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Strengthening the Pipeline

 

 

The Healey-Driscoll administration recently issued $12.4 million through the Behavioral Health Trust Fund to 37 colleges and universities to financially support behavioral-health students completing unpaid internships and field placements.

These grants are for undergraduate and graduate-level students pursuing careers treating mental-health or substance-use disorders, and are part of the state’s efforts to grow a culturally and linguistically diverse behavioral-health workforce in Massachusetts.

“Massachusetts needs more qualified behavioral-health professionals, and our administration is committed to supporting students eager to do this work,” Gov. Maura Healey said. “By investing in students looking to treat those experiencing mental-health and substance-use challenges, we’re investing in the long-term health and wellness of communities across Massachusetts.”

Many behavioral-health degree and certificate programs require workplace-based internships, apprenticeships, or practicum credit hours as a condition for program completion. Required field placements play a central role in helping students prepare to serve as behavioral-health practitioners, but these experiences are often unpaid and often require students to sacrifice paid work. To support students pursing these careers, the funding is going to colleges with behavioral-health degrees that require field placements, with a focus on institutions in geographic areas that are priorities for advancing health equity.

“By lifting financial barriers for students pursuing behavioral-health degrees, we are encouraging a more diverse student body to enter this field, which helps us create a more diverse workforce to meet the needs of residents from various backgrounds.”

“By lifting financial barriers for students pursuing behavioral-health degrees, we are encouraging a more diverse student body to enter this field, which helps us create a more diverse workforce to meet the needs of residents from various backgrounds,” Education Secretary Patrick Tutwiler said. “We’re proud to launch a program that helps those looking to help others.”

Health and Human Services Secretary Kate Walsh added that “a good internship or field placement can teach a person much-needed skills and help them gain experiences that last long into that individual’s career. I am grateful this funding gives us the chance to support people financially, which not only helps build a more diverse workforce, but also ensures people reach the right behavioral-health services when and where they need it. Building a stronger workforce that does not have to worry about financial limitations means we can help every person and community throughout Massachusetts get the care they need and in a way that truly makes a difference.”

The behavioral-health internship funds are being issued to campuses as grants to be distributed to qualifying students over a two-year period and can be applied to internships being completed in the 2024-25 and 2025-26 academic years. Students at the awarded institutions who may be eligible for the funding should speak with their program advisor and financial-aid office.

“Internships help behavioral-health graduates prepare to serve community members on day one, and these funds will lessen the financial burden of completing these essential learning experiences,” Commissioner of Higher Education Noe Ortega said. “The more we make entering the behavioral-health workforce possible, the more we can create a pipeline of talented professionals prepared to serve residents across the Commonwealth.”

 

Statewide Impact

The Behavioral Health Trust Fund was established by the state with American Rescue Plan Act funds and is managed by the secretary of Health and Human Services. Funds are used for addressing barriers to the delivery of an equitable, culturally competent, affordable, and clinically appropriate continuum of behavioral healthcare and services.

Of the 37 colleges and universities receiving funds, 10 are located in Western Mass.: American International College ($310,000), Bay Path University ($695,000), Cambridge College ($460,000), Elms College ($165,000), Massachusetts College of Liberal Arts ($50,000), Smith College ($260,000), Springfield College ($1,045,000), UMass Amherst ($50,000), Western New England University ($180,000), and Westfield State University ($400,000).

“The experiences and knowledge gained outside of a classroom during an internship can be truly invaluable for individuals aspiring to work in the behavioral-health space,” said state Sen. John Velis, Senate chair of the Joint Committee on Mental Health, Substance Use, and Recovery. “Yet I routinely hear from students about the very real financial challenges they face while completing an unpaid internship, which oftentimes keeps students from participating in an internship altogether.”

Added Lydia Conley, president and CEO of the Assoc. for Behavioral Healthcare, “as the behavioral-health workforce crisis continues and the need for care throughout the Commonwealth grows, programs such as this one are essential in building a cadre of emerging professionals to provide high-quality, community-based care where it is needed the most.”

Meanwhile, Linda Thompson, president of Westfield State University and chair of the Massachusetts State Universities Council of Presidents, called the funding “a strong example of government, education, and the behavioral-health sector partnering to serve a critical need in our communities. Our state universities are eager to assist in filling the gaps that lead to better outcomes for individuals experiencing mental-health challenges, and are committed to working with the governor’s office, health agencies, and legislators to develop a knowledgeable, experienced workforce to ensure everyone who requires mental-health assistance receives the support they need.”

Economic Outlook Special Coverage

The Local Business Community Offers Perspectives on 2025

 

Beyond the big-picture context provided by regional business leaders in the lead story on page 4, how do individual business owners and executives in Western Mass. see their own enterprises faring in 2025?

BusinessWest asked 27 of them to offer thoughts on that question, and about the trends, challenges, and opportunities they see arising in the coming year. Here’s what they told us.

 

James Birge, President, Massachusetts College of Liberal Arts

James BirgeAn education grounded in the study of the humanities provides the skills, insights, and wisdom to deepen our understanding of the human condition and to examine social phenomena through a variety of lenses. As a result, we can better respond to some of society’s most pressing and thorny issues. So it puzzles me that there exists an increasing lack of appreciation for the liberal arts and humanities.

MCLA graduates excel in their careers because of an education centered on courses that all students take in history, language, philosophy, literature, and more. This core distribution of courses that are integrated throughout the academic majors means nursing students are able to help patients hurdle the obstacles of cultural or economic barriers; music production students can curate music in such a way that it is accessible to people using a spectrum of technology platforms; history students research land-use laws that marginalize people and draft legislation to change the laws.

These, along with many other examples, amplify not just the application of a humanities-based education, but the real need for an educated citizenry that can respond to the needs and demands of our society.

 

Carlo Bonavita, Owner, Springfield Wine Exchange

Carlo Bonavita

My prediction is, based on the trending I see and feel now, that 2025 will be like a fine wine and will need to be decanted before you can really get the full experience.

Translation: the trends I am seeing and conversations I am having suggest a good business year ahead, but a slow start. In terms of anything to be excited about, that will come later in the year — I’m focusing on August through December. Using the language of wine again, the first half of the year will be like Chardonnay — dry but buttery notes, meaning not unpleasant at all, just not remarkable, either. But the second half of the year is going to be more exciting — like an awe-inspiring French Bordeaux.

By the way, for those who need to know, the wine of the year will be Pinot noir, and, yes, it’s back.

 

Emily Carlson, Owner, We Do Travel Right

Emily CarlsonThe ‘take the trip’ mindset is going to cause the biggest travel trend since 2022’s revenge travel. Experiencing the inability to see loved ones on demand due to a pandemic can really reset life’s priorities. Most people keep that scary limitation in the back of their minds and, in turn, have spent more time with family. But a lot of life can happen in five years. In addition to great joys, the past few years may have also delivered immense loss. Most of us learned from navigating tragedies. We know how precious the Rolodex of life’s moments can be.

Five years ago, we would have just traveled with our immediate families and sent funny drugstore postcards to our parents and grandparents back at home. Now we know better. In 2025, multi-generational travel will become the new norm as people begin to fully comprehend that life is short.

For those who still can, take the trip. I can promise you, it will be an adventure you will never forget.

 

Carla Cosenzi, President, TommyCar Auto Group

Carla CosenziThe automotive industry is entering an exciting year, and at TommyCar Auto Group, we’re eager to embrace the opportunities ahead. Supply-chain improvements have increased vehicle availability, and manufacturers are offering exceptional incentives, including strong rebates and low-rate APR financing. With favorable market conditions expected to continue into 2025, now is the perfect time to purchase your next vehicle.

Digital retailing is revolutionizing the car-buying experience, providing customers with a seamless transition from online browsing to the showroom. At TommyCar, we are dedicated to delivering personalized, transparent, and convenient service to build lasting customer loyalty. With stabilizing prices, enticing incentives, and an expanding selection of vehicles, the market is well-equipped to meet diverse needs and is poised for a promising 2025.

 

John Dowd, President and CEO, Dowd Insurance

John DowdAs we enter 2025, the impact of inflation on valuations continues to be a problem, along with challenges around policies covering older buildings and properties near water. We do expect this to level off in the coming year, as we recover from a significant spike in the cost of labor and materials.

AI is expected to create further efficiencies in the insurance industry, helping improve customer service. Investment in technology for insurance carriers and agencies is critical for maintaining a competitive edge. The growing threat of cybercrime has put a focus on stronger and more sophisticated protective measures.

Meanwhile, auto-insurance premiums have turned a corner, with pricing leveling off in 2025. But general liability remains a challenge in the absence of tort reform and growing jury awards due to ‘social inflation.’ Workers’ compensation is the most favorable of all lines of insurance as rates are falling across most industries.

 

Matt Farkas, Senior Vice President, Head of Fixed Income, St. Germain Investment Management

Matt FarkasThe wealth-management landscape is undergoing a significant transformation. Clients increasingly demand more than just investment management; they seek holistic financial planning and advice. Disillusioned by conflicts of interest and product-centric approaches, clients are increasingly voting with their feet, migrating toward independent firms that offer objective advice without the pressure to ‘sell’ products.

Advisors are responding by leveraging sophisticated technology to create tailored financial plans, personalized client portals, and customized reporting. This allows for a more proactive and comprehensive approach to wealth management.

Advisors are evolving into the central hub of their clients’ financial lives, coordinating with tax accountants and attorneys to ensure seamless integration of financial strategies. To meet these elevated expectations and navigate an increasingly complex financial world, advisors are pursuing specialized credentials that demonstrate a commitment to ongoing professional development and enhance their ability to provide sophisticated advice.

As the wealth-management industry continues to evolve, advisors who prioritize client relationships, embrace technology, and expand their service offerings will be well-positioned to thrive in this dynamic landscape.

 

 

Robert Fraser, President and CEO, MountainOne

Robert FraserThe failure of Silicon Valley Bank in 2023 resulted in a regulatory focus on balance-sheet management and liquidity for banks of all sizes. On balance, liquidity to fund growth will continue to be a challenge for many banks and will contribute to more mergers as a means of increasing efficiencies and creating more deposit-growth opportunities.

The Fed’s recent announcement regarding fewer-than-anticipated rate cuts in 2025 has dampened enthusiasm of significantly improving net-interest margins, but we should see some margin improvement in 2025. High long-term interest rates, along with minimal inventory, will continue to challenge the residential mortgage market.

Our company makeup, which includes a significant (and growing) bank-owned insurance agency and investment division, reduces our reliance on net-interest income for overall profitability. In 2024, we acquired two insurance agencies in the Pioneer Valley, G.W. Morisi Insurance and the McClure Insurance Agency. Looking ahead, we have the financial capacity to continue to acquire insurance agencies that fit our business model and culture. This strategy will continue to assist us in reducing dependence on net-interest margin.

 

 

Sam Hanmer, President and CEO, Rush Insurance Group

Sam HanmerThe property and casualty insurance industry in 2025 continues to navigate challenges stemming from climate change, inflation, and evolving technology. Catastrophic weather events, such as hurricanes and wildfires, have intensified claims, driving insurers to reassess risk models and pricing. Inflation has raised the cost of claims, particularly in auto and property sectors.

Rush Insurance Group is advising clients to reassess their deductible levels as a way to save on premium costs. Opting for a higher deductible means assuming greater out-of-pocket responsibility in the event of a claim, but often results in significantly lower monthly or annual premiums. This strategy is especially beneficial for policyholders with strong financial reserves who can cover higher deductibles. By balancing deductible levels with risk exposure, clients can better control insurance costs while still maintaining essential coverage.

 

 

Carolyne Hannan, Senior Vice President, Comcast, New England

Carolyne HannanComcast serves thousands of businesses and residents with Xfinity and Comcast Business products and services across Western Mass. Over the last three years, the company has invested nearly $909 million in our state-of-the-art network across Massachusetts.

In 2025, Comcast will introduce innovations like WiFi Boost, delivering gig speeds to Xfinity Mobile and Comcast Business Mobile customers, to support increasing demands to stream, game, chat, and surf at home and on the go. Comcast will also continue to invest in its network locally, delivering 2-gig download speeds and up to 10 times faster upload speeds to more Xfinity customers in Holyoke, Longmeadow, Southwick, Springfield, West Springfield, and Westfield.

Additionally, as cybersecurity threats evolve in 2025, businesses will need to establish a multi-layered approach to protecting their operations. Comcast Business has a full suite of solutions, including fast, reliable connectivity and advanced cybersecurity, to meet the needs of businesses of all sizes.

 

 

Sean Hogan, President, Hogan Technology

Sean HoganAs we look forward to 2025, Hogan Technology is poised for a year of growth and innovation. Building on the strong foundation of a successful 2024, we anticipate a significant 20% increase in revenue. Our IT sales team has already secured new business commitments extending into the second quarter, positioning us favorably for sustained growth.

The demand for enhanced cybersecurity tools continues to rise, driving our ongoing efforts to evaluate and integrate cutting-edge solutions for our clients. This proactive approach not only fortifies our existing client relationships, but also opens doors to new business opportunities.

Our strategic focus for 2025 includes expanding our portfolio of cybersecurity services and enhancing our technological capabilities to meet the evolving needs of our clientele. We are committed to investing in research and development to stay ahead of industry trends and deliver unparalleled value to our customers.

In short, 2025 promises to be a year of strategic growth and innovation for Hogan Technology.

 

 

Lisa Johnson, Chief Operating Officer, Encharter Insurance

Lisa JohnsonEncharter Insurance had an excellent year in 2024, and we anticipate that success to continue in 2025. The challenges faced by businesses and consumers due to increasing insurance premiums have brought many to our door, seeking alternative options and savings.

Finding the right insurance coverage at an affordable price has become more challenging than ever. Rising premiums are driven by catastrophic weather events across the country, higher repair costs, increased legal expenses, and a greater frequency of claims. Unfortunately, these trends show no signs of slowing down.

In response, we remain dedicated to educating our clients about the realities of the insurance marketplace and providing practical advice on how to manage costs. Our team is investing more time than ever in exploring tailored options for our clients, and this effort is paying off through increased customer loyalty.

The stability of our agency, the wide range of options we can offer, the expertise of our staff, and their unwavering commitment to each customer keep us optimistic about 2025 and beyond.

 

 

Emily Leonczyk, Executive Vice President and Chief Operating Officer, the Markens Group

Emily LeonczykIt looks like 2025 shaping up to be an exciting year for the Markens Group and the associations we serve.

Generational shifts are at the forefront as we work with our clients to realign their core purposes of balancing the needs of traditional members while attracting and retaining younger ones. Post-pandemic trends are reshaping meetings and events, driving a renewed focus on face-to-face engagement. Meanwhile, work-from-home dynamics have introduced new styles of digital engagement, which younger members not only embrace, but rely on.

At the Markens Group, we’re committed to helping associations thrive through enhanced strategic planning, purpose-driven leadership, and innovative solutions. Whether fostering growth via social-media channels, hosting impactful events, or advancing advocacy efforts, our clients are making meaningful strides. With tailored support in governance, financial management, and marketing, we’re proud to partner with associations to drive success and lasting value.

 

 

Timm Marini, President of Personal Lines Insurance, HUB International New England

Timm MariniIn today’s dynamic landscape, where geopolitical risk, climate change, rising healthcare costs, and the rapid advancement of AI are reshaping industries, our clients face constant challenges. The speed of change is dizzying, but those who embrace new approaches and solutions will improve their profitability, workplace vitality, and resilience.

To prepare for the upcoming year, HUB surveyed 900 business leaders across the U.S. and Canada.

The overall sentiment for 2025 is predominantly positive. Among the key insights from the HUB 2025 Outlook Executive Survey:

• Siloed teams put businesses at risk. Organizations with integrated risk management and benefits best practices are better equipped to achieve sustained profitability, workforce vitality, and resiliency.

• While risk and disruption will continue, successful business leaders are making constant shifts to navigate an increasingly complex world. With the right partners and analytic insights, they can gain an edge and remain resilient amid unforeseen disruption.

 

 

Mary McGovern, President and Chief Operating Officer, Country Bank

Mary McGovernWhile some challenges likely in 2025 are reminiscent of those faced in 2024, it’s important to note that Country Bank has shown remarkable resilience. While a considerable expense, the continued escalation of fraud is being effectively managed, both in actual dollars lost and in the cost of fraud-prevention systems.

Another challenge on the horizon is the uncertainty a new presidential administration brings regarding regulation. Even if there is a reduction in oversight, the bank’s risk and compliance divisions are well-prepared to adapt to any rule changes to ensure they are being adhered to.

The evolving interest-rate environment is a challenge in managing the balance sheet and projecting levels for the upcoming year. Many banks’ margins were squeezed when short-term rates remained high, but this pressure eased somewhat after the Fed cut rates by 75 basis points in 2024.

Country Bank is focused on expansion in Western and Central Mass. in 2025, with strategic positioning in key markets. As we celebrate our 175th anniversary in the new year, the bank has never been stronger.

 

 

Joel Mollison, President, Northeast IT

Joel MollisonAs we look ahead to 2025, we anticipate a remarkably busy year as we continue to collaborate with our customers to execute the timely replacement of thousands of computers and software packages ahead of the end of Windows 10 support deadline in October.

Our management team predicts continuous uptick in demand for improved cybersecurity posture, compliance services, and business continuity across all sectors as threats and compliance become more sophisticated. Grant funding will continue to push these objectives in the municipal sector.

Generative AI technologies will continue to be on horizon as many of our customers seek to utilize the capabilities of these technologies for data collection, analytics, automation, and specialized content creation. The feasibility and adoption rate of these technologies by smaller organizations is still widely unknown.

