at the cost of living.

“Massachusetts ranks number one in terms of childcare costs, we have the second-highest housing costs, and the fourth-worst traffic congestion — I don’t know how they measure that, but they do,” he went on. “What we’re looking at is a significant outmigration of people from Massachusetts to other areas of the country; a Massachusetts Taxpayers Association report showed that, over the past three decades, there’s been an outmigration of 750,000 people from Massachusetts, and that trend has actually accelerated post-pandemic.”

In some cases, people are leaving the state for lower-cost areas, but keeping their jobs here, a byproduct of the remote-work phenomenon. Moving forward, Geehern said in conclusion, the state has to make itself an attractive place to do business and to live and work — because failure to do so will worsen an already-difficult situation and made it even harder for business owners to sleep at night.

 

 

EDC Leaders See Need to Market the Region, Leverage Its Assets

By
Economic Outlook

Selling Points

[email protected]

 

 

As he surveys the scene in Western Mass., especially the ongoing focus on encouraging entrepreneurship and helping startups get to the next level, Charlie D’Amour says he can see some parallels to when his father, Gerry, and uncle, Paul, were getting started in Chicopee nearly 80 years ago with a venture that would eventually become known as Big Y.

But this current surge in entrepreneurship is different in some respects from than the one in the mid-’30s, he told BusinessWest, adding that it is deeper and more diverse. And it holds enormous promise for the future of the region in terms of job creation and the vibrancy of individual communities.

“I continue to be impressed by the fact that we have a diverse and growing class of new entrepreneurs,” D’Amour noted. “Through the commitment of the EDC, the commitment of other organizations, and the commitment of anchor institutions in the area, if we can continue to grow, develop, nurture, and encourage these entrepreneurs, it’s only going to put us in a great position.

“That’s part of what gives me some optimism for the economy of our region — to see this growth in entrepreneurship,” he went on. “This is an interesting group of young entrepreneurs, and it’s a diverse group, and that speaks to where our future is going to be.”

Entrepreneurship and the prospects for more of it comprise one of many subjects touched on by D’Amour and other representatives of the Western Massachusetts Economic Development Council (EDC) during a wide-ranging discussion of the issues facing the region as the calendar turns to 2023.

“I continue to be impressed by the fact that we have a diverse and growing class of new entrepreneurs. Through the commitment of the EDC, the commitment of other organizations, and the commitment of anchor institutions in the area, if we can continue to grow, develop, nurture, and encourage these entrepreneurs, it’s only going to put us in a great position.”

Charlie D’Amour

Charlie D’Amour

D’Amour is a long-time member of the EDC and member of its executive committee. Others joining the discussion were Rick Sullivan, president and CEO of the EDC; Tricia Canavan, CEO of Tech Foundry and current EDC board chair, and relatively new board member Cesar Ruiz, president and CEO of Golden Years Home Care Services.

Together, they addressed subjects ranging from workforce issues to marketing of the region to the prospects for bringing more jobs to the area.

Overall, as the new year begins, those we spoke with are optimistic about the region and its fortunes, but there are reasons for concern, especially when it comes to workforce (more on that later), an issue touched on by many in this special Economic Outlook section.

“I’ve seen some real opportunities with some investments that I do believe will be coming with the new governor’s administration in terms of broadband and internet access,” Sullivan said. “There is a digital divide, in our urban communities but also in our rural communities, and I think there’s a real opportunity there with a significant investment by the state and federal government to make those final connections and finally bring high-speed broadband to people’s homes and businesses; that’s a real opportunity for us.

“And I also some see some significant investment in the field of cybersecurity, which is an industry that, unfortunately, is probably here for the long run, and we need to be doing a lot of work every single day to stay ahead of the bad guys,” he went on. “With Springfield already being designated as one of the centers of the statewide system … that’s a real opportunity for us in terms of both workforce and working with our municipalities and particularly with our higher-ed institutions, so I’m very optimistic about the opportunities that are going to present themselves for this region in 2023.”

D’Amour agreed.

“The good news is that the economy of Western Massachusetts, with its diversity and whatnot, has proven to be somewhat resilient, from what I’ve seen,” he noted. “Though I anticipate a downturn in the economy, a slowing of the economy, I do expect that we’ll be able to weather it fairly well.”

“We’re all experiencing challenges in hiring — we can’t hire fast enough; we can’t hire quality enough within our workforce. Hiring is certainly going to be a barometer for how successful we’re going to be with expanding our business.”

Cesar Ruiz

Cesar Ruiz

Canavan concurred, noting that the many lessons learned during the pandemic will serve to make the region’s economy and individual businesses stronger and more resilient.

“The silver lining of the pandemic has been some lessons learned,” she said. “I’ve seen people start to integrate these lessons into their businesses and organizations and into their collaboration in the community. I’m really excited about progress on diversity, equity, and inclusion efforts; digital equity and access; and additional community alignment. I think we’ve learned the importance of working together. I’m optimistic about Western Mass. — we are going to be resilient, and we’re going to recover from the pandemic, even if there are some additional bumps coming our way.”

 

Working Things Out

One of those bumps is likely to be a continuation of very challenging times when it comes to workforce and companies attracting — and then retaining — the talent they need to grow and prosper. Those we spoke with said this is easily the biggest challenge moving forward and perhaps the most difficult problem to solve.

Ruiz, whose industry, home care, has been particularly hard hit by the workforce crisis, said workforce issues are more than an annoyance — they are hindering the growth and progress of companies, including his own.

“In Massachusetts, we have roughly two open jobs for every candidate that’s in the market. This is a great time for people who may not have been able to access those jobs previously to get training, to get education, and to seize those opportunities.”

Tricia Canavan

Tricia Canavan

“We’re all experiencing challenges in hiring — we can’t hire fast enough; we can’t hire quality enough within our workforce,” he noted. “Hiring is certainly going to be a barometer for how successful we’re going to be with expanding our business.”

He said individual sectors and specific businesses are, out of necessity, forced to be creative when it comes to putting more talent into the pipeline. Golden Years, for example, is collaborating with area colleges to help ready them for careers in healthcare.

Still, the problem is acute, and he’s talking with U.S. Rep. Richard Neal and others about ways to bring more people from other parts of the world into this country to work.

“Using foreign workers is nothing new — our resort areas bring them in by the hundreds,” Ruiz noted. “They come here for a six-month period, and there are certain obligations as an employer that we have to meet to tap that source. But we have to come with creative ways to tap these resources.”

Canavan concurred, and noted that the current workforce challenge presents a huge opportunity to engage those who are currently not engaged in education or work.

“That’s one of the big opportunities for us at this moment in time,” she said. “In Massachusetts, we have roughly two open jobs for every candidate that’s in the market. This is a great time for people who may not have been able to access those jobs previously to get training, to get education, and to seize those opportunities.”

“Our population has basically been flat, and in some areas, it’s declining. If we’re going to be vibrant, there has to be some growth; you need to grow to survive.”

Rick Sullivan

Rick Sullivan

D’Amour agreed, and said his company has been creative and also diligent in addressing the problem.

“Our staffing has improved — it’s much better than it was a year ago or a year and a half ago,” he noted. “But part of it is because we worked at it — we’ve addressed it proactively. We didn’t just put a sign in the window saying ‘now hiring.’ We’ve been a little bit more deliberate, a little bit more strategic, and a little bit more focused about it, and those are the kinds of things that we’re going to need moving forward.”

Elaborating, he said workforce issues require both creativity and a lengthy time horizon, meaning measures that will fill the pipeline with workers for the long term. And the focus needs to be on education.

“From early education to higher education, we need to make sure that we’re bringing our kids and our young people along so that they can be the workforce of the future,” he told BusinessWest. “If we don’t have that, we can’t do a lot of the things that we aspire to. We need to reach into these various communities and make sure that young people have the skills they’re going to need to be successful; that’s where our workforce is going to come from, and those are the kinds of things we have to do.

“I know that’s an area of focus for the EDC, and I know it’s an area of focus for the anchor institutions and many individual companies,” he went on. “We’re not going to get there in a year, but we need to start now; it’s probably a little bit overdue.”

 

Being Positive

As noted earlier, those we spoke with could find plenty of reasons for optimism concerning 2023 and beyond in this region. Collectively, they mentioned everything from the Victory Theatre project in Holyoke (Ruiz is among the many involved in that effort) to the growing number, and diversity, of new businesses being started in this region, especially within the Hispanic and African-American communities; from the strong education and healthcare sectors to the quality of life here and the opportunities presented by remote work for people to live in this region and work wherever they desire.

Meanwhile, those we spoke with said there are real opportunities to grow certain business sectors in this region — from cybersecurity to clean energy to water technology — with the area’s higher-education institutions taking lead roles in each one.

Sullivan said another often-overlooked or forgotten sector showing promise is manufacturing, what he called the “invisible backbone” of the region’s economy.

“Most of our manufacturers were classified as essential employers during the pandemic, so they were able to continue operating,” he noted. “They proved to be really flexible and able to pivot, in some cases even manufacturing PPE and other products that were not part of their portfolio before COVID. That flexibility, if you will, served them well, and now they’re well-poised for growth, and you’re starting to see them make significant investments.

“Whether it’s Advance Manufacturing, Boulevard Machine, or Advance Welding in Springfield, they’re making investment in their own facilities and their own people, and they’re creating jobs — and jobs that will exist well into the future because of the work they’re doing and the contractors that they have, whether it’s the Department of Defense or the Department of Transportation or healthcare,” he went on. “And these manufacturers have recognized that, while this region may not be the cheapest in terms of power or the cheapest in terms of taxation, we are the best when it comes to workforce.”

D’Amour agreed, and said another aspect of the local economy that is often overlooked is agriculture.

“We’re the garden of New England here in Connecticut River Valley, and there are a lot of young farmers in this region that are doing great stuff,” he said. “Agriculture and food products are an important part of our economy, and it adds to the diversity of the economy in our region. Having fields and orchards is also why many people like to live here; it leads to the whole genus of our community and what makes Western Mass. so special.”

Another priority for the region, Sullivan said, is to better leverage its many assets in higher education.

“Many of the other parts of the country, and even the eastern end of this state, really market the presence of higher ed,” he said. “And we have world-class institutions here; whether it’s the flagship campus for UMass or Smith or Mount Holyoke or Bay Path, the cohort of higher education we have here is really significant. And when we talk about workforce, the students that are sitting in the classrooms at the Elms and AIC and the other institutions are the workforce that everyone is looking for, and I really believe that economic vitality and higher ed are entwined tighter than they ever have been before.”

 

Work to Be Done

While there are reasons for optimism, there are also some concerns and priorities for the months and years to come, said those we spoke with.

Sullivan noted, for example, that the region — known in the banking sector and many others as a ‘no-growth’ area — certainly needs a growth strategy.

“Our population has basically been flat, and in some areas, it’s declining,” he told BusinessWest. “If we’re going to be vibrant, there has to be some growth; you need to grow to survive. We can absolutely sell our cost of living and quality of life here, but we need to have the housing for people to move into, and they need to be able to work from home or do their coursework from home, which means, again, that we have to make that investment in broadband and the internet across our region so we can take advantage of that opportunity.

“When people discuss work/life balance and what they want for their families, this lands in a sweet spot for us,” he went on. “That’s who we are; we can sell work/life balance and quality of life, as long as we have all the components. They’re not all going to happen in a month or a year, but there needs to a positive trajectory on all of those things.”

D’Amour agreed, noting that the region has a number of sellable assets, from location to transportation infrastructure to relatively inexpensive (and often green) power, as well as higher education. One priority moving forward is to more aggressively sell these assets and market the region.

“Our challenge has always been telling our story,” he said. “We have not participated as fully as we could have or should have in the economic boom that Eastern Mass. has had. How do we get some of the business community in Eastern Mass. to focus on us instead of going to Southern New Hampshire, or Rhode Island, or wherever?”

Canavan agreed. “We are, in some ways, our own worst enemy when it comes to not telling our story — or appreciating where we live,” she said. “And we do have a lot of assets here, starting with diversity; we’re very lucky to have people from all over the world here, people with different perspectives — that is a real asset. I also think we’re small enough to be agile and to pilot things … we’re like the scrappy player who can try new things, and that’s very exciting.”

Lastly, Sullivan said he is hopeful, and confident, that the state’s new governor, Maura Healey, will not just “talk about how we care about Western Mass.,” but make some significant investments in the region.

“And I think you’ll see them, whether it’s vocational education or community colleges, or broadband or cyber or clean energy,” he said. “I think that there’s an opportunity to make very strategic, intentional investments in Western Massachusetts that will allow it to grow.”

Roundtable Panelists Note Opportunities, Challenges for Year Ahead

By
Susan Kasa
Economic Outlook

Talking the Talk

As part of its annual Economic Outlook, BusinessWest put together a roundtable of area business leaders to discuss the issues facing the region and its business community and the outlook for the year ahead. The panel represents several sectors of the economy, and both small and large businesses. It includes: Harry Dumay, president of Elms College in Chicopee; John Falcone, director of Merchandising for Rocky’s Ace Hardware; Spiros Hatiras, president and CEO of Holyoke Medical Center; Susan Kasa, president of Boulevard Machine in Westfield; Tanzania Cannon-Eckerle, an attorney with the Royal Law Firm and co-owner of Brew Practitioners; and Tom Senecal, president and CEO of PeoplesBank. They were candid and, overall, cautiously optimistic in their answers to a series of questions about the economy and what comes next.

Watch the video of the roundtable here:

 

 

BusinessWest: What is your outlook for 2023?

 

Kasa: “We’re excited for 2023; we’ve really seen an uptick in military and defense work, so we’re really excited about where our year is going to go.”

 

Senecal: “Increased business confidence is the biggest thing, I think, with all the negative press we hear on the economy. Increased confidence is big, and in my industry, and with the people we do business with, lower interest rates will have a significant, positive impact on our environment.”

 

Cannon-Eckerle: “We’re excited about some of the fallout that we got legally from COVID; it has started to settle down a little bit — we’re starting to see those issues become isolated, and opportunities for us to create some guidance and counsel about preventive measures. On the employment side, instead of seeing people float from job to job, I think we’re going to see a little more staying power.”

Susan Kasa

Susan Kasa says the war in Ukraine, while bringing hardship to many, has helped the fortunes of her company, Boulevard Machine, which specializes in work for the defense, military, and aviation industries.

 

Falcone: “We really track consumer sentiment, and what we’re expecting is a really soft Q1, but then when Q2, Q3, and Q4 hit, we’re expecting that consumer sentiment will increase slightly, and that we’re going to have some sort of recovery come the back half of the year.”

 

Hatiras: “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. 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.”

 

BusinessWest: What are the major challenges facing businesses in the year ahead?

 

Kasa: “For us, it’s the same old, same old — trying to get people into manufacturing. We’ve dealt with the generation gap for years, and are getting more involved with the vocational schools and getting parents to understand that manufacturing is a viable option for young people. It’s not just manufacturing; they can be their own entrepreneur in plumbing or electrical, whatever it might be. Also, holding onto folks; ever since COVID came through, it just seems harder and harder to find people who want to work, and want to work the extra hours that we’re giving them. Workforce is key for us — building on the workforce.”

 

Hatiras: “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. 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.”

 

Falcone: “Number one would be interest rates; we keep seeing interest rates increase, and not increasing at a rate that we would expect compared to supply chain. The supply chain is still not fully intact, so we’re still struggling to find those products that we want to make strategic investments in. Also, the job market is going to be difficult for us, primarily on the service, retail, restaurant industry. We very much struggle with our workforce.”

Tom Senecal

Tom Senecal notes that the Fed’s actions to boost interest rates have not yielded much improvement on the inflation front, something to watch in 2023.

Senecal: “I would agree with Susan on the labor force. We’re all in different industries, but we’re seeing the same challenges, whether it’s manufacturing, skilled labor, retail labor, banking and financial services … COVID killed the participation rate of how people want to work or, quite frankly, don’t want to work. It seems like it’s across all industries — the participation is so low, and people just don’t want to work. That’s a huge challenge for next year.

“Another one is inflationary pressures; the Fed has raised rates at unheard-of levels, and it’s having very little impact, which is kind of scary. The last increase wasn’t as high as the others, but it’s still unprecedented. They used to be a quarter-point; three or four 75-basis-point raises is a shock to the system, and it’s not having the immediate impact you might think it would have. That’s going to be a challenge for a lot of business, as well as for us in the banking industry.”

 

Dumay: “In higher education, there are many challenges related to enrollment and finances; we’ve been talking for a while about what is known as the ‘demographic cliff,’ which is the fact that there are fewer high-school graduates, fewer 18-year-olds that are ready to enroll in college, and this has been exacerbated during the COVID years. This is creating enrollment challenges for all higher-ed institutions. On the finance side, everyone here has mentioned the challenge of inflation, as well as the tight workforce. Higher education is also challenged by the fact that some of the stimulus funding that has helped during COVID is no longer available. All of these are going to create challenges for the higher-ed sector in general, and Elms College in particular. But they also present opportunities.

 

BusinessWest: What are the forces that will determine what will happen with the local and national economies in 2023 and what we’re all talking about a year from now?

 

Kasa: “For us, what’s happening in the world politically and the war in Ukraine; we’re really seeing an increase in military spending and orders for the military and defense. That’s going to be very helpful for us, and I do see that continuing. There’s a tremendous amount of talk about upgrades to engines, the F-35 … and being in the aerospace alley and having so many of these large OEMs right in the corridor, in the Hartford area, is beneficial for us. I do foresee things continuing to move up and onward for us.”

 

Cannon-Eckerle: “One of the things bubbling up in the legal sphere is something they call ‘litigation investment,’ which is essentially large companies investing in litigation against larger corporations that normally they wouldn’t be able to afford. It’s like a venture-capital-like investment, and we’re starting to see large companies spread their wings. I think that might have an effect on litigation down the line.”

Harry Dumay

Harry Dumay says COVID provided many important lessons that are serving Elms College well as it moves on from the pandemic.

Dumay: “I think some of those challenges that I spoke about that are related to enrollment will lead to some of the forces and trends that will shape things in 2023. I expect institutions to tailor their pricing and courses accordingly; there is a trend in higher education to look for shorter types of certificates to help max the credentialing needs of the workforce. I expect we’ll see that. But also, the workforce issues are providing a lot of opportunities for institutions to partner with businesses to address some of these workforce issues, and I expect that we’ll see more collaborations and partnerships between higher-ed institutions and businesses to address some of these workforce challenges.”

 

Senecal: “I see two things. One is supply chain; I think the pressure seems to be coming off, and if that trend continues, that will have a really positive effect on the economy. Two, I think higher energy prices are not going to go away. With the war in Ukraine and Russian energy and what is being supplied to Europe and all … many people don’t think it impacts us. I think it will have a huge impact going into 2023. When you look at the supply of energy in Europe, they have enough to get through the winter to sustain themselves. What they don’t have is the ability to replenish those supplies by next winter, and I think Russia knows this, and I think their strategy is to put a huge amount of pressure on to get to next year, because when you get to next winter, there’s not going to be any energy-supply reserves, and that’s going to have a huge impact worldwide on energy supplies, and that trickles throughout the economy.”

 

Falcone: I very much agree with Tom. The overall political and economic environment created by that war has affected our business dramatically, whether it’s fuel costs, energy costs that directly impact the supply chain and lead to inflation, or interest rates, because the overall cost of carrying our inventory is higher, and the cost of the product we’re procuring is higher. So with that, our overall cost of business has increased.”

John Falcone

John Falcone says supply-chain issues have improved in recent months, one of many reasons for optimism heading into 2023.

Kasa: “I agree with John. In manufacturing, our supply chain has really been impacted by this war; we’re not able to get material as we did some time ago, and those costs continue to rise. Being in manufacturing, we’re held to long-term agreements, master agreements, and it just continually squeezes the small guy.”

 

BusinessWest: How has your business or institution coped with the recent workforce challenges? Do you have a success formula?

 

Senecal: “Before COVID hit, we would never let an employee work from home; from a security perspective, from a collaborative perspective, it just wouldn’t work. Two weeks into the pandemic, we had 80% of workforce working from home without a hitch. I still think the collaboration, or culture, side of it has to occur within the office, but we’ve pivoted from that perspective, and we’re pushing the ability to work from home a whole lot more.

“To tackle the workforce issue and spread our wings and look beyond Western Mass., we are advertising positions as ‘80% work from home,’ something you would have never thought of or heard of in years past. We have an employee now who works 100% out of Chicago. As a local community bank, we would have never considered that. It’s increased our ability to attract talent, and we’ve found some success, but I know it’s still going to be a challenge moving forward.”

 

Kasa: “We’re looking for exposure, and being in our bright new building certainly helps. So does using social media to attract young machinists; we’re using Instagram and Facebook … it really does work with the young people that follow you. And being a family-owned business also resonates with many people; there have been so many capital acquisitions in recent times in this area.

“We spend a lot of time talking to parents about manufacturing and the opportunities that are available to young people. Manufacturing is coming back, and now parents are realizing that not everyone is meant for a college degree, and they don’t have to spend $100,000 or $200,000 on education; they are coming into machining and electrical and plumbing. The parents are really starting to see us as a viable option.”

 

Dumay: “We’re paying a lot of attention to employee morale and employee satisfaction, and being flexible where we can. Part of the promise of Elms College as a small, liberal-arts institution is that students will be in contact with people and one another, so having a presence on campus is important. But we’re trying to work creatively to include flexibility for employees in terms of where they can work and the time they can work, to the extent that this can be done.”

 

Hatiras: “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. 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.”

Spiros Hatiras

Spiros Hatiras says the “truly outrageous” cost of agency nurses is one of the many stern challenges facing all hospitals today.

Falcone: “We put a big focus on our company culture. Right in our strategic plan, it says ‘invest in people, personally grow, and have fun.’ There’s no doubt about it … the people we have are our biggest asset, so what we want to do is make sure that we’re taking care of them. In this ever-competitive job market, it’s really easy to jump jobs for an extra dollar or two an hour, but for us, we really want to focus on employee engagement and employee satisfaction.”

 

BusinessWest: Provide us with at least one, and maybe a few, reasons for optimism regarding the year ahead.

 

Falcone: “The supply chain is becoming more intact. Two years ago, our fill rates as a company were about 60%; December marked the first time our fill rates recently broke the 80% mark. They’re still not back to 2019 levels of roughly 90%, but it’s slowly getting better, and I think the numbers will continue to increase. For the consumer, it’s the availability of product at a reasonable price. Also, we’re starting to see a little bit of deflation … I think we’re still going to have inflation, but it is going to level off.”

 

Kasa: “The war, which is terrible for the world, and the politics going on are only going to make more work for us because we’re military and defense-heavy. Meanwhile, space is another huge one for us, because it’s been years since the U.S. has gone to space. And with all the competition going on for space travel now between Blue Origin, SpaceX, and others … it’s a a market the U.S. hasn’t been involved in for years, and it bodes well for us.”

Tanzania Cannon-Eckerle

Tanzania Cannon-Eckerle says many converging forces will bring change to the employment-law scene in 2023.

Cannon-Eckerle: “Now that COVID is a little bit behind us … we have some clarity. I think there was a period of time when employers, employees, people who don’t work, everyone in this world went through a period of time when they just didn’t know what the future would hold. Now, people can start making decisions and moving forward, in whatever direction that might be. Also, green technology. I think that technology is getting a huge boost, even moreso than it had before, and I think we’re going to start making some big strides in green technology, and I’m really excited about that.”

 

Hatiras: One of the good things for Holyoke, and this is one of the reasons I’m optimistic about our path here, is that we have this new waiver in Massachusetts, a five-year waiver with Medicare, which puts a lot of emphasis on safety-net hospitals. So, despite the many challenges I mentioned — and we’re going to have to meet those challenges — I think we’re going to be in a very good position to continue to provide the services we do now, and even better; it’s a good deal for Massachusetts and safety-net hospitals.”

 

Dumay: “We had a Christmas party at the college recently, and everyone was shaking hands — no one was fist-pumping, no one was six feet apart. It’s easy to forget where we were a year ago. I’m encouraged when I look at what happened during the past semester, when students were happy to be with one another; this is the generation where students finished their high school on Zoom and already had some difficulty with social skills. This ability to come back together … people are appreciating that.

“Another reason for optimism is that we learned a lot of lessons during COVID. We endured considerable hardships, but we also learned some valuable lessons as well. In higher education, for example, we learned about online learning and providing students with maximum flexibility. This is something we were forced into by COVID, but now, those lessons are settling down and providing both flexibility and efficiency in terms of teaching and learning. From a human-relations perspective, we’ve learned some lessons that are becoming part of our operations, and for the better.”

 

City Enterprise and Its Ambitious Owner Create a Blueprint for Expansion

By
Wonderlyn Murphy
Construction Cover Story

Building Momentum

 

Wonderlyn Murphy

Wonderlyn Murphy

 

 

Wonderlyn Murphy has some ambitious plans for City Enterprise, the construction company she started nearly two decades ago.

She wants to take it to $150 million in annual revenue — roughly six times the current level. She wants to expand geographically and open new locations, perhaps one in Florida and another in Maine or New Hampshire. She wants to build a new headquarters facility in this region because the company has clearly outgrown its current home on Berkshire Avenue in Springfield. She wants to add more staff, and she wants to broaden the portfolio with larger projects, likely through partnerships with larger construction firms.

Yes, there is a lot on her ‘want’ list. But she believes it’s all realistic, and, more importantly, she has a blueprint for getting there.

“We’re in a transition period now where I’m growing the company,” she said. “And I have some very aggressive goals for the next five years. I want to be a $150 million company, and we get there by scaling, we get there by duplication, we get there through collaboration and partnerships, we get there by building the employees based on our core values, get there through outside-the-box thinking and vision, more than just focusing on getting the next job.”

Getting where she wants to go will certainly be a challenge, but Murphy has already clearly shown that she has the ability to set goals and then reach them through hard work, determination, and overcoming obstacles in her path.

“We’re in a transition period now where I’m growing the company. And I have some very aggressive goals for the next five years. We get there through collaboration and partnerships, we get there by building the employees based on our core values, get there through outside-the-box thinking and vision, more than just focusing on getting the next job.”

Indeed, she has taken City Enterprise from a small, one-person venture that started with Murphy designing, building, and flipping homes to a multi-dimensional company with 14 employees that has secured work with clients ranging from UMass Amherst to the U.S. Park Service; from the General Services Administration to the U.S. Coast Guard.

She’s done all this by making connections, forging relationships, and, yes, taking full advantage of City Enterprise’s status as a woman- and minority-owned business.

Such status has certainly opened some doors, but Murphy has had the entrepreneurial drive, and that determination, to march through those doors and, as noted, put down some ambitious plans for what comes next.

Today, Murphy told BusinessWest, thanks to some new staff additions, and especially the addition of Vice President of Operations Charles Young, she is able to spend more time on the business, rather than in it.

And with that fundamental change, she believes she is putting the pieces in place for a story of change, growth, and taking her company to places that she probably couldn’t have imagined 20 years ago.

But then again, she probably could.

 

Building a Foundation

As noted earlier, City Enterprise has been a work in progress, or a dream in progress, for Murphy for nearly two decades now, or not long after she graduated from Wentworth Institute of Technology in Boston with a degree in architectural design technology.

At first, it was a part-time pursuit, something she did after working the overnight shift (midnight to 8 a.m.) as a correctional officer with the Hampden County Sheriff’s Office at the Western Massachusetts Correctional Alcohol Center on Howard Street, since torn down to make way for MGM Springfield. That work was a learning experience on many levels, she said, and one that has helped in her current roles as employer and entrepreneur.

“It was a very interesting experience, to say the least,” she told BusinessWest. “I got to know the population and came to understand what it really meant to be a corrections officer; there’s much more to it than slamming cell doors, even though there were no cell doors there. The population came from varied backgrounds, and to navigate all of that took a certain amount of finesse.”

Abatement work at the former Court Square Hotel

Abatement work at the former Court Square Hotel in downtown Springfield is one of many municipal projects awarded to City Enterprise.

While working in corrections on Howard Street, she designed, built, and sold a few houses, including her first such endeavor, a home on Eastland Street, just a stone’s throw from City Enterprise’s current home on Berkshire Avenue. Later, she designed and built a two-home development on Parkerview Street in Springfield and handled a few renovations and additions as well.

It was difficult to manage both sides of her work life, but she managed.

“I would get out of work at 8, and I would go straight to my job sites and my projects, because I was the only one doing it at the time,” she recalled. “So I had to line up my subcontractors; I had to be on site and make sure everyone was there. I had to schedule everything … and time is always of the essence in real estate, because you want to hit the market at the right time.”

This was the start of City Enterprise, she said, adding that, as she continued to operate her venture out of her basement and create the first of what would be several business plans for its future, Murphy applied for status under what is known as 8A under the Small Business Administration, a program created to help firms owned and controlled by socially and economically disadvantaged individuals.

Applying for such status is a difficult and lengthy proposition, she said, adding that it eventually took her three years to gain that designation. At first, she was turned down, in large part, she believes, because she was still working in corrections at the time and thus — to those reviewing her application, at least — she was not fully committed to her business venture.

After waiting a year — and after leaving the Sheriff’s Department in 2012 and making City Enterprise a full-time pursuit — she applied again, and this time was granted 8A status. And during that year, she was making connections and building relationships with agencies ranging from the General Services Administration to the Army Corps of Engineers to the U.S. Navy.

“I was letting these people know that I was coming — I was developing relationships even before I was admitted into the program,” she said. “Because I knew the 8A was more government-contract-driven, I sought out those agencies.

“I was confident because I made the necessary sacrifices to make that happen,” she said. “I knew there were things I had to do to get past that first rejection, and I did them. I took full advantage of that year.”

The 8A designation certainly opened some doors, as noted earlier, especially at government-owned and operated facilities, such as Westover Air Reserve Base, where she earned first commercial contract — renovation work in the bowling alley on the base.

Wonderlyn Murphy, seen here with recently hired Vice President of Operations Charles Young

Wonderlyn Murphy, seen here with recently hired Vice President of Operations Charles Young, is setting some ambitious goals for City Enterprise.

This was another important learning experience, she said, adding that she initially hired the wrong type of flooring company to work on the bowling lanes, but later secured the right subcontractor, a company in Ohio, and finished the project in good order.