 

 

Peter Picknelly, Chairman, Peter Pan Bus Lines

Peter PicknellyThe future of public transportation, particularly intercity buses, appears bright. Fewer new driver’s licenses were issued last year than in the past 50 years, indicating a preference for public transportation. Inter-city buses are becoming increasingly popular due to their high frequency of service, reasonable fares, and onboard amenities that allow passengers to work, relax, and entertain themselves while traveling.

With rising fuel, insurance, and toll costs — and the introduction of congestion pricing in major cities like New York City and Boston — buses are becoming an even more attractive option. Additionally, apps like Uber make it convenient for passengers to get from the bus terminal to their destination.

As affordability, convenience, and sustainability take center stage, intercity bus travel is well-positioned to thrive.

 

 

Nicole Polite, CEO, the MH Group

Nicole PoliteIn 2025, workplaces will highly value being adaptable and open to learning so employees can quickly handle changes in their industries. Knowing how to use digital tools will be important as technology becomes part of daily work. Being able to think critically and solve problems will be essential for tackling complex challenges, working alongside AI and automation.

Understanding emotions and managing relationships will help with teamwork and leadership. Companies will encourage creativity and new ideas to stay ahead. Being able to communicate clearly, both digitally and in person, will remain crucial for effective collaboration.

Strong leadership and the ability to work well in teams will be needed to guide diverse groups. Understanding different cultures will be valuable in workplaces that are becoming more global, helping them work well with various perspectives. Lastly, being skilled at using data to make informed decisions will become crucial as data plays a bigger role in shaping business strategies.

 

 

Meghan Rothschild, President, Chikmedia

Meghan RothschildThe world of marketing and public relations has been ever-changing since its beginning, and this upcoming year will be no exception. Right now, we’re seeing a boom in the podcast industry and utilizing hosts as influencers and collaborators on social media to advance our clients’ expert positioning. Authenticity, ‘edutainment,’ and storytelling continue to be the priority for online content, with a heavy emphasis on video.

Perhaps one of the most concerning trends I see coming down the pipeline is a cut to marketing spends. I cannot stress this enough: cutting your marketing budget in a time of low sales is the kiss of death. You must prioritize sharing your company services to the public so you can build your customer database. As a general rule, 5% to 10% of your net revenue should be invested back into marketing efforts.

Quality over quantity continues to lead, and every post, advertisement, or blog entry should have intention behind it. Applying strategy to your external communication will be key in the new year, so reserve some time in Q1 to outline a plan.

 

 

Amy Royal, CEO, the Royal Law Firm

Amy RoyalA new year can feel like a reset, and many business professionals become reinvigorated and motivated to seek new opportunities upon its outset. Indeed, a new year creates momentum toward building business again. In looking for new growth opportunities for the Royal Law Firm in the new year, I have adopted a continued mindset of thinking outside of the box.

Over the last year, we have seen significant growth through collaboration with our competitors. That approach could seem strange or even antithetical to creating new business opportunities; however, it has generated a new revenue stream while also leveraging top talent. One three-firm relationship we’re part of gives our clients a deep bench from which to draw across practice areas and states. In an era of quality personnel shortages, another collaborative relationship has Royal Law Firm attorneys and paralegals serving as the backroom to a Los Angeles-based, management-side labor and employment firm.

Seeking out additional collaborative relationships in 2025 is a continued strategic goal of mine. It is also one that businesses in other industries can piggyback on.

 

 

Shannon Rudder, President and CEO, Martin Luther King, Jr. Family Services

Shannon Rudder

Shannon Rudder

In 2025, our pathway forward is clear — Martin Luther King, Jr. Family Services will shape futures and impact generations through strategic partnerships and programs, solid infrastructure and operations, and creating a diversified financial portfolio. We will continue to center youth voices, collaborate intergenerationally, and steep ourselves in addressing systemic challenges through a public-health and resiliency-informed lens.

With our collective reinvestment, MLKFS will grow as a cornerstone of Mason Square, continue to expand across the region, and be a beacon of Dr. King’s dream manifested throughout the Commonwealth.

 

Ashley Sullivan, President, O’Reilly, Talbot & Okun

Ashley SullivanRegardless of what 2025 brings, I am confident in OTO’s resiliency and ability to adapt as we have for the past 30 years. OTO will continue to focus on growth and strengthening our team by reinforcing company culture and values, while offering flexibility, a space for authenticity, and clear communication of responsibilities and goals; these are all essential in 2025.

Technology, AI, robotics, and data processing will continue to push us toward better solutions in the architectural engineering and construction industry. However, I believe people will seek trusted human professionals, and it’s an opportune time for building a strong network of peers, advisors, consultants, and contractors.

Finally, while uncertainties exist around potential changes to environmental regulations and policies, a value-driven and thoughtful approach to managing impacted or improving poor-quality soils will remain a key component for both brownfields redevelopment and new development projects.

 

 

Jeff Sullivan, President and CEO, New Valley Bank & Trust

Jeff SullivanBanking has always been about people and communication, and in today’s world, that has never been more apparent. One of our most important roles as bankers is to communicate with our customers about suspicious account activity, whether that includes potential cyber crime or low-tech frauds such as stolen checks. We at New Valley Bank recommend a few simple good habits for business owners:

• Check balances and activity frequently to ensure that all transactions on your accounts are proper. Tools such as Positive Pay add an additional layer of security.

• Online banking should allow you to set limits for each employee’s role, whether view-only or the ability to send the funds out.

• Having a separation of duties for payments of any type — checks, ACH, or wires — is an essential financial control.

 

 

Diana Szynal, President, Springfield Regional Chamber

Diana SzynalThe Springfield Regional Chamber is a business support organization that serves its 400 members through legislative advocacy, informative communications, and impactful programming. We are charging into 2025 with a full slate of events designed to inform, connect, and inspire our members. From Rise & Shine breakfasts to the Mayor’s Forum to the Fire & Ice reception, each event offers our members the chance to learn and network.

The Springfield Regional Chamber will also continue to advocate on behalf of the business community, and our member-driven agenda aims to ensure that policies that come out of Beacon Hill maintain a favorable business environment and contribute to the economic vitality of our region. Our legislative events such as Government Reception, Outlook, and Beacon Hill Summit give our members the opportunity to participate in this advocacy.

 

 

Aelan Tierney, President, Kuhn Riddle Architects

Aelan TierneyAs we head into 2025, conversations in our office are focused on energy codes, construction costs, and housing. Massachusetts is recognized as a leader in energy efficiency in large part due to our aggressive energy codes.

But the state’s new specialized opt-in energy code, while well-intentioned, is challenging, especially for our multi-family projects. The primary pathway for these types of projects to meet this code is to design and build to the Passive House standard. This standard focuses on super-insulated, airtight construction with minimal heating and cooling loads, energy-recovery ventilation, and renewable-energy sources such as solar panels.

In addition to the increased cost of building high-performance, energy-efficient buildings, there are concerns that construction costs in general may further increase in 2025 due to potential tariffs on foreign building materials and reduced labor forces with the possibility of fewer immigrant workers.

While it is an exciting time to be designing and developing high-performance, energy-efficient, resilient buildings, there is the counterweight of how to do it affordably. It’s a challenge we look forward to solving on several projects in 2025.

 

George Timmons, President, Holyoke Community College

George TimmonsThree words come to mind when I think about a community-college education in Western Mass. today: access, belonging, and possibility. When the Healey-Driscoll administration made community college free for eligible students in Massachusetts, we opened doors for thousands across our region. In Hampden County, where nearly 40% of residents lack post-secondary education, this access is crucial for economic growth. Our 12.6% enrollment increase in 2024 reflects this expanding opportunity.

The landscape is evolving: the county’s school-age population has declined 9% over the last decade, while the over-65 population grows. Seventy percent of our students study part-time, balancing work and family responsibilities, and more than one-third identify as Hispanic or Latino. At HCC, we embrace this diversity, creating a community where students feel they truly belong.

Looking ahead, we’ll continue adapting to meet our students’ unique and changing needs, ensuring their success remains our priority.

 

Glenn Welch, President and CEO, Freedom Credit Union

Glenn WelchIn 2025, financial institutions, especially credit unions, will navigate a landscape rich with both challenges and opportunities. Interest rates remain elevated, reducing people’s ability or willingness to borrow. High mortgage rates and a low number of homes on the market makes it difficult for our members to refinance or move into their next homes. Now there are fewer rate cuts expected in 2025 than previous predictions had indicated, so much-needed relief from high rates will not come to fruition.

With these issues, credit unions must prioritize financial literacy and member education, empowering individuals to make informed decisions in uncertain times. Freedom is proud of its financial-literacy programs, including fraud-prevention education at area senior centers, schools, and other venues. Teaching the public how to handle finances helps them navigate financial challenges.

In 2025, there will be a growing emphasis on community support. Credit unions have a unique opportunity to strengthen their local impact and foster stronger community ties.

 

 

Sasha Wilde, Owner, Sexton Roofing & Siding

Sasha WildeThis past year was one of growth and learning for Sexton Roofing & Siding. We expanded our offerings, strengthened our team, and gained invaluable insights along the way. Now, as we step into 2025, we’re ready to build on this strong foundation and push toward an even brighter future.

Looking ahead, we’re focused on growth — not just as a business, but as a community partner. We’re committed to finding new ways to support local initiatives and get more involved in the neighborhoods we serve. Additionally, we’re exploring more sustainable materials to offer homeowners eco-friendly options that contribute to a greener future.

Thank you for being part of our story. Here’s to building stronger homes, stronger communities, and a stronger future in 2025 and beyond.

 

Community Spotlight Special Coverage

Community Spotlight

A architect’s rendering of the planned new Agawam High School.

A architect’s rendering of the planned new Agawam
High School.

Chris Johnson called it “an easy fix.”

He was referring to his decision early in 2024 to put things back the way they were in City Hall — quite literally — the last time he occupied the corner office, some 24 years earlier.

Indeed, the three-office mayor’s suite in City Hall had been reconfigured in the intervening years, with the smallest space, which had been Johnson’s office, made into a closet; the middle space, which had been a conference room, devoted to staff; and the largest space, which had been home to the two-person staff, converted to accommodate the mayor’s office and a conference-room table.

Not long after returning to office, Johnson reshuffled the deck, claiming that the old arrangement made far more sense.

Other business hasn’t been resolved quite so easily, but Johnson has achieved progress on several fronts — especially with the building of a new high school, a project that has been discussed for decades and was resolved in resounding fashion at a special election last June, with roughly 70% of residents approving a three-stage project with a price tag of $226 million.

Johnson, who served three two-year terms in the mid- to late ’90s, and, more recently, served several terms on the City Council, sought a return to the corner office in the fall of 2023, in large part to resolve the issue of a new high school. He considers the new building (and a small saved portion of the old building) to be the best option for this community of almost 29,000.

“For the voters, it came down to this: do you want to make a significant investment and renovate what we have, or spend a few extra dollars and build a new high school?” said Johnson, in reference to what will be, by far, the largest capital-improvement project in the history of Agawam. “The right decision, from an education standpoint, but also a business and financial standpoint, was to invest in a new building that has a useful life of 50-plus years instead of major renovations in what we have that would have a useful life of probably 20 to 30 years.”

“The right decision, from an education standpoint, but also a business and financial standpoint, was to invest in a new building that has a useful life of 50-plus years instead of major renovations in what we have that would have a useful life of probably 20 to 30 years.”

The high-school vote is easily the biggest storyline in this community, but there are others, including ongoing work to transform the old HUB Insurance building on Suffield Street into the city’s new police headquarters, an intriguing conversion project that should be wrapped up next spring. There’s also the ongoing saga of the former Games and Lanes property on Walnut Street Extension — a new use for that parcel remains elusive years after the eyesore was torn down — as well as the need for new housing of all kinds, but especially the affordable variety.

There are some new businesses, including a Starbucks just over the Morgan-Sullivan Bridge from West Springfield that opened roughly a year ago, and some emerging ventures, including an urgent-care facility in a building now under construction just behind Starbucks.

As for existing businesses, the landscape is dominated — figuratively but also literally — by Six Flags New England, the giant amusement park near the Connecticut border that is not only the city’s largest employer, but a good corporate citizen, the mayor said.

The park, now 25 years under the Six Flags brand, is adding a new roller coaster and undertaking other significant expansion and improvement efforts, said Park President Peter Carmichael (see related story on page XX).

For this latest installment of its Community Spotlight series, BusinessWest turns its focus on Agawam, where momentum is building — in every sense of that phrase.

 

Early Returns

The framed newspaper front pages on one wall of Johnson’s office speak to how much has changed over the past 24 years — journalistically, and in some other ways as well.

The large headlines trumpet three of his five election victories, starting in 1989. The masthead at the top of each declares that this is the Agawam/West Springfield edition of the Union News. The Springfield newspaper is now called the Republican, and there is no longer an Agawam/West Springfield edition. Meanwhile, the large headlines from the ’90s were all about Johnson because West Springfield didn’t have a mayor in those days.

But while many things have changed in a quarter-century, in Agawam, many of the issues are the same, and Johnson has been dealing with them consistently because he served on the City Council for 12 years in the interim.

Mayor Chris Johnson

Mayor Chris Johnson says resolution of the high-school issue was one of the prime motivators for his return to the corner office.

At the top of that list is the high school, he said, noting that the original building, opened in 1995, has been renovated and expanded several times over the years, with the result being a sprawling, one-story complex that was in need of another facelift — or replacement.

Johnson has long been a strong advocate of the latter, and efforts to inform the public of the available options dominated his first several months back in the mayor’s office.

“I can’t even count how many presentations I made,” he said. “I pretty much said, ‘anytime, anywhere that anyone wants one, I’ll go’ — and I did a lot of them, while also putting together educational videos to put on the town’s website and social media. My goal was to make sure people had the information they needed to make an educated decision.”

“Whether it be aging roadways or storm-drainage issues, most of our infrastructure dates back 50, 60, 70-plus years.”

Dave Fontaine Jr., CEO of Springfield-based Fontaine Bros., the general contractor awarded the project, said it is unique in that it has three phases — new construction of a ‘community wing’ on fields adjacent to the current high school; an academic wing, which will involve demolition of much of the existing high school (some will be saved) and new construction; and additional demolition as well as conversion of some of the existing high school into an early-childhood center.

The building will also use geothermal wells for heating and cooling, said Fontaine, adding that the technology is becoming more common, but still fairly rare in school buildings. It will also have sloping metal roofs, which are more durable than flat roofs and will have a longer lifespan, he said, adding that they provide an intriguing architectural element.

Johnson said ground should be broken this spring, with work on phase 1 to be completed by the end of 2026, phase 2 by the fall of 2028, and phase 3 in 2029.

Fontaine will be building the new Agawam High School at the same time it constructs a new high school in East Longmeadow, a project roughly six months further along. That will be challenging in some ways, but the company traditionally has at least two large-scale school projects occurring simultaneously.

Meanwhile, another intriguing project, this one now well underway, is the conversion of the former HUB Insurance building (before that, it was the Oaks banquet facility) into the new police headquarters.

It’s unique, said Carl Mercieri, executive vice president with Marois Construction, the contractor handling the project, because most new public-safety facilities are built from the ground up.

Agawam at a glance

Year Incorporated: 1855
Population: 28,692
Area: 24.2 square miles
County: Hampden
Residential Tax Rate: $14.54
Commercial Tax Rate: $27.54
Median Household Income: $49,390
Family Household Income: $59,088
Type of government: Mayor; City Council
Largest Employers: OMG Inc., Agawam Public Schools, Six Flags New England
* Latest information available

Because the town was able to acquire the property at an attractive price, converting it for this use emerged as the most common-sense option, he went on, adding that transforming a large (36,000 square feet) office building into a public-safety facility has required complete interior gutting and creation of a wide range of new spaces, from offices to a dispatch room to six holding cells. Meanwhile, a large sallyport had to be added to the rear of the building.

“There are several different areas to create — a detective area, a sergeant’s area, a patrolman’s area, an armory, and the holding cells,” said Mercieri, adding that the completion date for the project, like the final price tag (around $9 million), is a moving target, but work is expected to be wrapped up by late spring.

 

Forward Progress

Between the new high-school project (the town’s share of that initiative is roughly $120 million) and the new public-safety complex, the town will have little to spend on other large-scale capital projects for some time, said Johnson, adding quickly that this can’t stop the community from planning.

And he summed up what’s next on the proverbial to-do list with a single word: ‘infrastructure.’

“Whether it be aging roadways or storm-drainage issues, most of our infrastructure dates back 50, 60, 70-plus years,” he explained. “But we need to come up with a plan, and then match a funding mechanism to a plan to be able to move forward so that we’re not faced with dealing with crisis situations.”

Coming up with these plans — while also building the new school — will be the next challenges for Johnson in what can be called a second tour of duty in the corner office.

Or corner offices, to be more precise.

He’s put things back the way they were before in that suite, but for other, much larger issues, there is no going back — just moving forward. In the larger scheme of things, that is the plan.

Banking and Financial Services Special Coverage

More Than Writing Checks

 

A community bank should be about, well, the community.

That’s the prevailing thought, anyway, among bank and credit-union leaders throughout the Western Mass. region when it comes to philanthropy, volunteerism, and other activities under the broad umbrella of corporate responsibility.

“It’s identifying the needs of the communities we serve. We’re very consistent with that mission,” said Matt Garrity, president and CEO of Florence Savings Bank, who was quick to name several areas of focus for the institution’s giving-back strategy, including affordable housing, food insecurity, financial literacy, education, substance abuse, health and human services, and community redevelopment. “These are issues that impact the lives of people in the communities we serve.”

To that end, Florence funded close to 400 requests in 2024, and it’s far from alone in meeting those needs.

“For mutual banks and community banks here in Western Massachusetts, giving back to the community really is a core value,” Garrity said. “And it’s local — the overwhelming majority of the giving we do is centered on supporting communities in Hampshire, Hampden, and Franklin counties.”

UMassFive College Federal Credit Union focuses on the word ‘wellness’ a lot, said Craig Boivin, vice president of Marketing.

“That can mean different things. Obviously, financial wellness is the biggest thing. We’re a credit union, so we’re making sure we educate people on financial matters, with webinars and workshops on budgeting, understanding credit, and paying down debt. But another bucket of wellness has to do with basic necessities.”

That’s why UMassFive works with local survival centers, helping them meet needs and spreading the word to others, like through an annual coat and winter clothing drive that brought critical supplies to Amherst Survival Center, the Gray House in Springfield, and Net of Compassion in Worcester.

In fact, UMassFive partners with a host of area nonprofits on various giving and volunteering initiatives, including Community Involved in Sustaining Agriculture, the Food Bank of Western Massachusetts (through participation in Will Bike 4 Food), and health-focused organizations like the UMass Cancer Center (through the UMass Cancer Walk).

Matt Garrity

Matt Garrity says Florence Savings Bank prioritizes community needs including affordable housing, food insecurity, financial literacy, education, health and human services, and community redevelopment.

Dan Moriarty, president and CEO of Monson Savings Bank, says his institution is dedicated to enriching lives in the cities and towns where it does business, and surrounding communities as well, helping organizations that serve a host of constituencies, from senior citizens to veterans to people in need of health services and basic needs.

“Obviously, a bank can’t solve all the area’s problems, but when we do things along with other good corporate citizens, we feel we make a difference in people’s lives,” he noted, noting that the bank has adopted “when we all give back, we all move forward” as its philanthropic tagline.

“We are a community bank, and we’ve been doing that for over 150 years now. As we continue to grow and expand our market footprint, we expect to help with more needs in the community.”

Matt Bannister, vice president of Marketing and Corporate Responsibility for PeoplesBank, has said many times that his bank’s guiding philosophy is to give a little to a lot of groups.

“Obviously, a bank can’t solve all the area’s problems, but when we do things along with other good corporate citizens, we feel we make a difference in people’s lives.”

“Some organizations will give a lot to a few groups. If a hospital is building a new cancer wing or an emergency room or something like that, those tend to be very large donations because they are very large projects. We take the opposite approach. We want to be in as many places as we possibly can.”

As a result, PeoplesBank gave away $1.6 million last year to 550 different nonprofits, Bannister noted. “You do the math, and it’s about $2,500 or $3,000 per grant, which doesn’t mean much to a large corporation that’s building a hospital … but it does mean a lot to a small nonprofit with a shoestring budget. So the ability to impact many organizations as possible is the route that we choose.”

 

Making the World Better

That said, corporate responsibility goes well beyond writing checks, Bannister explained.

“Corporate responsibility, to me, means standing for something that benefits the public at large. It’s a way to telegraph the values that a company has, and a consumer can use that information to make decisions. One of the factors when they’re purchasing a product or a service is, ‘who am I buying this from, and what do they do that makes the world a better place,’ as opposed to ‘what are they not doing, or what are they doing that makes the world a worse place?’”

So, that extends not only to philanthropy, but to what vendors and suppliers a bank partners with, and whether they share similar values.

“You might say a certain percentage of the vendors of a company should be minority-led organizations or women-led organizations. So it’s not only how you telegraph your values, but how you put them into action; are you, as a company, spending money to encourage what we think are beneficial programs for society?”

That approach extends to volunteerism as well — an area of community support that virtually every bank based in this region emphasizes.

Dan Moriarty (left, with Veronica Garcia, CEO of Latino Marketing Agency, and John Perez, project office manager at the Hispanic-American Institute

Dan Moriarty (left, with Veronica Garcia, CEO of Latino Marketing Agency, and John Perez, project office manager at the Hispanic-American Institute) enjoys taking many of these big-check photos each year with organizations that benefit from Monson Savings Bank’s giving.

“When employees of a company volunteer in the community, that’s another way the company adds value to the community,” Bannister said, which is why PeoplesBank — and the other institutions that spoke with BusinessWest — pays employees to take volunteer days.

“So United Way has Days of Caring, where teams [of volunteers] will come out, or Habitat for Humanity has a build, where teams will come out, and that’s good for team building. But the company is also saying, ‘you’re not going to do your job today; we’re going to pay you to do something out in the community.’”

That makes a statement about corporate values, which is why Monson Savings Bank recently codified it.

“We’re launching a community service day policy where we pay our full-time employees to donate eight hours of a day, or two half-days, to an organization or a nonprofit,” Moriarty said. “We’ve done that kind of unofficially; now it’s an official policy. We allow employees to donate their time during the work week, and we pay them to go out and support the community. It’s a great thing.”

Such activities also expose employees to the good work being done in the community, and they can be enjoyable, he added. “We’ve had fun helping Revitalize CDC on volunteer projects, or helping out organizations from the United Way to Martin Luther King Family Services to I Found Light Against All Odds, and many others.”

The bank also collects $5 donations from employees every Friday for the ability to wear jeans to work, and those donations are pooled and given to local organizations as well.

At Florence, “volunteerism is a big part of what we do. We encourage it highly in our organization, and we’ll continue to do that,” added Garrity, noting that employees have recently volunteered at organizations including Hampshire Regional YMCA, Greater Springfield Habitat for Humanity, Square One, Caring Health Center, and many more.

At UMassFive, Boivin said, “the level of engagement of our employees is high — it’s the culture here to support others in the community, especially with fundraising that we do with Will Bike 4 Food and the Cancer Walk and Run. We raised over 25 grand combined for those two organizations this year.

“And a lot of that comes from grassroots stuff the employees are doing,” he added. “They’re selling baked goods, they’re creating artworks and selling them in the branches, they’re talking to their families and friends, and they’re donating themselves. We really support the causes we care about.”

UMassFive’s community support also extends to elevating local businesses, as it did when it partnered with UMass Athletics and UMass Sports Properties on a recent contest to recognize a small business that demonstrates service, innovation, and community involvement.

The winner, Sexton Roofing & Siding, received an ad package worth $10,000, allowing it to be featured on digital displays, radio reads, email blasts, and tabling opportunities during and surrounding the university’s sporting events. “That’s another way to practice corporate responsibility, by amplifying other businesses,” Boivin said.

 

Moving the Needle

And then, there are the votes.

Two local banks — Florence Savings Bank, through its Customers’ Choice program, and Monson Savings Bank, through its Community Giving Initiative — just finished another annual round of voting by customers and community members on what organizations they’d like the banks to support with donations.

“We began this back in 2010. We’re aware of a lot of different nonprofits that are doing a lot of good work, but not all of them,” Moriarty said, and since its inception, the program has grown significantly. “It’s exciting — now we have nonprofits say, ‘hey, Dan, when do we launch the CGI initiative, so we can get the information to voters?’ It’s been a great program for us, and we’ve met a lot of great organizations across the Pioneer Valley.”

Florence Bank’s program is in its 23rd year, and the most recent round of voting drew more than 7,000 ballots, Garrity noted. “We’ve even tried to provide, for the benefit of a lot of our nonprofit organizations, tips on how to get the message out to their supporters around Customers’ Choice. It’s really been something the community has embraced.”

Readers have probably noticed the word ‘community’ repeated often throughout this article — more than two dozen times, in fact. But there’s a good reason for that.

“The word ‘community’ can be overused, but it really does feel like we’re a community of people helping others in the community,” Boivin said. “Our whole mission is set up to help people. The biggest way we do that is in the financial world, but there are a lot of other pillars here.

“When you think about the budgets we have for marketing and outreach, they are not as big as some of the community banks in our area,” he went on. “And, yes, we write checks and donate money, but a lot of it, for us, comes down to volunteer efforts and fundraising and spreading the word about events organizations are having, or participating in those events when they have them.

“A lot of it is a boots-on-the-ground effort,” Boivin added. “We don’t just write checks; we show up. That’s an internal mantra of ours.”

Healthcare News Special Coverage

Learning Experience

Glenmeadow President and CEO Kathy Martin

Glenmeadow President and CEO Kathy Martin

Kathy Martin had built an impressive career on higher education — first as a teacher, then as an administrator, most recently as assistant provost for Accreditation and Administration at UMass Amherst — when she saw an opportunity to make a sharp turn. And she took it.

“It was the right time for me to think about trying something else,” said Martin, who had been serving on the board of Glenmeadow, a senior-living community in Longmeadow, when the position of president and CEO opened up there in 2023. “Glenmeadow’s timeline for its presidential search coincided with my timeline for seeking a new opportunity because the provost I was working with at UMass got a new job, so she was leaving UMass anyway. So it was just an opportunity of timing.”

Her role on the board had been a great introduction to that venerable (as in 140-year-old) community, and to senior living in general.

“I was at a point professionally where I needed to make a decision about what I wanted to do. Did I want to continue to pursue a presidency in higher education, or did I want to try something else?” she told BusinessWest.

The shift — she’s been on the job 15 months now — has been dramatic in some ways, but rewarding as well.

“This is a new language for me in many ways, but I love learning new things. This was an opportunity for me to take on the challenge of learning and leading in a new sector. And there are more overlaps between higher ed and senior living than you might think,” Martin continued. “Some of the challenges and opportunities are the same, and leadership is leadership, but I have really enjoyed the pivot from working primarily with college students to working with seniors. It’s been a wonderful shift of perspective.”

“This is a new language for me in many ways, but I love learning new things. This was an opportunity for me to take on the challenge of learning and leading in a new sector. And there are more overlaps between higher ed and senior living than you might think.”

It has also been a process of learning about the day-to-day operations and everything the frontline staff and the leadership team do to keep a 24/7 operation working efficiently, she added.

“We think of it from our residents’ perspective first. What do they need? What are they interested in? What would make their Glenmeadow experience everything that they’ve always wanted it to be? And then there are all of the behind-the-scenes, operational decisions that we’re making; we’re looking at things like how reliant are we on paper processes, and can we move more things to the cloud, and how can we become more efficient in our operations?”

But most decisions come down to enhancing the resident experience, Martin said.

“Every decision that we make is based on what’s best for our residents and ensuring that we have enough programming, and the kind of programming that is meaningful for our residents,” she explained. “One of the things we’ve had a lot of conversation about in the last year is intellectual engagement, that it’s not just about playing mahjong, but it’s about having access to local speakers or a TED Talk or a guided discussion on a topic of interest. So we’re making sure we’re being responsive to what is interesting for the residents and engages their families as well in life at Glenmeadow.”

 

Long History

Glenmeadow traces its roots to 1884, when a group of civic leaders raised funds among themselves and other area families and purchased a house on Main Street in Springfield’s South End, establishing the Springfield Home for Aged Women. This residence opened in November 1886 and accommodated 16 women from the community without family or means.

Glenmeadow moved from Springfield to Longmeadow

Glenmeadow moved from Springfield to Longmeadow in 1993, right around the time the facility took its current name.

Fourteen years later, a new, larger home opened nearby, and in 1960, its name changed to Chestnut Knoll. In 1992, the facility began admitting men alongside the women.

In 1993, the organization purchased a 23-acre parcel in Longmeadow to build a new community that would provide both independent and assisted-living apartments with various common areas, and the name changed again, this time to Glenmeadow. In 2002, it unveiled Glenmeadow at Home, offering personal care, companionship, and home-care services to older adults living in their homes throughout Greater Springfield.

The home-care service is important for a couple of reasons, Martin said. “We recognize how important it is for seniors to stay at home as long as they possibly can. It can be very emotional to think about leaving your family home and making a move to a community like Glenmeadow, so we wanted to do everything we can to make it possible for seniors to stay at home a bit longer.”

In addition, she said, “home care is a nice gateway to Glenmeadow as a community. We do have residents who started as Glenmeadow at Home clients. We also have residents who use Glenmeadow at Home for some additional care. So it’s an important part of our business model, not only for what it provides our residents, but what we can give back to the local community to make home care more accessible.”

One crucial piece of the organization’s services is the concept of aging in community, she noted.

“One of the reasons that our residents thrive at Glenmeadow is because they’re with people who are having similar life experiences. We actively work to combat social isolation. And for those seniors who are staying at home and maybe increasingly infirm, it’s harder to maintain those social interactions. So a lot of our residents just enjoy being with people of the same age … it’s a social community as much as it is a residential one.”

“Home care is a nice gateway to Glenmeadow as a community. We do have residents who started as Glenmeadow at Home clients. We also have residents who use Glenmeadow at Home for some additional care. So it’s an important part of our business model.”

In 2024, Glenmeadow elevated the senior experience in a different way, by recognizing accomplished individuals over age 60 throughout the region in its first annual Age of Excellence awards program.

“That was really born out of a conversation among our board of directors about how we can have a hallmark event for Glenmeadow as a fundraiser,” Martin said. “We thought it was important to highlight the accomplishments and inspiration of those over 60.

“I think, too often, when you are approaching retirement, it feels like the end of something and that your best years are behind you,” she went on. “And we wanted to take the opportunity to highlight older adults that are doing amazing things. For some people, it’s a new career. For some people, it’s a new hobby. We wanted to be the ones to put a very appropriate spotlight on those individuals.”

The inaugural honorees, celebrated with a gala event in September, included Springfield Police Superintendent Lawrence Akers; Debbie Gardner of the Reminder; Jeffrey Greim of Jeff’s Granola; Ethel Griffin from Revitalize CDC; James Lagodich, who has been involved in local youth and adult sports; Maria Roy of the Indian Orchard Citizens Council; Patrick Sullivan, recently retired executive director of Springfield Parks; and Karen Tetreault of the Springfield Regional Chamber.

Kathy Martin (right) with the honorees at the inaugural Age of Excellence awards gala in September.

Kathy Martin (right) with the honorees at the inaugural Age of Excellence awards gala in September.

They were honored for a variety of reasons, from mentorship to volunteerism to leadership to simply inspiring change, and the selection process was challenging, Martin said, explaining that the public nominated individuals, and a small panel of local community leaders evaluated the nominations and made the selections.

“It’s been wonderful for us to hear people say, ‘oh, I wish we had done this 10 years ago,’ or ‘why hasn’t anybody had this idea before?’ And it was really inspirational, I think, for everybody who was involved in the selection process, but certainly everybody who went to the event in September. I think we all walked out of there with a little lift in our step from hearing what all of these honorees have accomplished.

“And there are dozens more like them, so we’re looking forward to the opportunity in 2025 to select the next class of Age of Excellence honorees,” she went on, noting that event will take place on Sept. 3.

 

Challenges and Opportunities

Senior living is a challenging field in many ways, Martin said, but right now, one of the biggest is the continued generational shift as the average age of Americans continues to rise.

“We have about 10,000 new Medicare subscribers every day with the Baby Boomers reaching retirement age. So, while we’re focused on how can we best serve the needs of our current residents, we’re also thinking about how to get ahead of what the Baby Boomer generation is going to be seeking in a community like Glenmeadow.”

To that end, the community is in the final stages of an $11 million renovation aimed to entice seniors interested in maintaining a wellness-focused lifestyle into retirement, she noted.

“Trying to forecast the needs of the next generation, I think, is certainly a challenge. And we’re a nonprofit, and maintaining a healthy revenue stream as a nonprofit is always a challenge. We focus on our occupancy, but we are grateful for the support that our residents and local members of the community and organizations make in supporting Glenmeadow financially so that we can continue to do what we do.”

Another industry challenge — one common to many industries these days — is recruiting and retaining a workforce, and on that front, Glenmeadow has been fortunate, Martin said.

“Through the pandemic and since then, our workforce has been relatively stable. We don’t have very many open positions,” she elaborated. “We focus a great deal on staff engagement, and I think that goes a long way toward that retention figure, but it’s also the interactions that our staff has with our residents.

“Every time I ask the staff what’s their favorite part about working here, they say the residents,” she went on. “And when I ask the residents what’s their favorite part about living here, they say the staff. So, it’s really a wonderful work environment for our staff, and we see that we’re all doing really good and important work, and it makes it much easier to come to work every day knowing about the positive impact that you have.”

Martin said that feeling extends to families, some of whom live far away, but many of whom live locally and stop by regularly for visits, meals, and events. “We love to see their interactions with our residents because it’s really their home. So we want our residents to treat it like their home and have their families here for holidays and other special occasions, or just to come watch a movie on a Thursday night.”

As for her own experience, Martin said she’s happy to have made this intriguing career shift — and she’s still learning.

“I love that it’s new every day,” she told BusinessWest. “There’s always something new that happens that I wouldn’t have anticipated. But I’ve loved getting to know the residents, their families, and our staff. It’s really the people that make a difference in this work, and getting to know the stories of the people who are here has been really inspiring and motivating and reinforcing of why this is such a great career path.”

Community Spotlight

Community Spotlight

Karia Youngblood says Mount Holyoke College’s $175 million geothermal project is a bold move for the institution.

Karia Youngblood says Mount Holyoke College’s $175 million geothermal project is a bold move for the institution.

At its core, Mount Holyoke College’s $175 million geothermal energy initiative is an infrastructure project.

But, by design (in most cases, anyway), it has become much more than that.

Indeed, the massive undertaking, soon to enter its third phase, has become a living laboratory for many students, engaging them in learning opportunities involving everything from geology (during test-well drilling) to sustainable landscaping to humanities.

Meanwhile, the project has provided a captivating glimpse into the college’s past, with excavation work uncovering part of the foundation of the college’s original structure, the Seminary Building, which dates back to 1837, a find that provides some poignant symmetry, said Karia Youngblood, associate vice president of Facilities Management at Mount Holyoke.