“It was a very difficult entry into the commercial space, but we got through it, and it was a great learning experience,” she said, adding that the company would go on to secure projects with a number of government entities in the ensuing years.

 

Drafting a Plan

That list includes the city of Springfield, which hired the firm to handle the abatement of the historic former Court Square Hotel, which is being converted into market-rate apartments; the National Park Service, which hired City Enterprise to undertake restoration of the porch of the commanding officer’s quarters at the Springfield Armory; UMass Amherst, which has contracted with the company on a number of projects, from renovations of the Rand Theater to envelope repairs at several of the dorms; UMass Medical School, which hired the company to do skylight replacement; the U.S. Coast Guard, which used the company for repairs and renovations to its small-arms range; and countless others.

Current projects include installation of a new marquee sign at the MassMutual Center, work at the Beals Library in Winchendon, and construction of a new amphitheater, also in Winchendon. The company has also submitted a proposal for the Old State House in Boston, what would be its most significant project to date, and is awaiting word on that bid application.

The growing list of clients, the wide range of work undertaken for them, and the growing staff at the company, now numbering 14, including an estimating staff, project managers, an accounting department, and that aforementioned vice president of Operations, shows how far this company has come since Murphy started building houses.

More intriguing, though, is where she wants to take it moving forward.

Indeed, as she mentioned at the top, City Enterprise is in a transition stage in its development, and the broad plan is to essentially scale the operation — in many different ways.

One of them is geographic reach. She said she would like to have a location in South Florida, and perhaps another in northern New England to better serve potential clients in that market. She is also looking at growing through acquisition as well.

“Time is always of the essence in real estate, because you want to hit the market at the right time.”

Meanwhile, as noted earlier, she is settling into … not a new role, necessarily, but a different set of responsibilities as the company makes this transition. Indeed, instead of handling many of the day-to-day matters, which will now be handled by Young, she will be even more focused on the proverbial big picture and goal setting.

“I’m not as involved with the day-to-day as I was a year ago because I have brought on a vice president of Operations,” she said. “But I am very involved with executing my vision and getting my team aligned with the vision, and getting the right people to go with me to that number I just mentioned — $150 million — which is probably the most important part.”

the porch at the commanding officer’s quarters at the Springfield Armory.

City Enterprise has tackled a number of assignments involving government agencies, including work to restore the porch at the commanding officer’s quarters at the Springfield Armory.

Elaborating, the company’s broad portfolio of projects — meaning the depth and diversity of the client base and the wide variety of work — is indicative of “where we’re going and who we are,” Murphy said, adding that the focus moving forward is simply on controlled growth and doing what’s necessary to meet those lofty goals.

A new headquarters building is a key part of that equation, she said, adding that she has plans on paper for a new building and a site in mind. Further diversification of the portfolio of clients is another key goal, she said, adding that the company is working to add more colleges and universities, government agencies, municipalities, and healthcare facilities, among others, to that already significant list.

Continued relationship building and potential collaborations with larger construction companies on larger projects is another part of that equation, she said, adding that the company’s status as a woman-owned and minority-owned company could be a huge asset in such collaborative efforts.

 

Bottom Line

Such conversations are ongoing, Murphy said, adding that, as she moves away from the day-to-day of running City Enterprise and more into the broad task of marketing the company and being its “face,” her job description falls into the category of making and building connections.

“It’s a very ambitious place I’m going to,” she said in conclusion, adding that she is putting the pieces in place for something special. The foundation has been built, and she is now ready to build upon it — and in dramatic fashion. u

 

George O’Brien can be reached at
[email protected]

Year in Review

By
Features Special Coverage

Here Are the Stories That Impacted Western Mass. in 2022

By George O’Brien and Joseph Bednar

 

Cannabis Sector Continues to Grow

How many dispensaries is too many? Cities like Northampton, Holyoke, and Easthampton that have embraced the cannabis industry are demonstrating that many such businesses can thrive together, while generating healthy tax revenues for the municipality itself. However, the recent closure of the Source — the state’s first adult-use dispensary to close since shops began opening in 2018 — poses new questions on the competition front.

There’s no doubt cannabis has been a success in Massachusetts, with recreational sales approaching $4 billion since legalization. But one big question is what form the industry will eventually take — with some predicting eventual consolidation by bigger entities alongside a robust population of boutique sellers — and how the state will continue to protect opportunities for smaller players, especially minorities.

The latter prospect was strengthened by a law passed in August aimed at giving minority cannabis entrepreneurs easier access into the industry, and also paving the way for municipalities to allow marijuana cafés. The bill also better regulates host community agreements, creates a state-run loan fund for minority entrepreneurs, lowers taxes for marijuana businesses, and makes it easier to expunge records for old marijuana offenses.

In short, this story is still evolving in intriguing ways.

 

Companies Grapple with Workforce Challenges

The pandemic temporarily dislodged millions of people from their jobs, and when companies started rehiring again, they found it was much more difficult to recruit and retain employees, particularly in lower-paying industries like hospitality, but it was a trend that stretched across all fields, from healthcare to construction to … well, you name it.

At issue has been three intersecting trends: the Great Resignation of older workers, many of whom moved up their retirement timeline in the wake of the pandemic’s economic upheaval; a movement among Gen-Zers and younger Millennials, particularly in service industries, to re-evaluate their worth and push for higher wages and more flexibility; and ‘quiet quitting,’ defined as doing the bare minimum to fulfill one’s job, which, of course, cuts into a company’s productivity.

There are no easy answers to combat these trends, and companies struggling with workforce shortages must grapple with what they mean in the longer term. Workers no doubt have leverage right now like they haven’t had in recent memory, and they’re wielding it, to significant — and, in many cases, still-undetermined — effect.

 

An architect’s rendering of a renovated Victory Theatre

An architect’s rendering of a renovated Victory Theatre

Victory Theatre Project Gains Momentum

Holyoke officials and groups involved with the arts have been engaged in efforts to try to revitalize the historic Victory Theatre for more than 40 years now. And while this initiative still has a ways to go before it can cross the goal line, some significant progress was seen this past year.

It came in several forms, but especially the earmarking of ARPA funding to renovate the theater, which opened in the 1920s and last showed a movie in 1979. The ARPA funding is expected to help close the gap between the funds that have been raised for the initiative and the total needed — roughly $60 million.

Momentum can also be seen in a firm commitment on the part of Joshua Garcia, the city’s first Hispanic mayor, who sees the project as an important catalyst for bringing new businesses to downtown Holyoke and another key ingredient in the larger formula for revitalizing the Paper City.

 

The Marriott Flag Returns to Downtown Springfield

It took more than three years, and there were a number of challenges to overcome along the way, but the Marriott flag is now flying again over the hotel in the Tower Square complex. The massive renovation — or “re-imagining” — of the space, as it’s been called, earned Tower Square owners Dinesh Patel and Vid Mitta BusinessWest’s Top Entrepreneur honor for 2022.

But the undertaking has done more than that. It has helped transform the property into one of the best hotels west of Boston, and it has become a stunning addition to a Tower Square complex that has been reinvented as well, with intriguing additions ranging from the Boys & Girls Club of Greater Springfield to White Lion Brewery to a scaled-down version of a Big Y supermarket soon to emerge in space formerly occupied by CVS.

The new Marriott staged a truly grand opening in November, an event that was a big day not just for Patel and Mitta, but for the entire city.

 

Remote Work Is Here to Stay

This past year was one in which the region’s business community was to return to normal in most all respects after two painful years of COVID. But there was one realm where it didn’t — and that was by choice.

Indeed, remote work continued to be part of the landscape in 2022, but this time there was an air of permanence to the concept, not merely a temporary response to COVID. In interviews for stories written over the course of the year, owners of businesses large and small said remote work and hybrid work schedules have become the new norm. They have become a benefit of sorts for valued workers and have become an effective means for attracting and recruiting talent, as well as for as widening the net for job applicants well beyond the 413 area.

The full impact of remote work on the commercial real-estate market and small businesses that rely on workers being in their offices — restaurants and bars, for example — has yet to be fully and accurately measured, but it appears that this fundamental change in how people work is here to stay.

 

East-west Rail Chugs Forward

East-west rail service between Pittsfield and Boston is still far from reality, and plenty can still happen to derail the decades-long dream of so many legislators, businesses, municipalities, and other rail advocates. But 2022 marked the strongest progress toward that goal yet, with $275 million allocated toward the project in August as part of the state’s $11 billion infrastructure bill — a good start, but only a start.

A high-speed rail connection between the Hub and Western Mass. is about more than convenience; it’s about expanded opportunity — both for workers who can earn Boston wages while enjoying a decidedly non-Boston cost of living, and also for employers who can cast a wider net for talent — not to mention easier access to recreational and regional resources, as well as reduced traffic and emissions.

“We have the money, the support, and I have secured the commitment from both the outgoing Baker-Polito administration and the incoming Healey-Driscoll administration to keep this train literally and metaphorically moving forward,” U.S. Rep. Richard Neal said earlier this month. “This is an opportunity that will not avail itself again, and now is the time to move on an east-west rail project that will be transformative for all of Massachusetts.”

 

The T-Birds came up a few wins shy of an AHL championship

The T-Birds came up a few wins shy of an AHL championship, but their playoff run was a huge win for the team and the region.

Springfield Thunderbirds Reach AHL Finals

The Springfield Thunderbirds eventually wound up a few wins shy of a Calder Cup this past spring. But their dramatic run to the finals was a huge win for the team, the city, and the region.

Indeed, the race for the cup captured the attention of the entire area, with fans old and new turning out at the MassMutual Center, tuning in on social media, and talking about the team at the water cooler — or the weekly Zoom meeting.

The team, which eventually lost in the finals to the Chicago Wolves, created a great deal of momentum with its playoff run, as well as a surge in season-ticket sales. While not all deep playoff runs are financial success stories, this was one, said the team’s president, Nate Costa. It was also validation for him and for the ownership group that stepped up and brought hockey back to Springfield when the Falcons departed for Arizona.

There’s now an Eastern Conference Championship banner hanging in the MassMutual Center, and even more of a connection between the region and its pro hockey team.

 

Holyoke St. Patrick’s Day Parade Returns

After a long, as in very long, two-year absence, the Holyoke St. Patrick’s Day Parade and road race returned in full force in March. The twin events have always been part of the fabric of the region and a huge contributor to the Greater Holyoke economy, and that became clear in interviews with parade organizers, city officials, and individual business owners in the weeks leading up to the parade for a story in BusinessWest that carried the headline: “The Return of a Tradition: For Holyoke, the Parade Brings Business — and a Sense of Normalcy.”

Business owners told BusinessWest that the parade and race account for large amounts of annual revenues, and that losing the events for two years due to COVID was devastating. But beyond business and vibrancy, something else went missing for those two years. Marc Joyce, president of the parade for the past three years, put it all in perspective.

“It’s in the mindset and emotions of people who have grown up here,” he said. “It’s a homecoming; people come back to the city, and you see people you haven’t seen since perhaps last year. It’s a wonderful, family-oriented event.”

 

The LEDC has a unique model

The LEDC has a unique model featuring coaches on matters ranging from accounting to mental health.

Latino EDC Opens Its Doors

The Latino Economic Development Corp. opened its doors to considerable fanfare in September, and with good reason. The agency, called the Latino EDC, or LEDC, has a broad mission and a unique business model, one aimed at helping businesses, especially Latino-owned businesses, open their doors and keep them open.

The LEDC, located on Fort Street in Springfield, is a place where more than two dozen coaches, experts in many aspects of business, will make themselves available to business owners and share what they know. Executive Director Andrew Meledez says the agency will focus on what he calls the three ‘Cs’ of helping business owners get where they want to go — coaching, capital, and connections. Overall, its goal is to turn employees into employers, and the agency is already capturing the attention of economic-development leaders in this region — and well beyond.

 

New College Presidents Take the Reins

College and university presidents are in many ways key regional voices, shaping public perspectives on issues through programs and initiatives they spearhead. And in 2022, that exclusive pool of influencers saw some significant ripples.

In April, Hubert Benitez, vice president for Strategic Initiatives and Academic Innovation and acting chief Inclusion officer at Rockhurst University, took the reins at American International College, replacing Vince Maniaci, who had been president there for 17 years.

Then Michelle Schutt, previously vice president of Community and Learner Services at the College of Southern Idaho, began her tenure as president of Greenfield Community College in July, replacing Richard Hopper, who had been interim president since the summer of 2021.

Also in July, Smith College announced that Sarah Willie-LeBreton, provost and dean of faculty at Swarthmore College, will replace Kathleen McCartney, who has served as president since 2013, starting in July 2023.

Finally, in June, UMass Amherst Chancellor Kumble Subbaswamy announced he will retire in June 2023 after serving in that role since 2012, and the following month, Christina Royal, president of Holyoke Community College since 2017, announced she will retire in July 2023; searches are on to replace both.

 

new parking-garage facility at the MassMutual Center.

An architect’s rendering of the new parking-garage facility at the MassMutual Center.

Civic Center Parking Garage Comes Down — Finally

After years of talking about and working with state leaders to assemble the financing to build a replacement, the city tore down the crumbling Civic Center Parking Garage this fall. As the demolition crews began their work, workers in downtown office buildings paused to watch.

It wasn’t a landmark that was coming down, but rather a decaying structure that had become a symbol of all that Springfield was trying to put behind it — the hard economic times, aging infrastructure, and a downtown of another era.

While the long-awaited demise of the parking garage was news, the more exciting news is what’s going up in its place — a new, state-of-the-art, environmentally friendly, 1,000-space facility, and activation of abutting property, acquired by the city, that will enable Springfield to create an atmosphere that officials say will be similar to the scene at Fenway Park on game nights.

 

transformation of the old Court Square Hotel

The transformation of the old Court Square Hotel is a long time coming.

Court Square Transformation Project Proceeds

When Dave Fontaine Jr. talks about work to renovate the former Court Square Hotel into market-rate apartments being a “generational project,’” he means it. Indeed, when he talked with BusinessWest about the initiative this past summer, he said he believes his father and grandfather were both involved in bids on projects to transform the property going back more than 30 years.

It’s taken decades of effort, but the transformation of the property is now well under way. The project is expected to not only bring new life to that historic property — in the form of 71 units of housing as well as retail on the ground floor — but also create more vibrancy in the city’s downtown and possibly be a catalyst for new hospitality and service-sector businesses.

The Court Square project is a true public-partnership, with funding support from several parties, including Winn Development, Opal Development, the state, the city, and MGM Springfield. And it will make sure that an important part of the city’s past is now a vital cog in its future.

 

Navigating Challenges in Auto Sales

This past year was another wild ride, if that’s the right term, for the region’s auto dealers. Indeed, the trends that emerged in 2020 and 2021 — from historically low levels of inventory to sky-high prices and low inventory of used cars — continued in 2022.

Matters improved to some degree for area dealers, but there were still many challenges to face — and still a number of used cars taking up space on the showroom floors.

But perhaps the biggest news in 2002 involved electric vehicles, with many dealers reporting huge increases in the sales of such models. There are several reasons why, but simple math is perhaps the biggest, with drivers of electric vehicles — after the initial investment, anyway — spending far less to get from here to there than those with gas-powered cars, trucks, and SUVs.

That trend is expected to continue into next year, say area dealers, as more makers introduce electric-vehicle lines.

 

Live Music Scene Expands

When the Drake opened in downtown Amherst in April, it became the town’s first-ever dedicated music venue, hosting everything from jazz and rock to funk and world music. And it opened at a time when demand for live music in the region is on the rise, and an increasing number of spaces are meeting the need.

With Eric Suher’s Iron Horse Music Hall, Pearl Street Nightclub, and Mountain Park shuttered to concerts these days and the Calvin Theatre hosting a bare trickle of tribute bands, others have picked up the slack.

They include not just the Drake, but Race Street Live, which hosts national touring acts in the Gateway City Arts complex in Holyoke; Hawks & Reed Performing Arts Center in downtown Greenfield, which schedules a robust slate of events across four spaces; MASS MoCA, which hosts concerts inside the museum and festivals outside it; Bombyx Center for Arts & Equity in Florence, which opened in October 2021 in a converted 1861 church; and many more.

It’s clear that people are enjoying live music again, and a new generation of venues — and some venerable ones as well — are stepping up to meet that need.

 

Moving On from COVID

President Biden declared COVID over in September. With a winter setting in in which doctors are warning of a ‘tripledemic’ of flu, RSV, and COVID, that’s … well, not quite the truth, not with about 350 people still dying from COVID each day in the U.S., about 85% of them unvaccinated.

What is true is that, even as some people are still overcoming COVID, just about everyone is over it — and especially over the disruptions the pandemic caused to the global economy.

Still, moving on is easier said than done, as is shifting back to something resembling business as usual pre-2020. Construction firms still face challenges with scheduling and cost, knowing that the supply chain can be wildly inconsistent. Families still struggle with inflation, and are getting hit hard by the tonic being poured on it: higher interest rates for loans. As noted earlier, real-estate owners wonder whether a slowed market will remain so as tenants decide they need less space for a workforce that has gone largely remote and may remain so.

In short, moving on from COVID is a slow process, and its effects will continue to reverberate, no matter how much anyone — even the president — wishes it would just go away.

 

George O’Brien can be reached at [email protected]

Joseph Bednar can be reached at [email protected]

 

Construction Industry Navigates One Challenge After Another

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supply challenges would help builders and buyers move forward on projects with confidence
Construction

Waiting for a Correction

supply challenges would help builders and buyers move forward on projects with confidence

Dave Fontaine Jr. says a ‘correction’ on cost and supply challenges would help builders and buyers move forward on projects with confidence.
Photo by Joe Santa Maria, Kill the Ball Media

Dave Fontaine Jr. hears talk of a recession that could affect the construction industry, but he prefers to use a different word: correction. After a couple years of soaring costs, he feels one is necessary, and coming.

“I think in the last two years, costs have risen over 20% each year. When you go back over the last 30 years, the average increase per year is 2% to 4%,” said Fontaine, CEO of Fontaine Brothers Inc. in Springfield. “It’s been very difficult for projects to absorb, and for clients to absorb. We’ve seen several projects — some we’ve been involved in, some we’ve watched from the outside — that have either stalled or been canceled because of cost challenges.

“We’re hopefully undergoing a correction. And I like to use that word, the idea being that we need to get back to a correct place. Sometimes [rising costs] are a necessary evil: things get overheated; COVID brought challenges with supply chains, labor, and transport that affected materials and pricing. But I think, frankly, construction costs are in need of a correction. When that happens organically, when we’re able to broaden the supply chain again, get things flowing … we’ll get back to a place where people know what the cost is to build, and move forward with confidence.”

That said, Fontaine noted, “it’s been a really good year; we’ve been busy across all the geographies we serve and all the different sectors as well.”

Bill Laplante, president of Laplante Construction Inc. in East Longmeadow, which specializes in home building and remodeling, had an equally strong report.

“The demand carried over from 2021; demand for remodeling was really high, and a lot of that was just people being home during the pandemic. They were able to work from home and wanted to make a nice office or put a bedroom suite in.”

“We had a fantastic 2022. It was probably one of our best years in the last 20 years,” he said, noting that some of that success was driven by expansion onto Cape Cod, but some was based on demand that carried over from 2021. “Some of it was pandemic-related, but we actually have a really strong outlook for 2023 with the jobs we have in the pipeline.”

He agreed, though, that supply and cost challenges have been discouraging.

“Some materials, things like plastic pipe and conduit, have increased five times the cost. It’s not as simple as a 8% or 9% increase here and there; for some materials, it’s completely off the charts. It makes it difficult to sign a contract and build a house, when you’re not going to be purchasing those materials for four months, not knowing where things are truly going to land. Obviously, once costs go up, you try to plan for the next house.

“The supply-chain issues have been brutal over the last couple years,” he went on. “It seems like it’s something different every week. You can’t get the plastic for the buckets for drywall cement. Then the next week, you can’t get runners for cabinet drawers. The next week, you can’t get a hinge. That’s been very, very difficult. Plus, a lot more planning goes into it, with the increased lead times for windows, doors, and appliances. We need to get selections a lot sooner than we would from our customers so we can get orders placed. With high-end appliances, we’re out 10 to 12 months.”

Fontaine echoed those sentiments. “Lead times are still challenging. There are some items getting better, which is good, and most items are not getting worse, which is also good. But we’re still seeing a lot of difficulty with items like electronic components, chips, boards, stuff like that. That’s affecting things like rooftop units, electrical equipment, and generators.

demand has been up for new homes

Bill Laplante says demand has been up for new homes and remodels alike, despite rising interest rates.

“For us, it’s not anything that’s stopped our projects from opening on time,” he added, “just something we’ve had to pay much more attention to, and we’ve become more creative with how we procure things and meet our schedules.”

 

Ups and Downs

Despite reports that some area contractors had a strong 2022, rising interest rates are expected to impact construction nationally in 2022. The 2023 Dodge Construction Outlook predicts U.S. construction starts will drop by 3% next year.

Meanwhile, the Architecture Billings Index, a forward-looking indicator for construction activity, dropped significantly in October after 20 months of positive growth. And the Associated Builders and Contractors backlog indicator, which tracks work construction firms have booked but haven’t yet begun, fell below its pre-pandemic reading from February 2020, largely due to a decline in the commercial and institutional category.

“The construction sector has already started to feel the impact of rising interest rates,” said Richard Branch, chief economist at Dodge. “The Federal Reserve’s ongoing battle with inflation has raised concerns that a recession is imminent in the new year. Regardless of the label, the economy is slated to significantly slow, unemployment will edge higher, and for parts of the construction sector, it will feel like a recession.”

Some sectors are expected to perform well, he added, including data-center construction, manufacturing starts — especially chip-fabrication plants and electric-vehicle battery plants — and publicly funded infrastructure projects. Meanwhile, the office, warehouse, hotel, and retail sectors are expected to lag. Branch also expects single-family starts to drop about 5% next year.

“There’s got to be more emphasis put on job training and vocational schools. The opportunities out there for tradespeople, and what a skilled tradesperson can make, are incredible.”

Laplante said remodeling, additions, renovations, and home improvements comprise 30% to 40% of his firm’s work, and the pandemic played a role there.

“Again, the demand carried over from 2021; demand for remodeling was really high, and a lot of that was just people being home during the pandemic. They were able to work from home and wanted to make a nice office or put a bedroom suite in. We saw that pretty much across the board. People weren’t traveling overseas; they were putting in poolhouses and sunrooms and outdoor kitchens, things like that.”

While he expects interest rates to slow activity in the home-building and remodeling industry, Laplante said the large size of some of his projects, which can take from six months to a year, tends to dampen any slowdown.

“Smaller remodelers are probably seeing more of an effect with interest rates slowing things down quicker than we will see it,” he said. “And then, of course, we’re working with a lot of customers who aren’t interest-rate-sensitive.”

He added that subcontractors may see a slowdown before builders because they don’t deal with the same project duration.

The Cape Cod expansion is a strategic move partly based on the fact that Laplante was already building there, and it’s also a fairly high-end market, where, as he noted, clients are more willing to weather higher interest rates. “So part of that was a hedge against the economy; you don’t see the deep swings in demand you would see in the Western Mass. market.”

the facade of the former Court Square Hotel

A worker from Fontaine Brothers works on the facade of the former Court Square Hotel.
Photo by Joe Santa Maria, Kill the Ball Media

Fontaine said his company, while also expanding its reach geographically, is taking on more housing work now that it’s starting to become a priority again. “We did a lot of it for a long time, and we’re seeing a lot more public housing, affordable housing, make its way back through the funding pipeline.”

His most notable current project in that realm is the ongoing transformation, with Winn Development, of the Court Square Hotel in Springfield into 71 units of market-rate housing, accompanied by retail on the ground floor.

Fontaine’s longtime presence in the education sector is also strong right now, with projects including the new DeBerry-Swan Elementary School in Springfield, an elementary school in Tyngsborough, a middle school in Walpole, a project at UMass Chan Medical School in Worcester, and the $240 million Doherty Memorial High School, the largest project in the city of Worcester’s history.

 

Help Wanted

After inflation and supply woes, the third challenge construction companies are dealing with remains a workforce crunch, which has affected many other sectors of the economy as well.

“The number of people going into the trades is way, way down,” Laplante said. “There’s got to be more emphasis put on job training and vocational schools. The opportunities out there for tradespeople, and what a skilled tradesperson can make, are incredible.”

To that end, he works directly with area vocational schools to cultivate talent, and often schools that aren’t vocational, per se, but have vocational programs. For example, an intern from Longmeadow High School will come on board soon, and Laplante hired another intern from that school last year.

“Through COVID, we’ve had people who have been borderline on retirement, and COVID pushed them to retire,” Fontaine said of one of the stress points in the construction workforce. “But we honestly haven’t had as significant labor challenges as some of our peers.”

That’s partly due to working with some of the large local unions, which can supply a more reliable workforce, he said. “But we’ve also put a lot of focus the last few years into workforce development, even before COVID. We actively go into the community and work with workforce programs, with community organizations, to bring people into the workforce.”

Those efforts are crucial, he added. “When I look at the next 20 to 30 years, that’s one of the biggest challenges, to be able to recruit people into the trades.”

Fontaine added that his company has been able to integrate a lot of technology into projects over the last few years, which has helped overcome challenges related to cost, lead times, and workforce. “We’re using technology to track lead times and inform other projects, so we avoid those ‘gotcha’ moments, and we’re using technology to coordinate mechanical systems and prefabricate them off-site, which helps with some of that labor and lead-time burden.”

In short, he said, “we’re trying to modernize an industry that’s by nature not modern, to the best extent possible. That’s been a big theme for us the last couple years.”

That said, the main theme across the industry in 2023 could be the impact of those rising interest rates finally coming to roost.

“Our planning process is so long, and the jobs we’re getting ready to start now are jobs that were planned four months ago, and when the financing is finally put together, we’re ready to get shovels in the ground. That’s a house that people ultimately will be moving into in the fall,” Laplante explained. “So, because of that, we see a little more of a lag in the drop in demand based on the interest rates, but it certainly is coming.”

Still, Dodge’s Branch believes any downturn in the construction industry will not be as dire as the Great Recession, which settled over the U.S. almost 15 years ago.

“The funds provided to the construction industry through the Infrastructure Investment and Jobs Act, the CHIPS and Science Act, and the Inflation Reduction Act will counter the downturn, allowing the construction industry to tread water,” he said. “During the Great Recession, there was no place to find solace in construction activity — 2023 will be quite different.”

 

Joseph Bednar can be reached at [email protected]

Pickleball Continues to Grow in Popularity Across the Region, Nation

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The new indoor pickleball courts
Special Coverage Travel and Tourism

Serving Up Success

The new indoor pickleball courts

The new indoor pickleball courts at HCC’s Bartley Center have seen plenty of use.

Christina Royal was once a competitive amateur tennis player. But not long after taking the job of Holyoke Community College (HCC) president back in 2017, she discovered a new outlet for those skills — and a new passion.

It was pickleball, which she tried at the suggestion of former HCC trustee Julie Pokela. At the time, Royal was looking for a way to get some exercise and relieve some stress from her busy new job. She found pickleball to be the perfect outlet — and a lot easier on her knees than tennis.

“I love competitive sports, and I’ve played them all my life, so to be able to get back into that was really thrilling,” she said. “When I’m interested in something, I go full immersion, so I got my own equipment and started playing regularly.”

Three years ago, Royal was playing in a pickleball league in Easthampton and invited Tom Stewart, director of HCC’s Bartley Center for Athletics & Recreation, to watch.

“She said, ‘I’d love to get pickleball courts at HCC,’” Stewart said. “The floor was scheduled to be redone anyway. I said, ‘when we redo the floor, we’ll put them in.’”

Indeed, when the floor in the Bartley Center gym was redone over this past summer, inserts for existing indoor tennis nets were removed, and inserts for pickleball nets were installed, along with permanent pickleball court lines.

“People are into it big time. Players range from novices to advanced, so it’s not like it’s just advanced folks taking over. All abilities come in and play, and they gravitate to each other based on ability level.”

Now, for a $5 per visit fee, any member of the general public can come to HCC to play what has been touted as the fastest-growing sport in America.

“We’re offering the courts and all the equipment — nets, balls, and paddles,” Royal said. “We have everything here you need to play, and it’s all new.”

The seven pickleball courts at the Bartley Center are available weekdays from 7 a.m. to 1 p.m. Courts cannot be reserved in advance, but instead are assigned on a first-come, first-served basis. There is no pickleball fee for HCC students and Bartley Center members, while others are charged $5.

“It’s going quite well; we’re getting anywhere from 35 to 40 players a day,” Stewart told BusinessWest. “We get a lot of positive responses; people are glad we did it and wish it was open even more to them.

“If you need a paddle and ball, we provide that, but most folks bring their own,” he added. “People are into it big time. Players range from novices to advanced, so it’s not like it’s just advanced folks taking over. All abilities come in and play, and they gravitate to each other based on ability level.”

Andrew Rogers sees that same phenomenon on the four new pickleball courts the town of South Hadley installed over the summer at Buttery Brook Park.

South Hadley’s new pickleball courts

While cold weather has put a damper on things, South Hadley’s new pickleball courts have been wildly popular since opening in August.

“We have open-play nights on Tuesdays and Thursdays and play mixed doubles; everyone swaps around the court,” said Rogers, the town’s Recreation director. “We have a 10-year-old boy who plays, and a friendly couple in their 70s. Everyone plays together, and people are supportive of each other. It continues to blossom and grow.”

Pickleball had been on the town’s radar for five years and went through several budget cycles before it was approved, along with some fundraising and assistance from the DPW and Parks Department, among others. Alongside the courts are a picnic area where players can stretch and wait for a game, and the South Hadley Electric Light Department donated labor for lighting and electrical work.

The courts opened for play on Aug. 1, and about 100 people showed up for games and a learn-to-play clinic. While winter weather has put a seasonal damper on things, during the warmer months, it wasn’t uncommon to see the courts packed well into the evening, as they are in other communities that have installed similar facilities, like Westfield, Agawam, Belchertown, Easthampton, Southampton, and more.

“One family has three kids under 13, and they’re there all the time, mixing in with people a couple generations older.”