“I worked with our archivist, and we overlaid the footprint of the Seminary Building and determined that foundation was actually the corner of the original boiler room of that building, which also explains why we found some fire bricks in that area,” she explained. “It felt like a really sweet, full-circle moment.”

Such symmetry is one intriguing aspect of this closely watched project, which is just one of many storylines unfolding in South Hadley.

“With our 19 units historically at 100% occupancy, with minimal opportunity to reside here due to lack of turnover, we believe the best way to sustain long-term success is to open the door to more housing.”

Others, said Town Administrator Lisa Wong, include everything from progress toward building a new elementary school to work toward development of a strategic plan for the town’s municipal golf course, to planned infrastructure work — and economic-development initiatives — in the community’s historic Falls section, which includes Town Hall.

“We’re hoping to raise some money and do some projects in that area, which is along the river,” she explained. “There are some businesses there, but we’re looking to attract more.”

As for established businesses that call South Hadley home, many can be found in the Village Commons, a setting unlike anything else in Western Mass. — a collection of buildings that has won awards for its design and is known for constant change, but also, in some ways, remarkable stability.

The Village Commons

The Village Commons has historically had a high occupancy rate for its retail and office space, and there’s a lengthy waiting list for its residential units.

Indeed, many of the commercial tenants have had this mailing address for decades, said Jeff Labrecque, chief operating officer of Center Redevelopment Corp., which manages the Commons for its owner, Mount Holyoke College, noting that the same is true for those occupying the 19 coveted residential units as well.

“We have one woman who has lived here for 36 years,” said Labrecque, noting that there is a waiting list for the units, one that people stay on for several years, on average, before there is a vacancy.

This lengthy waiting list helps explain why the Village Commons is actively looking to expand and add additional residential units, Labrecque told BusinessWest, adding that South Hadley, like most area cities and towns, has a critical need for housing, especially of the affordable variety.

“I’m an alum of the college, and the day the board approved this project, I felt so much pride in my institution that they had the courage to take such a bold step to preserve the environment, to preserve the legacy of Mount Holyoke.”

“We’re continuing to focus on residential expansion opportunities,” he said. “With our 19 units historically at 100% occupancy, with minimal opportunity to reside here due to lack of turnover, we believe the best way to sustain long-term success is to open the door to more housing.”

Meanwhile, one of the long-time commercial tenants in the Village Commons, the Bean Restaurant Group, founded by the Yee family, has continually expanded its presence within the complex. Three of the group’s 13 restaurants — Johnny’s Bar & Grill, IYA Sushi and Noodle Kitchen, and Johnny’s Tap Room, a banquet and events facility — are located within the Commons.

Overall, the group continues to grow in size, with the most recent addition being the Crush Wine Bar in West Hartford, Conn. but also in prestige, recently garnering the 2024 Restaurant of the Year Award from the Retailers Assoc. of Mass. (RAM), recognizing the company’s longstanding dedication to hospitality excellence, culinary creativity, and community engagement.

“It’s a feather in the cap, not for the Yee family, but really for our teams in every restaurant, because they’re the ones that build the relationships,” said Edison Yee, son of Johnny Yee, who laid the cornerstone for what would become a chain with the opening of the famed Hu Ke Lau in Chicopee. “They’re the ones table-touching every day, and they continue to bring that culture that my father instilled in all of us to our restaurants every day.”

 

Things Are Heating Up

Numbers certainly help tell the story of Mount Holyoke’s geothermal system. And there are quite a few of them.

When completed, there will be 26 miles of geothermal piping to be installed under the campus. The project also entails the drilling of 230 bores, each of them 600 feet deep, that will heat and cool 43 buildings covering 1.6 million square feet of real estate.

The most important numbers, though, are 2037 and 100% carbon neutrality. The former is a date, the college’s 200th birthday, and the latter is a goal to be reached by that date, a goal that in many ways inspired the geothermal project, said Youngblood, adding that this goal coincided with another one — to replace a 100-year-old, highly inefficient steam-distribution system.

Members of the second and third generations of the extended Yee family

Members of the second and third generations of the extended Yee family now managing the Bean Restaurant Group: from left, Matt Yee, Nathan Yee, Sonny Wae, Bonnie Wae, Emma Yee, Nick Yee, and Edison Yee.

Tracing the genesis and progression of the project, Youngblood, an alum who has been working in her current position for three years, said the college made a climate commitment in 2016, and in 2018 a sustainability task force was formed to look at how the college could reduce its carbon emissions.

That group’s work soon focused on the school’s fossil-fuel-powered heating plant and five large steam boilers, which produced 80% of those emissions. And it led to an energy master plan that looked at a handful of different technologies and was guided by several criteria, including cost, greenhouse-gas reduction, and technology that was both adaptable and able to offer engagement opportunities for on-campus researchers and students.

These and other guidelines were met by geothermal heat-exchange technology, she went on, adding that Mount Holyoke took inspiration — and some lessons — from a similar project at Carleton College in Minnesota, and commenced work in 2022.

“This is a bold step for the college,” Youngblood said as she put the many aspects of this initiative into perspective. “I’m an alum of the college, and the day the board approved this project, I felt so much pride in my institution that they had the courage to take such a bold step to preserve the environment, to preserve the legacy of Mount Holyoke. We’re a small liberal-arts college in Western Massachusetts, and many of our peers with larger endowments have yet to take such a step.”

As Wong noted, the geothermal project is one of many developing stories in South Hadley. Others include early-stage work to replace Mosher Elementary School; recent improvements to Buttery Brook Park, including wildly popular pickleball courts; the launching of an affordable housing trust to address that pressing issue; creation of a Human Services department; gaining designation from the state as a green community; and planned infrastructure work on Main Street.

Meanwhile, the town is also launching a strategic plan for its municipal golf course. Conceived in the late ’90s, when golf was enjoying a Tiger Woods-inspired boom, the course, called the Ledges, struggled for many years, but has fared better recently as golf has enjoyed another surge, this one fueled in part by the pandemic.

“The course is operating in the black, but it’s not covering all the debt right now,” said Wong, noting that the debt incurred to build the course and clubhouse will be paid off in four years, and the town wants a plan in place for maximizing that asset. A major focus will be on open space for the public, such as accessible walking trails.

 

It Takes a Village

While Labrecque takes the title COO of Center Redevelopment Corp., he likes to refer himself as an ‘innkeeper.’

In fact, at least one tenant calls him that, he said, adding that the hospitality-toned title is a better reflection of what he does day in and day out — and also what the Village Commons was designed to be and has certainly become.

“When you’re managing more than 70 tenants, and most of them are mom-and-pops, you really have to take on the innkeeper mentality, almost as if you’re running a bed and breakfast,” he explained. “And it’s always hands-on, very different from a commercial mall environment.”

As noted earlier, the Commons is noted for both its stability — some tenants go back to the very beginning in 1987, and many have called the complex home for 30 years or more — but also for the change that comes to any facility that is home to retail and office tenants.

That stability is marked by 100% occupancy on the retail and hospitality side of the equation, and 92% on the office side, which is strong compared to many office facilities in the post-pandemic, remote-work era, but still down from the Commons’ history of full occupancy, Labrecque noted.

“Hybrid work schedules continue to impact the office market, therefore creating an abundance of nationwide vacancies, leading to a heated and competitive leasing environment,” he said, adding that, while, these and other headwinds continue to present challenges to the Commons, the facility continues to more than hold its own.

Recent additions include Kiao Wan Thai restaurant, which opened its doors in October, and Eliza Moser Fine Art. Moser is an internationally trained oil painter, art instructor, and gallerist, and her facility hosts a broad range of weekly classes, paint nights, and one-day workshops that are routinely sold out.

Meanwhile, established tenants cover many sectors and include Odyssey Bookshop, Darby O’Brien Advertising, HUB International, Ochoa Day Spa, and Tower Theaters, which, like most cinema operations, is still in recovery mode from the pandemic, but making strides and continuing to be a destination that brings people to the Commons and its many restaurants.

“When you’re managing more than 70 tenants, and most of them are mom-and-pops, you really have to take on the innkeeper mentality, almost as if you’re running a bed and breakfast.”

Looking forward, the Commons is looking to advance what would be its first real expansion in more than 30 years, said Labrecque, adding that this expansion will come on the residential side, and with the twin motivations of meeting the town’s glaring need for more housing, while also providing more revenue with which to meet the growing costs of maintaining a complex now approaching its 40th birthday.

Additional residential units would constitute phase 3 of the Commons project, and it has been talked about for at least 20 years, he noted, adding that efforts have been slowed by the Great Recession, the pandemic, and other forces, but he expects some movement on this front within the next year.

 

Next on the Menu

Meanwhile, the Bean Group works to balance its ongoing efforts to expand with the day-to-day work of managing and operating 13 restaurants — and, during September, three more operations at the Big E.

It’s a complicated balancing act, said Nate Yee, a member of the third generation of the family now managing the group.

“We put a lot on our managers; we have a great amount of trust in them,” he told BusinessWest. “It comes with a lot of communication and checkpoints — that’s really how we do it. What sets us apart is that family touch where we’re in the units; we try our best to get to every restaurant at least once every week. It doesn’t always happen, and we rely on our managers.”

While the group is spread out across Western Mass. and now into the Hartford area, roughly half its restaurants are in South Hadley. In addition to those at the Commons, there are also the Halfway House Lounge, Johnny’s Roadside (a diner focusing on breakfast and lunch), and the Boathouse, located on the Connecticut River.

The 13 restaurants in the group run the gamut, from sushi to cheeseburgers and milkshakes at the two White Hut locations, and this diversity certainly makes it interesting, said Nick Yee, another of Johnny’s sons, noting that, beyond the wide variety of restaurants, the group is also coping with changes in eating habits, including a tendency among the younger generations to eat earlier and get home earlier.

“In South Hadley, our busiest time starts at 5, and it goes until 8,” he noted, adding that only a few years ago, peak time was closer to 7. “In South Hadley, we used to be open until midnight; now, we’ve cut that down to 9:30, 10.”

As for opportunities for expansion, there are many of them, said Nick, noting that “every restaurant is for sale, really.”

Nate agreed, adding that the group looks at many factors when it explores opportunities — from the lease conditions to parking; from the talent pool to the condition of the building in question — but, ultimately, it comes down to leadership and whether it would make a good fit with the group’s culture.

Maintaining that culture is job one, they agreed, adding that doing so contributes to awards like the one from RAM, but mostly leads to continued growth and success for a group that started nearly 60 years ago and is still thriving, especially in this town that’s progressing right along with it.

 

Wealth Management

Into the Metaverse

By Jeff Liguori

 

Social media has evolved from a niche digital trend into a global force, reshaping how people communicate, consume content, and interact with businesses. With billions of active users worldwide, platforms continue to evolve, adapting to new trends, technological advancements, and changing consumer preferences, with artificial intelligence a central force in driving that content.

Social media’s reach is staggering. As of 2024, more than 4.7 billion people globally use social media, accounting for nearly 60% of the world’s population. The sheer number of active users on platforms like Facebook, Instagram, TikTok, YouTube, and X (formerly Twitter) highlights the pervasive nature of social media in contemporary society.

These platforms are not only communication tools but also major drivers of entertainment, commerce, news distribution, and politics. For instance, Facebook, Instagram, and WhatsApp (all owned by Meta) have become critical for digital marketing, with businesses of all sizes leveraging these platforms for brand awareness, lead generation, and direct sales.

Jeff Liguori

Jeff Liguori

“With billions of active users worldwide, platforms continue to evolve, adapting to new trends, technological advancements, and changing consumer preferences, with artificial intelligence a central force in driving that content.”

These outlets have provided an infrastructure for the ‘influencer’ class, who directly profit from an increasing number of visitors or subscribers to their sites. It is estimated that an influencer on Instagram with 100,000 followers earns between $1,000 and $15,000 per post, depending on content, product placement, engagement with subscribers, and ads running on their sites.

For perspective, high-profile athletes and celebrities can earn millions of dollars per post. The professional soccer player, Christiano Ronaldo, arguably the most recognized and popular athlete in the world, has 645 million followers on Instagram and more than 1 billion on all his social-media accounts combined. Taylor Swift has 280 million Instagram followers and 550 million across all platforms.

 

Meta Dominance

Meta Platforms, which owns Facebook, Instagram, WhatsApp, and Oculus, is undeniably one of the largest players in the social-media space. The company has expanded far beyond its original social-networking service, diversifying into virtual reality (VR), digital advertising, and even the metaverse.

As of Q3 2024, Meta reported having 3.1 billion monthly active users across its family of apps. Facebook itself remains the dominant player, with more than 2.9 billion active users, followed by Instagram with 2.4 billion, WhatsApp with 2 billion, and Messenger at around 1.3 billion users.

Despite its massive user base, Meta’s stock performance has been volatile in recent years, especially following its aggressive push into the metaverse. While its quarterly earnings reports often show healthy revenues — primarily driven by advertising — investors have been divided on the long-term potential of Meta’s shift toward virtual reality and the metaverse. The company’s stock price has been subject to dramatic swings, particularly when its investments in the metaverse didn’t immediately translate to a clear revenue stream.

For instance, Meta’s stock price saw a significant drop in late 2022, losing nearly half of its value in just a few months. This was in part due to concerns that its focus on the metaverse was draining resources that could have been used to improve its core social-media business. But investors have gained confidence in CEO Mark Zuckerberg’s vision as advertising revenue has continued to grow, and its foray into AI-powered tools has generated excitement among investors. Since January of 2023, the stock price has skyrocketed nearly 400% to the end of November 2024.

Meta is now the fifth-largest publicly traded company in the world, with 72,000 employees and a total valuation of roughly $1.6 trillion. By contrast, Walmart, the largest global retailer, employing more than 2 million people worldwide, is valued at less than half of Meta currently.

The strategic shifts, user growth in key markets, and a focus on optimizing ad revenue continue to propel Meta’s profits. The company’s Q3 2024 earnings revealed a 20% year-over-year increase in revenue, with much of this growth coming from ad sales on platforms like Facebook and Instagram.

While Meta is undeniably one of the largest players in the social-media space, it faces intense competition from several other platforms. To get a better sense of the broader social-media landscape, the most recognized key performance metric is monthly average users (MAUs), which measures how many unique users interact with a product or service within a 30-day period.

The dominance of a few platforms, with Facebook, YouTube, and WhatsApp leading the pack in terms of monthly active users, is clear. Facebook remains the largest social-media platform with nearly 2.9 billion MAUs, a testament to its broad global reach. WhatsApp and Instagram, both under the Meta umbrella, have similarly vast user bases, collectively reaching more than 4.9 billion people each month.

Despite its impressive user count, TikTok has emerged as one of the most formidable competitors, with 1.7 billion MAUs. TikTok’s rapid growth, driven by its addictive short-form video content, has captured the attention of younger audiences and advertisers alike. The app has become a significant disruptor in the digital advertising space, particularly in reaching Gen Z, a demographic that Meta has struggled to retain.

 

The Future … Not Without Controversy

The future of social media is uncertain, with new platforms emerging and user habits shifting. While Meta’s advertising business remains robust, its long-term stock performance will depend on how well it can balance innovation in areas like the metaverse and AI, while maintaining its massive user base across Facebook, Instagram, and WhatsApp.

And the social ecosystem is not without controversy. Social media can contribute to mental-health issues, such as anxiety and depression, due to constant comparison and online validation. The spread of misinformation is another significant challenge, as false narratives can quickly gain traction and influence public opinion. Additionally, the pressure to maintain a curated, idealized online persona can lead to feelings of isolation and a lack of authentic connection.

Expect greater scrutiny of all things digital, especially as AI becomes exponentially more powerful, driving these sites and adapting to changing user habits.

 

Afterword

This article was almost entirely written using the AI platform ChatGPT. While I’m not an active user of AI tools for research or writing, I think it is an important commentary on the state of technology today.

I come from a family of writers — my brother is an editor for the New York Times and a vocal opponent of using AI for such articles. And while I agree there are many pitfalls to the artificial-intelligence phenomenon, as a society, we must work diligently to use all these tools for the betterment of humanity. With the ease of content production today, it is incumbent on all of us to use AI and social media responsibly and help police those that do not.

 

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

Wealth Management

Good News for Massachusetts Estates

By Hyman Darling, Esq.

 

In the fall of 2023, the Commonwealth increased the exemption for estate taxes for Massachusetts residents from the $1 million exemption (with the cliff) to $2 million with no cliff. The prior tax law was that each resident had an exemption of $1 million, but if the $1 million threshold was exceeded, then the exemption disappeared, and the tax was assessed on all assets back to the first dollar.

Therefore, the new Massachusetts estate-tax exemption is now a true $2 million exemption, such that only estates in excess of that amount are taxed. The law is retroactive and applies to all decedents dying on Jan. 1, 2023, and thereafter. The rates now start at 7% and increase at a graduated rate up to 16%.

Within the bill, however, Massachusetts attempted to tax real estate outside of Massachusetts owned by Massachusetts residents. Even the Department of Revenue’s instructions for completing the M-706 included language requiring that the non-state property of Massachusetts residents was to be included in the calculation of the estate tax. Under the Dassori v. Commissioner of Revenue case, however, the court ruled that the attempt by Massachusetts to estate-tax Massachusetts residents on their non-Massachusetts real estate was unconstitutional.

Hyman Darling

Hyman Darling

“The new Massachusetts estate-tax exemption is now a true $2 million exemption, such that only estates in excess of that amount are taxed.”

Good news — MGL Chapter 65C Sec. 2A was amended on Sept. 19 and now excludes the value of out-of-state property for estate-taxation purposes of Massachusetts residents. This law is also retroactive for deaths on or after Jan. 1, 2023. Non-Massachusetts residents who own property in Massachusetts will still need to file an estate-tax return where assets are in excess of the exemption, but these estates may have their Massachusetts estate tax reduced to a nominal amount as they are also entitled to the credit of $99,600 (the previous estate tax on $2 million).