“People mingle and jump between towns and meet new people,” Stewart said, adding that a group in South Hadley promotes games through an app called TeamReach. “They can say, ‘hey, I’m showing up to play, anyone want to come?’ I know over 330 people on that app, which speaks to its popularity. In fact, it’s the fastest-growing sport in the country, and it’s starting to get even more popularity. You can find it all over TV. It’s definitely something anyone can play, all ages mixing together, male, female … it’s really wonderful.”

 

How do You Play?

According to Wikipedia, the appearance of a pickleball court, and the manner of play, resemble tennis, but the court is the size of a doubles badminton court, less than a third the size of a tennis court. Court lines include two seven-foot areas on either side of the net known as the non-volley zones (or, colloquially, the ‘kitchen’), where the ball cannot be hit with the paddle unless the ball bounces first. Only the serving team can score a point, and continues serving until they fault. All serves are made with an underhand stroke.

The hard polymer ball used in pickleball produces significantly less bounce than softer flexible balls, such as a tennis ball. To minimize any advantage the serving or receiving side might have at the beginning of the game, the ball must bounce once on each side of the net before either team may ‘volley’ the ball, or hit it in the air before it bounces.

HCC’s Christina Royal and Tom Stewart

HCC’s Christina Royal and Tom Stewart check out the action in the Bartley Center.

It’s not actually a new sport, but has been around since 1965, for most of those years steadily gaining popularity in the Pacific Northwest, then elsewhere. In 2021 and 2022, pickleball was named the fastest-growing sport in the U.S. by the Sports and Fitness Industry Assoc., with more than 4.8 million players. A growing interest in the sport is attributed to several factors, including a short learning curve, appeal to a wide range of demographics, and low startup costs.

“It’s beyond what we expected. We knew it was going to be popular, but had no idea how popular,” said Rogers, adding that there has been discussion of further fundraising to expand the courts.

While pickleball has been compared to tennis without as much running — one of the reasons it’s so attractive to people of all ages and fitness levels — Stewart has often described it to people as a giant ping-pong table. But he’s also adept at explaining the connection to tennis, and how it’s subtly different.

“Tennis players are used to the racket doing the work, because the string so stuff, but with pickleball, you do more work with the paddle; it’s not wound as tight. But they pick it up fairly quickly.”

Players often attack lob shots on the fly — as noted earlier, the serve and the return both have to bounce, but after that, lobs are fine, just not in the kitchen — making it a game of hand-eye coordination, he added. “You’re not going to get the groundstroke game you get with tennis. Advanced players may groundstroke for a while, but mostly what I see is serve and volley.”

Royal said the courts have created more access to, and interest in, the Bartley Center. “We already have a lot of people that utilize the facilities for basketball or for working out in our fitness room. Here’s another way we can open up our campus to the community.”

Stewart, who serves on the board of regents for the National Junior College Athletic Assoc., noted that tennis is a dying sport at the junior-college level. “There are no junior colleges in New England that have tennis anymore. Tennis used to be so popular, you couldn’t get on a court. Now people are having a harder time getting courts for pickleball, particularly indoors.”

 

If You Build It, They Will Come

Stewart and Royal both envision HCC hosting pickleball leagues and tournaments.

“In addition to my own passion for the sport, there’s a real opportunity here from an economic-development perspective for our region to draw more visitors to the area for pickleball,” Royal said. “That creates all sorts of business opportunities.”

When the Bartley Center went up at HCC 22 years ago, Stewart recalled, then-President David Bartley told him, “make sure this place is open and being used.” That mission has been accomplished, he added. “We’ve been pretty successful for 22 years, and this just adds to it.”

Municipalities like South Hadley are having the same experience.

“We had the lights on until 10 during Daylight Savings,” Rogers told BusinessWest. “We still have people out there if it’s above 32 degrees and the balls aren’t cracking. One family has three kids under 13, and they’re there all the time, mixing in with people a couple generations older. You can play for a long time because it’s not that taxing. It’s great exercise, but it’s not running you ragged, so you can come back and do it again tomorrow.”

 

Joseph Bednar can be reached at [email protected]

For Those on the Organ-donation List, It’s a Painful Numbers Game

By
Mark Auerbach says he’s ‘going public’ with his quest for a new kidney
Business of Aging Special Coverage

Wait of the World

Mark Auerbach says he’s ‘going public’ with his quest for a new kidney

Mark Auerbach says he’s ‘going public’ with his quest for a new kidney to help raise awareness about the importance of organ donations and perhaps shorten the time on the waiting list for some of those in need.

Mark Auerbach says he had started down the stairs in his home in Longmeadow that night in 2019 when he tripped over an untied shoelace and started falling. He recalls knocking a bannister out of the railing and slamming through his front door.

As a result of the fall, he broke his femur and his hand, eventually spending more than three months in inpatient rehabilitation. But the fall did something else. It “fatally injured” one of his kidneys, as he put it, accelerating a process of deterioration that had begun years earlier when he was diagnosed with diabetes.

“In 2019, my kidney doctor said, ‘you are heading for the need for a transplant, and you’re in stage 4; eventually, you’ll be in stage 5, and you’ll need one,” he recalled, adding that stage 5 essentially arrived in the spring of 2021.

Soon thereafter, Auerbach, a veteran arts reporter, owner of a public-relations firm that bears his name, and current ArtsBeat reporter for Pioneer Valley Radio, joined the lengthy list of people in this country on a waiting list for a donated kidney.

How lengthy? Well, he was accepted into a donor program at Massachusetts General Hospital and is now one of roughly 1,400 patients in a queue waiting for the proverbial ‘right donor.’ Nationwide, there are approximately 100,000 people on such lists.

“I didn’t really want to go public — you sacrifice your personal privacy when you put it out there. So I was really hesitant. But from a public-relations standpoint, I realized that if I didn’t tell my story, I couldn’t expect someone else to do it.”

While waiting for a kidney, many on those lists choose to be proactive and not simply wait. Some buy billboards stating their case, while others take out ads in newspapers and use social-media channels to encourage people to come forward and donate — not just for them, but for the myriad others waiting for a truly life-changing gift.

Auerbach is one of them. He said he has “gone public” — but in a quiet way, with personal appeals; regular postings on Facebook, LinkedIn, and Twitter; and interviews like this one and another on his ArtsBeat show with guest (and longtime friend) Patrick Berry, host of WWLP’s Mass Appeal — in his quest to find a donor for himself, but also to raise awareness about the urgent need for organs and to spur action.

“I didn’t really want to go public — you sacrifice your personal privacy when you put it out there,” he told BusinesWest. “So I was really hesitant. But from a public-relations standpoint, I realized that if I didn’t tell my story, I couldn’t expect someone else to do it.”

He started with letters to family members, close friends, and clients alerting them to his situation and framing it in the larger context mentioned earlier — that he is one of 100,000 people waiting for a kidney and ‘here are the things you can do to help me.’ That list included everything from becoming an organ donor on one’s driver’s license to learning how to donate, to perhaps giving specifically to him.

Dr. Ken McPartland

Dr. Ken McPartland says there is a huge need for living donations of kidneys.

Such proactive steps are becoming increasingly necessary, said Dr. Ken McPartland, medical director of the Transplant Division at Baystate Medical Center, who told BusinesWest that the number of people on waiting lists is growing, the waits are often becoming longer, and the situation has been made worse, at least temporarily, by the pandemic, which prompted many potential living donors to remain on the sidelines out of caution.

“If someone has a living donor, they can get a transplant pretty much right away, which is usually within a few months,” said McPartland, part of a team that handles 50 kidney transplants a year at Baystate on average. “But if they don’t, they sometimes have to wait five to seven years to get a transplant.”

Of the 41,000 kidney transplants performed last year in this country, he noted, only 6,500 involved living donors — the rest of the organs were from those who were deceased, and the waits for those can be very long.

“There’s a huge need for more living donations,” he explained. “We know that people can donate a kidney and do very well and live a normal life. There is a risk, but the risks are is really low, and this is the biggest opportunity for improving not just the number of transplants, but the quality of transplants; we’d be able to help more people earlier in the process.”

“If someone has a living donor, they can get a transplant pretty much right away, which is usually within a few months. But if they don’t, they sometimes have to wait five to seven years to get a transplant.”

Dr. Leo Riella, medical director of Kidney Transplantation at Mass General Brigham, agreed. He said the numbers — specifically those related to the number of transplants performed each year at his hospital and the number of people on the waiting list (170 and 1,400, respectively) — help tell the story of the importance of encouraging donations.

“That number of those waiting is growing by roughly 10% a year,” he noted, adding that there is a huge backlog of cases. And as people wait longer, their odds for achieving quality of life grow longer.

 

Organ Players

Auerbach quipped that it was easier for him to get into Mass General’s kidney-donation program than it was to get into the drama program at Yale.

He was exaggerating, obviously, but only to a degree. And the logistics of getting into a program constitute only one of the many challenges facing those who need a kidney — or any other organ.

For many, including Auerbach, there is the emotional trauma that comes with the news that they are essentially on a clock — they have so much time (in his case, 18 months to three years) to secure a donor before they will have to go on dialysis, or worse.

“That was a punch to the gut,” he told Berry on his radio program. “And I felt very alone at the time. My family, my partner, everybody was like, ‘that’s too bad — we’re here for you.’ But that’s not necessarily what I needed at the time. The only way for me to move forward was to take charge of my own life and to do my own planning.

“I thought, ‘worst-case scenario, if 18 months to three years is reality, you better have a will, you better have a way to transition out of your business, the people who work for you and depend on you — you better plan for that,’” he went on. “The other things is, do you want to be hooked up to a machine, or do you want quality of life? And I chose the good quality of life. But … my life will be expanded, knock on wood, if a donor comes through.”

And then, there is just the waiting, and not knowing if the phone is going to eventually ring with a caller delivering the news that a kidney has been found.

Unfortunately, as the population ages and with the numbers of donated kidneys — both from living donors and those who have died — being relatively stagnant, the number of people living in limbo (that’s the kindest word to use) is only increasing, said McPartland, noting that there are generally between 150 and 175 on the waiting list at Baystate Health at any given time.

Dr. Leo Riella

Dr. Leo Riella

“That number of those waiting is growing by roughly 10% a year.”

As noted earlier, those without living donors may stay on the list five years or longer waiting for a kidney to be donated, he went on, adding that, for some, especially older patients, their condition may deteriorate while they are waiting — to the point where they become too sick to qualify for a transplant.

For quality-of-life reasons, someone needing a kidney will certainly fare much better if they can receive that organ before they need dialysis, McPartland added. “The way to really help patients is to get a transplant before they ever start dialysis. The patients do better, they live longer, and the kidneys work better and for longer.”

Riella agreed, noting that, in many cases, kidney disease, which he called a “silent disease” because those suffering from it generally do not experience pain or discomfort, isn’t detected until late in life — in many cases, too late, as their disease has progressed to the point where they cannot move up a waiting list in sufficient time to ultimately improve their quality of life through a transplant.

This is why early detection is important, he said, adding that blood tests can reveal if and to what degree the kidneys are in decline.

Overall, the average wait time for a kidney is six years, said Riella, adding that this number has only increased in recent years, and for several reasons, especially the aging of the population. “The gap in the number of kidneys available and the number that is needed is huge.”

Like other hospitals that perform kidney-transplant surgery, Baystate and Mass General are very active in efforts to help encourage people to donate organs, and also in helping those on lists to get kidneys through various means, including matching programs.

For example, if someone on a list finds a willing donor, but that kidney is not compatible, that kidney can be exchanged for one that is compatible through a voucher program, enabling people to move up on a waiting list.

It is for these reasons that Auerbach chose to go public despite his many reservations about doing so.

“I thought, ‘I’ll become the poster child for organ donations. Hopefully, I’ll get one, or at least the list will get whittled down, and I’ll move up the list faster. I’ll be the spokesperson for those 100,000 people.’ That was my motivation.”

While many fully understand the urgent need for kidneys and other organs, he explained, his story and that of others in similar situations must be told to reinforce the message and add a very needed personal touch.

Both McPartland and Riella agreed. They noted that, while much of the discussion about organ donations is focused on numbers — everything from how many individuals are on lists to how long their waits are — behind the statistics are real people, like Auerbach, facing quality-of-life, if not life-and-death, issues.

 

Bottom Line

Auerbach told BusinessWest that he tries not to think about the informal ‘clock’ he’s on — one doctor told him 18 months to three years, while another told him five years before he would need dialysis — and often wishes he was not given such estimates.

And he’s not alone in that sentiment. Such clocks, while helpful in the planning process, only increase the anxiety and make the waiting all the more tortuous, he noted.

“I’m trying to take it day-by-day and be optimistic,” he said. “To have a clock ticking as I’m watching and waiting would drive me crazy.”

The only thing that can shorten such waits is for more donors to come forward, said all those we spoke with, adding that this why stories like Auerbach’s need to be told. And why people need to listen — and respond.

 

It takes only five minutes to sign up to be an organ donor at www.organdonor.gov/sign-up. To learn more about becoming a living kidney donor, call Baystate Medical Center’s Transplant Program at (413) 794-2321, option 2, and speak with the living donor coordinator, or visit the Baystate Transplant website at baystatehealth.org/transplant for a confidential screening process.

Project is Transforming Westfield’s Historic Lambson Building

By
Lambson Building
Commercial Real Estate Special Coverage

Furnishing the Future

 

Lambson Building

Lambson Building

Gene Borowski has a keen sense of history.

So he was especially intrigued by an old hydraulic elevator in the former Lambson Furniture building in downtown Westfield, which was manufactured at Worcester Polytechnic Institute in the late 1800s and installed in the furniture business around 1896.

It was still operable, he said, but its cable shutoff system no longer meets modern building codes. So now, on the first floor of the building sits an array of 21st-century elevator parts, ready to be assembled — though Borowski still plans to use the original carriage in the new, modern shaft.

“It was one of the first hydraulic-powered elevators of its time,” said Phil Peake, one of Borowski’s co-investors on a project to rehabilitate the building. “And it actually worked.”

The development project known as Lambson Square includes both the four-story Lambson building at 89 Elm St. and the connected two-story building at 81-83 Elm St., which most recently housed Bentley Billiards, as well as a 15-space parking area in the rear.

“It’s quite a project. The goal is to take this business and turn it into some kind of resource for the town.”

Borowski bought the building in 2019 for $275,000, and has accessed $350,000 in Community Preservation Act (CPA) funds to painstakingly restore — as in brick by brick — the building’s Italianite exterior. Another award of $585,000 targeting underutilized properties in the downtown district will finish bringing the building up to code, including restrooms, handicapped access, and more.

“It’s quite a project,” said Peake, who is also a psychology professor at Smith College. “The goal is to take this business and turn it into some kind of resource for the town.”

Borowski plans to use the first floor of both buildings for restaurants, bars, and music and entertainment space. Among the items he’s secured are a chandelier from the old Union Station in Northampton and all the kitchen and furniture from the Sierra Grill restaurant in Northampton, which closed a few years ago. He also plans to turn a small roof off the second floor of 81-83 Elm into a courtyard and perhaps café space.

The second floor of 89 Elm will house small businesses and vendors and perhaps co-working space, while the third and fourth floors will feature a mix of residential units: two-bedroom, one-bedroom, and studio. Tenants will enjoy touches like the original, restored window trim and the original glass panes, all given a modern insulation seal — just one example of how “we’re trying to take this old building and bring it into this century,” Peake said.

Gene Borowski (left) and Phil Peake

Gene Borowski (left) and Phil Peake stand in one of the future living units in the Lambson building.

Borowski wants to rent the residential units for less than a typical rent in the district, as low as $900 a month, compared to a nearby building that was renting for $1,600 recently. The idea is to make the property as attractive as possible to residents, businesses, and hospitality entities alike as part of a revitalization of that stretch of Elm Street, across from the Olver Transit Pavilion and a plot of land the city plans to turn into an outdoor performance space.

“It is the intention of Lambson Square Properties to develop the shell of a building that was formerly the Lambson Furniture building into a vibrant, multi-use hub in a manner that we believe will catalyze the entire Elm Street business district,” Borowski and his partners wrote in their initial funding request from the city’s Community Preservation Commission.

“At present, there is limited foot traffic at Elm and Thomas streets in part due to the lack of compelling retail (and housing) options in the area,” they went on. “We believe the development Lambson Square will inspire redevelopment and spur occupancy rates throughout the Elm Street business district by re-establishing the Lambson Furniture building as a focal point for both attractive retail options and community housing.”

 

Historical Undertaking

Peake prepared a lengthy history of the Lambson property, which we’ll condense as much as possible.

The Lambson Furniture building was built at the corner of Elm and Thomas streets on a parcel of land that Clinton Lambson acquired from Reuben Noble, one of Westfield’s prominent early landowners and benefactor of what is now the Baystate Noble Hospital. Lambson had established the furniture company in 1860, began construction of the building in 1868, and occupied it for business in 1869.

In its early years, the building was the site of furniture manufacturing, and many would-be furniture makers traveled to Westfield to apprentice with Lambson and his partner, William Whitney. Over the years, the furnishings side of the business focused on the manufacture and sale of home-related items like baby carriages, bedding, and desk and parlor sets, all displayed on the expansive first-floor showroom of the building.

Also manufactured in the building were caskets, as Lambson also ran an undertaking business in the building. Historical records suggest that both the furniture and undertaking businesses were flourishing and highly competitive enterprises as industry — especially the whip industry — infiltrated Westfield in the late 1800s. The Lambson Furniture building continued to house the undertaking business until 1944.

second floor of the property

The second floor of the property is being envisioned as spaces for small businesses and/or co-working space.

“Back in those days, the furniture makers were also the undertakers. He also owned a piece of the cemetery,” Peake told BusinessWest. “He was a real entrepreneur.”

Around 1896, Lambson installed the hydraulic elevator, likely one of the first in operation in Massachusetts, and the first and only hydraulic elevator designed and manufactured at the Washburn Shops at WPI. The elevator was in continuous use until 1998.

Around 1910, a two-and-a-half-story warehouse was added to the rear of the building, probably serving as a shipping and storage facility for furniture that was shipped to the company. Finally, in 1924, a fourth story was added to the building.

After the furniture company closed in 2002, the building was purchased in 2004 by Brian Whitely, who operated Bentley Billiards on the first floor of the Lambson Building and the first and second floors of the adjoining building until it closed in 2007. During the 12 years that the property was unoccupied, Whitely upgraded many of the mechanical components of the main building.

In 2011, the city of Westfield purchased the rear warehouse, which had by then gone into disrepair, in an effort to develop increased public parking to support business in the Elm Street business district. Unfortunately, the demolition of the warehouse left the back wall of the main building physically scarred, while former egress points for the two buildings were eliminated, rendering the upper floors of the main building in code violation for occupancy. The access doorways were covered with plywood, and much of the brickwork on the rear of the building was damaged. In addition, both corners of the building suffered considerable damage. Finally, demolition of the rear warehouse removed the only directly accessible restroom facilities for the Lambson building.

“We are excited and already exploring design options that would allow us to use the space to support live music and arts events that are currently being initiated by other businesses in the Elm Street district.”

That exterior damage was repaired — and the aesthetics improved — with the help of that initial $350,000 grant, as well as investments by the Lambson Square Properties team. Besides Borowski, principal owner of Beyond Building Inc., and Peake, that team includes Eugene Borowski Sr., principal owner of Borowski Accounting Inc., and Tristram Metcalfe III, principal owner of Metcalfe Associates Architecture. Joining the Lambson Square Properties team for this project is Sidney Hubbell, construction manager with Jacobs Engineering Group.

Beyond the interior work, Borowski and the team see potential in developing the open space behind the building into a small public-park-like area that might be covered and provide public access to bench seating and perhaps some fixed-in-place board games.

One of the current tasks is modernizing the original, 126-year-old hydraulic elevator.

One of the current tasks is modernizing the original, 126-year-old hydraulic elevator.

“We see the back wall of the building as the least historically significant portion of the building, yet the part of the building that cries out most for creative planning and use,” the CPA funding application notes. “We are excited and already exploring design options that would allow us to use the space to support live music and arts events that are currently being initiated by other businesses in the Elm Street district.”

 

Spring Ahead

Before the pandemic, Borowski said, he had two restaurants lined up as first-floor tenants, but those plans later fell apart. He’s confident others will emerge, but at first, he might hire a general manager and open up a restaurant himself. “I know we would do well, and the city’s dying for some entertainment and good food.”

Meanwhile, professors from Westfield State University have visited, and ideas kicked around include a science museum or another educational project.

At any rate, if completion of the interior goes as planned, Borowski is looking at tenants moving in by the spring. “The sprinkler, electrical, water, sewer, all the infrastructure is done, and I can tell you, that’s the hardest thing.”

Borowski paused for a moment late in his tour of the buildings with BusinessWest and tried to capture what initially drew him to this investment.

“My father and I looked at this as a righteous project,” he said. “This is a Westfield jewel here. This is part of the community. I feel like we’re not the owners of this property; we’re simply the caretakers. And I am privileged to take care of it, to be able to do a project that means something, you know? There’s just something here.”

And soon, there will be much more.

 

Joseph Bednar can be reached at [email protected]

New Cap Announced on Retirement-plan Contributions

By Contributor
Banking and Financial Services

Saving Grace

By Barbara Trombley, MBA, CPA

 

The Internal Revenue Service has announced one of the biggest jumps in decades to the cap on 401(k) contributions. Americans will be able to save 10% more in their plans by making pre-tax contributions if they take full advantage of the new cap. The new limit is $22,500, up from $20,500 in 2022, and is applicable to all 401(k), 403(b), and other tax-advantaged savings plans.

Remember, a pre-tax contribution to a plan lowers your taxable income by the same amount in the tax year the contribution is made. The new caps also apply to Roth 401(k) or post-tax contributions (if your plan allows). The tax benefits to Roth 401(k) plans do not occur in the year the contribution is made, but later, when distributions are taken tax-free after the age of 59½.

Barbara Trombley

Barbara Trombley

“Many contributors wonder about the future of Social Security; this future will have to be addressed someday by our government. Currently, according to the Social Security website, the trust fund will run out in 2037.”

If an employee is age 50, they can also make a catch-up contribution. This limit has increased to $7,500 from $6,500 in 2022. This means an employee over the age of 50 can put up to $30,000 in their retirement plan this year with federally approved tax benefits. The IRS seems to be responding to the wave of inflation that has impacted the world and is encouraging Americans to save more for retirement.

Contribution limits to traditional IRAs and Roth IRAs will increase $500 to $6,500. Catch-up contributions to those over age 50 are not subject to annual cost-of-living increases and will remain at $1,000. If the taxpayer is not covered by a retirement plan at their place of employment, traditional IRA contributions are fully deductible. If the employee is eligible for a retirement plan at their place of employment, then the deductibility of a traditional IRA contribution is subject to earnings limits that can be found on the IRS website. The contribution may be fully, partially, or not deductible. Income limits also apply to the eligibility of Roth IRA contributions if the employee is covered by a retirement plan at work.

Building a robust retirement plan takes time but is imperative to supplement Social Security or pensions in retirement. Taking risks at a younger age by investing mostly in equities has historically been the best way to beat inflation and take advantage of compounding.

Compounding occurs when investments in assets generate earnings, and those earnings are reinvested, and they generate earnings. For example, a $10,000 initial investment that generates 10% annually for 25 years would grow to almost $110,000.

Strive to save at least 10% of your paycheck in a workplace retirement plan to build a nest egg to supplement other streams of income in retirement. Diligently saving and investing over a long period of time by making regular, monthly contributions into a retirement plan that includes the appropriate allocation of equities for your age is a great way to save for the future.

Speaking of Social Security, most people have heard of the large cost-of-living increase coming in 2023. The Social Security Administration has announced an 8.7% cost-of-living increase for 2023. All recipients, including future recipients, will benefit from this raise.

It is imperative to understand that Social Security was never intended to be the main source of retirement income for retirees. It was signed into law by President Franklin D. Roosevelt and was designed as a social insurance program to provide a minimum amount of security to workers that have contributed. It has evolved over the years to provide disability, widow’s and children’s benefits for a deceased earner, and other benefits.

Many contributors wonder about the future of Social Security; this future will have to be addressed someday by our government. Currently, according to the Social Security website, the trust fund will run out in 2037. At that time, current payroll tax collections will cover 76% of the benefits that will be paid out. Either benefits will have to be cut, payroll taxes increased, or the age at which a worker becomes eligible increased — perhaps a combination of all three.

Take responsibility for saving for your own retirement and utilize the generous tax benefits that qualified retirement plans provide.

 

Barbara Trombley, MBA, CPA is an owner and financial consultant with Trombley Associates. 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.

Teri Skinner Serves Up Eclectic Menu, Atmosphere at Nosh

By
Nosh’s colorful menu boards
Women in Businesss

Dishing Out Something Different

 

Nosh’s colorful menu boards

Nosh’s colorful menu boards offer plenty of options for vegans, vegetarians, and carnivores alike.

Growing up in Monson, with a father who worked in auto-body services, a young Teri Skinner occasionally visited downtown Springfield with her mother to pick up parts or paint, and they’d make time to stop by Johnson’s Bookstore and other bustling shops.

“I remember loving downtown Springfield,” she said. “Coming from a small town like Monson, there were so many things to do here.”

In the early days of running her restaurant, Nosh, in the Shops at Marketplace — just a few steps from the former Johnson’s site — she recalls the streets downtown being much quieter than they were in her childhood.

Then, a few years ago, she noticed a change.

“It didn’t happen overnight, but leaving here, I started thinking, ‘wow, there are people downtown, just walking around.’ And it wasn’t just MGM, which is great asset, but a lot of community people who wanted to see Springfield become viable. And I just enjoy being down here — I love everything about it.”

Nosh, which just celebrated its sixth anniversary on Black Friday, wasn’t something Skinner planned to operate long-term when she started selling breads and pastries at Marketplace during the summer of 2016.

At the time, she was running a small catering operation out of her home, following a stint at a catering company in Worcester that had burned her out with 70- to 80-hour work weeks.

“What caught my eye was this big wall, and I could picture a menu on it. And I was like, ‘yeah, I can do something with this.’ I had no idea what the menu was going to be; I just knew I could pull it off.”

The owners of Simply Serendipity, a clothing boutique at the Shops, approached Skinner about selling her baked goods at a farmers market on Market Street, the alley that runs behind Main Street between Harrison Avenue and Bruce Landon Way.

“As the summer progressed, people were saying there’s not enough places to eat downtown, so I started bringing sandwiches and salads. Then, as the weather cooled off, I was bringing soups. It was basically a pop-up restaurant every week, with a little table and a tent outside. The BID provided us with small café tables, so people could actually sit out here and eat, which was nice because it’s such a cool space back here.”

She thought that would be the end of that enterprise, but as the cool weather approached, a small space opened up in the Shops, and one of the property owners approached Skinner about it. “She opened up this door, and it was a closet. But what caught my eye was this big wall, and I could picture a menu on it. And I was like, ‘yeah, I can do something with this.’ I had no idea what the menu was going to be; I just knew I could pull it off.”

Two weeks later, Nosh was born, with little equipment other than a commercial refrigerator and a panini press. “That’s how I built my menu, with those two items. I was making soups and sandwiches for the holidays. And during the holiday market, it was successful enough that I said, ‘all right, maybe we can do something with this.’ So we stayed.”

Six years later, Skinner is glad she did, not only growing and expanding her establishment, but getting ready to open up a second location in Gasoline Alley on Albany Street (more on that later).

 

Broader Palate

The expansion happened in 2018, when a pair of divided spaces became available, and Skinner contacted the property owner about taking over both sides.

“My small staff and I worked during the day, then worked at night tearing down walls and stuff. We opened a week before MGM opened,” she said. “It’s been great. The business continues to grow, even though we are so hidden back here. I still get people who come in and say, ‘I’ve lived in Springfield all my life, and I didn’t know this space existed, this whole street.’”

The larger space gave Skinner a chance to expand her culinary offerings, which still center on sandwiches, salads, soups, and baked goods, but a much broader variety of each.

“There were some good original eateries down here, like Nadim’s and the Fort, but not a lot of variety, or something that was our niche at that point,” she said, before recalling her stint working for a restaurant at the veterinary school at Tufts University when her former catering-company employer got the contract there.

“I’ve gotten some pushback on things; I got a one-star review because somebody didn’t like what was written outside. But I don’t want to put on a pretension that these aren’t things I hold dear to my heart. Sometimes, something triggers me, and it’s like, enough is enough.”

“A lot of first-year students would come in who were vegetarians or vegans, and that’s where I honed in on that aspect of the cuisine I present. We also had large-animal doctors who were carnivores, so I had to cook everything. And I felt a restaurant shouldn’t be limited to one cuisine, but should be able to serve all different palates. That’s what my vision was for this space.”

The restaurant has expanded over the years to Saturdays and a couple of evenings each week, but weekday traffic, especially foot traffic from the downtown office towers and surrounding businesses, have long been her bread and butter, as well as people visiting the MassMutual Center for events.

The pandemic posed challenges to all restaurants, but Skinner’s sister-in-law designed an online ordering platform, and Nosh switched to a delivery model, with the small staff doing all the deliveries themselves rather than use an entity like DoorDash. It also partnered with an intern from Baystate Health on a hospital-worker program, whereby people could donate $10 toward a meal for a local healthcare provider, which Nosh matched.

As restaurants reopened, patrons were once again able to enjoy Nosh’s decidedly funky interior design, bedecked in local art, antiques purchased by Skinner’s son and girlfriend, tables built by her husband, and the handiwork of a local woodworker who created countertops and the Nosh sign from reclaimed wood.

“I don’t like buying new things; I think we have enough abundance of things we can reuse and recycle,” she said. “So we try to be as mindful as we can in this industry about what we’re using for products and how they’re packaged and how they leave our establishment and what you can do with them afterward.”

The other dominant visual feature are the colorful, descriptive menu boards and the chalkboard paint covered with the staff’s thoughts — some amusing, some serious, especially around feminist values.

“I wouldn’t want a restaurant that looked like every other restaurant,” Skinner said. “I want my personality in here, and I think my personality is in here, as well as many of the people who work for me. It’s all coming through. We’re a team, so I want them to share their ideas.”

Outside Nosh, facing the alley, is a board that has been used for deadly serious messaging, from the transcript of the 911 call from the Uvalde, Texas elementary school to an angry quote from U.S. Rep. Jim McGovern in the wake of Roe v. Wade being overturned.

“These are frustrating times we live in, and I just don’t think we can be quiet about it any longer,” she told BusinessWest. “I’ve gotten some pushback on things; I got a one-star review because somebody didn’t like what was written outside. But I don’t want to put on a pretension that these aren’t things I hold dear to my heart. Sometimes, something triggers me, and it’s like, enough is enough. Obviously, when Roe overturned, that was just devastating.”

Inside the eatery are other messages promoting acceptance of all individuals. “All people, no matter what your beliefs are, should be accepted, no matter who you are and who you love,” she said, adding that the bathroom is dotted with still more messages. “We’ve had people erase them. Then we just go back and write it again.”

 

Take Two

Speaking of redoing things, Nosh will soon open a second location on Albany Street, part of a collective called Urban Food Brood that includes Monsoon Roastery, Corsello Butcheria, Urban Artisan Farm, and Happy Man Freeze Dried. The overall concept is part café, part food manufacturing, and part retail, Monsoon Roastery owner Tim Monson recently told MassLive, adding that he expects the operation to open before the end of the year.

A new commercial kitchen is being built for Nosh, which will offer a similar slate of offerings as the downtown location, starting off with breakfast and lunch menus. In the evening, Skinner plans to bring in guest chefs to cook dinner and show off their talents.

“It will have a market feel, with a lot of businesses in there, and we’ll take new businesses just starting off and incubate them, get them going,” she said. “The property owner here did the same for me when I opened up my closet — gave me good rent and was super supportive. Someone might have a great idea or a product they want to sell, but can’t afford a brick-and-mortar place yet. So we’re trying to create that sort of space there.”

And perhaps help someone else who has always loved Springfield find long-term success in the City of Homes.

 

Joseph Bednar can be reached at [email protected]

Meg Sanders Infuses Energy, Innovation into Canna Provisions

By
Meg Sanders
Cover Story Women in Businesss

Grass-roots Effort

 

‘Buy Weed from Women.’

That’s what is printed on the back of the coat

Meg Sanders

Meg Sanders

was wearing as she led BusinessWest on a tour of Canna Provisions’ Holyoke dispensary recently.

Those words cover a lot of ground. They’re a request, as well as a statement. They’re also an operating philosophy. And in some respects, they constitute hope for what people will be able to do more easily in the future.

Indeed, buying weed from women — as in women who own or co-own the dispensary in question — is not something easily done. The startup and operating costs for such an operation are extremely high and, for many people — and most women — simply prohibitive. And once one is in, it’s a challenge to stay in.

Sanders, CEO of Canna Provisions, is one of the rare exceptions.

She shifted her career from compliance in financial services to compliance in cannabis while living in Colorado at the time the industry was simply exploding and turning into what she called ‘the wild west.’ She is now a prominent player in the not-so-wild but very intriguing Western Mass. market, overseeing, with her partner, Erik Williams, two dispensaries (the other is in Lee) and a cultivation facility in Sheffield.

Moving forward, she envisions one more dispensary in Western Mass. — she and Williams are looking at several options for acquisition — and the buildout of another manufacturing facility in Lee. And from a bigger-picture perspective, Sanders is looking to hone a business model that will create more profitability in an industry where only a third of all busnesses are profitable.

“ I still believe the best thing in cannabis still has not been invented. We find new cannabinoids every single day; there are new ways to consume this product, new delivery methods, new formulations. Those are all really important parts of where this industry is going. Science is in it, and I am psyched to see the products we come up with to help people.”

When asked about what separates those who are profitable from those who are not, Sanders said it comes down to being smart — with everything from which products (and how much inventory) are carried to the training and development of employees.

“We invest in humans, and we train them,” she said, adding that people are the biggest and most important investment for a company in this sector.

It’s an investment she takes very seriously, and it’s one of the many reasons why she believes Canna Provisions is successful and on the cutting edge when it comes to everything from how products are displayed and sold in the dispensary to how employees are trained, groomed for advancement, and ultimately retained (more on all that later).

“I’m really proud of it — I think it’s the coolest dispensary in America,” she said of the Holyoke facility as she led the tour. “And I’ve been into a lot of them.”

Canna Provision’s dispensary in Holyoke

Meg Sanders says Canna Provision’s dispensary in Holyoke has been designed to resemble an art gallery — and even features works from local artists.

And as she surveys the scene, at that Holyoke location and within the broad cannabis industry, Sanders, who has been quoted in publications ranging from the Wall Street Journal to Northeast Leaf, sees a number of converging forces and trends, but especially innovation, the sector’s deep impact on the local economy and the local landscape, cannabis playing a growing role in the health and wellness of people of all ages, and the promise of much more of all of that in the future.

“Cannabis is a giant vote for freedom — it’s a giant vote for ‘you know what’s best for your body; it’s not the government’s job to tell you what to put in it, on it, any of that,’” she said. “From everyone that I know that uses cannabis, customers I talk to every day, their life is better. A recent study showed that 60% of Millennials use cannabis for wellness, and when you ask them to define ‘wellness,’ it was stress, relaxation, sleep, and anxiety. The fact that people look at cannabis as wellness is huge.

“And I still believe the best thing in cannabis still has not been invented,” she went on. “We find new cannabinoids every single day; there are new ways to consume this product, new delivery methods, new formulations. Those are all really important parts of where this industry is going. Science is in it, and I am psyched to see the products we come up with to help people.”

The wording on the back of Meg Sanders’ jacket

The wording on the back of Meg Sanders’ jacket is both a request and a bit of hope for what people will be able to do more easily in the future.

For this issue, BusinessWest talked at length with Sanders about her business, her industry, the words printed on the back of her jacket, and what she expects to come next with all of the above.

 

Joint Ventures

That aforementioned tour of Canna Provisions came the Wednesday before Thanksgiving. It was late morning, just before noon, and the traffic in the store was still relatively light, with a handful of customers exploring the myriad product options or talking to customer-service providers, both behind the counter and on the floor.

But Sanders was expecting a huge day because cannabis, in her estimation, is becoming a growing part of Thanksgiving, especially to contend with the week’s large doses of stress.

“People will be in to get their coping mechanisms and their celebratory pieces so they can deal with Uncle Bob, who might be talking politics at the Thanksgiving table,” she explained. “We all have families, and they’re all very interesting and come with a lot of stuff; this is one way to cope, and it’s not new.”

Meanwhile, she was expecting even bigger crowds for the upcoming Black Friday and the holiday season in general. And such expectations, born from experience in both Colorado and this market, are evidence of the growing influence of cannabis — on the economy and in people’s lives.

Turning back the clock nearly 15 years, Sanders, as noted earlier, was working for a small financial-services company handling a few dozen traders when she approached a friend who was getting in on the ground floor of the exploding cannabis scene in the Centennial State and asked if he could find a place for her.

“I had definitely hit a glass ceiling — there was nowhere else to go and no more money to be made there,” she recalled. “That was happening at the exact same time as this brand-new industry was starting to explode; I reached out to my friend who was creating this cannabis business and said, ‘I’d love to help you guys; what can I do?’

“It took a while for us to find the right place, but I went basically from compliance in the financial industry to compliance in cannabis, and that’s how I got started,” she went on, adding that she became increasingly more involved and eventually become CEO.

Sanders would eventually exit that company — primarily because its board wanted to focus solely on Colorado, while she had larger aspirations for the venture — and work, along with Williams, as a consultant to states, municipalities, and individual businesses as they entered the cannabis business.

“We were helping companies and state regulatory bodies and local governments come up with ordinances that made sense, regulatory frameworks that made sense, and helping people get licensed all over, from Florida to Illinois to Nevada — everywhere,” she recalled. “And then, Massachusetts legalization happened, and we were intrigued by the model in that it wasn’t going to be this massive gaming of the system in a limited-license structure, where if you know the governor, or have the right lobbyist, or if you make donations to the right legislators, you get a license.”

Sanders and Williams eventually consulted for a venture called Canna Provisions and were invited to become part of its operations team. They became CEO and COO, respectively, and guided the company as it gained just the second license issued by the state for a standalone dispensary in Lee, right behind Caroline’s Cannabis in Uxbridge — where she bought her jacket from owner Caroline Frankel. The Holyoke facility, located on Dwight Street in a former paper mill, opened in July 2020, at the height of the pandemic.

In her role, Sanders is involved in all aspects of the business, obviously, but devotes much of her time to staff development and that broad term ‘culture.’

‘At Canna Provisions, we really believe that we’re not just growing plants and growing a business, we’re growing humans,” she explained, adding that the company invests considerable amounts of time, money, and energy to train and develop employees, and then give them opportunities to do different things and advance within the company.

Canna Provisions invests heavily in employee training and development

Meg Sanders says Canna Provisions invests heavily in employee training and development — and the customer experience.

She said she’s currently serving as a facilitator and working with a group of seven employees at the company on a course of leadership training.

“I’m reinforcing my skills by teaching them their skills in hopes of growing humans to become better leaders, which creates happier employees,” she told BusinessWest, adding that most all of these employees have experience in business and customer service but are new to this industry.

“We work really hard to train employees, we spend a lot of money training them, and it’s ongoing,” she went on. “We’ve been told multiple times by people from this industry, and also not from this industry, that they’ve never been to a company that invests so much in training, and they appreciate it.”

 

Down to an Art

While Sanders is certainly well-known within the industry and probably recognized by many she encounters (especially when she shows her ID), she still calls what she does ‘secret shopping.’

These are regular visits to dispensaries across this region and beyond, during which she is always looking at the product mix, the presentation, the staff, and how they interact with customers — all with an eye toward making her own operations better and her own employees ever more responsive to what clients want and need.

“I shop everybody — everybody,” she said, “so that we’re more accurate in our differentiation. I’m able to see what competitors around us are doing, and I can say, ‘that’s one business model — it’s not a bad business model, it’s just not my business model.’”

“We’ve been told multiple times by people from this industry, and also not from this industry, that they’ve never been to a company that invests so much in training, and they appreciate it.”

These secret shopping excursions are just a small part of a broad operating formula aimed at continuous improvement, setting the bar higher, and then clearing that bar.

Sanders believes Canna Provisions does all this in all aspects of its business — from product selection to presentation, but especially with how those on the floor and behind the counter interact with and effectively serve customers, some of whom may suffer from what she called “dispensary phobia,” and a fear of going inside.

And this is a product of all that intensive — and expansive — training that Sanders talked about earlier.

“People have to be on point because your customers expect a certain level of service — they have to know the products,” she said. “It’s training and role playing and practicing and coaching on the floor — teaching them to be more aware of the people who are in front of them.

“This is not a cheap spend, “she went on. “Our average ticket here in Holyoke is close to 100 bucks a pop. When I’m spending $100 or $200 at a location, I do have a bit of expectation to be treated well.”

Overall, she likened the cannabis-buying experience, at least at her dispensaries, to jewelry shopping in many respects, from the high cost of the products to the way that many customers need guidance, or education, on what they’re buying.

Overall, Sanders believes she and Williams have created a different kind of cannabis experience in their locations. The one in Holyoke resembles an art gallery in the way products are displayed, and there are even works of art on the wall. Meanwhile, it pays homage to the property’s roots as a paper mill by putting some of the equipment and office furniture to work in displays.

 

Impact Statement

As she talked about the broad influence that cannabis has had on the local landscape, and will continue to have moving forward, Sanders again flashed back to the early days in Colorado, which came in 2009, the middle of what became known as the Great Recession.

“They just ran with cannabis, and it was crazy,” she said of the rapid growth of the industry and its impact on real estate, cities, towns, and individual neighborhoods. “And this started right after that massive crash and its impact on real estate and mortgages … it was a nightmare. But in Colorado, the opposite happened because all these growers, all of these dispensaries, ended up leasing more than 1 million square feet of warehouse space that had been off the tax rolls for years, just in Denver.

“So, it immediately just infused the city with vibrancy, and it happened all over,” she went on. “It was just one of those interesting economic moments where Colorado did not feel that economic downturn, the bottom dropping out, nearly as much as other states; it was fascinating. And then we kept adding all these jobs, and we kept adding jobs, and building, and then science was involved; the industry just came a long way really fast.”

It continues to grow and evolve, and now, much of what was seen in Colorado is being experienced in other states and other region, including Western Mass., she said, adding that cannabis is having a profound impact on communities like Holyoke and Lee, where she has chosen to put down roots, especially the former.

Indeed, this was a city that rolled out the red carpet for this industry, with its former mayor, Alex Morse, jokingly — although it was no joke — wishing it to become known as Rolling Paper City, a twist on its original nickname, Paper City.

Few actually call it that, but Sanders said there is no disputing the profound impact that cannabis has had in this city, where hundreds of thousands of square feet of unused or underused former mill space has been converted into dispensaries and cultivating facilities.

“Bringing more people to Holyoke is the goal for all of us,” she said. “And I think Holyoke and its bones often get overlooked; I’m so excited that there’s a new art gallery opening on High Street, that there’s several restaurants that we frequent and another new restaurant going in across the way. We have Gateway City Arts, which does concerts all the time. So, there’s momentum, and we’re hoping to be a part of that and help a city that’s been struggling for a long time.

“Together, we’re all going to make Holyoke a better place, with more jobs, more places to live, more restaurants to go to, more shopping, art,” she went on. “I absolutely love this town, and that’s why we came here and spent $1 million to open this dispensary.”

Looking ahead, Sanders wants to see a day when more women can become business owners in this sector.

“It’s very much a closed door, and the numbers are actually going down, which is unfortunate,” she said, noting, again, the sky-high costs of opening and then operating a business in this sector, and the challenge to turn a profit when 70 cents of every dollar earned is returned to the government in taxes.

“Through initiatives at the state level and maybe even at the federal level with safe banking and other things they’re talking about, we need to give minorities and women an opportunity to win alongside all the rich, white money,” she told BusinessWest. “As a female leader in this space, I am super proud to be in this space as a leader and an owner, and I would say it’s one of my biggest motivators to talk about this and do something about it.”

 

George O’Brien can be reached at [email protected]

Professional Offices Are Changing into Something More Comfortable

By
Ken Albano says businesses need to balance
Features Special Coverage

Dressing Down

Ken Albano says businesses need to balance

Ken Albano says businesses need to balance what works for employees with a certain level of professionalism.

If it wasn’t clear before, you know office-attire norms are shifting when the rules for dress-down Friday have to change.

That’s exactly what happened at MP CPAs in Springfield, one of many companies with a rule that, with a donation to a charitable cause (in this case, a $5 donation that the company matches), employees may wear jeans and other attire typically deemed too casual for the office.

“But we changed it slightly because of what ended up happening,” said Melissa English, senior tax manager. Specifically, “COVID came, and our dress-code policy went out the window.”

With jeans and other casual attire now acceptable all week, she explained, “for an incentive for people who want to contribute to charity, Fridays are now our ‘wear what you want’ day. Anything goes. There’s no dress-code policy on Fridays if you pay in.”

Flip flops on Friday? Sure, go for it.

“I started 21 years ago with the firm, and no matter what, whether you were in the office, with a client, whatever, you made sure you were professionally dressed,” English told BusinessWest. “Then, over time, it gradually did loosen up a little bit. It became a little more … business casual. When you went to a client, you still had to dress up. But in the office, you were allowed to have professional pants on but maybe not necessarily a suit and tie, just a button-down shirt, stuff like that.”

“I want to be comfortable when I’m working, and I think a lot of people feel that way. I think you’re more productive if you’re comfortable throughout the day. So I do think it was already moving toward business casual, but COVID definitely pushed it.”

If anything, the pandemic, and especially the summer of 2020, only accelerated that trend, she went on. As one of the first businesses back in Monarch Place, at a time when the downtown towers seemed nearly empty, it was easy to relax the dress code.

“At that point, it was wear whatever you wanted. You could show up in your pajamas; it didn’t matter,” she joked. “It was very casual. We had no dress-code policy whatsoever; we were wearing shorts all summer.”

What happened next — and this was something BusinessWest heard multiple times for this story — was that employees liked dressing down. And employers listened.

“Even after COVID, to try to get back to professional dress, I don’t think it’s going to happen,” English said. “For me personally, I want to be comfortable when I’m working, and I think a lot of people feel that way. I think you’re more productive if you’re comfortable throughout the day. So I do think it was already moving toward business casual, but COVID definitely pushed it.

Melissa English

Melissa English says workers have shown they can be both comfortable and productive at work.

“I do know a lot of businesses feel the same way,” she added. “A lot of the businesses we go to now are casual to business casual. You don’t see many people wearing suits and ties anymore. I think it’s more acceptable now, especially after COVID.”

As a law firm with five offices, Bacon Wilson’s workplace policies are generally driven by the main office in Springfield, Managing Shareholder Ken Albano said.

“We have a policy that’s been tweaked over the years. Now, business casual is acceptable throughout the firm. You don’t have to wear a sport coat. Corduroys, a gray sweater, and a button-down shirt — that’s my dress today. That’s deemed acceptable; I’d call that country casual or business casual. Wearing a sport coat every day is no longer required.

“That said, we’ve got old-school people here who just can’t change,” he went on. “They come to work in a suit every day. Even given the opportunity to loosen up their attire, they stick to it, especially some of the older guys in the Estate Planning department who meet clients daily and like to wear a suit and tie when they sit down with clients.”

He agreed that employees returning from long stretches of remote work, where they could get their job done in pajamas some days, grew to enjoy the comfort of casual dress, and the firm’s policy preserves elements of that while stressing appropriate wear.

“For a law firm of this size,” Albano said, “we try to be as flexible as we can without taking it too far away from the professional setting we’re trying to establish for our clients.”

 

Loosening Up

Casual dress has long been the norm in technology workplaces, and that revolution eventually spread to other, more traditionally formal workplaces in fields like law, accounting, and insurance. The shift toward a more casual dress code reflects, in one sense, a desire by employees to embrace comfort and individuality — and, over the past couple of years, a recognition by employers that comfortable employees are happier and, in many cases, just as productive as before, if not moreso.

Sue Cicco

Sue Cicco

“As we have instituted our new hybrid workplace approach, which balances in-person collaboration with personal flexibility to best meet the needs of our employees and customers, we’ve seen this level of comfort continue, and I believe it’s here to stay.”

Sue Cicco, head of Human Resources & Employee Experience at MassMutual in Springfield, told BusinessWest that the firm has continually evolved its culture to reflect the changing world, prioritizing diversity, equity, and inclusion; offering a flexible workplace; and, yes, moving away from exhaustive dress codes.

“In 2015, we instituted a two-word dress code: ‘dress appropriately,’” she explained. “This simplified guidance was rolled out as the company sought to reflect the more innovative and open workplace that was building, and was aimed at trusting and empowering employees while enabling them to be comfortable and express themselves.”

Those we spoke with, however, kept coming back to the importance of dressing for one’s audience and setting. For example, Albano said, a litigator would never appear in court in anything but formal attire. “The dress code is normally what you expect to see in front of a judge. You don’t show up in jeans and sneakers in a court of law; that never changes.”

Tanzi Cannon-Eckerle, chief legal and administrative officer at the Royal Law Firm in Springfield, agreed.

“In the courtroom, the attire has not changed since we stopped wearing the wigs,” she said, adding that law schools across the country instill in students the importance of formal attire. “Courtroom decorum won’t change, nor, in my opinion, should it change.”

In the office, however, she has seen some movement toward more casual dress. “But what might be considered lax for one person might be different for someone else. When meeting clients, you’re still wearing blazer and slacks or a cardigan and slacks. Or you have on a suit. In that setting, I believe you’re supposed to dress toward a more professional level.”

Before returning to Royal, Cannon-Eckerle worked as director of Human Resources for Auxiliary Enterprises at UMass Amherst, a tenure that spanned much of the pandemic.

“They decided to bridge the gap between frontline workers and C-suite folks and make business casual mandatory,” she recalled. “I was still wearing suits every day; they actually pulled me aside and said, ‘you need to relax a little bit and try for a more approachable persona in the workplace.’”

Tanzi Cannon-Eckerle

Tanzi Cannon-Eckerle says being overdressed and underdressed in certain settings are equally problematic.

She recognizes that a college campus during a pandemic is a different situation than a law firm, but stressed that all professional settings should strive for certain minimum standards.

“At the end of the day, there’s a baseline: you’ve got to be clean, your clothes can’t be wrinkled, and it has to make sense for the room,” she told BusinessWest. “I love to dress up; if I could, I’d wear a wedding dress once a week. But I’m pretty sure I’d be reprimanded by the judge. So, you don’t dress to stand out, but to fit in and make people at ease with you. You don’t want people looking at your clothes instead of you, ogling what you’re wearing and not listening to what you’re saying.”

English said it’s important to know one’s audience in choosing what to wear.

“People can be comfortable and productive, so does it really matter how somebody looks if they’re getting the job done even better than they did before? So I think employers are now more accepting,” she noted. “In the employers we talk to, so many now are going to casual to business casual, and everybody seems to be accepting of it.

“But, again, no matter what, it’s still knowing your audience. You might have that one client that you know dresses up all the time. Well, maybe you need to dress up a little bit more for that client because you want them to take you seriously, and sometimes you have to look the part.”

Albano said job seekers need to be careful with accessories like tattoos and piercings; both are fine at Bacon Wilson, as long as visible tattoos aren’t offensive and piercings aren’t too numerous.

Sneakers and flip flops are a hard no, but jeans are fine on occasional charity days, when, like at MP CPAs, employees can pay $5 to dress down a bit. “That’s always a positive thing,” he said.

 

Lessons Learned

Looking forward, Cicco said employers and employees both learned something about each other during the pandemic, and those lessons will inform dress codes at countless companies in the future.

“As much as we were apart while working remotely during the pandemic, we also became more personally acquainted with one another,” she said. “We were welcomed into each other’s homes as we took Zoom calls from our living rooms with family members and even pets debuting in the background, and with that came a different level of familiarity that further empowered people to dress how they felt most comfortable.”

Therefore, “as we have instituted our new hybrid workplace approach, which balances in-person collaboration with personal flexibility to best meet the needs of our employees and customers, we’ve seen this level of comfort continue, and I believe it’s here to stay.”

English said the managers at her firm have had meetings and talked to consultants about what’s happening throughout the industry and how it informs the dress code moving forward.

“Because we are so casual now, should we go back to a more business casual? What we came up with is the term ‘smart casual.’ You can come in the office in jeans and a polo, whatever, but if you know you are going to go out to a client, then you need to dress in more of a smart casual. You need to be able to dress up and be presentable and make a good impression.”

Having been a business owner and manager as well as a lawyer, Cannon-Eckerle’s take is that, “if you walk in the door and the first thing people think about is what you’re wearing, you might have to rethink it. But if you’re clean and pressed and not wearing a T-shirt that’s flipping the bird, most likely you’re OK.”

In short, read the room.

“Because of COVID, things have changed, and I think people have been more open to someone’s style, open to the fact that dress is part of their personality,” she added. “But that doesn’t mean you can be disruptive in the workplace.

“And, as attorneys, they pay you a hefty hourly rate. If you roll in with sweatpants and flip flops, that isn’t professional. What we see as professional may be changing, but not in all industries, I think.”

As Albano put it, “you don’t want someone to turn their head and say, ‘oh my God, what are you wearing?’ We’re trying to be flexible and make it a healthy work environment, but also a professional setting.”

 

Joseph Bednar can be reached at [email protected]

UMassFive Charts a Course for Continued Growth, Expansion

By
Rich Kump, president and CEO of UMassFive Federal Credit Union.
Banking and Financial Services Special Coverage

Points of Interest

Rich Kump, president and CEO of UMassFive Federal Credit Union.

Rich Kump, president and CEO of UMassFive Federal Credit Union.

Richard Kump says he’s disappointed by — but quite philosophical about — recent statistics showing that credit unions are not faring as well as they have historically when it comes to customer satisfaction.

“For just about our entire existence, credit unions have always outperformed banks, particularly the big banks, but just a few years ago, credit unions dipped in our satisfaction rating compared to particularly the national and multi-regional banks,” he said, adding that there’s an obvious reason why.

“It used to be that satisfaction was coming into the branch, being met with a smiling face that was empathetic and there to help — that in-face, smiling employee,” he explained. “Now, satisfaction is defined a little differently; it’s defined by speed: ‘how quickly can I accomplish this?’ The Bank of Americas, the Wells Fargos … their ease of use has surpassed that of credit unions and small community banks.”

Getting up to speed — figuratively but also quite literally — is one of the broad strategic objectives identified by Kump, president and CEO of UMassFive College Federal Credit Union, and other members of the leadership team at this 55-year-old institution.

Others include everything from territorial expansion — Springfield and Westfield are among the areas at or near the top of a list of potential landing spots — to continued growth of an already dynamic niche in lending for solar-energy installations; from the building of a new and more highly visible branch in Hadley and consolidation of other facilities into the headquarters building in that town to the possible creation of an insurance agency to be operated by the credit union.

“Most of our members have Amazon — with one click, you can purchase something. And that’s what they expect from us, being able to accomplish whatever their need is quickly and without friction.”

In a wide-ranging interview, Kump, a 20-year veteran at UMassFive who took the helm in 2019, touched on these and many other points. Overall, he said the institution, which now boasts more than $625 million in assets, is in what he called a controlled growth mode, anxious to take advantage of opportunities that have arisen in recent years, including ongoing consolidation in the banking industry, advancing digital technology, and changing needs among customers — on both the consumer and commercial sides of the ledger.

Such opportunities enabled UMassFive to essentially triple the projected profits for what was expected to be a lackluster 2022, he explained, and these same forces, in addition to those aforementioned goals for expansion, are providing reasons for optimism as the calendar turns to 2023.

 

Developing a Game Plan

Kump, who grew up in New York, has been a lifelong, and extremely avid, Yankees fan.

The wall across from the desk in his office tells the story.

There, one will find a framed picture of Bucky Dent’s famous (infamous to Red Sox fans) home run in that one-game playoff back in 1978. It’s signed by both Dent and the Red Sox pitcher who threw the pitch, Mike Torrez, and Kump notes with regret that the signatures are fading.

As is the autograph of Don Larsen on a framed photo from his historic perfect game in the 1956 World Series against the Brooklyn Dodgers that sits just below the Dent picture. There’s other Yankee memorabilia on his wall, including a group of perhaps the four greatest players from that franchise — Babe Ruth, Lou Gehrig, Joe DiMaggio, and Mickey Mantle.

While the Yankees have always been a passion for Kump, or a “great failing,” as he called it, credit unions have essentially been his career. Prior to arriving at UMassFive, he worked at St. Mary’s Bank in Manchester, N.H. — founded in 1909, before such institutions were called credit unions — and, later, Cathedral Credit Union in Manchester.

UMassFive has developed a strong niche in the financing of solar-installation projects.

UMassFive has developed a strong niche in the financing of solar-installation projects.

With that background, he’s well-versed in what credit unions have been historically, and what has long differentiated them from banks, especially the larger ones — a high-touch operating philosophy and a strong focus on customer service.

These days, though, Kump is more focused on what credit unions can be — and must be — to continue to thrive and grow in a changing financial-services landscape.

And here, as noted, speed is an important part of the equation.

“While overall satisfaction with any local institution is high, this is a world of digital transformation and how quickly you can get your organization to deliver what the consumer is expecting,” he explained. “Most of our members have Amazon — with one click, you can purchase something. And that’s what they expect from us, being able to accomplish whatever their need is quickly and without friction.

“And that has been our focus on improving the member relationship,” he went on, adding that UMassFive is responding with online appointments, online loan applications that are simpler and what he described as ‘frictionless,’ the ability to join the credit union digitally — “that’s our primary branch; that’s how we serve” — fraud-prevention efforts, and other measures.

“We want to make the processes as simple and easy as they can be because that’s what the consumer is demanding today,” he explained, adding that this mindset will be applied to every aspect of the business, from credit cards to those loan applications.

And while improving its speed and ability to serve customers in the manner they are now demanding, UMassFive is moving forward aggressively on a number of other fronts, said Kump, including territorial expansion, new branches, and better, more effective use of its facilities.

Several of these goals are coming together in the planned move of the flagship branch inside the headquarters building off Route 9 in Hadley to a new building to be constructed just down the road at the border between Hadley and Amherst on the site of an auto-parts store.

The move will give UMassFive much greater visibility, said Kump — the current headquarters building is a few hundred yards from the street and behind other buildings — and it will also enable the credit union to consolidate spaces and ultimately save money.

“Branches are now less a transaction center and more of an advisory center. The things people want to come in for are lending — we do a ton digitally, but for loans, people still like to come in, especially on the commercial side — as well as investments and wealth management. Those are things people like to do in person.”

Elaborating, he noted that the credit union outgrew its headquarters building, which opened in 2001, several years ago, and has been leasing additional space in Hadley for its operations center, an expensive undertaking that ultimately led to the development of plans to build a new and much larger headquarters.

By moving the flagship branch to another location on Route 9, the credit union can now scrap those plans in favor of a far-less-expensive option: a new branch building. He added quickly that this new plan wouldn’t be possible if not the arrival of remote work forced by the pandemic.

“What we learned during COVID is that we don’t need to have everyone on-site,” he explained. “Other than our retail staff, we probably have 80% of employees on some type of telecommuting status, either hybrid or fully remote. With that, coupled with the move of our flagship branch and opening up that space, we’ll be able to bring the employees from our operations center over here and not have to lease space. And we’ll have the staff on site all under one roof and not have to worry about building a new headquarters building.”

 

Branching Out

Beyond Hadley, UMassFive is looking to add some new branches in the coming years and expand its footprint across this region, said Kump, adding that the leadership team has identified several different potential target areas.

At the top of the list is Springfield. UMassFive has one location in the city, in the rehabilitation facility at Mercy Medical Center, a branch that counts both medical-center employees and area residents as members. To attract more members, additional sites are being eyed, he said, adding that the Sixteen Acres neighborhood is a preferred landing spot.

Meanwhile, credit-union leaders are also taking a hard look at Westfield, a large community that boasts a state university and thus resembles, to some extent, the Five College area that UMassFive has long called home.