For Massachusetts residents, we no longer need to list the out-of-state real estate with the value of -0- on the estate-tax return, claiming that the inclusion of the asset is unconstitutional. For example, if a Massachusetts resident has real estate and other assets in Massachusetts with a total value of $1.9 million and out-of-state real estate worth $1 million, a Massachusetts estate-tax return will no longer be necessary, and the fiduciary may file an affidavit of no tax due, in lieu of filing the estate-tax return to obtain a release of lien.

Massachusetts law provides that, when a person dies owning real estate within the Commonwealth, a lien automatically attaches to the real estate. This is how the state ensures that taxes will be paid. If the Massachusetts estate is less than $2 million, an affidavit may be filed in the Registry of Deeds, which releases the lien. If the estate is greater than $2 million, then a tax return is required to be filed to obtain a release of lien, even if no tax is due.

Of course, if the estate is large enough, a federal estate tax may have to be filed, as well as a state return for any state that still has estate taxes if the decedent owned property there. A good planning tool would now be to purchase property out of Massachusetts, which lowers the estate for tax purposes in the state. The CPA, investment advisor, and lawyer should be involved as a team in the planning process to determine the options available to lower estate taxes if possible.

 

Hyman Darling, a shareholder at Bacon Wilson and chair of the firm’s Estate Planning and Elder Law department, is recognized as the area’s pre-eminent estate planner, with extensive experience with all aspects of estate planning, trusts, tax law, probate and estates, guardianships, special-needs trusts and planning, elder law, and long-term care planning, and additional specialties including adoption and real estate; (413) 781-0560.

Wealth Management

Suspicion Warranted

By the Federal Trade Commission

 

People use cryptocurrency for many reasons — quick payments, to avoid transaction fees that traditional banks charge, or because it offers some anonymity. Others hold cryptocurrency as an investment, hoping the value goes up.

However, scammers are always finding new ways to steal your money using cryptocurrency. To steer clear of a crypto con, here are some things to know.

Only scammers demand payment in cryptocurrency. No legitimate business is going to demand you send cryptocurrency in advance — not to buy something, and not to protect your money. That’s always a scam.

Only scammers will guarantee profits or big returns. Don’t trust people who promise you can quickly and easily make money in the crypto markets.

Never mix online dating and investment advice. If you meet someone on a dating site or app, and they want to show you how to invest in crypto, or ask you to send them crypto, that’s a scam.

Scammers are using some tried and true scam tactics — only now, they’re demanding payment in cryptocurrency. Investment scams are one of the top ways scammers trick you into buying cryptocurrency and sending it on to scammers. But scammers are also impersonating businesses, government agencies, and love interests, among other tactics.

 

Investment Scams

Investment scams often promise you can make lots of money with zero risk, and often start on social media or online dating apps or sites. These scams can, of course, start with an unexpected text, email, or call, too. And, with investment scams, crypto is central in two ways: it can be both the investment and the payment.

Here are some common investment scams and how to spot them.

• A so-called ‘investment manager’ contacts you out of the blue. They promise to grow your money — but only if you buy cryptocurrency and transfer it into their online account. The investment website they steer you to looks real, but it’s really fake, and so are their promises. If you log in to your ‘investment account,’ you won’t be able to withdraw your money at all, or only if you pay high fees.

• A scammer pretends to be a celebrity who can multiply any cryptocurrency you send them. But celebrities aren’t contacting you through social media. It’s a scammer. And if you click on an unexpected link they send or send cryptocurrency to a so-called celebrity’s QR code, that money will go straight to a scammer, and it will be gone.

• An online ‘love interest’ wants you to send money or cryptocurrency to help you invest. That’s a scam. As soon as someone you meet on a dating site or app asks you for money, or offers you investment advice, that’s almost certainly a scammer. The advice and offers to help you invest in cryptocurrency are nothing but scams. If you send them crypto, or money of any kind, it’ll be gone, and you typically won’t get it back.

Scammers guarantee that you’ll make money or promise big payouts with guaranteed returns. Nobody can make those guarantees, much less in a short time. And there’s nothing low-risk about cryptocurrency investments. So, if a company or person promises you’ll make a profit, that’s a scam, even if there’s a celebrity endorsement or testimonials from happy investors. Those are easily faked.

Scammers promise free money. They’ll promise free cash or cryptocurrency, but free money promises are always fake. Scammers also make big claims without details or explanations. No matter what the investment, find out how it works and ask questions about where your money is going. Honest investment managers or advisors want to share that information and will back it up with details.

Before you invest in crypto, search online for the name of the company or person and the cryptocurrency name, plus words like ‘review,’ ‘scam,’ and ‘complaint.’ See what others are saying.

 

Business, Government, and Job Impersonators

In a business, government, or job impersonator scam, the scammer pretends to be someone you trust to convince you to send them money by buying and sending cryptocurrency.

Scammers impersonate well-known companies. They might say they’re from Amazon, Microsoft, FedEx, your bank, or many others. They’ll text, call, email, or send messages on social media — or maybe put a pop-up alert on your computer. They might say there’s fraud on your account, or your money is at risk — and to fix it, you need to buy crypto and send it to them. But that’s a scam. If you click the link in any message, answer the call, or call back the number on the pop-up, you’ll be connected to a scammer.

Scammers impersonate new or established businesses offering fraudulent crypto coins or tokens. They’ll say the company is entering the crypto world by issuing their own coin or token. They might create social-media ads, news articles, or a slick website to back it all up and trick people into buying. But these crypto coins and tokens are a scam that ends up stealing money from the people who buy them. Research online to find out whether a company has issued a coin or token. It will be widely reported in established media if it is true.

Scammers impersonate government agencies, law enforcement, or utility companies. They might say there’s a legal problem, that you owe money, or your accounts or benefits are frozen as part of an investigation. They’ll tell you to solve the problem or protect your money by buying cryptocurrency. They might say to send it to a wallet address they give you — for ‘safe keeping.’

Some scammers even stay on the phone with you as they direct you to a cryptocurrency ATM and give step-by-step instruction on how to insert money and convert it to cryptocurrency. They’ll direct you to send the crypto by scanning a QR code they give you, which directs the payment right into their digital wallet — and then it’s gone.

Scammers list fake jobs on job sites. They might even send unsolicited job offers related to crypto like jobs helping recruit investors, selling or mining cryptocurrency, or helping convert cash to crypto. But these so-called ‘jobs’ start only if you pay a fee in cryptocurrency, which is always a scam, every time.

As your first task in your ‘job,’ these scammers send you a check to deposit into your bank account. (That check will turn out to be fake.) They’ll tell you to withdraw some of that money, buy cryptocurrency for a made-up ‘client,’ and send it to a crypto account they give you. But if you do, the money will be gone, and you’ll be on the hook to repay that money to your bank.

To avoid business, government, and job impersonators, know that:

• No legitimate business or government will ever email, text, or message you on social media to ask for money, and they will never demand that you buy or pay with cryptocurrency.

• Never click on a link from an unexpected text, email, or social-media message, even if it seems to come from a company you know.

• Don’t pay anyone who contacts you unexpectedly, demanding payment with cryptocurrency.

• Never pay a fee to get a job. If someone asks you to pay up front for a job or says to buy cryptocurrency as part of your job, it’s a scam.

Education Special Coverage

It Starts with a Plan

AIC interim President Nicolle Cestero

AIC interim President Nicolle Cestero

Amid a shifting landscape for higher education, Nicolle Cestero says, colleges that are unwilling to change will be left behind.

That’s the idea behind a new, expansive organizational business plan at American International College, announced last month, that will guide the college over the next several years, said Cestero, AIC’s interim president.

Dubbed Pathway to Progress, the document presents an array of changes to AIC’s operational model, including revising the academic portfolio, expanding degree options, launching new enrollment strategies, and streamlining athletic programming, including cutting programs and moving the men’s hockey team from Division I to Division II in the NCAA.

“There have been many changes in higher education over the course of the past 20 years, and even over the course of the past three to five years. And if institutions aren’t changing and being nimble, then they are finding themselves merging or closing,” Cestero told BusinessWest in a wide-ranging interview regarding the plan.

“This institution, in the opinion of myself and others — senior management, faculty, staff, board of trustees — believe that we are really important to the students that we serve and to this community, and we want to make sure that AIC is here for the long term,” she added. “So we had to look at ourselves and say, ‘what we’re doing right now isn’t sustainable. So what do we need to do in order to make sure that AIC is here three, five, 10 years from now?’ That’s where Pathway to Progress comes in.”

“There have been many changes in higher education over the course of the past 20 years, and even over the course of the past three to five years. And if institutions aren’t changing and being nimble, then they are finding themselves merging or closing.”

Among the shifts in the higher-education landscape, according to the plan’s designers, are disruptions caused by the launch of a new federal financial-aid model, changes in demographics across the Northeast, and the nationwide conversation around the value of a college degree.

“We can’t continue to do the same things that we’ve always done and expect the same results,” Cestero added. “So we needed to say, ‘what are we good at? What’s making us money? What’s not?’ — and then make the tough decisions to say, ‘we’re going to cut here, and we’re going to grow here in order to maintain the institution.’”

To get to those decisions, AIC contracted with a consulting company for a market analysis, financial analysis, and program analysis for athletics and academics. Then Cestero and Michael Dodge, executive vice president for Academic Affairs, put together a steering committee, including representatives from various constituencies.

After months of work, “it got to the point where it was pretty clear the direction the institution should go, and then Michael and I made those final decisions, obviously with the support of the board of trustees — and the board had responsibility for making a few of those decisions, too,” she added. “Then we rolled it out.”

Michael Dodge

Michael Dodge says AIC leadership engaged with faculty in determining where to build on areas of strength.

For this issue’s focus on education, we break down the three main pillars of AIC’s new organizational plan and how its leaders feel the college will benefit from each.

 

Academic Changes

First of all, AIC, is changing its degree offerings, embarking on a multi-year plan to launch new programs based on industry demand and market research, while discontinuing some undergraduate and graduate programs as well. Faculty positions will not be affected.

Following the previously announced launch of seven new online degree completion programs, the college plans to expand the number of program offerings beginning in the fall of 2025.

“I think, being a small institution, we can maybe run faster than some bigger schools or state institutions might be able to.”

“We looked at what makes sense for us to expand on, as opposed to just adding a program. What are we good at?” Cestero said. “But at the same time, we’re sunsetting programs. We’re saying, ‘OK, if we’re going to do all of this, we don’t have the resources to do all of this as well. So, unfortunately, this is going to have to go away. Those are hard decisions to make … but you have to recognize that those things need to happen in order for these other things to grow.”

For students who wish to earn an undergraduate degree more quickly, AIC will also begin offering three-year, 120-credit options for a variety of undergraduate programs, which make use of less expensive summer sessions, to provide time and financial savings to students (see related story on page 29). It will also launch a comprehensive re-enrollment campaign to engage and recruit former students to return to AIC and complete their degrees.

Thinking about how to refocus the academic program didn’t start only with Pathway to Progress, Dodge told BusinessWest.

“We’ve spent the last three years figuring out where are those areas where we can be really good, where we have some skills,” he said. “In the last couple of years, we’ve built a fully online master’s in criminal justice program. We’re getting into the degree-completion space, where students who’ve earned an associate degree at one of the amazing community colleges in the Commonwealth can come to AIC and have a seamless transition and convert that right over into their bachelor’s degree.

“We’ve also really tried to engage the faculty and build in the things that they are good at and that we can lean into,” Dodge added, as well as spaces AIC had not previously competed in, like computer science and data analytics, where market demand for talent is high — while also continuing to strengthen core areas where the college already excels.

Pathway to Progress includes launching a re-enrollment campaign to engage and recruit former students to return to AIC and complete their degrees.

Pathway to Progress includes launching a re-enrollment campaign to engage and recruit former students to return to AIC and complete their degrees.

“We’re really good at the health sciences, education, criminal justice. We have a number of our students in our business programs, so we always want to continue to improve those. But then, we also want to think about what else is out there, what’s the next thing. And I think, being a small institution, we can maybe run faster than some bigger schools or state institutions might be able to.”

Cestero said everyone impacted by decisions on academic programs was informed personally before the plan was announced, and then a town-hall event was held on campus for all parties — students, faculty, employees, vendors, and partners — to discuss them further.

“Any student that is in an academic program that is going away, we are teaching out those programs,” she explained. “All we’re doing is not bringing new students in, and they will have the same faculty. The faculty aren’t going away, either.”

 

Impacts on Athletics and Faculty

The big news in AIC athletics is the return of men’s ice hockey to Division II after the 2024-25 season, following 27 years in Division I. In recent years, the team has recorded significant success, earning national rankings from 2018 to 2021 and winning the Atlantic Hockey America conference regular-season title in 2019.

According to a press release on the Plan for Progress, the decision was made to position the program alongside the majority of AIC’s varsity programs in Division II, and that “this transition will provide a more equitable distribution of resources among all athletic programs and will allow ice hockey’s legacy to continue within the AIC Athletics portfolio.” All scholarships for affected athletes will be honored.

“When put it in the perspective of ‘what does this institution need to do to stabilize itself?’ I think it becomes a simpler decision,” Cestero said. “If this is siphoning off money that is leading to the institution not being stable financially and you want the institution here, it makes the decision easier than just ‘should we take it from DI to DII?’ I think the harder part is that the students have found a place here, and they are happy here, and knowing that you’re disrupting it, that’s the really hard part.”

“Because there were so many changes coming forward, we felt as though, if we aren’t clear about what the whole plan is up front all at once, then you’ve got a culture of fear, and that’s not good for anybody.”

It’s also tough for athletes in AIC’s women’s tennis and wrestling programs, which are being ended “to better meet industry demand and provide additional resources to other varsity sports,” the release notes. Again, all scholarships for affected athletes will be honored, though some may choose to use their remaining eligibility elsewhere.

“A freshman wrestler may want to go somewhere else because they have so much eligibility left, whereas a junior tennis player, if they were to transfer, they could lose out on transfer credits and things of that nature,” Cestero said. “Plus, you have your home here, right? You’ve got your circle of friends, you’ve got your major, you’ve got your faculty, your mentors, etc.”

Meanwhile, the Plan for Progress impacts faculty as well. To support the ongoing growth of AIC’s academic portfolio, the college will expand faculty options by introducing multi-year contracts, including a new ‘professor of practice’ role alongside the existing tenure-track pathway and adjunct/part-time faculty roles.

A professor of practice is a faculty member who typically has a non-academic background, but is successful and knowledgeable in their field, enabling them to improve students’ knowledge by providing a practical perspective, along with the theoretical perspective provided by an academic professor.

“We’re bringing these real-world experiences into the classroom, but these individuals that are going to become these teachers don’t necessarily have a doctorate, nor do they necessarily want one,” Cestero said. “But we’re allowing them a pathway to be a professor in higher education without needing to have that terminal degree. And it benefits the students at the end of the day.”

In addition, most full-time faculty will shift to a 5/5 teaching load, meaning five courses per semester instead of four, to better meet academic demands. In return, some tasks will move to staff advisors.

“We still have work to do. I mean, this is only a piece of what we need to do from a long-term perspective, but these are the things that we need to do now in order to become stable and then be able to grow.”

“Right now they teach 4/4, but then they have these other responsibilities for scholarship and community service and registering students for classes and things of that nature,” she explained. “And we said, ‘OK, they’re spread in many different ways. What if we were to take this responsibility and shift it over here? That would give them more time to focus on the actual teaching.’”

 

A Transparent Process

AIC has been out front with its plan, publicly detailing its various elements, including in this article. Cestero said there are three reasons for that.

“The first is, I’ve heard for years and years that people in leadership aren’t transparent, and specifically at AIC, that’s been said a lot. Secondly, you have to get everybody on board when you’re trying to do something this major, and if you’re not very open and direct and clear about what that is, then you’re not going to be able to get everybody on board.

“Three, when you’re not transparent, you create a culture of fear. Because there were so many changes coming forward, we felt as though, if we aren’t clear about what the whole plan is up front all at once, then you’ve got a culture of fear, and that’s not good for anybody.”

As a small, private college, AIC has challenges that differ from public universities and private colleges with much larger endowments. Cestero noted. But in the current climate, all institutions likely need to be strategizing about how to adapt.

“We still have work to do. I mean, this is only a piece of what we need to do from a long-term perspective, but these are the things that we need to do now in order to become stable and then be able to grow.”

That said, “I think that AIC is a really special place, and I want us to be able to continue to serve these students,” she said. “I think the students that we have are so amazing, and that’s why it’s important that we’re doing all of this.”

Special Coverage Wealth Management

Too Good to Be True

By Carlo Centeno

Some of the largest financial fraud schemes have taken place within the last 100 years. The truism “if it’s too good to be true, then it probably isn’t” has been pushed aside by those convinced that if they hesitate, they lose the opportunity.

Pride has a way of pushing a desire or perceived benefit into acceptance. The short version of that notion is commonly known as FOMO [fear of missing out]. White-collar criminals understand that, as investment tactics, strategies, and offerings become more complex, the easier it is to pull the wool over some eyes. For the unfortunate victims, the fear of missing out is all too real, but a greater fear comes to bear regarding their sense of self: in not wanting to appear naïve or uninformed, the ego takes over.

In the mid-1980s, Warren Buffet noted in a letter to Berkshire Hathaway shareholders about “two super-contagious diseases,” namely fear and greed. His analogy to disease — more specifically epidemics — made clear that uncertainty, time of discovery, duration, strength, along with other possible factors could compromise global economies and markets. Ultimately, this led to his aphorism, “we should be more fearful when others are greedy, and to be greedy when others are more fearful.”