“Many of the demographics are similar to who we serve best,” he said of the Whip City and the surrounding area. “So that is a logical place for us to go.”

While expansion and additional branches are in the business plan, UMassFive will look for measured, controlled growth, Kump said. “At $625 million in assets, we’re not at a size where we can put up a branch every year. Break-evens on branches seem to be running seven or eight years now, so we need to careful with our expansion.”

Meanwhile, any new branches will be smaller in size than what has been built historically, simply because fewer customers come to such facilities and technology, such as ITMs, has changed how service is provided, and thus they require smaller staffs, said Kump, adding that the nature of the business conducted inside is changing as well.

“Branches are now less a transaction center and more of an advisory center,” he explained. “The things people want to come in for are lending — we do a ton digitally, but for loans, people still like to come in, especially on the commercial side — as well as investments and wealth management. Those are things people like to do in person.”

Another strategic objective at UMassFive is growing the commercial side of the ledger, said Kump, adding that, over the past decade or so, the credit union has built what he called a “commercial infrastructure” of products and services. With that infrastructure now in place, the credit union will work to build its portfolio of clients, he said, adding that there are new products planned as well, as well as a commercial credit card.

“For the first 50 years of our existence, it was consumers only — individuals and their families,” he told BusinessWest. “And what we found is that some of those consumers also own businesses, and in the past, we had to turn that business away. A number of years ago, we committed to the local business community, and we want to grow that side of the business.”

One segment of the commercial market that UMassFive is dominating — basically because few other institutions have considered it worthy — is solar energy.

Indeed, since 2017, the credit union has written more than $100 million in loans for residential solar projects, said Kump, adding that it has partnered with the Clean Energy Center to connect low-income households with solar air-source heat pumps.

“It’s a huge niche, and it’s mostly ignored by other financial institutions — when it comes to the true residential solar loan, I know of just one other institution in Western Mass. that offers it,” Kump explained, adding that the biggest reason why is that such offerings amount to unsecured loans, and few banks and credit unions have an appetite for such lending.

UMassFive has the expertise — its chief commercial officer is certified in commercial solar lending — and a track record of success in this realm that it’s looking to build upon.

“We find that they perform as well as equity loans,” he said, adding that, while the market for such loans has softened recently because the tax credits for such installations have diminished, their eligibility requirements have expanded to include nonprofit institutions such as churches, as well as municipalities.

“We were an early adopter, we understand the industry, we know how it works, we support that industry, and it’s a big piece of who we are,” he said, adding that the clean-energy portfolio extends beyond solar and into energy-efficiency projects, both residential and commercial, such as those administered by Mass Save.

 

Bottom Line

As he surveys the banking and financial-services landscape, Kump sees plenty of challenges ahead — from projections of a further slowing of the economy to rising interest rates in the housing market and growing competition for customers in this sector.

But he also sees opportunities for institutions that have the ability to adapt and respond to changing customer needs in a proactive, forward-thinking manner.

That has been the MO at UMassFive for more than a half-century now, and it is the pattern that will continue into the future.

 

George O’Brien can be reached at [email protected]

HCC MGM Culinary Arts Institute Marks Five Years at New Location

By
Warren Leigh, co-chair of the HCC Culinary Arts program.
Education Special Coverage

What’s Cooking?

 

Warren Leigh, co-chair of the HCC Culinary Arts program.

Warren Leigh, co-chair of the HCC Culinary Arts program.

 

Restaurant work is not easy.

Maureen Hindle knows that, having graduated from Holyoke Community College’s (HCC) Culinary Arts program in 2013 and working as a sous chef before returning to work in the HCC program about seven years ago as a lab technician.

“It’s a challenging industry, but it’s all passion-based, and I think that’s a huge thing,” she said. “Our students come here because they have a passion for cooking, and they want to grow that, and this is a good place to do that. And we wouldn’t continue to work in the industry in some capacity if we didn’t love it as well.”

By ‘we,’ she meant the team at the HCC MGM Culinary Arts Institute, which occupies the first two floors of the Cubit building in downtown Holyoke. The $7.5 million, 20,000-square-foot, state-of-the-art facility opened in January 2018, so it will soon mark five years of growth and innovation, which included weathering the pandemic.

Chef and Professor Warren Leigh, who co-chairs the Culinary Arts program, said he’s surprised enrollment isn’t even higher, given the opportunities available in a restaurant industry that’s crying out for workforce help.

“Our students come here because they have a passion for cooking, and they want to grow that, and this is a good place to do that. And we wouldn’t continue to work in the industry in some capacity if we didn’t love it as well.”

“They can’t find employees,” he told BusinessWest. “Nobody knows why we’re not packed to the gills; we should be turning students away, but it’s not happening. Every industry is looking for employees, and especially hospitality. Most all the restaurants are hiring for some position.”

The fall enrollment numbers were encouraging, however, and spring looks strong as well, perhaps because more students are hearing about the needs in a field where pay typically starts in the high teens per hour and can move quickly into the twenties as they move into higher responsibilities. “There is that ability to grow, so you’d think they’d be busting down the doors here.”

Degree programs at the center have been described as ‘stackable.’ Students can choose a one-year certificate program in culinary arts, and if they want to go further, they can enter the associate-degree program and essentially build on what they started.

With that associate degree, a student could transfer to, say, Johnson & Wales, the Culinary Institute of America (CIA), or any college that offers a four-year program in the culinary field. But most of the time, they don’t pursue more education, because of the career opportunities already open to them.

Briana Marizan

Briana Marizan says instructors consider the unique qualities each aspiring chef brings to the program.

“Most of the time, they want to get their degree and go to work. That’s what we see,” Leigh explained. “The question is always, are you getting your money’s worth for this? Compared to other four-year schools and culinary schools, community colleges are inexpensive — a great value. And what we’re seeing is the students who have the associate’s degree tend to wind up in supervisory positions.

“The students who do the two-semester certificate and stick with it also end up moving fairly quickly, but most of the supervisors out there who are alums have associate degrees,” he went on. “That doesn’t mean if you don’t have an associate degree, you won’t get a supervisor’s job. Some of those have made it to some level of supervision, absolutely.”

At a time when career stability is important to so many, enrolling in the Culinary Arts Institute is certainly an attractive option.

 

Heating Up

The institute represents a big step forward in the realm of workforce development within the culinary-arts field, both locally and regionally, a segment of the economy that was already growing and now faces even greater pressure to retain workforce in the post-pandemic era, beset by the Great Resignation at the same time when most people have returned to their old dining-out habits.

“Every industry is looking for employees, and especially hospitality. Most all the restaurants are hiring for some position.”

There has a been a culinary-arts program, in one form or another, at HCC for about 35 years, though the program was more hospitality-related than culinary-focused years ago. It has had several homes over the years, none of them large or particularly well-equipped.

The facility at the Cubit, however, features a fully equipped demonstration kitchen; a production kitchen set up European-style, with the student chefs facing each other and communicating with each other as they work together to prepare a meal; two teaching kitchens; a bake shop; classrooms; a student lounge; and an 80-seat dining facility to host events. As a broad hospitality program, it also maintains a hotel lab with a mock front desk and bedroom.

Hindle, whose role includes food ordering, making sure classes run smoothly, supporting the students and instructors, and more, has seen the program and its physical home evolve since she graduated more than a decade ago, and she’s beyond impressed.

Chef Warren Leigh speaks with students at the start of a class.

Chef Warren Leigh speaks with students at the start of a class.

“It’s incredible. We went from one and a half kitchens to five. So that in itself is huge growth for us,” she said. “But seeing the students able to use this equipment, versus what we had when I was a student, it’s just incredibly beneficial to them because this is what they’re using in the industry. We’re not shoving six students around a range. In fact, this is better than they would see in most industry kitchens; they can learn on the best equipment possible.”

Briana Marizan is one of those current students, working toward her associate degree.

“I came here because I want to be a chef. I want to perfect my craft and then move up,” she said, adding that instructors are sensitive to the learning and work styles of each student. “Each chef brings something unique to the table, and they teach us not only what works best for them, but also what might work best for us.”

As part of its mission to support the region’s hospitality industry, the institute also regularly runs free, eight-week line-cook training and certification courses. Participants learn all the essential competencies they need to become successful line cooks: knife skills; how to prepare stocks, soups, sauces, desserts, poultry, fish, and meat; culinary math and measurements; moist- and dry-heat cooking methods; as well as workplace soft skills, such as building a résumé and presenting themselves at job interviews.

Maria Moreno Contreras, a culinary instructor who was administering a midterm test to one of those classes the day BusinessWest visited, said some participants are already in the industry and want to upgrade their skills, while others are exploring a possible new career in a high-demand field.

“With the non-credit training, many of them getting ready to get a very entry-level job, or it’s exploratory to see if they even want to go there,” Leigh said. “Their endgame is to get a job — but that’s everyone’s endgame here.”

 

Rolling Along

Five years since opening its new headquarters, HCC’s Culinary Arts program is evolving in some intriguing ways. For instance, it was awarded a $147,000 Skills Capital Grant by the state to purchase a truck that will be used as a mobile kitchen for community outreach and education.

“The mobile kitchen has nothing to do with raising income,” Leigh said, noting that it’s not going to set up on the corner and sell tacos. The main purpose is to engage the community while giving students experience in food-truck operations.

According to the award letter, HCC will use the $147,000 to purchase and outfit a mobile food lab that will support both credit and non-credit culinary-arts programs and also incorporate other areas of study, including nutrition, health, business, and entrepreneurship. HCC’s grant application notes that residents of Holyoke face a high level of food insecurity and that downtown Holyoke has been identified as a ‘food desert.’

Maureen Hindle

Maureen Hindle says the state-of-the-art facilities are a far cry from what she used as a student more than a decade ago.

“HCC will deploy the truck to bring food to neighborhoods of downtown Holyoke,” HCC wrote in its application. In addition, the college plans to connect this project to its downtown Freight Farms initiative with a focus on basic nutrition, local produce, and healthy eating.

Leigh envisions using the mobile food lab to engage community partners such as the Holyoke Boys & Girls Club and area food pantries. Students will meet with representatives from area organizations to create menus based on ingredients of their choice or what might be seasonally available.

Food trucks are one way to enter the industry more inexpensively than opening a brick-and-mortar restaurant, he added, citing the example of HCC culinary arts alumna Nicole Ortiz, who wrote a letter in support of the grant and started her own culinary career with her Crave food-truck business. She now also runs Crave restaurant on High Street in Holyoke.

Leigh also said the institute is working with Holyoke Medical Center on putting together some professional development for nurses and nutritionists, planning to package it as a non-credit course with possible grant support.

The facility also recently partnered with the Boys & Girls Club by helping lay out its new kitchen and hosting the club’s eighth-graders at the Cubit.

“We’re trying to be a community partner,” Leigh said, adding that the school started preparing Thanksgiving to-go packages — everything but the turkey for a family of four — to raise money for the President’s Student Emergency Fund at HCC, which assists thousands of students with basic needs.

The program is reaching out to the community in other ways as well, such as a plan to offer professional-development opportunities for culinary-arts teachers in several vocational and technical schools in the region. “It would clearly cost less than at Johnson & Wales or CIA,” he noted. “But maybe we can get grant funding for it.”

At the same time, Leigh and his team are trying to be more purposeful in recruitment, an ongoing effort, as he said, to get the HCC MGM Culinary Arts Center “packed to the gills.”

“We’re trying to tag-team a faculty member and an admissions person and go to those six or eight voke-tech schools, and we’ll try to do the same with the non-culinary students at the other high schools,” he said. “They might only hear about Johnson & Wales and CIA, where the price starts at $50,000 or $60,000.”

With the need for culinary talent more critical than ever before, and the cost of a community-college education within reach for most, he hopes HCC has a winning message for those young people.

As Hindle said, the work isn’t easy, but it’s a field where those with a passion can thrive.

 

Joseph Bednar can be reached at [email protected]

Legislation Continues to Impact Strategies for Individuals, Businesses

By Contributor
tax planning 2022
Banking and Financial Services Special Coverage

Year-end Tax Planning

By Kristina Drzal Houghton, CPA, MST

tax planning 2022

As another tumultuous year draws to a close, both individuals and small-business owners are advised to assess their current tax situation, with an eye on maximizing available tax breaks and avoiding potential tax pitfalls. Planning should be based on the latest laws of the land.

Just look at the significant legislation enacted in recent years. Following the massive Tax Cuts and Jobs Act (TCJA) of 2017, the Coronavirus Aid, Relief, and Economic Security (CARES) Act addressed various pandemic-related issues in 2020. In quick succession, the Consolidated Appropriations Act (CAA) extended certain CARES Act provisions and modified others, while the American Rescue Plan Act (ARPA) created even more tax-saving opportunities in 2021.

This series of new laws culminated in the Inflation Reduction Act (the IRA), passed in August 2022. The IRA, which is generally effective next year, includes several provisions that could have a big tax impact on individuals and business entities.

Kristina Drzal Houghton

Kristina Drzal Houghton

“We still might not be done. More proposed legislation has been introduced in Congress. If another new law featuring tax provisions is enacted before 2023, it may require you to revise your year-end tax-planning strategies.”

And we still might not be done. More proposed legislation has been introduced in Congress. If another new law featuring tax provisions is enacted before 2023, it may require you to revise your year-end tax-planning strategies.

 

BUSINESS TAX PLANNING

 

Depreciation-based Deductions

As we head into year-end, a business may benefit from one or more of three depreciation-based tax breaks: the Section 179 deduction; first-year ‘bonus’ depreciation; and regular depreciation. In consideration of this, consider the following:

Place qualified property in service before the end of the year. If your business does not start using the property before 2023, it is not eligible for these tax breaks.

Section 179 deduction: under Section 179 of the tax code, a business may ‘expense’ (i.e., currently deduct) the cost of qualified property placed in service any time during the year. The maximum annual deduction for 2022 is $1.08 million and is phased out on a dollar-for-dollar basis when total additions exceed $2.7 million. Be aware that the Section 179 deduction cannot exceed the taxable income. This could limit your deduction for 2022.

First-year bonus depreciation: the TCJA authorized a 100% first-year bonus depreciation deduction through 2022. This includes used, as well as new, property. Be aware that most states do not allow this special bonus depreciation.

Regular depreciation: if any remaining acquisition cost remains, the balance may be deducted over time under the Modified Accelerated Cost Recovery System (MACRS).

If you buy a heavy-duty SUV or van for business, you may claim a first-year Section 179 deduction of up to $25,000. The ‘luxury car’ limits do not apply to certain heavy-duty vehicles.

The first-year bonus depreciation deduction is scheduled to phase out over five years, beginning in 2023. Take full advantage while you can.

 

Business Meals

Previously, a business could deduct 50% of the cost of its qualified business entertainment expenses. However, the deduction for entertainment costs, including strictly social meals, was eliminated by the TCJA beginning in 2018.

The ARPA doubles the usual 50% deduction for allowable meals to 100% for food and beverages provided by restaurants in 2021 and 2022. This tax break is not expected to be extended.

 

Business Repairs

As more remote workers return to your regular workplace, the business may need to fix up the place. While expenses spent on making repairs are currently deductible, the cost of improvements to business property must be capitalized.

When appropriate, complete minor repairs before the end of the year. The deductions can offset taxable income in 2022.

As a rule of thumb, a repair keeps property in efficient operating condition, while an improvement prolongs the life of the property, enhances its value, or adapts it to a different use. For example, fixing a broken window is a repair, but the addition of a new wing to a business building is treated as an improvement.

 

State Income Taxes

Many states, including Massachusetts, have enacted so-called ‘work-arounds’ whereby flow-through entities such as Subchapter S corporations and partnerships can elect to pay the state tax at the entity level on behalf of the shareholders. The benefit comes from reduced federal taxable income flowing to the shareholder, which serves to circumvent the $10,000 cap for state and local taxes when calculating itemized deduction, which is discussed later. Most states do not give a dollar-for-dollar credit for the tax paid by the entity, but the federal tax benefit is typically larger than the reduced state credit.

The actual benefit will vary for each shareholder or parter and should be reviewed to determine the actual savings. If deemed to be beneficial, don’t miss any deadlines for electing to pay these taxes.

 

Miscellaneous

Stock up on routine supplies (especially if they are in high demand). If you buy the supplies in 2022, they are deductible in 2022 — even if they are not used until 2023.

If you accrue in 2022 but pay year-end bonuses to employees in 2023, the amounts are generally deductible by an accrual-basis company in 2022 and taxable to the employees in 2023. A calendar-year company operating on the accrual basis may be able to deduct bonuses paid as late as March 15, 2023 on its 2022 return.

Keep records of collection efforts (e.g., phone calls, emails, and dunning letters) to prove debts are worthless. This may allow you to claim a bad-debt deduction.

 

INDIVIDUAL TAX PLANNING

Itemized Deductions

Due to several related provisions in the TCJA, generally effective for 2018 through 2025, more individuals are claiming the standard deduction in lieu of itemizing deductions.

Make a quick analysis of your situation. Depending on the results, you may decide to accelerate certain expenses into 2022 or postpone them to 2023.

For instance, you may want to ‘bunch’ charitable donations in a year you expect to itemize deductions. (There is more on charitable deductions below.) Similarly, you might reschedule physician or dentist visits to provide the maximum medical deduction. The deduction for those expenses is limited to the excess above 7.5% of your adjusted gross income (AGI). If you do not have a reasonable shot at deducting medical and dental expenses in 2022, you might as well postpone non-emergency expenses to 2023.

Note that the TCJA made other significant changes to itemized deductions. This includes a $10,000 annual cap on deductions for state and local tax (SALT) payments and suspension of the deduction for casualty and theft losses (except for qualified disaster-area losses). Since a repeal or modification of this cap is unlikely for 2022, wait to pay state estimates or real-estate taxes until January 2023 if they are not due in December.

The standard deduction for 2022 is generally $12,950 for single filers and $25,900 for joint filers.

 

Charitable Donations

If you still expect to itemize deductions in 2022, you may benefit from contributions to qualified charitable organizations made within generous tax-law limits.

Consider stepping up your charitable gift giving at year-end. As long as you make a donation in 2022, it is deductible on your 2022 return, even if you charge the donation by credit card as late as Dec. 31.

Note that the deduction limit for monetary contributions was increased to 100% of AGI for 2021, but the limit reverted to 60% of AGI for 2022. Nevertheless, this still provides plenty of flexibility for most taxpayers. Any excess may be carried over for up to five years.

Furthermore, if you donate appreciated property held longer than one year (i.e., it would qualify for long-term capital-gain treatment if sold), you can generally deduct an amount equal to the property’s fair market value (FMV). But the deduction for short-term capital-gain property is limited to your initial cost. Your annual deduction for property donations generally cannot exceed 30% of your AGI. As with monetary contributions, any excess may be carried over for up to five years.

The CARES Act established a maximum deduction of $300 for charitable donations by non-itemizers in 2020. The special deduction was then extended to 2021 and doubled to $600 for joint filers. As of this writing, this tax break is not available in 2022.

 

Electric Vehicle Credits

The IRA greenlights tax credits for purchasing electric vehicles and plug-in hybrids over the next few years. But certain taxpayers will not qualify. Map out your plans accordingly.

Notably, the IRA includes the following changes:

The credit cannot be claimed by a single filer with a modified adjusted gross income (MAGI) above $150,000 or an MAGI of $300,000 for joint filers.

The credit is not available for most passenger vehicles that cost more than $55,000, or $80,000 for vans, sports utility vehicles, and pickup trucks.

The vehicle must be powered by batteries whose materials are sourced from the U.S. or its free-trade partners and must be assembled in North America.

The current threshold of 200,000 vehicles sold by a manufacturer is eliminated.

In addition, the IRA authorizes a credit of up to $4,000 for used vehicles if you are a single filer with an MAGI of no more than $75,000, or $150,000 for joint filers.

 

Residential Energy Credits

The IRA generally enhances the residential energy credits that are currently available to homeowners. Under the new law, you may benefit from two types of residential energy credits:

1. The 30% ‘residential clean-energy credit’ can generally be claimed for installing solar panels or other equipment to harness renewable energy like wind, geothermal energy, and biomass fuel. This credit, which was scheduled to phase out and end after 2023, is preserved at 30% from 2022 through 2032 before phasing out.

2. The 30% ‘non-business energy property credit’ can generally be claimed for up to $1,200 of the cost of installing energy-efficient exterior windows, skylights, exterior doors, water heaters, and other qualified items through 2032 before phasing out. For 2022, the credit remains at 10% with a maximum of $500.

 

Miscellaneous

Pay a child’s college tuition for the upcoming semester. The amount paid in 2022 may qualify for one of two higher education credits, subject to phaseouts based on your MAGI.

Avoid an estimated tax penalty by qualifying for a safe-harbor exception. Generally, a penalty will not be imposed if you pay 90% of your current year’s tax liability or 100% of your prior year’s tax liability (110% if your AGI exceeded $150,000).

Minimize the kiddie-tax problem by having your child invest in tax-deferred or tax-exempt securities. For 2022, unearned income above $2,300 that is received by a dependent child under age 19 (or under age 24 if a full-time student) is taxed at the top tax rate of the parents.

Empty out flexible spending accounts (FSAs) for healthcare or dependent-care expenses if you will forfeit unused funds under the ‘use-it-or-lose it’ rule. However, your employer’s plan may provide a carryover to 2023 or a two-and-a-half-month grace period.

Make home improvements that qualify for mortgage-interest deductions as acquisition debt. This includes loans made to substantially improve your principal residence or one other home. Note that the TCJA suspended deductions for home-equity debt for 2018 through 2025.

If you own property damaged in a federal disaster area in 2022, you may qualify for quick casualty loss relief by filing an amended 2021 return. The TCJA suspended the deduction for casualty losses for 2018 through 2025, but retained a current deduction for disaster-area losses.

 

FINANCIAL TAX PLANNING

Capital Gains and Losses

Frequently, investors ‘time’ sales of assets like securities at year-end to produce optimal tax results. It is important to understand the basic tax rules.

For starters, capital gains and losses offset each other. If you show an excess loss for the year, it offsets up to $3,000 of ordinary income before being carried over to the next year. Long-term capital gains from sales of securities owned longer than one year are taxed at a maximum rate of 15% or 20% for certain high-income investors. Conversely, short-term capital gains are taxed at ordinary income rates reaching as high as 37% in 2022.

Review your investment portfolio. If it makes sense, you may harvest capital losses to offset gains realized earlier in the year or cherry-pick capital gains that will be partially or wholly absorbed by prior losses.

 

Net Investment Income Tax

Investors should account for the 3.8% tax that applies to the lesser of net investment income (NII) or the amount by which MAGI for the year exceeds $200,000 for single filers or $250,000 for joint filers. The definition of NII includes interest, dividends, capital gains, and income from passive activities, but not Social Security benefits, tax-exempt interest, and distributions from qualified retirement plans and IRAs.

Make an estimate of your potential liability for 2022. Depending on the results, you may be able to reduce the tax on NII or avoid it altogether.

 

Required Minimum Distributions

As a general rule, you must receive required minimum distributions (RMDs) from qualified retirement plans and IRAs after reaching age 72 (recently raised from age 70½). The amount of the distribution is based on IRS life-expectancy tables and your account balance at the end of last year.

Arrange to receive RMDs before Dec. 31. Otherwise, you will have to pay a stiff tax penalty equal to 50% of the required amount (less any amount you have received) in addition to your regular tax liability.

Do not procrastinate if you have not arranged RMDs for 2022 yet. It may take some time for your financial institution to accommodate these transactions.

Conversely, if you are still working and do not own 5% or more of the business employing you, you can postpone RMDs from an employer’s qualified plan until your retirement. This ‘still working exception’ does not apply to RMDs from IRAs or qualified plans of employers for whom you no longer work.

 

Installment Sales

Normally, when you sell real estate at a gain, you must pay tax on the full amount of the capital gain in the year of the sale.

If you sell it under an arrangement qualifying as an installment sale, the taxable portion of each payment is based on the gross profit ratio, which is determined by dividing the gross profit from the real-estate sale by the price.

Not only does the installment sale technique defer some of the tax due on a real estate deal, it will often reduce your overall tax liability if you are a high-income taxpayer. That is because, by spreading out the taxable gain over several years, you may pay tax on a greater portion of the gain at the 15% capital-gain rate as opposed to the 20% rate.

If it suits your purposes (e.g., you have a low tax year), you may ‘elect out’ of installment sale treatment when you file your return.

 

Estate and Gift Taxes

During the last decade, the unified estate- and gift-tax exclusion has gradually increased, while the top estate rate has not budged. For example, the exclusion for 2022 is $12.06 million, the highest it has ever been. (It is scheduled to revert to $5 million, plus inflation indexing, in 2026.)

In addition, you can give gifts to family members that qualify for the annual gift-tax exclusion. For 2022, there is no gift-tax liability on gifts of up to $16,000 per recipient (up from $15,000 in 2021). The limit is $32,000 for a joint gift by a married couple.

You may ‘double up’ by giving gifts in both December and January that qualify for the annual gift-tax exclusion for 2022 and 2023, respectively. The IRS recently announced that the limit for 2023 is $17,000 per recipient.

 

Miscellaneous

Watch out for the ‘wash sale’ rule that disallows losses from a securities sale if you reacquire substantially identical securities within 30 days. Wait at least 31 days to buy them back.

Contribute up to $20,500 to a 401(k) in 2022 ($27,000 if you are age 50 or older). If you clear the 2022 Social Security wage base of $147,000 and promptly allocate the payroll-tax savings to a 401(k), you can increase your deferral without any further reduction in your take-home pay.

Weigh the benefits of a Roth IRA conversion, especially if this will be a low-tax year. Although the conversion is subject to current tax, you generally can receive tax-free distributions in retirement, unlike taxable distributions from a traditional IRA.

Skip this year’s RMD if you recently inherited an IRA and are required to empty out the account within 10 years. Under new IRS guidance, there is no penalty if you fail to take RMDs for 2021 or 2022. The IRS will issue final regulations soon.

If you rent out your vacation home, keep your personal use within the tax-law boundaries. No loss is allowed if personal use exceeds 14 days or 10% of the rental period.

Consider a qualified charitable distribution (QCD). If you are age 70½ or older, you can transfer up to $100,000 of IRA funds directly to a charity. Although the contribution is not deductible, the QCD is exempt from tax. This may improve your overall tax picture.

 

Conclusion

This year-end tax-planning article is based on the prevailing federal tax laws, rules, and regulations. Of course, it is subject to change, especially if additional tax legislation is enacted by Congress before the end of the year.

Finally, remember that these ideas are intended to serve only as a general guideline. Your personal circumstances will likely require careful examination. Consult with your tax adviser.

 

Kristina Drzal Houghton, CPA, MST is a partner at the Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.; (413) 536-8510.

Local Executive Coach Writes the Book on Defeating Burnout

By
Jim Young
Features

Cooling Agent

Jim Young

Jim Young says the first steps in defeating burnout are admitting there’s a problem and seeking help.

“I had a major problem, and I needed a solution. Fast. So I decided to use the best strategy I had: outworking the problem on my own until either it was resolved or I collapsed. It was an easy choice, really. Up until this point, I had a 100 percent success rate in winning those battles. Besides, failure wasn’t an option. I’m a man. We don’t fail, and we don’t need help.

This time I was different. I knew that because of the carpeting.

Until that point in my life, I had never spent time inspecting the nuances of the flooring of my tiny, two-bedroom condo. But there I was, planted face down in the middle of my living room floor, drenched in sweat, tears streaking down my face, anguished groans occasionally escaping my writhing body. The abrasiveness of the matted Berber carpet felt harsh on my nose, forehead, and cheeks. Its aroma, stale and slightly chemical in nature, reeked of atrophy. It was not a pretty scene.

As I lay there uncontrollably sobbing, shaking from waves of stress pulsing through my depleted body, it was clear that I wasn’t OK.”

That’s a very powerful, and poignant, passage from the introduction to Jim Young’s recently released book, titled Expansive Intimacy: How “Tough Guys” Defeat Burnout.

Young, a Northampton-based coach who calls himself the “Centered Coach,” and before that an IT executive, has become an expert on the subject at hand — burnout — and defeating it. He’s been there and done that, as we can discern from his introduction, in which he talks about an assignment to revive a major client’s IT system, one that, coupled with other factors ranging from his grandmother lying on her deathbed to being six months into divorce, sent him nosediving into that aforementioned Berber carpet.

He’s also helped others defeat burnout, but only after they managed to find the strength to do what most men strenuously resist doing — first admitting that they need help, and then getting that help.

“I often describe myself as a men’s and organizational burnout coach,” he told BusinessWest. “Because that’s who keeps finding me; that’s the work I’m most compelled to do, to help men deal with this condition we call burnout.”

“The term has gained a lot of buzz over the past few years — the pandemic has pulled the curtains back on this topic, which has really been there for a long time. I think we conflate it oftentimes with being tired or exhausted. People say, ‘I’m burned out today’ … it’s a bigger issue than that.”

In a wide-ranging conversation about his book and the broad subject of burnout, Young said this term gets thrown out almost daily in the workplace, usually with little regard for its true meaning and symptoms.

Indeed, burnout is, in most respects, a technical term. It doesn’t mean tired, or exhausted, or exasperated, he said, adding that there are several symptoms, and also what he called the “burnout spectrum” in which individuals experience some but perhaps not all of these symptoms.

Expansive Intimacy

“The term has gained a lot of buzz over the past few years — the pandemic has pulled the curtains back on this topic, which has really been there for a long time,” he explained. “I think we conflate it oftentimes with being tired or exhausted. People say, ‘I’m burned out today’ … it’s a bigger issue than that.

“The World Health Organization finally, in 2019, recognized that burnout was a workplace condition of unmanaged stress with three components,” he went on. “Exhaustion, for sure, whether we’re physically, mentally, or emotionally exhausted, but also cynicism and a lack of effectiveness; we don’t feel like we can get things done anymore, and we can start taking a cynical approach that things are never going to get better — a mentality of ‘it is what it is.’ A true case of burnout involves all three of those symptoms, and there are people all across the burnout spectrum who might be dealing with one or two of those symptoms, but not all three.”

With that broad definition, and that list of symptoms, which a great many individuals in business can relate to, how does one go about defeating burnout and put it behind them?

It starts, as Young said, with admitting that there is a problem, something he finally did, and then doing something about it rather than trying (almost always unsuccessfully) to tough it out, which is what ‘tough’ guys usually try to do.

For this issue, BusinessWest talked with Young about burnout, his new book, and that concept of expansive intimacy, which, in his view, is the only way to get at the root of this problem.

 

When the Heat Is On

When asked how people know, or should know, if they are burned out, Young said that he — and probably many others — don’t actually know in the moment.

“I lived on the burnout spectrum for five to seven years, and I floated through different aspects of it,” he explained. “I didn’t know it when I was in it until I looked back at it and remember not wanting to get out of bed and go to work in the morning. I felt like I was moving in wet cement as I was trying to get things done.

“To me, a lot of it is the felt sense of it, but also, how are people around me responding to me?” he went on. “And if I could be honest with myself, I would ask people, ‘hey, was I difficult to be around? Was I less effective than I was before? Did I come across as someone who never had something positive to say?’ We’re feeling like we’re not getting things done that we’re capable of. That’s the best answer for me when it comes to knowing when we’re burned out. There are assessments we can take, but I always come back to how we’re feeling and getting some perspective from other people on how I am compared to when I’m at my best.”

Elaborating, Young said people and can and often do have bad days, bad weeks, and bad months. But burnout is longer-term. It’s a persistent feeling of simply not feeling like yourself, accompanied by some physical symptoms.

“There’s a ton of practical advice that you can Google; it will talk about exercise, it will talk about diet, it will talk about shifting your work schedule and maybe even changing jobs. Those are all valid things to do; however, they’re just putting Band-Aids on symptoms. They’re not actually getting to the root cause.”

These can include indigestion, lower back pain, and other ailments that cannot be easily explained, he said, adding that these problems equate to stress building up in the body — stress that, if not relieved, will lead to deeper issues.

It’s incumbent upon individuals, and especially men, because often, they don’t listen to what their body is telling them, Young went on, adding that, if they listen hard enough — and he eventually did — they will come to understand that the problem might be burnout.

And this brings us to the next step in this assignment — deciding what to do about it, be it taking time off, finding a new job or career, seeking counseling or coaching, or some mix of the above.

“And that often depends on how crispy you are,” said Young. “Some people, when they’ve had an extreme case of burnout, really need to decompress; I’ve dealt with people who have had to take long-term leave and just not do anything for a while, but that’s not something that a lot of people can do.

“For me, when I started looking at how I defeated burnout and what I wanted to share with others, there’s a ton of practical advice that you can Google; it will talk about exercise, it will talk about diet, it will talk about shifting your work schedule and maybe even changing jobs. Those are all valid things to do; however, they’re just putting Band-Aids on symptoms. They’re not actually getting to the root cause.”

Elaborating, he said the biggest problem he had with burnout — and the problem that most people have — is the isolation and the feeling that he had to deal with it alone.

“When I pulled back all he covers, when I rewound the story, I realized that the thing that got me out of burnout was to stop isolating myself and create intimate connections in all areas of my life so I always had a place to go when my stress was built up,” he told BusinessWest, adding that this is a difficult assignment for many men.

How do they get over that hurdle?

“I think the answer to that is to look at our shame, which is not a word that guys want to talk about, but it’s there,” said Young, who related his own experiences to drive home that point. “If the reason I got into burnout was because I kept comparing myself to the men around me, to my peers, to the people who were a few steps ahead of me on the path, and feeling that I don’t measure up, then I have to double down; I have to outwork everyone. I definitely can’t ask for help; I can’t reveal any of that to anyone because then I’m going to really hear it from the guys. And that’s not OK.

“So I suffered in silence and tried to tough it out,” he went on. “The problem is, the hole kept getting deeper, and so, when I wrote the book, I knew I wanted to write about burnout, because it was a horrible experience for me, but I also knew I wanted to write about intimacy and intimate connections in every area of my life, which was actually the real antidote that got to the root cause. But I didn’t realize that I was going to see shame come up so prominently; as I interviewed dozens of men about it, I got the same story — the fear of being called out by other guys because we’re not man enough to deal with our business and we got burned out is a huge obstacle.”

 

Bottom Line

Clearing this obstacle is difficult, Young said in conclusion, but it is the first big step toward defeating burnout and moving on from it.

It’s the first step toward picking oneself up off the floor — figuratively, or, as we saw in Young’s own case, and probably many others, quite literally.

 

George O’Brien can be reached at [email protected]

SR Commercial Realty Is Finding Its Place in the Market

By
Willow State Building
Commercial Real Estate

Making Some Noise

Jeremy Casey, managing partner of SR Commercial Realty

Jeremy Casey, managing partner of SR Commercial Realty

Jeremy Casey had decided it was time to move on from the banking business.

He had already been with several area institutions, working in commercial lending and, to a large degree, commercial real estate, and was seeing the industry change — and consolidate — around him.

He was with Chicopee Savings Bank and doing well there, but could see the handwriting on the wall in the form of a seemingly inevitable merger with Westfield Bank, one of his former employers.

“I didn’t want to be one of those people who jumped from bank to bank and to higher positions in those banks and then to another bank,” he said, adding that he had decided it was time to think about a change.

It would come first with some entrepreneurial undertakings, including an ill-fated venture called Name Net Worth, an app that would essentially measure what he called the ‘ripple effect’ from networking encounters. When that initiative failed, he took a big leap into commercial real estate and a managing-partner position with Springfield-based SR Commercial Realty, a company soon to mark five years in business.

It’s a growing, evolving venture that is making some noise in the market — figuratively but also quite literally. Indeed, Casey said that one trait that separates this company from other players in the market is its progressive and aggressive — some would say loud — marketing of properties.

“We’re noisy — you can’t get away from us,” he explained with a laugh, noting that the company has used large signs (the largest allowed by local ordinances), drone footage, videos, and other methods for bringing attention to properties in the portfolio, which is dominated mostly by industrial properties, retail, and land for development.

Many companies are using some of these tactics now, but Casey says SR Commercial Realty was breaking ground with such methods several years ago.

“Some brokers were actually mocking us at the time, but now, it’s the standard five years later,” he said, adding quickly that ‘noisy’ marketing is only one of three pillars that shape the company’s operating style. The others are communication and responsiveness, traits that have helped SR consistently build on its portfolio and add properties ranging from Thornes Market in Northampton to the former Channing Beete complex in Deerfield, sold to Treehouse Brewery; from the former Berkshire Industries property in Westfield to several properties in downtown Springfield and also downtown Hartford.

“Commercial real estate has been the same forever, but it will change, whether people like it or not. Technology will pay a huge role, and that gives us a good competitive advantage, because we’ve already been using it.”

Each of these properties is in some way unique, and they have been handled differently, he said, adding that this is one of the linchpins of the company’s operating philosophy.

“In commercial real estate, no building is the same, and no buyer is the same,” adding that this reality separates this sector from residential real estate to a large degree. “Residential is so black and white; with commercial, there’s very black and white and so much gray.”

Moving forward, Casey said the goal is to obviously continue to build the portfolio and expand the company’s reach — it has already added properties in the Boston area and on Cape Cod — while also being on the cutting edge of changes coming to the industry, not just in how properties are marketed, but to how business is done in general.

These are changes he believes are needed — and also inevitable.

“The industry needs to be disrupted,” he said. “Commercial real estate has been the same forever, but it will change, whether people like it or not. Technology will pay a huge role, and that gives us a good competitive advantage, because we’ve already been using it.”

For this issue and its focus on commercial real estate, BusinessWest talked at length with Casey, one of its 40 Under Forty honorees from his days in banking, about SR Commercial Realty and where he hopes to take this company in the years to come.

 

Building Momentum

The wall behind the desk in Casey’s office features a treatment depicting several of the landmark buildings in downtown Springfield — Tower Square, Monarch Place, the Colonial Block, the Campanielle, among others.

It’s one of the countless touches in the Willow State Building (so-called because it sits at the corner of Willow and State streets in downtown Springfield), which he co-owns with a few partners, that he did himself.

In fact, the partners did just about everything themselves, he went on, pointing to everything from the red, black, gray, and a little bit of green paint used on the walls in the SR Commercial Realty offices to the bathroom fixtures in all the suites; from the exterior façade (more black) to build-out for several new tenants, which range from Suit Up Springfield to HomeCare Hands to a new restaurant in the early stages of construction.

“We’ve put thousands of hours into this property — we’ve been working on it for three years straight,” he said, adding that he and his partners have succeeded in creating what he called a “community.”

Willow State Building

Renovating and securing new tenants for the Willow State Building has been one of Jeremy Casey’s passions. Growing SR Commercial Realty and expanding its portfolio and geographic reach has been another.

The Willow State Building has been a passion for Casey since he and his partners acquired it just prior to the start of the pandemic — or, more accurately, one of his passions, with SR Commercial Realty being the other.

Both have been works in progress and studies in entrepreneurship, resourcefulness, and well, different ways of doing things.

In many respects, anyway.

Indeed, Casey said the fundamentals of the commercial real-estate business, mostly the same as they are in banking, have not changed and won’t change.

Both sectors are grounded in relationship building and responding to the needs of customers, he explained, noting that he has taken these principles from his time in banking to this next chapter in his career.

This chapter started just after the demise of Name Net Worth, a very difficult time in Casey’s life, one when he looked inward and decided to move forward rather than look back or dwell on the present.

“I could have sat there and pouted and gone ‘poor me’ … it was a tough time, I had a newborn baby, we just bought a house, and we were gutting the house and redoing it, and I had no job, nothing,” he recalled, adding that he called his eventual business partner, who already had a small commercial real-estate business, and proposed a new venture.

“I linked up with him, and we took the same methodologies we used in the startup world and took them to commercial real estate,” he explained. “Specifically, that means listening to customers, not just coming up with what we think, but listening to where the pain points are in the industry.

“And, candidly, there were a lot of them,” he went on, adding that the company was founded with that focus on marketing, communication, and responsiveness.

With marketing, as he said earlier, the goal was to push the envelope and look for new, different, and more effective ways to do things.

“The way things were marketed before, you put a sign up, and you put the property on LoopNet or maybe that book you see in the convenience store,” he explained. “No one was using social media, no one was using video, no one was using professional photography.”

Partnering with Seven Roads Media (so named because it was based in East Longmeadow, where seven roads come together at that famous rotary), which is now a tenant in the Willow State Building, SR Commercial Realty worked to take commercial real-estate marketing to the proverbial next level with video and other strategies, including large signs.

“The largest sign we did was nine by 18 feet, and we did two of them — they were so large, they needed wind slits,” said Casey, referring to a property in Middletown, Conn. “We’ve painted buildings to bring attention to them … we try to get as much exposure as possible.”

This is what Casey meant by ‘noisy,’ which he believes is just one of the company’s attributes as it works to expand its portfolio and grow market share.

Others include the staff itself. It is young, with the average age of the brokers being in the 30s, and diverse, with brokers coming from different backgrounds in business, he said, adding that these various attributes are beneficial in this market and many others where demographics are changing.

“Not one person in this company had commercial real-estate brokerage experience prior to joining,” he said, adding that the different work experiences have brought fresh perspectives on how to do things.

Also beneficial, he said, is the high level of involvement, and communication, with clients, that has been the company’s MO.

“A broker is, by definition, someone who introduces two parties to consumate a relationship of a deal,” Casey explained. “But we’re very involved … the staff that we have here act like paralegals, so our deals don’t fall apart. We like to say that we provide a hands-on, white-glove experience with transaction coordination and transaction management; we work with clients so they truly get the experience they want.”

 

Signs of the Times

Like the lobbies of most all commercial-real estate firms, the one at SR boasts photos of properties it handles or has handled.

Casey pointed to framed aerial images of Thornes Marketplace, a section of downtown Hartford, and the Channing Beete property in Deerfield, before it was transformed by Treehouse.

The goal moving forward, obviously, is to build on this collection and fill more walls with pictures.

This can be done by focusing on the proverbial big picture, he went on, referring, again, to the company’s focus on listening to customers, hearing what they’re saying, and responding accordingly.

By continuing to do that, this growing company can make even more noise in this highly competitive industry.

 

George O’Brien can be reached at [email protected]

Tax-loss Harvesting and Crypto

By Contributor
Features

This Strategy May Help You Navigate ‘Wash-sale’ Rule

By Sean Wandrei

 

It is that time of year when taxpayers are looking for ways to reduce their tax liability. It has been a volatile year for the stock and cryptocurrency markets. There may have been some capital gains generated in the beginning of the year when stocks were sold and the markets were doing better than they are now. Now, as the year has progressed, there may be stocks that you are holding that have declined in value. These stocks are ripe for tax-loss harvesting.

Tax-loss harvesting is a strategy used to recognize capital losses by selling capital assets that have declined in value to offset capital gain already recognized. If you have capital gains from stocks that you have sold during the year, you can offset those gains by selling other stocks that have declined in value to generate a capital loss. The capital losses would offset the capital gains that would reduce the amount of taxes that would be paid on those gains by eliminating them. If you end up with capital losses in excess of capital gains during the year, you can deduct up to $3,000 of the net capital loss in the current year. Any capital loss in excess of $3,000 would be carried forward and used to offset future capital gains.

Sean Wandrei

Sean Wandrei

“Tax-loss harvesting is a strategy used to recognize capital losses by selling capital assets that have declined in value to offset capital gain already recognized.”

There could be an issue with this strategy, as the ‘wash-sale rule’ could limit its effectiveness. The wash-sale rule states that, if you are deducting a loss, you cannot buy a ‘substantially identical’ stock or security for 30 days up to the date of sale and 30 days after. If you do, the capital loss may be disallowed. This could be an issue when you sell a stock that you want to stay in, just to generate a capital loss.

‘Substantially identical’ generally means you cannot sell Tesla stock and reacquire Tesla right before or after the sale. If you are selling your Tesla stock just to generate losses and still want to be in Tesla stock, you need to wait 30 days to reacquire it.

What if you are investing in cryptocurrencies? The two most popular cryptocurrencies are Bitcoin and Ethereum, but there are hundreds more that you could invest in. Cryptocurrency prices can be volatile and widely fluctuate throughout the year. Bitcoin has dropped from a price of $66,000 per coin to $16,000 over the past year. Ethereum has seen similar declines over the year.

There may have been many investors who got into the cryptocurrency game hoping to ride the wave of optimism and are now looking at their portfolio, which shows built-in capital losses on their cryptocurrency investments. In 2014, the IRS declared cryptocurrencies to be a capital asset. As of this writing, cryptocurrencies are not stocks or securities and do not fall under the wash-sale rules. There has been some discussion in Washington, D.C. to expand the wash-sale rules to include cryptocurrencies, but as of now, that has not materialized.

If you believe in the underlying blockchain technology and the cryptocurrency associated with it, you may be a long-term investor and want to hold onto the investment believing that there will be future gains. There is an opportunity to reduce your tax liability by selling cryptocurrency that has decreased in value for a capital loss and then buy the same cryptocurrency immediately after the sale. This would not violate the wash-sale rules since cryptocurrency is not viewed as a stock or security. The capital losses generated by this strategy could be used to offset any capital gains that you may have.

Are there some risks with tax-loss harvesting? Of course there are. There is usually a transaction fee associated with buying and selling cryptocurrencies that some exchanges (such as Coinbase, Kraken, or others) charge. This fee could be as high as 4%. Does the cost of the transaction outweigh the tax savings that could be generated from this strategy? As mentioned previously, there are talks of pulling cryptocurrencies into the wash-sale rule, so this should be monitored if you are thinking about this strategy.

Lastly, while tax-loss harvesting defers your capital gains, it does not eliminate them forever. This is a strategy based on the time value of money where tax savings now can be used to invest in more capital assets that will generate income in the future.

As with any tax article, the famous last words: as always, you should see your tax professional advisor if you have any tax questions or concerns.

 

Sean Wandrei is a senior lecturer in Taxation at the Isenberg School of Management at UMass Amherst; [email protected]

What Employers and Schools Should Know About the CROWN Act

By Contributor
Law

A Heads Up

By Briana Dawkins

 

Effective Oct. 24, Massachusetts joined 17 other states in passing the Creating a Respectful and Open World for Natural Hair (CROWN) Act, which bans discrimination against employees, students, and other individuals on the basis of natural or protective hairstyles historically associated with race.

The act applies to Massachusetts employers as well as all Massachusetts school districts, school committees, public schools, non-sectarian schools, and places of public accommodation. At the federal level, CROWN Act legislation has passed the U.S. House of Representatives and is pending in the U.S. Senate.

The Massachusetts version of the CROWN Act amends the definition of ‘race’ contained in the state’s Fair Employment Practices Act, as well as other Massachusetts laws specifically applicable to schools, to include protection against such discrimination on the basis of traits historically associated with race, including, but not limited to, hair texture, hair type, hair length, and ‘protective styles,’ which include braids, locks, twists, Bantu knots, hair coverings, and other formations.

Briana Dawkins

Briana Dawkins

“To ensure compliance with the CROWN Act, employers and schools may want to consider avoiding language in their grooming or personal appearance policies that categorizes specific hairstyles or textures as ‘unkempt’ or, in the alternative, ‘socially acceptable.’ Such choice of words can create a presumption that some hairstyles or textures are less socially acceptable than others.”

The enactment of the CROWN Act in Massachusetts was founded in an incident that occurred at a Greater Boston charter school. In 2017, two Black 15-year-old sisters, Deanna and Mya Cook, were reprimanded at the Boston-area high school in Massachusetts for wearing braided hair extensions. At the time, the school had a hair and makeup grooming policy that prohibited hair extensions. The Cook sisters faced several hours of detention, were threatened with suspension, and, among other reprimands, were even barred from participating on the school’s sports teams after they refused to take down their protective hairstyles.

Thanks to the tenacity and grace of the Cook sisters, the issue reached a very public audience. The Massachusetts attorney general wrote a letter to the school informing the school that the grooming policy was discriminatory and in violation of state and federal law. The Cook sisters’ case also caught the attention of the American Civil Liberties Union of Massachusetts, as well as the NAACP. Then California state Sen. Holly Mitchell drafted the first CROWN Act legislation in 2019, empowering California to take the lead as the first state to enact this legislation.

Massachusetts Gov. Charlie Baker signed the CROWN Act into Massachusetts law earlier this year. While Massachusetts has not yet been confronted with a suit under the CROWN Act, a violation under the expanded protection may result in liability under the state’s anti-discrimination statutes (which provides for the award of lost wages, emotional distress, punitive damages, and attorney’s fees).

Going forward, the Massachusetts Commission Against Discrimination (MCAD) has been tasked with promulgating rules or issuing guidelines regarding the discrimination protections expanded by the CROWN Act. In addition, the Massachusetts Department of Elementary and Secondary Education (DESE) has been authorized to provide written guidance interpreting the Act. Nonetheless, employers and schools should not wait for the MCAD or DESE guidelines and should amend their equal employment opportunity policies, anti-discrimination policies, and any grooming or other appearance-related policies to ensure that the language appropriately reflects the added protections to race as a protected class.

To ensure compliance with the CROWN Act, employers and schools may want to consider avoiding language in their grooming or personal appearance policies that categorizes specific hairstyles or textures as ‘unkempt’ or, in the alternative, ‘socially acceptable.’ Such choice of words can create a presumption that some hairstyles or textures are less socially acceptable than others.

Instead, employers can enforce grooming requirements specific to a certain position or function of the job that apply to all employees regardless of race, hairstyle, or texture, such as a requirement to keep hair away from the face or pulled back. This same approach can apply to school grooming and uniform policies as well. Employers and schools should make efforts to ensure that the policies are enforced equally to all employees, students, and other individuals rather than selectively.

Employers and schools should also inform their managers, teachers, and other employees regarding policy changes and provide training on how to address potential policy violations. These preventive measures will help to ensure a welcoming environment for all hairstyles, textures, and the like that are historically associated with race in the work and school settings as required by the CROWN Act.

 

Briana Dawkins is an associate in Bulkley Richardson’s Employment and Litigation practices.

Quiet Firings

By Contributor
Law

This Developing Trend Is Moving in the Wrong Direction

By John Gannon, Esq.

 

Quiet quitting is a term many employers are familiar with — it involves a situation where an employee disengages from work and does only the bare minimum in order to get fired and collect unemployment.

Now, employers are firing back with quiet firings.

Quiet firing involves intentionally creating a difficult work environment and/or cutting pay or hours in a way that encourages people to leave voluntarily. In theory, the employee will quickly realize they need to get out and try to find alternate work elsewhere.

On the surface, ‘quietly firing’ a problematic or difficult employee might sound like a good idea. For starters, the manager or supervisor gets to avoid an uncomfortable conversation that will certainly lead to bad feelings and possibly boil over into a confrontation. Second, if the employee who is getting quietly fired is not meeting performance expectations, managers and supervisors avoid needing to coach them and give feedback.

John Gannon

John Gannon

“Managers and supervisors may prefer this method so they do not feel guilty about the end of the employment relationship. And quiet firing can be more easily accomplished in a remote or hybrid environment, as disengaging is easier when you do not have to see someone in the office.”

They can also avoid discussions about the consequences of continued poor performance. Managers and supervisors may prefer this method so they do not feel guilty about the end of the employment relationship. And quiet firing can be more easily accomplished in a remote or hybrid environment, as disengaging is easier when you do not have to see someone in the office.

Finally, some employers may see this as an opportunity to avoid unemployment compensation claims or claims of unlawful termination because employees who resign normally have trouble succeeding with such claims.

Despite what may appear to be advantages for employers who quietly fire employees, employers should resist the urge to utilize use this strategy for a number of reasons. First, creating a hostile work environment could lead to a lawsuit. It is unlawful for an employer to create a hostile work environment that is tied to an employee’s protected characteristics, such as gender or race. Creating a hostile work environment or reducing an employee’s hours could also be considered an adverse employment action, which can lead to claims of discrimination or retaliation.

Employees who are successful with these claims can sometimes recover big damage awards. For example, back in 2018, a jury awarded $28 million in damages to a nurse who succeeded in a retaliation claim against her employer. Part of her claim was that she was being verbally abused by her supervisor. The jury agreed, and the employer had to pay — a lot — for this supervisor’s mistake.

Employees who feel as though they are being squeezed out might resort to avenues other than the courtroom to air their grievances. It is not hard to leave damaging feedback on Glassdoor, a website where current and former employees anonymously review companies. Employees can (and probably will) share their negative feedback with co-workers, which could serve as the catalyst for good employees to start looking for a new job. It’s no secret that hiring and retaining qualified employees seems to be getting harder and harder each day.

Moreover, quiet firing is often the byproduct of a poor manager or supervisor who is unwilling to do one of the more difficult parts of their job — performance management.

So what should employers do? First, leaders should insist on managers and supervisors using traditional methods to address problematic behavior, such as coaching and progressive discipline. Should those efforts prove unsuccessful, managers and supervisors need to be ready to have the difficult conversation necessary to terminate the employee.

HR leaders should also be stepping in to prevent quiet firing from becoming a thing. This should involve regular check-ins with managers to talk about difficult employees and proactively asking how they are trying to solve the problem. Hopefully, the answer is performance management. If it’s not, maybe the manager is the one who needs some coaching and/or discipline. u

 

John Gannon is a partner with the Springfield-based law firm Skoler, Abbott & Presser, specializing in employment law and regularly counseling employers on compliance with state and federal laws, including family and medical leave laws, the Americans with Disabilities Act, the Fair Labor Standards Act, and the Occupational Health and Safety Act; (413) 737-4753; [email protected]

Giving Guide 2022

By
Giving Guide Special Coverage

Regional Philanthropic Opportunities

Click on the image to open the PDF Flipbook

When importance of giving to those in need — and to the organizations who help others secure their basic needs — doesn’t take a holiday, and there’s no season of the year when their work is not critical, especially at a time when the pandemic is barely in the rear-view mirror and an uncertain economy continues to pose challenges to so many individuals and nonprofits.

Still, there’s no doubt that people think about giving more around the year-end holidays, and that’s why BusinessWest and the Healthcare News publishes its annual Giving Guide around this time: to shine a spotlight on specific community needs and show you not only how to support them, but exactly what your money and time can accomplish.

On the pages that follow are profiles of 15 area nonprofit organizations, just a sampling of the region’s thousands of nonprofits. These profiles are intended to educate readers about what these groups are doing to improve quality of life for the people living and working in the 413, but also to inspire them to provide the critical support (which comes in many different forms) that these organizations and so many others so desperately need.

These profiles within the Giving Guide list not only giving opportunities — everything from online donations to corporate sponsorships — but also volunteer opportunities. And it is through volunteering, as much as with a cash donation, that individuals can help a nonprofit carry out its important mission within our community. And check out the giving opportunities being promoted by countless nonprofits on Giving Tuesday, Nov. 29.

BusinessWest and HCN launched the Giving Guide to 2011 to harness this region’s incredibly strong track record of philanthropy and support of the organizations dedicated to helping those in need. The publication is designed to inform, but also to encourage individuals and organizations to find new and imaginative ways to give back. We are confident it will succeed with both of those assignments.

George O’Brien, Editor and Associate Publisher
John Gormally, Publisher
Kate Campiti, Sales Manager and Associate Publisher

 

View the 2022 Giving Guide PDF Flipbook HERE

 

A Better Life Homecare, LLC

Children’s Advocacy Center
of Hampshire County Inc.

Holyoke Chicopee Springfield
Head Start Inc.

Home City Development, Inc. 24

Link to Libraries

Martin Luther King Jr. Family Services

Mental Health Association Inc.

Pathlight

Tom Cosenzi Driving For The Cure
Charity Golf Tournament

United Way of Pioneer Valley

Downtown Springfield YMCA/
Scantic Valley YMCA

YWCA of Western Massachusetts

Baystate Health Foundation

Glenmeadow

JGS LIFECARE

 

Presented by:

 

 

Changes to Employment

By Contributor
Law Special Coverage

A 2022 Year-end Wrap Up and a Look Ahead to 2023

By Justin Goldberg, Esq.

Within the broad realm of employment law, this past year was marked by increased protections to employees through changes to independent-contractor classifications, raising of minimum and service wages, increasing benefits for family and medical leave, safeguarding hairstyles of protected classes, and other changes.

Looking ahead to 2023, it certainly appears to be headed down a similar path, with employee safeguards continuing to solidify. Employee security and compensation guarantees to be a highly litigated issue in the coming year.

Here is a look back — and ahead:

 

U.S. Department of Labor Publishes Independent Contractor Proposed Rule

On Oct. 11, the Biden administration, via the U.S. Department of Labor (DOL), proposed to modify Wage and Hour Division regulations so as to revise its analysis for determining employee or independent-contractor classification under the Fair Labor Standards Act.

This was done with the aim to be more consistent with judicial precedent and the act’s text and purpose. This will mark the administration’s second attempt at undoing the Trump-era standard, which it claims denies basic worker protections such as minimum wage and overtime pay.

Justin Goldberg

Justin Goldberg

“Operating costs will undoubtedly increase if they are required to reclassify their independent contractors as employees, due to the tax liabilities and minimum-wage, labor, safety, and other legal requirements that apply to employees.”

Secretary of Labor Marty Walsh was quoted as saying, “while independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors, particularly among our nation’s most vulnerable workers,” and that “misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages.”

Industries such as gig companies, construction, trucking, home care, janitorial services, delivery, personal services, hospitality, and restaurants that use independent contractors as staff should pay close attention to this anticipated development. Their operating costs will undoubtedly increase if they are required to reclassify their independent contractors as employees, due to the tax liabilities and minimum-wage, labor, safety, and other legal requirements that apply to employees.

The Trump-era rule outlined a multi-factor test (five total) to determine if the worker is an independent contractor or an employee; however, it gave far greater weight to two core factors: the nature and degree of the worker’s control over the work, and the worker’s opportunity for profit or loss based on personal initiative or investment.

The Biden administration’s proposal would consider those two factors, but include four others for a total of six: investments by the worker and the employer, the degree of permanence of the working relationship, the extent to which the work performed is an integral part of the employer’s business, and the degree of skill and initiative exhibited by the worker.

These six factors guide the analysis of whether the “economic realities of the working relationship” show a worker to be either dependent on the employer for work or in business for themselves based on a “totality of the circumstances.”

Under the proposed modification, no one factor or set of factors is presumed to carry more weight, and the DOL may also consider additional factors beyond those six, if they indicate the worker may be in business for themselves.

 

Increases in the Minimum Wage and Service Rate

Massachusetts employees making minimum wage are going to see a pay increase of 75 cents per hour, effective Jan. 1, 2023, bringing their pay to $15 per hour. This does not include agricultural workers, whose pay remains at $8 per hour. Workers under the service rate (those who provide services to customers and make more than $20 a month in tips) will see an increase of 60 cents per hour, beginning in 2023, as the service rate is now $6.75.

 

Changes to Massachusetts Paid Family and Medical Leave

In 2022, the maximum weekly benefit for Massachusetts Paid Family and Medical Leave is $1,084.31; however, in 2023, it will increase to $1,129.82. Also beginning in 2023, the contribution rate for employers with 25 or more covered individuals will decrease from 0.68% of eligible wages down to 0.63% of eligible wages. Employers should ensure that their wage deductions and contributions are adjusted accordingly. This is the second straight year the contribution rate has decreased.

Employees are still not permitted to use their accrued sick or vacation leave to ‘top off’ their weekly benefit. While there may have been rumors that Massachusetts was planning to change this in 2023, no such change appears forthcoming.

 

The CROWN Act

In 2022, Massachusetts enacted the Creating a Respectful and Open World for Natural Hair (CROWN) Act, making it the 18th state to pass similar legislation (see related story on page XX). This law is aimed at quashing discrimination on the basis of “traits historically associated with race, including, but not limited to, hair texture, hair type, hair length, and protective hairstyles.”

The law further defines “protective hairstyles” to include “braids, locks, twists, Bantu knots, hair coverings, and other formations.” Employers who violate the CROWN Act will be liable for compensatory damages, as well as possible punitive damages and attorneys’ fees.

The CROWN ACT was inspired by two teenage twin sisters’ alleged violation of a school hair and makeup policy that prohibited extensions.