According to psychologists, humans are motivated more to avoid pain than to seek pleasure. Put another way, studies have shown that, when it comes to fraud, fear is a stronger motivator than greed.

“According to psychologists, humans are motivated more to avoid pain than to seek pleasure. Put another way, studies have shown that, when it comes to fraud, fear is a stronger motivator than greed.”

Corporations and their minions take advantage of investors’ interests by feeding ‘data points,’ the kind of information most would like to hear. In a marketing sense, the perception is the reality; it’s not what investors are hearing, but what they believe they’re getting.

 

Investment Fraud

Investment reasoning is contrarian for most of us. We think that, when some assets are experiencing losses, we need to sell to reduce such losses, and then, when the market goes up, we should buy more of said assets. It’s been long documented that making investment decisions guided by emotions does not fare well. However well-intentioned the feeling might be, it’s usually not good in the long run.

Jim Ratley, president and CEO of the Assoc. of Certified Fraud Examiners (ACFE), notes that “there’s no such thing as small fraud, but fraud that has yet to reach their full potential.” The ACFE has reported that approximately 87% of first-time offenders have never been charged or convicted. In such cases, the idea of getting caught is real, but a sense of invincibility reinforces continuation of the tactics that keep money in the wrong hands.

Carlo Centeno

Carlo Centeno

“Investment reasoning is contrarian for most of us. We think that, when some assets are experiencing losses, we need to sell to reduce such losses, and then, when the market goes up, we should buy more of said assets. It’s been long documented that making investment decisions guided by emotions does not fare well.”

According to the Federal Trade Commission (FTC), consumers reported a record $10 billion in fraud losses in 2023. The amount represents an increase of 14% over losses in 2022. The top category: investment scams. The most used method of acquiring fraudulent cash was through bank transfers.

To be clear, this writer is not aware of any cohort consumer behavioral research which quantitatively ascertains why the losses are so high, though, based on the FTC findings, the means in acquiring fraud dollars can be attributed to a combination of factors: the increased use of online selling and buying, the growing sophistication of iterative websites that mimic actual sites, proficiency in acquiring personal information, in particular from social media, and trends in lifestyle resources appearing on tablet and mobile devices, in particular with health-related products and services, dating services, and financial management.

And the losses continue to grow. Here are some fraud examples that took place not that long ago.

• Lehman Brothers: When you hide $50 billion in loans and reassign them as assets, that’s bound to backfire. It did. The bank’s internal department discovered $3 billion in losses to investors; that money was bought by Cayman Island banks to be purchased later by Lehman Brothers. The majority of the first-timers involved with the scam had no prior criminal record. Due to lack of evidence, the SEC did not prosecute.

Enron: The Houston-based energy commodities corporation kept enormous amount of debt off the balance sheet. Clients and employees of the firm lost their retirement accounts, and shareholders lost a staggering $74 billion. Auditing firm Arthur Anderson was involved, CEO Jeff Skilling was sentenced to 24 years in jail, and CFO Andrew Fastow pleaded guilty and served jail time. Fastow forfeited $24 million and pleaded guilty to two counts of conspiracy. In a news interview, he said, “there are people who look at the rules and find ways to structure around them. The more complex the rules, the more opportunity. The question I should have asked is not what is the rule, but what the principle is.”

• Bernie Madoff: Running the largest Ponzi scheme ever, Madoff’s investment firm took $64.8 billion from investors. Any “returns” paid out came from money from other investors or even their own money. After he confessed to his sons about his fraud, the sons reported him to the SEC the following day. For all the technology available to the investment industry, the fraudulent information was stored in a 1980s-era IBM AS/400 server.

• Sam Bankman-Fried’s FTX Scam: One of the more recent scams involved cryptocurrency. The investment scam was Sam Bankman-Fried, with friends being his associates. Cryptocurrency, to this day, still poses a high level of risk (see related story on page XX). The securities platform called FTX was claimed to deliver higher rates of return in 2019. By 2022, it all came undone. Bankman-Fried was sentenced to 25 years in federal prison for the FTX fraud. At its zenith, FTX valuation reached $32 billion.

 

Bottom Line

Financial fraud is wrought with complexities in large part because of the size and scale of investments offered today. Adding to this depth and volume, the ongoing evolution of computers, satellite communications, storage, encryption, and verification (just to name a few factors) continues to develop ways to not only identify bad actors, but the means to identify transactions and activities that point to potential financial crimes.

 

Carlo Centeno is vice president and Marketing director at St. Germain Investment Management. Much of his career has been in corporate communications, primarily on the agency side, where he worked on a variety of projects with national clients. He has received both a Clio Award and a Golden Pyramid Award for strategic business-to-business communication programs. He received his bachelor’s degree in English literature from Boston University and an MBA from the Isenberg School of Management at UMass Amherst.

Commercial Real Estate Special Coverage

Hour Town

The Clock Tower complex in Pittsfield

The Clock Tower complex in Pittsfield

Sally Tiska Rice says she grew up in Pittsfield. As a child, and up through her high-school years until the plant started slowing down, she recalls going with her mother to visit aunts and other relatives working at the Sheaffer-Eaton paper mill in town. Later, as she entered the world of work herself, she became a hand-boarding artist working at Crane & Co. in Dalton (noted for making currency), painting stationery.

These chapters in her life help explain why she feels right at home as she continues writing the current chapter, as one of the so-called Clock Tower Artists, a diverse group of artists now renting lofts in part of the Sheafer-Eaton complex, renamed the Clock Tower Business Center because clocks were once made on that site.

“Immediately when I walked into the building, it reminded me of the place I worked at for my career,” said Tiska Rice, who specializes in portraits of homes, people, and pets. “The buildings were very similar — the big windows; the historic, brick New England mill … the whole structure just brought back a lot of memories.”

Beyond the memories, it offered her a north-facing window, what’s known as ‘north light’ — that’s important for artists because they don’t have to cope with the effects of the sun moving through the studio at different angles during the day — and the ability to be part of a community of artists.

“Immediately when I walked into the building, it reminded me of the place I worked at for my career.”

These artists, roughly 20 of them, are just some of the many tenants, large and small — including the Berkshire Eagle, which once owned the whole complex — that now have a South Church Street mailing address. Together, they help make the transformation of the Shaffer-Eaton complex a unique success story, one authored by North Adams-based Scarafoni Associates/CT Management Group, which acquired part of the complex in 2006 and the remainder in 2016. It has reshaped the property into a thriving mixed-use facility featuring residential units, a wide range of commercial tenants, those aforementioned artists, the Eagle and its massive printing presses, and more.

Dave Carver, a principal with CT Management Group/Scarafoni Associates

Dave Carver, a principal with CT Management Group/Scarafoni Associates

This is a story of imagination and especially perseverance, said Dave Carver, a partner with Scarafoni Associates/CT Management Group. He noted that the group has had to overcome the departure of major tenant Wayfair (much more on that later), the loss of Berkshire Medical Center offices, and the downsizing of the Eagle, while also enduring the pandemic and its impact on the office market and other stern challenges to lease out almost all the space in the complex.

“We got creative, we worked hard, we knocked on a lot of doors,” said Carver as he talked to BusinessWest in one of the conference rooms once used by Wayfair, now shared by several smaller tenants on one floor in a modified co-work arrangement that is just one of the successful components of this endeavor.

For this issue and its focus on commercial real estate, BusinessWest talked at length with Carver, Tiska Rice, and others about the transformation of the former Sheaffer-Eaton property into one of the more successful mill-conversion undertakings in this region, and how the evolution of this historic complex continues.

 

Success Stories

Tracing the history of the property, Carver said it dates back to the 1880s, when the Connecticut-based Terry Clock Co. was purchased by a group of investors from Pittsfield who brought the operation to that city and built a three-story building on Church Street.

Sally Tiska Rice, one of the Clock Tower Artists.

Sally Tiska Rice, one of the Clock Tower Artists.

The company’s tenure there was short-lived — it failed in the early 1890s — and the property was eventually sold to Arthur Eaton, who moved a paper mill there, later to be known as the Sheaffer-Eaton mill after a merger with Sheaffer Pen. In the late 1980s, the property was sold to the owners of the Berkshire Eagle, which were looking for a new home for the then-thriving daily paper.

The Eagle’s owners undertook a massive renovation of the main building on the property and leased out large sections of it, said Carver, noting that the recession of the mid-’90s hit the Eagle hard, and its operation, and the mill complex it called home, were sold to Media News Group, which eventually put portions of the property on the market.

“Because they had been struggling for so long, there was a lot to do. And we still have a lot to do; it never ends.”

This included roughly 100,000 square feet in some of the smaller buildings, including the original Terry Clock building, which were acquired by Scarafoni Associates/CT Management Group in 2006, and soon transformed into Clock Tower Condominiums.

In 2016, as Media News Group’s struggles escalated and it looked to jettison the remaining 200,000 square feet in the complex, Scarafoni/CT Management stepped in and acquired it, commencing a comprehensive initiative to modernize, retenant, and reimagine the property, which was maybe 50% occupied at the time, said Carver, adding that, over the past eight years, the property has certainly evolved and developed a unique look and feel.

The Clock Tower complex, where clocks and then paper were made, brings the past, present, and future together in an historic setting.

The Clock Tower complex, where clocks and then paper were made, brings the past, present, and future together in an historic setting.

“Because they had been struggling for so long, there was a lot to do,” he told BusinessWest. “And we still have a lot to do; it never ends.”

By that, he meant both upkeep buildings more than a century old, but also the many challenges confronting all those owning, managing, and leasing out office space today.

As an example of all of the above, he referenced what could be called the ‘Wayfair chapter’ of this story.

It started when the owners of the Boston-based home-furnishings company, who are from Pittsfield, commenced a search in 2019 for space in which to create a call center in the western part of the state.

That search focused on Pittsfield, said Carver, noting that several sites were considered before the company eventually zeroed in on the South Church Street property and 35,000 square feet in one of the buildings in the complex.

“We rolled up our sleeves and went to work — we immediately started knocking on doors and networking.”

Negotiations continued for roughly a year, he noted, adding that the company eventually came to terms that included a five-year lease, shorter than is common is such deals, but a needed concession given the size of the company’s investment and “City Hall encouraging us to make the deal.” A rapid buildout followed, the company started moving in that October, and it was ramping up to 200 jobs when the pandemic hit.

“And then, everything shut down, and that was for at least a year, and it could have been two,” Carver said, adding that, when the company finally decided to start bringing employees back, it struggled mightily to do so.

“A lot of employees had drifted away to other jobs, they were experimenting with a work-at-home model, and ultimately that went out, so they decided to close the facility,” he explained, adding that Wayfair opted out of its lease roughly a year ago, leaving a 35,000-square-foot hole at a challenging time for all commercial-property owners.

 

Art of the Deal

What happened next, Carter said, was that “we rolled up our sleeves and went to work — we immediately started knocking on doors and networking.”

And this hard work has paid off. Elder Services of Berkshire County, marking its 50th anniversary, moved into 19,000 square feet over the first two floors of the building previously occupied by Wayfair, while the third floor, with roughly 15,000 square feet, features smaller tenants with a shared common area; only a few spaces remain to be leased.

Wayfair’s departure has been one of the many challenges overcome by the Clock Tower complex’s owners and managers.

Wayfair’s departure has been one of the many challenges overcome by the Clock Tower complex’s owners and managers.

Tenants include Janney Montgomery Scott, a regional financial-services firm that desired a presence in Western Mass.; Teton Management, a real-estate management company; Keiter Builders, a general contractor based in Northampton that also sought a Berkshires location; Insights in Automation; Annie Schwartz Nutrition; and MassHire Berkshire Workforce. Together, they share what amounts to co-working space.

“We decided to leave the kitchen area Wayfair created and the open area,” Carver said. “So even though everyone has their own, independent space, it’s a modified co-working area.”

Its creation is one of the success stories at this historic property. The Clock Tower Artists, located on the third floor of the business center, comprise another.

The collective, or community, now includes more than 20 artists that work in various disciplines and often participate in open-studio events and community arts initiatives.

Tenants include Shanny Porras, a visual sound artist who translates music into abstract paintings; Caroline Kennedy, an abstract artist; Deborah Carter, a multi-media artist who creates upcycled, wearable art; Stefanie Webber, an action-based artist who specializes in dance, movement, and performance; Bruce Laird, a contemporary artist who creates pieces using acrylic, mixed media, and collage; and Linda Petrocine, who specializes in the ancient art of painting using hot wax on wooden panels.

Collectively, these artists bring vibrancy, energy, and people to the Clock Tower complex, said Carver, adding that there is room for more, and he expects the group to grow in the years to come.

Tiska Rice said she was among the first artists to visit and then sign on at the mill. She and others were impressed with everything from the parking to the open common area on the artists’ floor, which doubles as an art gallery; from the large windows, views, and north light to the elevator (Tiska Rice is disabled).

Tiska Rice was also impressed with what Carver and his team were doing with the mill, blending history with imaginative ideas, such as the artists’ floor. And she’s equally impressed with the community of artists that has emerged.

“It’s great to be with all these talented artists — it’s very encouraging,” she told BusinessWest. “Some people will refer to having the notorious artist’s block where you’ve finished your last project and you don’t know where to go from there. There’s so much encouragement here; everyone works with their own style, but it seems like everyone has a way to complement each other and bring out the best in each other.

“An artist’s world has also been described as a very lonely place,” she went on. “We’re a whole group of individuals that come together as a community.”

This community of artists is just one of many reasons why the Clock Tower complex has become a timeless mixed-use masterpiece, one that brings the past, present, and even the future together in stunning fashion.

Features Special Coverage

Reflecting on the Year That Was

 

George Timmons

George Timmons calls education “the great equalizer,” and MassEducate a very effective way to achieve that.

In many ways, 2024 didn’t provide much clarity regarding economic questions we posed a year ago in our annual year in review. Inflation and interest rates remain high (if not historically so), while remote work, a housing shortage, and some sector-specific challenges continue to make the news.

But there was some good news, too, and some encouraging progress on fronts ranging from rail development to educational access to some intriguing high-tech developments. As 2025 dawns, BusinessWest presents its year in review, noting some of the stories and issues that shaped our lives, and will, in many cases, continue to do so.

 

The High Cost of Everything…

The Federal Reserve has been on a mission over the past two years — to tame inflation without putting the country into recession. By and large, the latter part has been accomplished, but inflation remains a thorny challenge.

Consumer prices were up 2.7% for the 12 months that ended in November, but stubborn inflation in housing (up 0.3% for the month in November) and food (up 0.4%) continue to hit people where they notice it most, while the price of cars and energy also rose in November. Economists are also unsure how President-elect Trump’s promised tariffs will impact inflation.

Meanwhile, some economists expect some relief in interest rates, and a chance that the Fed may go as low as 4% in 2025.

Still, Bob Nakosteen, semi-retired professor of Economics at the Isenberg School of Management at UMass Amherst, recently told BusinessWest that “the economic numbers don’t look bad at all. The labor market has weakened a little bit, but it’s not weak; it’s just not as strong as it had been. And most of the other indicators are strong, including GNP. It’s about where it had been, and in some ways, it’s above trendline.

“This is not breaking news,” he added, “but the economy has held up really well in spite of a lot of pressure, especially from a rapidly rising interest-rate environment. The consumer has really rolled with the punches.”

 

…Except Community College

MassReconnect, a program the state launched in 2023 to fully fund tuition, books, and supplies at community colleges for students over age 25, has, to hear college presidents tell it, been a game changer, significantly boosting enrollment and getting more students into a pipeline that will hopefully bring more new blood to the region’s workforce.

“The economic numbers don’t look bad at all. The labor market has weakened a little bit, but it’s not weak; it’s just not as strong as it had been. And most of the other indicators are strong, including GNP.”

This past summer, state lawmakers went further by implementing MassEducate, a $117.5 million annual investment that covers tuition and fees for all students, plus books and supplies for some. The program aims to support both economic opportunity for students and workforce development across a Massachusetts economy that has struggled, sector by sector, to recruit and retain talent in recent years.

Importantly, the program is a ‘last dollar’ investment, meaning students will still access federal funds, like Pell Grants, as well as state aid and scholarships, and MassEducate will pay the costs that remain, so it’s not funding anywhere near the full cost of a student’s education.

“I’m so passionate about this work of education,” Holyoke Community College President George Timmons said. “It is the great equalizer. Once you have an education and all the rights and privileges of that degree, you can earn a livable, sustainable wage, you can take care of yourself and your family, and you can literally change the trajectory of a family.”

 

Productivity in Pajamas?

A report last year by McKinsey Global Institute suggested that remote work risks wiping $800 billion from the value of office buildings in major cities worldwide by 2030 as the post-pandemic trend pushes up office vacancy rates and drives down rents.

Large employers are fighting back. In September, Amazon President and CEO Andy Jassy informed tens of thousands of workers that they will be back in the office five days a week come January. That was good news for commercial real-estate owners and developers, who hope other employers follow suit.

But while remote-work critics claim improved collaboration and communication, as well as the learning opportunities that come when everyone is together, outweigh any benefits that might come from remote work and hybrid schedules, the fact is that the hybrid movement, at least, seems entrenched for now — and also puts employers who nix all remote work at a competitive disadvantage when recruiting in an already-tough talent market.

But Evan Plotkin, president of Springfield-based NAI Plotkin, told BusinessWest that he sees a partially offsetting force in east-west rail, which has the potential to drive development in areas near the rail stops, and even prompt some businesses to realize they don’t have to be in Boston anymore. “It could be transformative; in Springfield, for example, it could drive development in the Union Station area and make that area much more attractive.”