 

Bottom Line

Given the changes that have taken place — and the changes to come — it is a good idea to have your business schedule a check-in with an employment-law firm as we approach 2023.

 

Justin Goldberg 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.

New Cybersecurity Project at Union Station Could Have Broad Impact

By
future site of the SOC and cyber range
Special Coverage Technology

Defense Mechanism

future site of the SOC and cyber range

STCC’s Mary Kaselouskas tours the future site of the SOC and cyber range with U.S. Rep. Richard Neal and other stakeholders.

 

By now, Mary Kaselouskas says, the vast majority of people understand the importance of cybersecurity.

“Everyone is fully aware of the threats out there, how people become victims of cybercrime and the impact on an organization that’s involved in a breach,” said Kaselouskas, vice president ands chief information officer at Springfield Technical Community College (STCC).

What they might not know, she added, is the critical shortage in the cybersecurity workforce, with an estimated 20,000 more professionals needed in Massachusetts alone, not to mention about 1 million in the U.S. and 3 million around the world.

That’s why she, and other officials at STCC, around the state, and across the region’s IT sector are celebrating a new initiative to promote the development of a diverse cybersecurity workforce locally, with the goal of improving cyber resiliency in the Commonwealth.

U.S. Rep. Richard Neal, state and academic officials, and IT industry leaders were on hand at Union Station in Springfield on Oct. 31 to announce $1,462,995 in state funding will allow STCC to establish a security operation center, or SOC, at Union Station that will provide threat monitoring and other cybersecurity services for Commonwealth municipalities and small business and nonprofit customers. The funds will also establish a cyber range, a new testing lab to mirror real-world IT environments to provide hands-on training opportunities to local companies, universities, and other cyber-focused organizations.

“We’re seeking to establish Massachusetts as the national leader when it comes to cybersecurity infrastructure. We’re bringing together leading academic partners and businesses to support cyber resiliency and workforce development in the Commonwealth.”

“I have been involved with this for quite a while, and a steering committee was established many years ago, looking at how to address a shortage of cybersecurity workers in Springfield and the Pioneer Valley,” Kaselouskas said, noting that partners on the project include the Springfield Redevelopment Authority, a new entity called CyberTrust Massachusetts, the MassCyberCenter, and local colleges and universities, among others.

As the grant recipient, STCC will staff and operate the Union Station facility in partnership with a consortia of area higher-education institutions, including Bay Path University, UMass Amherst, Western New England University, Elms College, and Springfield College, each of which bring a range of undergraduate certificate and degree programs in IT/security, cybersecurity, computer science and programming, digital forensics, and criminal justice.

The SOC, Kaselouskas explained, is “a physical location at Union Station that monitors, detects, and responds to cyber threats 24/7/365, protecting organizations’ assets. A lot of companies don’t have the resources for a fully operational SOC, or can even afford to have managed SOC operations.”

The center will have full-time employees but also offer training opportunities for students at area colleges by way of internships and work-study programs, she added. “This will operate as a business once the grant money is gone. We haven’t discussed fees, but we will have an employee working in business outreach to get customers on board that will utilize the facility.”

Meanwhile, the cyber range will allow both students and employees of companies and municipalities to experience simulated threats in a virtual environment, with hands-on training in live-fire attacks, blue-team/red-team events (in which one team attacks a system and the other defends it), and other training models, potentially leading to certification in security fields for students.

“That’s the training part of this,” Kaselouskas told BusinessWest, noting that area colleges and universities will incorporate the cyber-range software into courses. “If a student is enrolled at STCC in the cybersecurity program, they may take a few courses that use the cyber range — so it’s not a whole course, but a component of a course.”

STCC President John Cook

STCC President John Cook says the cyber project at Union Station will be transformative for the region and higher education.

The grant to STCC will cover renovation and construction of the Union Station space, which is estimated to open in the first half of 2024. The facility will include a classroom and a conference room for up to 60 people, able to accommodate those cyber-related events and to serve as a space for collaboration, in addition to separate classroom space, workstations for use by academic partners, offices for facility staff, a tech-support area, a kitchen, and storage.

As part of a site-based service arrangement, STCC will provide administrative oversight for the facility, including all human-resources functions for employees and hiring of key personnel, plus the establishment of electronic-systems management. The facility will also be overseen by a steering committee of public, private, and academic stakeholders, which will include the Springfield Redevelopment Authority, the owner of Union Station.

 

Dollars and Data

The Union Station project is just one component of a more than $3.7 million outlay to bolster cybersecurity resilience — and the related workforce — across the state. The announcements were made during the sixth Massachusetts Cybersecurity Forum at Bridgewater State University, which brought together 100 executives from companies, municipalities, and leading universities.

The awards included a $1,086,476 grant to support the launch of CyberTrust Massachusetts, a new nonprofit that will work with business and academia statewide to grow the cybersecurity talent pipeline by increasing career pathways for underrepresented groups, and promote security operations to address the day-to-day needs of resource-constrained municipalities, nonprofits, and small businesses.

The Commonwealth also announced the $1,462,995 award to STCC and $1,200,000 to Bridgewater State University to establish SOCs and cyber ranges in the two cities.

“We’re seeking to establish Massachusetts as the national leader when it comes to cybersecurity infrastructure,” Gov. Charlie Baker said during the announcement event, adding that “we’re bringing together leading academic partners and businesses to support cyber resiliency and workforce development in the Commonwealth.”

CyberTrust Massachusetts was launched to address four key imperatives for the state:

• Undersecurity, as organizations across Massachusetts, especially municipalities, small businesses, and nonprofits, are challenged to find affordable resources to defend themselves against growing cybersecurity threats and maintain cyber resiliency;

• Underemployment, highlighted by the aforementioned 20,000 cybersecurity job openings in Massachusetts, and the fact that communities of color and women are underrepresented in the cybersecurity workforce and are frequently overlooked for employment due to a lack of opportunity to obtain hands-on cybersecurity experience;

• Employee training, as businesses across the Commonwealth typically do not have a location to send their employees to receive cybersecurity training at an affordable rate; and

• Business and economic development, specifically a need to convene regional hubs for business development where cybersecurity entrepreneurs can establish and grow startups or where specific industry segments such as defense contractors can receive specialized support.

“This first-of-its-kind collaboration among business, higher ed, and government through CyberTrust Massachusetts could transform our cyber education and training, growing our workforce and creating new opportunities statewide while helping to make our communities more cyber resilient,” said Pete Sherlock, CEO of CyberTrust Massachusetts.

“No organization is successful 100% of the time when it comes to defending against cyberattacks. With the new monitoring capabilities, organizations can increase awareness, detect intrusions faster, and respond more quickly to an incident.”

In February 2022, the MassCyberCenter released a request for responses seeking interest from entities interested in establishing an SOC and/or cyber range to support the dual missions around cybersecurity workforce development and for protection against cyber threats. Seven expressions of interest were received, including the proposals from STCC and Bridgewater State.

“We see these as the initial investments in a cyber-secure future, important investments to build out our plan for a cyber-resilient Massachusetts,” said Stephanie Helm, director of the MassCyberCenter. “The key word is ‘resilient,’ as no organization is successful 100% of the time when it comes to defending against cyberattacks. With the new monitoring capabilities, organizations can increase awareness, detect intrusions faster, and respond more quickly to an incident.”

STCC President John Cook agreed, noting that “this cybersecurity award will be transformative for our region and higher education. As one of the most pervasive liabilities for our businesses and communities, these funds ensure a regional center that will be a nexus for the cyber workforce with hands-on learning, in addition to establishing a resource for protecting our community partners against cybersecurity threats.”

 

Statewide Strategy

The grants are part of the Commonwealth’s ongoing investment in cybersecurity resiliency and workforce development. The award to CyberTrust Massachusetts is from the Massachusetts Cybersecurity Innovation Fund and will support the organization’s operating expenditures for a period of six months and will fund a contract for cyber-range services for one year.

“Leaders in the state’s cybersecurity ecosystem have been contributing to the establishment of CyberTrust Massachusetts because they see the imperative to help protect the undersecured and are passionate about training the next generation of our cyber workforce, including those from currently underrepresented populations,” said Jay Ash, chair of the CyberTrust board of directors and president and CEO of the Massachusetts Competitive Partnership.

Meanwhile, the grants to STCC and Bridgewater State were generated by “An Act Relative to Immediate COVID-19 Recovery Needs,” which provided $15 million to the MassCyberCenter to incentivize the creation of regional SOC services and expand the cyber workforce in the state, including a focus on “underserved and underrepresented populations.”

“Springfield Union Station is a world-class transportation hub that will now be home to a world-class cybersecurity training and security-management center,” Neal said. “The Baker-Polito administration has worked hand in hand with the city of Springfield, the STCC team, and my office to make this a reality.”

Kaselouskas believes the new SOC and cyber range can help Greater Springfield become a key region for the cybersecurity sector in the Northeast.

“Union Station obviously has a long history in Springfield, and the location is really centralized, and we’re hoping it will be a hub,” she said, adding that the facility could also bring in guest speakers for training — IT experts who hail not only from the area colleges and universities, but from large employers such as Baystate Health, MassMutual, and even the military.

“STCC is well-known and right around the corner, with 200 students in these programs right now,” she told BusinessWest. “We’re hopeful this will also boost interest in coming not only to STCC to explore these programs, but also to the other colleges we work with, which have strong programs as well.”

At STCC, she pointed out, many students hail from Western Mass. and then stay here, so any effort on the college’s part to train the future cybersecurity workforce will strengthen the sector locally.

“We’re hoping to make an impact in this area, to give back to local communities by educating students and keeping them close,” Kaselouskas added. “This program is going to be pretty big because not a lot of states do this. We expect to see this grow around the state and for Massachusetts to become a leader in cyber education.”

 

Joseph Bednar can be reached at [email protected]

From EVs to Inventory, Auto Dealers Roll with the Changes

By
Autos Special Coverage

Leading the Charge

The dates seem … well, close.

Volkswagen wants all its cars to be electric by 2035. Nissan has set a 2030 goal. Volvo? 2025.

“So there’s a strong commitment from different manufacturers to become all electric. And you’re starting to see new models introducing more hybrid electric models across the entire lineup,” said Carla Cosenzi, president of TommyCar Auto Group.

That may seem like a reasonable goal locally, she added, but manufacturers aren’t just building cars for Western Mass.

“We’re in a much different market than a lot of others. In our market, there’s a ton of electric infrastructure and high demand for electric vehicles, but I’m not sure what that looks like in other parts of the state or the country. And I think the infrastructure has to be there to make it realistic.”

Gary Rome, who owns a Hyundai dealership in Holyoke and a Kia dealership in Enfield, said he was the first dealer in the U.S. to deliver an electric vehicle from Hyundai, and his electric vehicle (EV) sales are up 38% over last year.

“There’s are state and federal rebates on these vehicles, which make them more attractive,” he explained. “You’ll pay more for an electric vehicle, but if you drive a lot, an electric vehicle pays for itself in short order. The metric is $1.25 per gallon to pay for electricity, versus $4 a gallon. We’ve had people trade in their gas-guzzling pickup truck, and they’re saving hundreds a month in fuel alone.”

About 15% of Rome’s sales are electric vehicles, which he estimated is about three times the national average, with the hottest model being the Hyundai Ioniq 5, which MotorTrend named the 2023 SUV of the year, among other accolades.

“We’re seeing a trend of manufacturers focusing more on electric vehicles than ‘ICE cars’ — internally combusted engines,” he told BusinessWest, though there’s still some hesitancy among motorists to try one. To that end, Gary Rome Hyundai is one of five dealers in the country offering a subsciption program, allowing customers to rent an electric vehicle for 28 days, including insurance, to see if it fits their lifestyle.

Rob Pion

Rob Pion says the industry’s inventory issues eased in 2022, but it was sometimes challenging to have the right inventory in stock.

“The adoption of electric vehicles is all about educating the client, and a lot of folks have range anxiety; they’re afraid of running out of charge,” he explained. “But you wouldn’t leave the house with an empty tank of gas without thinking, ‘where am I going to get my gas?’

“The range in our vehicles is quite extensive, about 308 miles. That’s plenty of driving time if you have a charger, and most utilities have a $500 or $1,000 rebate that will allow you to offset the cost of putting a charger in your garage. You plug it in, and the car is charged in four hours.”

In addition, EV drivers become familiar with other charging stations; Rome offers six at the Holyoke store, including two ‘superchargers’ that can fill a battery to 80% within 18 minutes.

Bob Pion Buick GMC is getting into the EV game as well, said General Manager Rob Pion, noting that GMC will be introducing an electric Hummer pickup and Hummer SUV by the second quarter of 2023, and an electric Sierra Denali pickup by 2024, while Buick is planning to go all-electric in the near future.

“That’s definitely coming,” he noted. “Electric is hitting our store. We haven’t had any experience with it up to now. In the next three years, we’re going to have a plethora of electric vehicles on the lot here to offer customers.”

Some customers are excited about the electric options, but others have reservations — for instance, what if the electric grid is strained, as it has been in some areas of the country, where people were told not to turn their AC on during certain hours?

“So now I’ve got an electric car charging at the house, taking as much power as that,” Pion said. “I’m looking at electric as a great option, but I share those concerns — is the infrastructure there?

Gary Rome

Gary Rome says customers will become more comfortable with electric cars as they deal with their “range anxiety.”

“But I do think it’s an exciting time, and there’s a future in it, even if it might not be right for everybody,” he added. “It’s definitely a conversation that goes on every day with customers.”

 

Rolling In, Rolling Out

Electric vehicles aren’t the only trend shaking the auto-sales industry lately. Through the latter half of the pandemic, inventory was a major problem as buyers swarmed onto lots much faster than manufacturers ramped up production after 2020’s dramatic slowdown. That problem is easing, to an extent.

“It’s a strange time in the auto industry,” Cosenzi said. “It’s so hard to predict right now, with so many different moving pieces constantly. We have been really fortunate; we have managed to keep a steady supply of inventory, so actually, it’s been a very good year for us. All our brands are doing really well.”

TommyCar’s used inventory has been healthy as well, she said, particularly the certified used inventory that comes with a warranty of three years or 100,000 miles. Because the company relies on market pricing at a time when used vehicles are in demand, both trade-in figures and sales prices are up.

“Business has been better than the past five years,” Cosenzi said, adding that low-but-rising interest rates have been a driver. “A lot of people who wouldn’t have been shopping for a new vehicle have upgraded to new vehicles.”

Pion noted that 2022 wasn’t quite as profitable as 2021, but with a month of business left in the year, sales have been healthy.

The inventory situation has definitely improved, he said, but getting the ideal mix of inventory can be an issue. “There’s more inventory than there was, but the challenge is getting the right inventory — you might have a half-dozen Buicks on the ground that are front-wheel drive, not the all-wheel drive customers might be looking for,” he explained.

“A customer can go online and find the exact car they want, and they can get their payment and interest rates right online. It really helps the customer to gauge what they’re looking for when they come into the dealership. It also helps us, as the dealer, make the best use of the customer’s time. The process becomes very efficient.”

“And this is another year end where the heavy-duty pickups are very, very difficult to come by. A lot of companies are looking for that end-of-year write-off for heavy-duty trucks, but they’re up against it this year. Even though there’s inventory, the inventory out there is a little bit of a hodgepodge, and not always what customers would want. I don’t know that I see that getting better anytime soon.”

Which is challenging at a time when customers often walk into dealerships knowing exactly what they want, with little flexibility, thanks to the information available on the internet.

“We’re very far from the time when a customer walked in the door looking for a $35,000 vehicle, asking, ‘what do you have?’ Instead, they come in and say they’re looking at a 2020 Buick Envision, pre-owned, stock number X, asking to pay Y.”

Cosenzi agreed. “Look how much technology has changed the automobile business — a customer can go online and find the exact car they want, and they can get their payment and interest rates right online. It really helps the customer to gauge what they’re looking for when they come into the dealership. It also helps us, as the dealer, make the best use of the customer’s time. The process becomes very efficient.”

Meanwhile, the used-car market has come down a bit from the low-inventory, high-price times of late 2020 into 2021, Pion said. Not that the values are that much lower.

“If you bought a heavy-duty pickup truck within the last couple of years, you’re able to return that truck today and get almost what you paid for it — if you can find a new one, because there’s such a shortage there,” he noted, adding that used-car inventory has also been affected by rental companies that sold off some of their fleets during the pandemic’s peak and then bought up huge numbers of cars afterward.

Carla Cosenzi

While it’s not easy to predict what the coming year will bring, Carla Cosenzi says, her dealerships posted strong sales in 2022.

“There’s still a lack of used inventory out there, and what is out there is worth more than had the market stayed status quo from three years ago,” he went on. “I would love to say there’s light at the end of the tunnel. We have inventory, don’t I think we are there yet. For the average person, it might not matter. But some businesses are really hurting, not getting the vehicles they need to actually do their jobs.”

Rome said the inventory issue is definitely easing. “We’ve done a very good job the past couple of years pre-selling our inventory, so they sell extremely quickly, and because we sell so many, we get more, and we’ve been selling them all over the country,” he said, citing states as far south as Florida and as far west as Colorado. “Folks have purchased their new cars from us; they either come here to pick them up, or we’ll deliver to them.”

 

Final Plug

All this considered, Rome said the outlook for 2023 is bright. “I think the manufacturers have had a vacation from having to spend money on incentives and rebates, and I think they’ll realize, as inventory accumulates and cars are more available, they need to add an appropriate amount of incentives to all the cars and offset any clients’ concerns about huge interest rates; they may offer a lower rate and rebate.”

His sales figures back up his general optimism, as Gary Rome Hyundai ranks fifth in the region from Maine to Virginia, comprising 169 dealers. “We’re definitely selling cars like crazy.”

Looking ahead, and judging by the plans of manufacturers, more and more of those cars are going to be electric.

“It’s a huge commitment. They’re not looking back — it’s full steam ahead by Hyundai,” Rome said. “They just broke ground outside Savannah, Georgia on $5.4 billion electric vehicle battery plant; it’s going to be employing 8,100 workers.”

He doesn’t worry too much about the public’s adoption of EVs, especially in Western Mass., where there’s a strong level of environmental consciousness and a good number of people who have already driven hybrid and all-electric vehicles.

“There’s already a market for the car out there, from people who are into reducing carbon footprint,” he said. “We’ve had people come from the Leverett area and the Berkshires, who already have solar in their house, a battery-operated lawnmower, a battery-operated bicycle — a lot of people are already in the fold.”

Cosenzi isn’t sure if Americans in general are ready to go fully electric, but she wouldn’t be surprised if more people start to move that way, whether driven by emissions concerns, long-term cost savings, or other reasons.

“If somebody is not ready to make full jump right away, they have the option of a plug-in hybrid,” she said. “I have a plug-in right now — it’s not 100% electric, but I love it.”

 

Joseph Bednar can be reached at [email protected]

Pittsfield Is Transforming Its Economy

By
Pittsfield Mayor Linda Tyer
Community Spotlight

Community Spotlight

Pittsfield Mayor Linda Tyer

Pittsfield Mayor Linda Tyer says the city has made great strides when it comes to growing and diversifying an economy once dominated by GE.

It’s called ‘Site 9.’

This is a 16-acre parcel within the William Stanley Business Park, created at the site of the massive General Electric transformer manufacturing complex in Pittsfield, which closed nearly 30 years ago.

The site has been available for development for more than two decades now, said Linda Tyer, Pittsfield’s mayor for the past seven years, but there have been no takers because, in a word, this site is ‘intimidating.’

“Every time we host a business and we identify this as a potential location, they look at it, and they’re instantly intimidated because of the condition that’s in,” she explained. “It’s a big scar in the heart of our community that’s a remnant of our past. People have looked at it, and they’ve just said, ‘I can’t envision my business here.’”

Gov. Charlie Baker was in the city a few weeks ago to hand-deliver a $3 million check that might change this equation. The money will go toward infrastructure work, putting new roads in, greening the space, and other measures that will make this parcel more shovel-ready and, ultimately, a part of this city’s future, not merely its past.

“If we don’t get any interest for the next 10 years, at least it’s not this giant wound in the heart of our city,” Tyer went on, adding she is expecting plenty of interest in the years to come.

Site 9 is where we begin our look at Pittsfield, the latest installment of BusinessWest’s Community Spotlight series. This is a city that has been trying to move beyond its past, and the dominating influence of GE on just about every facet of everyday life, since the company left. And in many ways, it has been making great progress.

Its economy is far more diverse and far less dependent on one company or one sector, said Tyer, adding that this was quite necessary given the devastation and outmigration that occurred when GE pulled up stakes. Today, the city boasts a few large employers — such as Berkshire Health Systems and General Dynamics — but the economy is dominated by small businesses across several sectors including manufacturing, IT, healthcare, and especially tourism, hospitality, and the arts.

Those latter categories now provide a good number of jobs and have contributed to a rebirth of North Street, the main thoroughfare in the city, after it was decimated by GE’s departure, said Jonathan Butler, president and CEO of 1Berkshire, a county-wide organization focused on economic development and promotion of the region.

“The Pittsfield of 2022 is a completely different city than it was 20 years ago,” he said, adding that a strong focus on the arts and hospitality has changed the narrative in this community.

The pandemic obviously took a heavy toll on these businesses and the overall vibrancy of Pittsfield, said Butler, but it has managed to come almost all the way back this year, with the arts venues rebounding and hospitality venues back to something approaching normal.

James Galli, general manager of the Hotel on North, so named because it is on North Street, agreed. He said the hotel is on pace to have its best year since opening in 2015, and the mix of guests that it attracts provides some good insight into Pittsfield and what now drives its economy.

“The Pittsfield of 2022 is a completely different city than it was 20 years ago.”

“We get a lot of travelers coming in from Boston and New York to go to Barrington Stage and the Colonial Theatre,” he said, citing two of the main cultural draws in the city. “We get a lot of millennials coming in for hiking and the beauty of the area, some business travelers coming in for General Dynamics and some of the area businesses in town — and it’s a good mix. We are the center of the Berkshires, so we get people staying with us for two, three, four days at a time; they’ll go down to South County or up to North County or into the Pioneer Valley, but they’ll stay with us because we’re very central and they can do a lot more if they stay with us.”

In some ways, the pandemic has actually benefited the Berkshires and especially its largest city, said those we spoke with, noting that the remote-work phenomenon has made it possible for those working for businesses in New York, Boston, and other expensive metropolitan areas to do so from virtually anywhere.

And with its high quality of life and (comparatively) low real-estate prices and overall cost of living, Pittsfield has become an attractive alternative, said Tyer, noting that the city is in the midst of a housing boom that has slowed only slightly even in the wake of rising interest rates and persistently high prices.

 

The Next Chapter

It’s called the ‘Library Suite.’

This is the largest suite among the 45 guest rooms at Hotel on North, and easily the most talked about. That’s because, as that name suggests, it’s decorated with books — some 5,000 of them by Galli’s count.

“There’s a moveable ladder, and … it looks like a library,” he told BusinessWest. “There’s everything from full sets of encyclopedias to children’s books, the Harry Potter collection; we’ve found them at tag sales over the years and made it into a unique, different type of room. It speaks for itself.”

Jonathan Butler

Jonathan Butler

“Pittsfield has benefited from planting its flag in the cultural and arts scene in the Berkshires; that’s a huge part of our growing economy and has been for the past 10 to 15 years.”

The library suite, which boasts about 850 square feet and goes for as much as $700 a night, depending on the season, has been occupied most every night over the past several months, said Galli, noting, again, that visitors of all kinds are coming back to Pittsfield, and to this hotel, which was created out of two historic buildings on North Street.

Business started to pick back up in June 2021 as the state essentially reopened, he said, and momentum continued to build into this year, which has yielded better numbers than the years just prior to the pandemic.

He attributes this to many factors, including some pent-up demand for travel and vacations as well as the unique nature of the hotel, which has several different kinds of rooms, each of them is unique.

“A lot of people are looking for a hotel that’s a little different — a boutique or independent hotel,” he said. “There’s a clientele that goes for the branded properties, but the people who stay with us are looking for that unique experience when they walk in the door.”

But Galli also credits Pittsfield’s resurgence in recent years, especially its cultural attractions and other quality-of-life attributes, making the city a destination for people of all ages.

Hotel on North is part of a new look and feel on North Street, said Butler, noting that the well-documented vibrancy of the GE chapter in the city’s history was followed by the dark and dismal time that he grew up in: “North Street was not a place to be in the ’90s.” The vibrancy has returned in the form of cultural attractions and new restaurants and bars.

“Pittsfield has benefited from planting its flag in the cultural and arts scene in the Berkshires; that’s a huge part of our growing economy and has been for the past 10 to 15 years,” he told BusinessWest. “You have investments like Berkshire Theatre Group with their theater in downtown Pittsfield, and Barrington Stage Company, which has become a major anchor, as well as a number of smaller cultural offerings and pop-ups and galleries in downtown Pittsfield.

“And this has been further bolstered by the emergence, over the past eight to 10 years, of a vibrant food scene — an exciting, trending type of food environment,” he went on, citing establishments, new and old, like Methuselah Bar and Lounge, Berkshire Palate (located in Hotel on North), Pancho’s Mexican Resaurant, Trattoria Rustica, Flat Burger Society, Patrick’s Pub, and Otto’s Kitchen & Comfort.

“There’s some finer dining options — downtown Pittsfield’s a great place to go host some clients if you’re a business or to have a good date night as a couple or a fancy night out with friends,” Butler explained. “But there’s also a lot of great casual offerings in downtown Pittsfield; there’s some great pubs, some great cocktail lounges. There’s also a lot of immigrant-owned businesses in downtown Pittsfield, which adds to the diversity and provides a more rich experience.”

 

At Home with the Idea

This diversification and strengthening of the city’s economy has become the main economic-development strategy for Tyer since she became mayor.

“I have some family history with General Electric — my great-grandparents were part of the GE economy,” she told BusinessWest. “And when I became mayor, I felt strongly that the economy cannot be dependent on one sector; my priority has been that we have diversity in the economy, and that includes everything from the travel, tourism, and hospitality sector to the cultural economy, and it also includes manufacturing and science and technology.”

To attract businesses across all these sectors, and to help existing companies expand, the city has created what Tyer calls its ‘red-carpet team,’ a name that hints strongly at its mission.

Pittsfield at a glance

Year Incorporated: 1761
Population: 43,927
Area: 42.5 square miles
County: Berkshire
Residential Tax Rate: $18.56
Commercial Tax Rate: $39.90
Median Household Income: $35,655
Median family Income: $46,228
Type of Government: Mayor, City Council
Largest Employers: Berkshire Health Systems; General Dynamics; Petricca Industries Inc.; SABIC Innovative Plastics; Berkshire Bank
* Latest information available

“We want to make sure that businesses that are here now, that are homegrown and might want to expand into a new market, expand their facilities, or grow their employment base, have the same level of support from the city of Pittsfield as we would give to a new business that wanted to start up in the city,” she explained. “We’ve been successful at balancing that approach.”

The red-carpet team consists of a number of city department leaders who work collectively to help counsel and guide a new or existing business toward fulfillment of whatever goal they might have. This integrated process enables a CEO to have one meeting, rather than several, said Tyer, adding that having everyone seated around one table enables the city to be more responsive and move more quickly.

And, overall, there have been a number of interested parties, she said, noting that the Berkshires, and Pittsfield, has a lot to offer employers, including quality of life and lower cost of living, as well as a population that is stabilizing, rather than declining, as it had been for decades.

“We have great neighborhoods, we’re still affordable, and we have beautiful outdoor recreation,” she said. “The combination of all of that is the magic that Pittsfield has going into the future.”

Much of this magic became even more forceful during the pandemic, said those we spoke with, noting that, while most hospitality-related businesses had to shut down for an extended period, the Pittsfield area’s outdoor recreation and quality of life came more into focus for many looking to escape what COVID brought with it.

The hiking trails became even more popular, and the Berkshires — and its largest city — became an attractive alternative for those looking to escape larger cities, their congestion, and their higher costs.

“Our housing market has been on fire,” said Tyer, noting that many professionals from Boston, New York, and other major cities have moved to the Berkshires. “And I think it speaks to this phenomenon that people can be employed by a Boston firm but work from home here in Pittsfield and have all the amenities and quality of life of a small city in a beautiful region of the state.”

The housing market shows no signs of slowing, said those we spoke with, despite rising prices and, more recently, soaring interest rates as a result of Fed action to stem the tide of inflation.

“There’s still this competition, these bidding wars, for homes,” Tyer said. “And the seller is still selling; the market hasn’t really slowed down.”

This phenomenon has led to an increase in the value of homes across the city, she went on, adding that this brings benefits on many levels — everything from the city’s bond rating to its tax rate. It also creates some problems for first-time homebuyers and those looking to trade up, and rising prices within the rental market as well, creating shortages of what would be considered affordable housing.

But in the larger scheme of things, these would be considered some of those proverbial good problems to have, said the mayor, especially in a city that had seen so much hardship over the previous 30 years.

 

The General Idea

The sports teams at Pittsfield High School are still nicknamed the Generals, said Tyer, adding that this just one of the myriad ways to measure the influence that GE had in this city for the better part of a century.

But while the city can still pay homage to its past in this and other ways, it has managed to move past it in almost all others.

Yes, Site 9 and many other parcels that were part of the massive complex remain undeveloped, but overall, Pittsfield and its economy have moved on. It took some time, as it does when a city loses an employer of such magnitude, but the city’s economy, like North Street itself, has been reinvented, and vibrancy has returned.

“We’ve overcome that group depression that we all suffered, and I think there’s a lot of excitement around the art and culture economy; the small-business, science, and technology economy; and some long-standing businesses that have grown since my time in public service,” she told BusinessWest. “I think we’ve overcome the ‘we’re a dying community because we lost GE’ sentiment, and I think we’re a growing, emerging community.”

 

George O’Brien can be reached at [email protected]

Opioid Addiction Remains a Persistent Problem in Massachusetts

By
Cristina Rivera and Dr. Katie Krauskopf
Health Care

Crisis State

Cristina Rivera and Dr. Katie Krauskopf

Cristina Rivera and Dr. Katie Krauskopf say recovery is often a winding process marked by frustrating times and bumps in the road.