 

Working on the Railroad

So, is east-west rail finally becoming a reality, connecting Springfield and Boston? Well, the money being put behind what’s known as the Compass Rail project is certainly real.

At the end of October, U.S. Rep. Richard Neal announced the latest $36.8 Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant by the Federal Railroad Administration, following a $108 million CRISI grant — the third-largest in the nation — late last year. Since Union Station reopened in 2017, more than $200 million has been allocated toward east-west rail, both from federal grants and MassDOT funding.

The latest funding will support the Springfield track-reconfiguration project, which is designed to increase capacity to accommodate both freight and increased passenger rail service. The project will include building new crossovers and layover tracks, upgrading platforms around Springfield Union Station, and modernizing track and signal systems.

“With the substantial progress that has been made with west-east rail, the Commonwealth is well-positioned to pursue additional funding for years to come.”

Since the station’s reopening, Neal said, “the investments that have been made in passenger rail have been extraordinary,” adding that, “with the substantial progress that has been made with west-east rail, the Commonwealth is well-positioned to pursue additional funding for years to come.”

Meanwhile, MassDOT is conducting a study focused on the restart of passenger rail along the Route 2 corridor, a project whose public advocates include dozens of municipalities, regional planning agencies, and state legislators.

 

SOC It to Springfield

Speaking of Union Station, in September, it officially became home to the Richard E. Neal Cybersecurity Center of Excellence, one component of a multi-million-dollar series of investments, announced in 2022, to bolster cybersecurity resilience — and the related workforce — across the state.

These awards included a $1,086,476 grant to support the launch of CyberTrust Massachusetts, a nonprofit that works with business and academia statewide to grow the cybersecurity talent pipeline while promoting local security operations.

U.S. Rep. Richard Neal joins a host of local dignitaries

U.S. Rep. Richard Neal joins a host of local dignitaries in September to cut the ribbon on his namesake cybersecurity center.

The state also awarded $1,462,995 award to Springfield Technical Community College (STCC) and $1,200,000 to Bridgewater State University to establish a security operations center (SOC) and cyber range in each city. The Neal Center at Union Station, managed by STCC, also benefited from $500,000 in ARPA funding from the city of Springfield.

Springfield’s 6,000-square-foot center — a collaboration between STCC, the Springfield Redevelopment Authority, and CyberTrust Massachusetts — aims to be a hub for advancing cybersecurity awareness, education, and innovation while battling global security threats. Its cyber range is a simulated, hands-on training environment, and its SOC is envisioned as a support service for Massachusetts municipalities, as well as regional businesses, to detect cybersecurity events in real time and respond quickly.

 

Tackling the Housing Crisis

One of the dominant stories of 2024 was a continuing housing shortage that touches virtually every community.

With that in mind, over the summer, Gov. Maura Healey signed into law the Affordable Homes Act, which aims to support the production, preservation, and rehabilitation of more than 65,000 homes statewide over the next five years. It is the largest housing bond bill ever filed in Massachusetts, at more than triple the spending authorizations of the last housing bill passed in 2018.

The legislation authorizes $5.16 billion in spending over the next five years along with 49 policy initiatives to counter rising housing costs caused by high demand and limited supply. Key spending authorizations and policy changes include allowing accessory dwelling units, an unprecedented investment in modernizing the state’s public housing system, boosts to programs that support first-time homebuyers and homeownership, incentives to build more housing for low- to moderate-income residents, support for the conversion of vacant commercial space to housing, and support for sustainable and green housing initiatives.

“The Affordable Homes Act creates homes for every kind of household, at every stage of life, and unlocks the potential in our neighborhoods,” Healey said. “We are taking an unprecedented step forward in building a stronger Massachusetts where everyone can afford to live.”

 

High Risks for Cannabis Operators

According to a new report in the Boston Business Journal, cannabis businesses are surrendering licenses at an alarming rate in Massachusetts. Since September 2023, four retail licenses have been either surrendered, not renewed, or revoked, and so have 26 non-retail licenses, which include growers and manufacturers. In the five years before that, just five retail and 11 non-retail licenses were surrendered.

The green rush is clearly over; more than 700 cannabis businesses have opened or received licensing approval, and prices have fallen sharply amid stiffer competition — which makes running a business much more challenging.

Springfield Mayor Sarno recently cut the ribbon opening EMBR Springfield, a cannabis dispensary at 461 Boston Road.

Springfield Mayor Sarno recently cut the ribbon opening EMBR Springfield, a cannabis dispensary at 461 Boston Road.

So does a still-unresolved disconnect between state and federal law that has thrown a number of wrenches into cannabis businesses, which, among other hurdles, grapple with an onerous tax burden since they can’t write off many of the costs other businesses can. Federal laws also impact elements from transportation to banking. And while federal rescheduling of cannabis has bipartisan appeal, it’s uncertain whether the next Congress will have the appetite for it.

There may be some potential good news for dispensary owners: a newly established regulatory framework for operating ‘social consumption sites’ in Massachusetts, potentially allowing public use of the drug. The Cannabis Control Commission is currently receiving public comment on the draft and will take the issue up in the new year.

 

Data Center Clears Tax Hurdle

Two years ago, Westmass Area Development Corp. helped Servistar Realties secure approval from the Westfield Planning Board, as well as a major tax break from the City Council, for a large, high-tech data center near Westfield-Barnes Regional Airport that could attract some of the largest tech companies in the world. Servistar even negotiated a power-purchase agreement with Westfield Gas & Electric allowing it to access below-market electric rates.

“The challenges in healthcare over the past five years have shifted, but they have not let up. And they ultimately result in financial challenges that are stressing the ways in which we collectively provide access to care in our communities.”

One hurdle remained to move the $3 billion project — which will feature 10 buildings going up over two decades — off the ground, and that was a state sales-tax exemption commonly offered to data centers in other states. Last month, that exemption became a reality as part of a larger economic-development bill on Beacon Hill, and because of it, the Westfield project could start progressing soon.

Analysis from McKinsey & Co. shows demand for data-center capacity in the U.S. more than tripling by 2030, according to the Boston Globe. Meanwhile, the sales-tax exemption could save the future Westfield park owners up to $30 million per year. Construction could start early in 2026, with the first building completed 18 months later.

 

Diagnosing the Problem

In a recent interview with BusinessWest, Mercy Medical Center president Dr. Robert Roose used the word ‘relentless’ to describe the current headwinds in medicine, which include everything from spiraling costs and inflation to persistently inadequate reimbursements from payers; from continuing workforce challenges to access and capacity issues — not to mention the overriding issue of caring for a population that is older and sicker than what has been seen historically.

“The challenges in healthcare over the past five years have shifted, but they have not let up,” Roose said. “And they ultimately result in financial challenges that are stressing the ways in which we collectively provide access to care in our communities.”

Baystate Health, in a remarkable show of transparency, recently went public to detail its struggles — including $300 million in operating losses over the past few years — and its response, which includes the sale of its lab, the pending sale of Health New England, and, most recently, the elimination of 130 administrative positions.

Those steps are part of what Baystate’s new president and CEO, Peter Banko, called a “transformation plan, one that calls for making hard decisions, relieving cost pressures, some cuts, but also investments in the years to come and greater financial stability.”

Expect more hard decisions across the healthcare spectrum in the year to come.

 

Music Lives Again at the Iron Horse

Finally, a positive note — many notes, in fact.

When music venues began to reopen in the wake of the pandemic, the Iron Horse Music Hall in Northampton was not among them, and owner Eric Suher didn’t have immediate plans to unshutter the venerable Center Street storefront.

Chris Freeman says he wanted to “bring back the glory days” of the Iron Horse.

Chris Freeman says he wanted to “bring back the glory days” of the Iron Horse.

In stepped the Parlor Room Collective, a nonprofit that operates the nearby Parlor Room music space, which purchased the Iron Horse and set about raising $750,000 to renovate it, maintaining its intimate feel but improving facets like its famously inadequate green room and restrooms, while expanding into adjoining space for a dedicated bar and community events. The venue reopened on May 15 and has hosted a robust lineup of concerts ever since.

“We have witnessed the magic of our local music scene and its ability to fuel the engine of our economy, enhance the overall well-being of our community, and contribute to our cultural vitality,” said Chris Freeman, executive director of the Parlor Room Collective.

“I live here, and part of the reason Northampton has become a great food scene and a great downtown culture is the arts,” he also told BusinessWest. “I’ve made it my life’s mission to make sure that never goes away, and we can bring back the glory days of such a legendary venue.”

Community Spotlight

Community Spotlight

 

Ralph Santaniello, right, with executive chef and co-owner (and brother-in-law) Michael Presnal

Ralph Santaniello, right, with executive chef and co-owner (and brother-in-law) Michael Presnal at the recently opened Lola’s at the Longmeadow Shops.

Ralph Santaniello was gushing about the Longmeadow Shops as the location for a restaurant — specifically the one operated by his family, Posto, which features Italian cuisine.

“It’s just ideal,” he said, listing everything from location — it’s in Longmeadow, but just a stone’s throw from East Longmeadow, Enfield, Springfield, and other communities — to its many shops, which draw people for an extended stay that could include a meal; from the strong support for local businesses from the Longmeadow community to the growing number of restaurants in or near the shops, creating a dining destination of sorts.

“It’s becoming a little like West Hartford or Northampton years ago,” said Santaniello, noting that this combination of factors led his family to double down, if you will, and convert the former Umi’s Asian restaurant (and, before that, a Friendly’s) at the shops into Lola’s, described as a ‘coastal Mexican’ restaurant.

“Mexican is now the most popular food behind Italian food in this country,” Santaniello said. “And we’re taking a different look at Mexican food; for years, it was what Mexican-American food was; now, you’re getting more authentic Mexican food from different parts of Mexico.”

Lola’s adds this authentic Mexican eatery to a growing, diverse roster of restaurants in town that also includes Posto, Max Burger, and Delaney’s Market, all in the shops, as well as the Meeting House, featuring ‘creative New American’; Royal Spice, an Indian restaurant; and a Jersey Mike’s, all in the plaza across Williams Street from the Longmeadow Shops, and Fletcher’s barbeque restaurant on Longmeadow Street.

This steady progress toward becoming a dining destination is one of many storylines in this residential community of roughly 16,000 people.

Another is the relatively new ownership at the Longmeadow Shops. It was acquired roughly a year ago by Regency Properties, which saw a unique asset — what Jack deVilliers, managing director of the company’s Northeast region, called “the heart and soul of the community.”

“This has the DNA that we really like — it’s a community shopping center,” he said, noting that the shops, fully leased for as long as anyone can remember, is a gathering spot, not just for Longmeadow residents, but those in neighboring communities as well. “This property checks all the boxes — location, tenant mix, access, visibility, parking; it’s all there.”

On the municipal side, the town is making progress with plans to consolidate its two middle schools and construct a new facility at the site of one of them, Williams Middle School, Town Manager Lyn Simmons said. This is a $150 million project, according to the latest estimates, expected to open its doors in the fall of 2028 if all goes according to schedule.

Meanwhile, plans are moving forward for work at a major intersection, and for improvements at one of the municipal parks, projects that will now be coordinated by employees working at a new complex of town offices in the former Greenwood Park Elementary School.

“This has the DNA that we really like — it’s a community shopping center.”

That move leaves the former offices, in the Community House on Longmeadow Street, available for reuse, said Simmons, adding that the town will be commissioning a study to determine the best uses of not only the Community House, but Town Hall, located next door, and Old Town Hall, located about a half-mile down Longmeadow Street.

On the business side, all eyes are on the former First Church of Christ Scientist property on Williams Street, just east of the Longmeadow Shops. The property, unused for several years now, has been acquired by the Springfield-based Colvest Group. While no specific plans have been announced, Colvest has said the planned development, to be called Towne Shoppes of Longmeadow, will include retail (high-end shops) and one or more restaurants to complement the town’s growing mix.

Jack deVilliers

Jack deVilliers says the Longmeadow Shops checks all the boxes for him, from location and tenant mix to access, visibility, and parking.

deVilliers said the development, which has been several years in the making, will in many ways be an extension of the shops, one that will complement that complex and make it even more of a magnet for diners and shoppers.

“This will only strengthen the gravitational pull of that area,” he said, adding that Regency is already working with Colvest on upgrades to access where the properties join.

Meanwhile, three years after fire destroyed the Maple Shopping Center at the corner of Maple and Shaker roads near the Enfield line, the shell of a new plaza has been constructed, said Simmons, adding that its owners have not announced any tenants to date.

She noted that both commercial projects are important developments for the town, which has very few developable parcels — meaning few opportunities for business growth.

For this latest installment of its Community Profile series, BusinessWest takes an in-depth look at Longmeadow and the many developing stories there.

 

Food for Thought

As he talked with BusinessWest at a table in Lola’s, Santaniello said there is a considerable amount of dining history at that site.

Indeed, for several decades, this was a flagship location for Friendly’s, the chain started by Longmeadow Shops developer S. Prestley Blake and his brother Curtis.

Later, it was Umi’s, which essentially “papered over and bricked over” the Friendly’s as it installed its own look.

“This certainly provides an opportunity for development, job creation, and new growth, which is not something we see very often, especially to the extent we can see from this parcel.”

“As we dug through, we saw different iterations of Friendly’s, including a fireplace,” said Santaniello, adding that his family essentially took the storefront down to the studs in creating Lola’s, which opened in March and is off to a solid start.

“We had a great launch, and we’ve settled in,” he noted. “Everyone rushes in to try a place at first — every night is like Saturday night when you first open up. That tapers off eventually, and then you build it back up, and that’s where we are now.”

This success has not come at the expense of Posto, or probably any of the other restaurants in town, he said, adding that the emergence of a “restaurant community,” as he put it, helps bring more people from across the region to the town.

Longmeadow at a glance

Year Incorporated: 1783
Population: 15,853
Area: 9.7 square miles
County: Hampden
Residential Tax Rate: $20.68
Commercial Tax Rate: $20.68
Median Household Income: $109,586
Median Family Income: $115,578
Type of Government: Open Town Meeting; Town Manager; Board of Selectmen
Largest Employers: Bay Path University; JGS Lifecare; Glenmeadow
* Latest information available

Meanwhile, for the family, which is selling the third restaurant it owns, the Federal in Agawam, Lola gives them two operations about 250 yards apart, which brings several advantages, as well as lots of steps for Santaniello, who will go back and forth between the two spots at least a few times each day.

He passes an eclectic mix of shops and eateries, one that is historically stable, a retail property where vacancies — and pending vacancies — are filled quickly.

Such is the case with one storefront, soon to be available as its owners retire, that will be filled by Warby Parker, the manufacturer and retailer of eyeglasses, contact lenses, and other products.

“When you look at the lifestyle centers that Warby Parker has been going into … they saw this, loved the community-center aspect of this, and jumped on it,” said deVilliers, adding that the location is slated to open in the summer of 2025.

Meanwhile, Longmeadow’s stable of restaurants should have at least one addition with the development of the neighboring church property, said Simmons, adding that the project is an important development for the town, which has little in the way of developable land or property.

“We have very few parcels that can be redeveloped,” she noted, adding that a measure was passed at the Nov. 12 town meeting to update the town’s zoning map to reflect an article passed at an earlier town meeting to change the zoning of the property from residential to business. “This certainly provides an opportunity for development, job creation, and new growth, which is not something we see very often, especially to the extent we can see from this parcel.”

 

Developing Stories

As for the Maple Road plaza, known to most locals as the Armata’s Plaza, for the supermarket that was located there, the shell of a new facility has been constructed, as well as a new parking lot, said Simmons, adding that the owners have not provided information on potential new tenants, which will not include Armata’s.

As these commercial developments unfold, there are several municipal projects advancing as well, starting with the new middle school.

The town’s two middle schools, Williams and Glenbrook, are aging structures, opened in the ’60s, noted Simmons, adding that the trend in communities of this size is toward one middle school, which in this case would be built on the athletic fields adjacent to Williams, with the existing structure then demolished.

“Our population at each school is about 330 students, so when we consolidate, we’ll have 660 at one site, which is the standard model used in many districts across the state,” she explained, adding that the town will gain efficiencies, and certainly reduce costs, by operating and maintaining one school instead of two.

The project has received approval from the state and is the queue for funding, said Simmons, noting that a town-meeting vote will take place in the fall of 2025.

Meanwhile, the consolidation of the middle schools would give the town an opportunity for redevelopment of the Glenbrook site, said Corrin Meise-Munns, assistant town manager and director of Planning & Community Development, adding that talks about what to do with that property are still in the very early stages.

Other municipal projects include a state Land and Water Conservation Fund grant, the first one the town has received in 30 years, to be used for renovations of the playground at Bliss Park.

The project comes with a $1.6 million price tag, with the grant covering just over half that total. The work involves replacing the playground, benches, and picnic tables and making them all ADA-accessible. The work complements significant investments in the park’s pool, including upgrades to the pump room, said Simmons, adding that the next phase of that initiative is a liner.

The town has also received its first-ever MassWorks grant, $285,000 to design improvements to the intersection of Williams Street, Redfern Drive, and Frank Smith Road, site of the church adjacent to the Longmeadow Shops that is slated for redevelopment.

“It’s a heavily trafficked area, and there have been discussions for some time about the need for pedestrian, bicycle, and vehicular improvements, and this will fund that design work,” Simmons said, adding that the town will look for additional grant monies to help pay for the recommended improvements.

Insurance

Before the Storm

By Lisa Eugin

 

As winter approaches, business owners need to prepare for colder temperatures, possible snow, and other seasonal challenges that can disrupt operations. Taking time to winterize your business can prevent costly repairs, ensure employee safety, and help maintain smooth operations during harsh weather. Here are some essential tips to help protect your business this winter.