 

Christine Palmieri has read the numbers regarding a spike in overdose deaths in Massachusetts over the past couple years. But to her, they’re not just numbers.

“My role is to oversee our community-based programs that work with people who have experienced mental-health issues, substance-use disorders, and homelessness. As part of that, we run residential recovery programs for people who have a dual diagnosis, and we also run a number of different housing programs for people in recovery,” said Palmieri, vice president of Recovery and Housing at the Mental Health Assoc. (MHA) in Springfield. “And over the past year, maybe two years, we as a program have experienced more deaths by overdose than at any other time in my career.

“That’s troubling. There’s definitely times when it feels very hopeless and very frustrating, but I think our programs have done an excellent job of showing up every day, meeting people where they’re at,” she went on. “One of our programs is called GRIT, and that’s how I would describe what we need to keep coming back every day, and what the people we’re supporting in recovery need to keep coming back every day.”

After several years of decline, the rate of opioid-related overdose deaths in Massachusetts increased by 8.8% in 2021 compared to 2020, according to a June report by the Massachusetts Department of Public Health. Drug-overdose deaths in Massachusetts continue to trend lower than nationwide figures, but the statistics are still startling, with the rise in death rates reflecting the effects of the COVID-19 pandemic and an increasingly poisoned drug supply, primarily with the powerful synthetic opioid fentanyl.

“Massachusetts and the rest of the country have definitely seen a rise in overdose rates during the pandemic,” said Dr. Katie Krauskopf, medical director of Substance Use Disorder Services at MiraVista Behavioral Health Center in Holyoke. “It looks like Massachusetts’ trend is better than nationally, and there is some indication that 2022 might be better than 2021. But we clearly saw people struggling during the pandemic, and a lot of that probably had to do with difficulty accessing care and the isolation that came along with it.”

In her experience, the pandemic impacted two groups differently: many of those with substance-use disorder who were already in treatment programs did better during the pandemic because the social restrictions helped them avoid some of the triggers they might normally have encountered more frequently. Meanwhile, regulatory changes around access to treatment allowed patients to take home medications they could not previously.

“People are reluctant to hire somebody with an history of opioid addiction; people are reluctant to house somebody with a history of opioid addiction, in lots of ways that aren’t based in reality, but based in fear, based in discrimination, based in stigma.”

“So patients in treatment have done quite well,” she went on. “The real issue was the patients who were not already engaged in treatment and were unable to do so.”

The DPH found clear evidence that the COVID-19 pandemic had a profound impact on mental health and led to increased substance use and poorer mental health across the Commonwealth, especially among BIPOC communities and LGBTQ+ individuals.

“We continue to be relentless in our commitment to increase access to harm-reduction services, low-threshold housing, and treatment,” Health and Human Services Secretary Marylou Sudders said. “By working to destigmatize addiction and meeting people where they’re at, including with an expanded array of harm-reduction tools, we can reverse this negative trend.”

Locally, organizations committed to improving behavioral health — and removing the stigma and barriers that keep people from accessing care — are doing just that.

 

Support System

Palmieri said it’s important to remember that recovery doesn’t happen in a vacuum, but is tied to social determinants like housing and economic stability.

“Whether it’s opioids or anything else, our role is to help people understand what’s getting in the way of their recovery and help fill the void that used to be filled with drugs or alcohol with things they can find meaning in,” she told BusinessWest. “We’re not only interested in sobriety and helping people stop using, but also, what are you going to do instead? Our primary goal in our residential programs and our housing programs is to make sure people have a safe, affordable place to go to live after treatment, someplace that isn’t necessarily the same neighborhood where they started using in the first place, someplace they can afford and sustain — but also to find employment, something that gives their life meaning beyond using, something they can wrap recovery around.”

René Piñero, vice president of Behavioral Health & Clinical Operations at MHA, said the pandemic curtailed some services in the community to counter addiction.

“But I definitely agree that it’s not all about accessible treatment; it’s about having housing and other supports. The state has provided funding for these programs and services, but it’s also about where people go to live after treatment, what supports they have, and opportunities to find employment. Even if we have treatment that is accessible for them, if we can’t find them a home address, it’s going to be more difficult.”

For those lacking access to care, the pandemic-driven isolation people felt didn’t help, Palmieri added — and in some cases increased a sense of stigma around seeking help.

René Piñero and Christine Palmieri

René Piñero and Christine Palmieri say addiction recovery often goes beyond treatment and entails social supports like stable housing.

“People are reluctant to seek support and services because asking for help means admitting there’s a substance-use issue that’s going on, and the stigma that surrounds opioid addiction is sometimes insurmountable,” she said, adding that stigma isn’t a one-way street. “We’re trying to get people connected, but we face barriers all the time. People are reluctant to hire somebody with an history of opioid addiction; people are reluctant to house somebody with a history of opioid addiction, in lots of ways that aren’t based in reality, but based in fear, based in discrimination, based in stigma.”

Krauskopf said the Greater Holyoke area has plenty of resources in place, from increased naloxone distribution to facilities like MiraVista, which offers a full continuum of substance-use programming, from acute inpatient detox to a clinical stabilization service to outpatient programs like an intensive, four-week program that teaches skills ranging from emotional regulation to mindfulness to dealing with triggers. “It’s not one-size-fits-all here at all. We have all these programs, and patients can really fit themselves into what they need at any given time and move through the services depending on where they are.”

The state has been aggressive with programming as well, expanding substance-use-disorder treatment and overdose-prevention initiatives since the start of the pandemic and investing $120 million in prevention programs from 2016 to 2022, as well as distributing well over 150,000 naloxone kits since March 2020 to opioid-treatment programs, community health centers, hospital emergency departments, and houses of correction.

 

Try, Try Again

Cristina Rivera, director of Outpatient Services and Substance Use at MiraVista, said everyone’s addiction-recovery journey is different.

“We know that recovery is ongoing, and there might be bumps in the road. In that sense, we help people wherever they’re at. If you start using substances again, it’s not like we’re not going to accept you into our program and try to get you back on track.”

Piñero said it’s helpful to recognize that mental-health and substance-use challenges require the same attention as any chronic, physical medical issue.

“Recovery has its ups and downs just like other medical issues. Often, with diabetes, cancer, and other medical conditions that aren’t stigmatized, people are more willing to recognize that.”

Krauskopf agreed, citing studies suggesting that rates of relapse and loss of control in addiction recovery are similar to those in people managing diabetes, asthma, and high blood pressure.

“The notion that recovery is a straight line is not realistic; it’s really up and down. Part of the disease is that patients will relapse, and we’ll help them get their footing back,” she told BusinessWest. “People have begun to pivot to understand this condition as a long-term chronic condition that requires people’s full attention at different levels of intensity, and we try to provide that here.

“Recovery is about medication for some, but lifestyle modification, too,” she added. “When you think about diabetes, many people do well with changes in their diet and exercise, and many people do that and need something else at well. It’s all the same goal.”

While the need for more resources is high, she said, especially when it comes to residential programs, the hope is that those struggling with addiction will see past the persistent stigma and seek help from the many resources that are currently available, and that those overdose numbers will start to fall again.

After all, they’re much more than just numbers.

 

Joseph Bednar can be reached at [email protected]

Event Venues and Caterers See Solid Demand, but Also Challenges

By
Peter Rosskothen
Shop Local

Serving Up a New Reality

Peter Rosskothen

Peter Rosskothen says banquet facilities have had to become more selective about which events they take on.

For an events and catering industry devastated by the pandemic in 2020 and still hampered in 2021, this past year was certainly reason to celebrate.

“It’s been an incredibly strong year post-COVID,” said Seth Mias, owner of Seth Mias Catering in Leeds. “We had quite a few people making up for postponements, and a really robust season overall.”

The problem, said Mias and others we spoke with, is that it can be difficult to meet that demand due to a workforce crunch that has hit this sector hard.

“The challenge is staffing, obviously — getting people to come back to work — and supply-chain issues,” he noted. “Honestly, we were able to work through all that and had a really good season. To me, it seemed like clients were gracious and understanding about some of the challenges we’re facing as opposed to other years, like when certain products were unavailable.”

Peter Rosskothen has faced some of those realities as well, but said the Holyoke businesses he owns — including the Log Cabin, Delaney House, and Log Rolling Catering — have weathered them well.

“It’s been an above-average year — actually, a very good year,” he told BusinessWest. “Business has been very strong. Attendance to events is a little lower than it used to be, but the quantity of events, and the quality of events, has been better.

“The world is different,” he added. “We are much more focused on smart events for us. So we’re not giving stuff away, we’re charging more, and we’re being selective in the process to make sure we have staff and the ability to do something right.”

That selectiveness forced by workforce realities has changed the entire event industry quite a bit, Rosskothen added. “We just don’t say yes to everything anymore.”

Peg Boxold, owner of Elegant Affairs Catering in Springfield, has had to become more selective as well. “Coming out of the pandemic, we’ve got business, no problem, but we don’t have the staff. My staff have other jobs, just like the rest of the world. So we do what we can.”

During one past holiday season, she recalled, the company had a couple of days with 12 different events at different venues. “But now I have to think twice about doing two parties in one day, depending on whether I have staff. Also, it’s tough sometimes getting product for the kitchen, so if I don’t get the menu soon enough, I’ve got to hunt for the product. It’s not an easy world out there, and the profit margin is so much tighter now; we’ve had to go up on prices. It’s a new world.”

Like others we spoke with, Boxold said turning down business is simply a matter of not taking on a job she may not be equipped, because of staffing, to do well; she noted that she’s built up a reputation over more than three decades for quality events, and won’t risk that on understaffed bookings.

“I’ve worked too hard for too many years to jeopardize everything now for something I know I’m not going to be able to handle.”

“I had one lady call in September; she wanted a lunch on a Wednesday for 200 people, a plated meal. I said, ‘I can do a buffet setup the day before, but I don’t have the staff for plated.’ She wanted to be served, so I said, ‘sorry, I can’t.’ I’m not going to take something I don’t feel comfortable with in terms of quality of product and quality of service. I’ve worked too hard for too many years to jeopardize everything now for something I know I’m not going to be able to handle.

Even the events that do go on are more challenging, Boxold added. “Last week, I had a Thursday fashion-show luncheon in Wilbraham for 90 people. I begged, borrowed, and stole people to make it happen.”

 

Picking and Choosing

Rosskothen said he expects the upcoming holiday season to be a bit slower than in past, pre-pandemic years.

“I haven’t read any statistics, but my instinct tells me corporate is still slow to do group parties. So we see them, but we don’t see them to the level we used to. Every Friday and Saturday is booked, but if you go back a few years, we used to be booked five days a week. So it’s a little different than in previous years, and again, the selective process of picking and choosing the business that fits our company also gets rid of a few.”

The Log Cabin won’t be hosting group holiday parties this year, he explained, noting that the Delaney House, with its smaller rooms, is being used for smaller parties, while the Log Cabin focuses on big events.

And events are ‘big’ in different ways, Rosskothen noted. Wedding attendance is down, from an average around 170 years ago to 120 today, partly due to today’s marrying couples being slightly older. But the average per-head charge is up.

“This generation knows what they want; they’re very specific about their wishes, and it pushes the check average up,” he explained, noting that, once they book the event and set their guest list, they’re willing to pay more for certain things. “Prime rib used to be included in all our prices. Now, if you want prime rib, its $8 a head more. But the people who want it select it.”

The biggest challenge dealing with customers is that the price of everything is up these days.

“When somebody’s booked a long time in advance, which happens mostly on the wedding side of the industry, it’s very frustrating. There’s a budget established, and you kind of have a vision, but if you planned a wedding two years ago, you’re paying 20% more than you were planning. And that’s a big jump, especially if somebody’s on a budget. But there’s no choice; our costs are easily 20% higher versus pre-pandemic.”

For the most part, people have been understanding, Rosskothen added.

“I think most understand, though once in a while we get questions — ‘why this is $5 more a head?’ We go through the process and explain it, but I’d say 99% of the people kind of expect it.”

Mias agreed that this holiday season seems a bit slower than what he’s seen in the past. “I’m booking a solid base now, and just looking to do some fill-in booking at this point.”

Over the years, his business has morphed into a wedding-reception-focused enterprise, with those events gradually shifting from 10% to 15% of his bookings to around 85% today. “But we’re still doing corporate events, retirements, funerals, things like that.”

Many clients postponed events during the pandemic, he noted, which led to a scramble to fit them in with new business once COVID restrictions eased; only a few clients couldn’t make a new date work and had to go elsewhere.

 

Out and About

Rosskothen wonders how his industry will be affected by a trend he’s observed in the younger generation of not wanting to go out as much, and not valuing networking as much as young professionals used to. But he’s especially focused on economic trends.

“I think 2023 is going to be very interesting; I don’t know where it’s going to go. Are we really going into recession? I think people are going to contract and be careful. If the national climate changes, that’s going to affect us. So I’m a little worried about 2023, I really am.”

Still, he added, “it’s too early to tell. We might get out of this. There’s a lot of money in the economy, and a lot of companies have saved money, so it will be interesting to see how that plays out.”

Most people these days are not afraid of COVID when it comes to gatherings, he added. Boxold agreed, but noted that Elegant Affairs has COVID-friendly, individually packaged meal options as well. “For a lot of companies, it’s important for them to be able to stay in business and make sure everything is COVID-friendly, so we can do something for their employees but keep it within the parameters of COVID-friendliness.”

As she noted earlier, demand for events of all kinds is there. Meeting that demand with steady staff, however, is a persistent challenge.

“Hopefully it changes somewhere down the road,” Boxold said. “I’m assuming people have to go back to work at some point; they have to pay the bills. I don’t know whether they’re opting for other jobs or still sitting at home. I just can’t get a good read on everything. But I think it’s coming back, and that people will be coming back to work.”

Mias said 2022 was one of his strongest years — if not financially, then with the quality of events.

“Looking at the product we were able to put out with all the challenges, I thought it was a great year,” he added. “Hopefully the next few weeks continue on that path, and 2023 is looking just as good. We keep plugging along.”

 

Joseph Bednar can be reached at [email protected]

Dietz & Co. Transitions into New Leadership, ESOP Status

By
new leadership team at Dietz & Co.
Architecture

Blueprinting a Succession Plan

new leadership team at Dietz & Co.

From left, the new leadership team at Dietz & Co.: Kevin Riordan, Tina Gloster, Jason Newman, and Lee Morrissette.

As he talked about the transition in ownership, and leadership, taking place at Springfield-based Dietz & Co. Architects, Jason Newman used the phrase ‘ease-in, ease-out mentality’ to describe the process.

By that he meant that Kerry Dietz, founder of the firm and its principal, has been easing out of the many responsibilities involved with leading this company of nearly 30 employees and its many projects, while a team of four leaders — architects (and principals) Jason Newman, Lee Morrissette, and Kevin Riordan, and CFO Tina Gloster — have been easing into them.

That’s a simple yet efficient way of describing what’s been happening at the Dietz firm for roughly the past two years now as it transitions from a single owner to one with an employee stock-ownership plan, or ESOP, which is a form of employee benefit plan, similar in many ways to a profit-sharing plan.

“Kerry didn’t want to just hand us the keys and walk away, and we didn’t want her to do that either,” said Newman, who studied under her while earning his degree in architecture at UMass Amherst. “We’ve been in our new roles and taking on new responsibilities as principals in the firm, but we also have the comfort, and benefit, of Kerry being here on a limited basis to help guide us and mentor us and still bring all the positive energy she brings to the office, which will sorely be missed when she finally steps away.”

And with Dietz, who is now working just a day or two a week, set to fully retire at the end of this year, the transition process is now pretty much complete, said Newman, adding quickly that those involved are still easing in or out in many respects, but settling into their new roles.

For Dietz, that means the next stage of her life after a more than 40-year career in architecture that saw her make her mark not only in her field, but in the city of Springfield, where she moved her firm into the renovated Union Station; and in the community, where she has been active and philanthropic, and made sure her company and its employees were as well. For this strong combination of business success and involvement in the community, Dietz became a member of BusinessWest’s inaugural Women of Impact class in 2017.

For those succeeding her in leadership positions, it’s a time to write the next chapter for a company that has changed the landscape in the region, literally, designing buildings across many different sectors, from housing to education; office to gaming (it designed many of the spaces at MGM Springfield).

 

Transparent Approach

As they start writing those new chapters, those we spoke with said the ESOP model, one in which ownership of the firm is essentially shared by all employees, will work well at Dietz, and for a number of reasons.

“It’s a very interesting way to look at a business, especially in the design industry, where so much of what we do is teamwork,” said Newman, adding that the ESOP model dovetails nicely with the company’s operating structure in ways that were not really anticipated, or fully understood, when the concept was first proposed in late 2020.

“The ultimate authority at the company is the employee. If we’re not running the company in a way that is benefiting, or for the benefit of, the employees, then we’re not doing our jobs.”

Another factor is the high level of transparency that has defined Kerry Dietz’s management style and now characterizes the company, said Morrissette, an experienced architect who came to Dietz in 2019 after working at firms in the Boston area.

“One of the things that is most remarkable to me, coming from other firms in the Boston area and elsewhere before that, is the level of business transparency that the Dietz company has offered from the very first meeting I came into,” he explained. “The quarterly performance of the company and our business initiatives are clear to all the employees, and we have an open-book policy when it comes to everything but salaries, and that’s very uncommon in our industry.

“There has been a very consistent approach to sharing the business of architecture with the entire staff,” he went on. “It’s an education for everyone; it was for me when I first came here — I learned a lot about the business of architecture, and it’s made it a lot easier to do this transition, because we were included the whole time so we could take on more and more understanding and more and more responsibility.”

Riordan, who has been with Dietz for nearly 20 years, agreed.

“Kerry was one person running the firm, and that was a huge responsibility, with a lot of tasks and pieces attached to that,” he said. “It’s been really great to see everyone step into those roles in their own way and actually make a better process for running the firm, because there’s no one person trying to manage it all, plus run projects. There are four of us that are actually taking on the tasks and developing our own initiatives for how we make those tasks better.”

Still, there has been a sharp learning curve with this transition, said Newman, adding that it’s still ongoing.

“It’s definitely a completely different way to run a business,” he said. “Many of the aspects of being an ESOP are quite positive; we have a lot more opportunities for our employees to engage and reap the benefits of being a company owner, from the financial side as well as the cultural side. It’s not one person at the top who has full authority on decision making and the strategic direction of the company.”

Elaborating, he said that, in addition to the four in the four leadership positions, there is also a board of directors charged, in essence, with making sure the company is being run fairly and that all voices are heard.

“The ultimate authority at the company is the employee,” Newman went on. “If we’re not running the company in a way that is benefiting, or for the benefit of, the employees, then we’re not doing our jobs.”

With the transition in leadership, the three principals have taken on new responsibilities. Morrissette said he will be working on marketing, alongside Marketing Coordinator Ashley Solomon, while also directing the many housing projects the firm takes on, as well as municipal projects. Meanwhile, Newman said he will be working closely with Gloster and focusing on the business side of the company — “talking with our lawyers, corporate governance, contracts, insurance, all this stuff you love to do as an architect.”

Riordan, meanwhile, said he will be focused on “quality control” and developing systems to enable the firm to operate better and more efficiently, adding that all three principals will be involved in several aspects of management, including the recruitment and hiring of talent and building the book of business.

 

Branching Out

Moving forward, those we spoke with expect some changes at Dietz. One of them involves a broadening of the firm’s reach and getting closer to clients — quite literally, said Morrissette, adding that, with the firm doing consistently larger amounts of work in the Boston area, it will open an office in that city in the near future.

With the pandemic and the manner in which it allowed firms to connect with and work for clients remotely, he explained, the firm has taken on more projects outside the 413 and in areas like Boston, a trend that will continue into the future.

“We’re reaching out, geographically, more than we have in the past, and that’s very exciting,” he said. “This [remote] interaction is something we’re getting very comfortable and familiar with, and it has allowed us to reach much farther than we have before … that’s a big step forward, and it’s something we definitely gained from the pandemic.”

What won’t change, though, is the high level of commitment to the community, and giving back, that Kerry Dietz made part of its fabric of doing business.

“We have a long and strong history in affordable housing and in serving the organizations and the nonprofits that serve our communities,” Newman said. “And our passion to continue to fill that role has not wavered in the slightest. When Kerry was running the company herself, she had a very generous charitable-giving strategy, which we have looked at, revisited, and ramped up.

“We pride ourselves on being an architecture firm that supports the people who support us,” he went on. “And that won’t change.”

 

George O’Brien can be reached at [email protected]

The Holidays Bring New Emphasis on Buying into — and in — the 413

By
Michelle Wirth, left, with Lexi Walters Wright
Shop Local Special Coverage

Local Call

Michelle Wirth, left, with Lexi Walters Wright

Michelle Wirth, left, with Lexi Walters Wright, owner of High Five Books, one of the many area companies now showcased on the Feel Good Shop Local platform.

If anyone needed any proof concerning the importance of buying local to the regional economy, Michelle Wirth said, it came during the pandemic.

As consumers were forced to shop from their computers, except for what they could find at the supermarket or the big-box stores allowed to stay open, they resorted to Amazon and, for the most part, the national brands with which they were familiar.

As a result, a good number of smaller retailers were just not able to carry on and had to close their doors, putting some people out of work as they did so. Many of those storefronts are still vacant, impacting vibrancy on Main Street — and many other streets as well. Meanwhile, the jobs created by those stores, and the local spending generated by them — on everything from marketing to signs; electricity to office supplies — have been lost.

“During COVID, all of us were relying on online shopping more than ever before — we were relying on Instacart or some of the big names, Amazon, Nordstrom’s, L.L. Bean, Walmart … and when we could finally raise our heads and we were comfortable leaving our houses and driving around the neighborhood, I noticed that a lot of the stores that I had frequented prior to COVID were closed or closing,” said Wirth, who said this harsh reality was one of many factors that led her to launch Feel Good Shop Local, or FGSL, as it’s called, an online e-commerce platform that makes it easier for area residents and businesses to find local retailers, and much easier to do business with them.

In a word, the site — feelgoodshoplocal.com — ‘connects’ consumers with local retailers, said Wirth, adding that these connections benefit consumers, retailers, and communities alike.

“The vitality of our local communities is important. How do you ensure the vitality of our local communities? By supporting our local neighbors, the local stores, things that are happening in our backyard.”

There are now more than 20 businesses on the site, including Lenny Underwood’s Upscale Socks; High Five Books in Florence; Hallie’s Comet Fine Jewelry; Feather & Bloom, a florist, plant, and gift shop in Suffield, Conn.; Relax.Rinse.Repeat, a Westfield-based provider of organic health and beauty products; and many others. Upon visiting a participating shop, one can learn about it, see products, read reviews, and — this is the ultimate goal — place orders (more on all this later).

The Feel Good Shop Local site is one of the listings in our annual Buy Local Holiday Gift Guide, which includes a lengthy list of gift suggestions and places to find them starting on page XX. Wirth and others we spoke with said that the holidays are a good time — although any time is a good time — to remind people of the importance of shopping locally for all those reasons mentioned above.

In many ways, that message is resonating, said Hannah Rechtschaffen, director of Placemaking at the Mill District in North Amherst, a mixed-use community that now features more than 130 housing units and an eclectic array of small shops. She noted that shopping with local retailers has become a priority for some, and even a political statement for others.

show off some of the many items at the store.

From left, Shauna Wallace, interim manager of the Mill District General Store; Hannah Rechtschaffen, director of Placemaking for the Mill District; and Tim O’Brien, senior Communications director for WD Cowls Inc., show off some of the many items at the store.

“People really find that, for them, shopping locally is meaningful beyond just the fact that it’s nice to go in and touch something and connect with someone,” she said. “They also feel a point of pride shopping locally, giving a gift that has a story they heard right from the artist that made it.

“It becomes this sense that people are part of the recovery,” Rechtschaffen went on. “And I think that this is both real and important. At places like this, people are able to come out and shop and meet the store owner, meet the people working there, meet people making things … it’s just a nicer experience and gives everyone a sense of recovery and reclaiming things.”

Melissa Peavay, marketing manager for Grove Real Estate, owner of the Longmeadow Shops, agreed. She said shopping local has, indeed, become a priority for many consumers, especially after the lessons — and the casualties — of the pandemic.

But she noted that ‘shopping local’ is a broad term. It means buying from local vendors, obviously, she said, but it also means buying from a local outlet of a national chain, one that is providing jobs and contributing to the vibrancy of a downtown, a mall, a shopping plaza (like the Longmeadow Shops), or a community.

“Shopping with people who own their own business and live locally is wildly important,” she said. “But it’s very important to come out and shop local, even if it’s a national chain; it’s local people who work at these stores.”

 

The Going Rate

There are two bathrooms in the General Store at the Mill District. One, very popular with children, features a jungle motif. The other one? Well, it features one-way glass on the entire wall facing the parking lot. Those using it can see out, but no one can see in.

“People really find that, for them, shopping locally is meaningful beyond just the fact that it’s nice to go in and touch something and connect with someone. They also feel a point of pride shopping locally, giving a gift that has a story they heard right from the artist that made it. It becomes this sense that people are part of the recovery.”

“Still, it can a little disconcerting or unnerving at first, but overall, it’s different, and it’s fun,” said Shauna Wallace, interim manager of the store, adding that the bathroom, said to be one of just a handful in the country with such one-way glass (the others are in tourist spots), has become a talking point. There’s even a sign on the property directing visitors to it that says “you have to go!”

While people might use this bathroom while visiting the store, and others at the Mill District, it is not the reason they go there, said Rechtschaffen, adding that their primary motivation is to find a unique mix of stores and shop locally. And the General Store provides maybe the best example of this.

It features thousands of different items, almost all of them from local vendors and artists: hand-made quilts from Night Sky Quilts in Amherst, maple syrup from Boyden Bothers Maple Syrup in Conway, dog treats from Berkshire Dog in Lanesboro, reclaimed cutting boards from Firefly Hollow in Leverett, local sauces and grocery items from the Kitchen Garden Farm in Sunderland … the list goes on.

Melissa Peavay

Melissa Peavay says the pandemic helped motivate many consumers to shop local.

As noted earlier, the General Store is just one of many small, locally owned shops in the Mill District. Others include the Closet, which offers vintage and ‘new to you’ clothing; Graze Craze, which offers customizable charcuterie boards and catering; the Lift Salon; Provisions, the Mill District Local Art Gallery; and many others. Collectively, they provide opportunities for people to find what they’re looking for, locate some unique gifts, and shop local in one spot.

It was this same objective that motivated Wirth to create the Feel Good Shop Local platform, which was sparked by the reality that local artists and retailers are simply not as visible as they would like to be.

“One of the reasons some people don’t shop local is because it’s hard — it’s time-consuming, especially if you’re a newcomer to the area, to find these places,” she said. “If you Google items, they don’t show up; if you Google ‘black sweater near me,’ you get the big-box stores, not the local stores. It’s a connection issue.”

Feel Good Shop Local was created to forge connections and enable people to shop at those stores when it’s convenient for them.

“As a mother of four, I’m shopping early in the morning and late at night, and, unfortunately, our local stores are not open at those hours,” Wirth said, adding that many people are similarly constrained by time.

But convenience is only part of the equation. The platform, which was launched during the Big E and is focused largely on gift giving, enables people to shop by recipient (everything from family members to pets; from teachers to co-workers), price, occasion, interest (from travel to wellness to pets — again), and values, everything from women-owned to BIPOC to ‘sustainable practices.’

Wirth considers the platform a classic win-win, or win-win-win, because it benefits consumers, local shops and artists, and communities across the region.

“The vitality of our local communities is important,” she said. “How do you ensure the vitality of our local communities? By supporting our local neighbors, the local stores, things that are happening in our backyard.”

As noted, 25 stores now participate on the platform, with another 25 or 30 in the pipeline, and as the holidays approach, Wirth expects interest in the site to rise. Participating businesses pay a 15% commission on each sale to FGSH, a lower rate than most other sites of this type.

The Mill District General Store is one of those businesses. Click on that site, and one can find a few dozen different items with the store’s own label, including spicy pickles, cracked peppercorn dressing, jams, salsa, and ‘Moonshine Barbecue Sauce.’

Wirth said the platform is essentially just getting started and is still “learning and growing.” She expects that as word of mouth spreads about its ability to make connections and generate sales, it will draw more local shops and artisans.

“The intention behind this is to create community — a community of sellers and a community of like-minded shoppers that are supporting these sellers in a way that is convenient for everyone.”

Meanwhile, with the holidays just a few weeks away, anticipation is building for the season, which is increasingly clouded by questions about the economy, recession, inflation, and the impact of all that on spending.

Amid these concerns, there is, as noted earlier, growing encouragement of efforts to shop local and support businesses looking to make a full recovery from the pandemic.

Peavay said 2020 and 2021 were very difficult times for most all retailers, and some, as Wirth noted, were not able to successfully pivot and navigate their way through the whitewater.

The Longmeadow Shops saw a few casualties, she said, adding quickly that these vacancies have been filled, and the outdoor shopping plaza is now fully leased.

It features several locally owned stores, including Caren & Company, a clothing store; In Chic Shoenique, a merger of two stores, In Chic and Shoenique; Batch Ice Cream; Delaney’s Market; Max Burger; Posto; and the Shot Shop, a salon and spa.

In addition, it features a number of national chains, from J.Crew to Ann Taylor to the Gap, that provide jobs and contribute to the overall vibrancy of the complex and the town itself.

“If people don’t come out and stroll our sidewalks and shop in our stores, those national chains will leave,” Peavay said. “And then, people are disappointed; you always hear after someone closes, ‘I loved that store … why did it close?’ It’s super important to shop locally owned stores and to shop local, at the Longmeadow Shops or any shopping center, if you find that shopping center convenient.”

 

Bottom Line

There’s a ticker of sorts on the Feel Good Shop Local Site. It keeps a running track of the money spent at participating businesses through the site, under the header ‘Money Invested in the Local Economy.’

At present, that number is still in the five digits as the site continues to build visibility and a presence across the region. In time, it will go much higher, said Wirth, adding that, beyond this number, the site is creating those all-important connections that make it much easier for consumers to shop local first.

When they do, it is truly a win-win-win scenario.

 

George O’Brien can be reached at [email protected]