 

Inspect and Maintain Your Heating System

A properly functioning heating system is critical for keeping employees comfortable and protecting your building from extreme cold. Schedule a professional inspection to ensure your heating system is operating efficiently. Replace filters regularly and address any issues immediately to prevent breakdowns during the coldest months.

 

Lisa Eugin

Lisa Eugin

“Taking time to winterize your business can prevent costly repairs, ensure employee safety, and help maintain smooth operations during harsh weather.”

 

Check and Insulate Pipes

Frozen pipes can lead to severe damage and expensive repairs. Inspect pipes, especially those in unheated areas like basements or exterior walls, and wrap them with insulation to prevent freezing. Keep the heat on during extremely cold days, even in rarely used areas, to further reduce the risk of frozen pipes.

 

Clear and Salt Walkways

Icy walkways can be hazardous to both employees and customers. Make a plan to keep walkways, steps, and parking areas clear of snow and ice. Apply salt or ice melt regularly, and consider contracting a snow-removal service for larger areas. This proactive approach reduces the risk of slips, falls, and potential liability claims.

 

Inspect the Roof and Clear Gutters

Snow accumulation can be heavy and cause roof damage. Before winter fully sets in, inspect your roof for any weaknesses, clear gutters to prevent ice dams, and trim any overhanging branches that could fall under snow weight. Clearing snow regularly can prevent excess buildup, but be sure to use a safe method to avoid damaging your roof.

 

Seal Doors and Windows

Energy loss through poorly sealed doors and windows can lead to higher heating costs. Add weather stripping and caulk any gaps to keep the warmth inside and drafts outside. This not only saves on energy bills, but also maintains a comfortable environment for your employees and customers.

 

Have a Backup Power Plan

Winter storms often bring power outages. Ensure your business can continue to operate by investing in a backup generator. For businesses that rely on refrigeration or heating for sensitive products, a power outage plan is especially critical.

 

Test Emergency Alarms and Sprinklers

Fire risks increase in the winter due to higher heating demands. Make sure your fire alarms, smoke detectors, and sprinkler systems are in good working order. Test these systems regularly, and keep a clear path to fire exits for safety compliance.

 

Review Your Insurance Coverage

Reviewing your insurance policies is an essential step in preparing for winter. Make sure you have coverage for potential winter hazards, including property damage from snow, ice, or freezing. Having the right coverage can protect your business from unexpected losses.

 

Create a Communication Plan

In the event of extreme weather or closures, ensure employees and customers are well-informed. Use email, social media, or text alerts to communicate closures, delays, or other essential information. This helps manage expectations and ensures everyone’s safety.

 

Stock Up on Winter Supplies

Be prepared with essentials like ice melt, shovels, safety cones, and emergency supplies. Having these items on hand allows you to respond quickly to winter challenges without delays. If possible, designate a storage area to keep winter supplies organized and accessible.

 

Conclusion

Winterizing your business takes a little time and preparation, but can make a huge difference in protecting your property, keeping operations running smoothly, and ensuring safety.

 

Lisa Eugin is manager of Marketing and Administration at Encharter Insurance in Amherst.

 

Autos

Built for Speed

 

The EV charging hub, located at 59 North Main St. in South Deerfield, is now open to the public.

The EV charging hub, located at 59 North Main St. in South Deerfield, is now open to the public.

 

Rivermoor Energy, a provider of clean-energy development solutions for commercial and government customers, recently completed a new electric vehicle (EV) fast-charging hub in downtown South Deerfield, in partnership with the town of Deerfield and the Federal Highway Administration.

The opening of the charging hub was celebrated with a ribbon-cutting event on Nov. 15. The project was funded by a $2.46 million federal Charging and Infrastructure (CFI) grant, made possible by the Bipartisan Infrastructure Law (BIL). It is the first CFI grant project to be completed in the Eastern U.S. and is also compliant with the National Electric Vehicle Infrastructure Program.

The EV charging hub, located at 59 North Main St., is now open to the public. The charging stations are fully accessible to local EV drivers, by either mobile phone or credit card.

“This is a large step forward for clean energy in Massachusetts and demonstrates the Commonwealth’s leadership in the energy transition,” U.S. Rep. Jim McGovern said. “This project will also serve as a blueprint for others across the state and around the country, showing communities a way to implement innovative technologies and solutions that benefit the environment, the economy, and, most importantly, the people who live in and around these areas.”

The facility includes four new EV chargers — two dual-port Level 3 DC fast chargers and two dual-port Level 2 chargers, for a total of eight charging ports. Electric vehicles will be able to fully charge in 20 minutes or less.

The positive environmental impact goes beyond EVs. In recent years, Deerfield has experienced increased flooding from nearby waterways, including the Deerfield River, the Connecticut River, and Bloody Brook. The project incorporates environmental engineering designed to mitigate and adapt to the effects of flooding and climate change, including the installation of permeable asphalt and rain gardens; planting of native trees, grasses, and shrubs; and creating new green space in the center of Deerfield.

“This is a large step forward for clean energy in Massachusetts and demonstrates the Commonwealth’s leadership in the energy transition.”

“This project is not only an impactful one for the environment and the advancement of clean energy, but it’s also a boost for the economic backbone of our town,” said Christopher Dunne, Deerfield’s acting town administrator. “With the added accessibility, climate-change mitigation, and new pedestrian walkways leading to downtown businesses, Deerfield can continue to thrive and serve its local business owners and attract new customers to our business community. We thank the Joint Office of Energy and Transportation, the Federal Highway Administration, and the Massachusetts Departments of Transportation and Energy Resources for their support and partnership in the planning and development of this project.”

 

Center of Activity

As electric-vehicle adoption grows across the country, the federal CFI program advances the development of convenient, reliable charging stations designed to make it easier for consumers to charge their cars quickly and easily. The town of Deerfield was selected for the CFI grant as a regional business center with easy access for other Western Mass. communities and travelers along Interstate 91.

Acting Federal Highway Administrator Kristin White called Deerfield’s project “a key pillar of the nation’s EV charging network,” adding that “this project embodies the goals of the BIL by deploying American-made clean transportation infrastructure that shows our historic investment in combating climate change for future generations.”

Gabe Klein, executive director of the Joint Office of Energy and Transportation, noted that “multi-modal charging hubs in communities are key to giving more people the choice to ride and drive electric. The town of Deerfield is showing leadership in building out convenient charging infrastructure that brings new transportation choices to rural and disadvantaged communities, while supporting local commerce.”

While the Level 3 chargers — the fastest in the industry — can charge electric vehicles in as quickly as 20 minutes, the Level 2 chargers allow for residents or visitors who will stay parked for a longer time to charge their vehicles as well. With transportation accounting for the largest portion of total greenhouse-gas emissions in the U.S., having Deerfield’s chargers accessible in a public place, near a major highway, is a positive for travelers, employees, and visitors to Deerfield’s businesses and restaurants, project advocates noted.

“Deerfield’s charging hub, less than a mile from I-91, will attract visitors to downtown South Deerfield’s vibrant restaurants and businesses.”

“Rivermoor Energy is proud to lead the development of the first CFI grant project completed in the Eastern U.S.,” said John Tourtelotte, founder and managing director of Rivermoor Energy. “This project delivers EV fast charging to the most rural county in Massachusetts. Deerfield’s charging hub, less than a mile from I-91, will attract visitors to downtown South Deerfield’s vibrant restaurants and businesses. Deerfield’s project also directly benefits the local and regional economy by advancing skilled trades, engineering services, and good-paying jobs right here in Western Massachusetts.”

 

Regional Partnership

Partners on the project included Universal Electric of West Springfield, Taylor Davis Landscape & Construction of Amherst, Berkshire Design Group of Northampton, and Weston & Sampson engineering of Reading. Eversource Energy upgraded on-site utility infrastructure to enable the industry’s fastest EV-charging technology to seamlessly operate with its electric distribution system.

“The Deerfield charging hub marks an important milestone in Massachusetts’ journey toward a clean-energy future. Through close collaboration with our partners and local stakeholders, Eversource has helped bring this groundbreaking project to life, providing critical infrastructure that supports EV adoption and strengthens the community’s commitment to sustainable energy,” said Roger Kranenburg, vice president, Energy Strategy and Policy at Eversource. “By upgrading utility infrastructure to support this state-of-the-art charging technology, we’re not only enabling fast, reliable EV charging, but also demonstrating the kind of partnership essential to advancing the clean-energy transition.”

The Deerfield project advances U.S. manufacturing and job creation by using American-made charging technology from Autel for ultra-fast EV charging, ChargePoint for Level 2 charging, and Eatonfor infrastructure equipment, with supply-chain logistics support from Rexel Energy Solutions.

Based in Boston, Rivermoor Energy delivers comprehensive energy strategy, planning, project development, and financing solutions to enable customers to meet their goals for EV charging, solar energy, energy storage, and energy resilience.

Environment and Engineering

Getting a Leg Up

 

 

Students from Discovery Polytech Early College High School are taking a leap into higher education by earning credits from Springfield Technical Community College (STCC).

This innovative partnership offers students a head start on their college journey, giving them the opportunity to take college-level courses, gain valuable academic experience, and save on future tuition costs.

As part of the ‘wall-to-wall’ early college program, high-schoolers ride a bus to the STCC campus two days a week — Tuesdays and Thursdays –— to take STEM-focused classes together in cohorts. The only technical community college in Massachusetts, STCC is one of six area colleges and universities that offer an opportunity for Discovery students to earn at least three to six college credits per semester.

Discovery is one of the schools operated by the Springfield Empowerment Zone Partnership (SEZP), which has collaborated with STCC since 2020, when students at Springfield High School of Commerce started taking college courses to earn credit.

Discovery is one of several in the family of Commerce schools. These schools have distinct identities and leadership teams that serve their student and family communities, while still reflected as part of Commerce at the Massachusetts Department of Elementary and Secondary Education.

The Springfield Empowerment Zone is a partnership between Springfield Public Schools, the state, and the Springfield Education Assoc.

Discovery students started coming to STCC in the fall of 2023. They are taking classes focused on STEM (science, technology, engineering, and math) and are enrolled in the following pathways at STCC: business, cybersecurity, healthcare, optics and photonics, mechanical engineering technology, and technical arts.

Students in the cybersecurity pathway take courses in the newly opened Richard E. Neal Cybersecurity of Excellence at Union Station in Springfield, which features a cyber range, which is a virtual environment to practice real-world skills.

STCC President John Cook said the partnership with Discovery gives students a valuable opportunity to get exposure to a college environment and take classes in programs that cannot be found elsewhere in the region.

“The students are gaining a significant head start, and the experiences they have here will help prepare them for the next steps in their academic and professional lives,” he said. “We are thrilled to welcome Discovery students, and we are proud to work with the Springfield Empowerment Zone.”

SEZP collaborates with STCC staff, including Melanie Laurin, director of Early College Initiatives. The academic pathways align with the Pioneer Valley Labor Market Blueprint, said Kelley Gangi, chief of School Innovation for SEZP.

“Melanie and I and others on the STCC team have been strategic on which pathways are optimal for high-wage, high-growth career areas,” Gangi said. “We’re so blessed to be one of the first on the ground at the STCC cyber range.”

 

View to the Future

The wall-to-wall early-college program means all students taking college classes are on a pathway to earn an associate degree or 60 credits toward their bachelor’s degree for free, said Declan O’Connor, principal of Discovery. They begin classes on the STCC campus or other college campuses starting in the spring of their freshman year.

“We’re a STEM high school,” O’Connor said. “Our kids pick us because they want to be in a STEM environment. They’re gamers, they’re coders, they’re interested in digital media and managing social media. No student would come to us that didn’t have an interest in a STEM field.”

Gangi said some Discovery students may obtain a degree from STCC, while others might take classes at STCC but obtain a degree from another partner institution, depending on their major.

For many students, this program provides an opportunity to explore a field of study that interests them and prepare for the academic rigors of college. It also fosters a sense of independence and responsibility as they navigate college courses, manage their time, and engage with STCC’s diverse student body and faculty.

“They are definitely learning how to be on a college campus,” O’Connor said. “Nobody is sitting in on their classes. They’re walking to their classes. They’re experiencing college life.”

Izabella Martinez, a senior, has earned about 42 college credits so far. “I take two classes at STCC, and my professors have been very helpful,” she said. “During the first few weeks, they always welcomed us into class. The professors are easy to email. They brought supplemental instructors into class to help us. We are getting the experience that other college students are getting.”

Martinez takes a Computer Basics course with STCC Professor Anthony Rondinelli. On one October day, he was teaching the high-school students Microsoft Excel, showing them how to manipulate data, use formulas, create graphs, and more.

“They have different needs as students who are not yet graduated, but they’re very pleasant, and they want to learn. They’re receptive to being taught,” Rondinelli said. “I really believe in the partnership. A lot of the students have voiced to me that they like the course and they’re learning a lot. That’s really important to me, and hopefully it’s something that will continue on for many years to come.”

 

Accepting the Challenge

For the Discovery students, there are challenges as well as rewards to studying on a college campus like STCC.

Michael Anderson said some days he would rather be with his friends than be in a class. But he understands that knuckling down on his schoolwork will ultimately lead to the reward of earning college credit. “It always trickles down to your mindset: you might not be a college student, but you have to act like one. You’ve got to think, ‘what would a college student do?’”

The partnership aligns with STCC’s mission to provide accessible, affordable education to students from all backgrounds and to support pathways to higher education for underrepresented communities. It also reflects the growing trend of early-college programs across Massachusetts, designed to increase college readiness and close the achievement gap for students from diverse socioeconomic backgrounds.

Discovery students are already reaping the benefits of this program, with many feeling more confident and motivated to pursue their educational goals.

“It’s very exciting being on a college campus,” Martinez said. “We are used to being in the same building every day and seeing the same faces. When we are on the college campus, we can work with people in fields that we eventually want to get to. We’re also able to network with people in those fields.”

Cover Story Giving Guide Special Coverage Special Publications

Regional Philanthropic Opportunities

Click on the image to view the PDF flipbook

The 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 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.

These 25 profiles of area nonprofit organizations are 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 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.

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. This special section 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

Joseph Bednar, Editor
John Gormally, Publisher
Kate Campiti, Associate Publisher

Presented by:

Insurance Special Coverage

Real Talk on Artificial Intelligence

By Timm Marini

Timm Marini, president of Personal Lines Insurance at Hub International New England.

Timm Marini, president of Personal Lines Insurance at Hub International New England.

Artificial intelligence can help give nonprofits a leg up with donors and benefactors, but better AI safeguards may be needed to defend against potential cyber threats and other technology-related risks. Here’s what your organization needs to know.

Nonprofits are increasingly incorporating artificial intelligence (AI) into their operations and communication platforms, with their integration efforts actually outpacing their private-sector counterparts 58% to 47%.

AI enables nonprofits to enhance stakeholder engagement and can help them access solutions to social problems they are working to address. About 70% of nonprofits believe generative AI will help them achieve their organizations’ sustainable development goals by enhancing productivity, improving access to information, and increasing awareness to drive policy change.

But AI also presents risks that could threaten a nonprofit financially, reputationally, and operationally.

 

How Nonprofits Are Using AI

AI has surged since 2020 thanks to swift advances in technology to generate text, images, and videos. Nonprofits are tapping into generative AI and its large language model (LLM) subset to create text from big sets of data to enhance efficiency and expand their reach. Additionally, nonprofits can use AI to automate repetitive tasks, including certain administrative duties like scheduling meetings, data entry, or volunteer management, so they can instead focus their limited employee and volunteer resources on other important work.

“About 70% of nonprofits believe generative AI will help them achieve their organizations’ sustainable development goals by enhancing productivity, improving access to information, and increasing awareness to drive policy change. But AI also presents risks that could threaten a nonprofit financially, reputationally, and operationally.”

Savvy organizations are also leveraging predictive AI to analyze donor data and gain insights into potential future donors. These insights can guide generative AI to create personalized appeals through targeted communications such as letters, advertising, and other content. Some AI applications are even more ambitious by providing actionable information to people looking to get involved in a cause or mobilize resources.

 

The Risks in AI — and How to Combat Them

Despite AI’s benefits, risks abound, including errors in word choice, tone, or potential copyright infringement in AI-generated materials. It is critical that organizations have a process to fact-check AI-generated materials and develop usage rules and policies for employees or volunteers supported by awareness training. Organizations should also consider media liability insurance against AI content-related claims of personal injury, copyright/trademark infringement, and plagiarism.

Cybercrime is another concern. AI has enabled cyber criminals to improve the speed, scale, and automation of cyber attacks. The technology can turbo-charge schemes like phishing or ransomware and be used to mimic voices of real people ‘authorizing’ fraudulent activities, known as ‘deepfakes.’

AI systems can be targets as well. If a threat actor was able to compromise a language model and poison the information within it, the outputs generated by AI algorithms leveraging that model could be damaging.

“Savvy organizations are also leveraging predictive AI to analyze donor data and gain insights into potential future donors.”

Unfortunately, many nonprofits are resource-challenged and increasingly vulnerable to cyber threats. About 68% of nonprofits have had at least one data breach in the last three years, 75% don’t actively monitor their networks, and more than 70% don’t run vulnerability assessments.

Every organization using or considering AI technology needs best practices and policies to protect against the potential risks. Here are some steps to consider:

• Document AI use policies. Organizations need to determine who can use public AI tools, and for what purpose. For instance, can business or personal email accounts be linked to the programs? How will access be managed — and by whom?

• Perform due diligence. Third-party AI tools that organizations or its vendors can buy, license, or access cause more than half of all AI failures, which includes providing inaccurate or copyrighted information. Organizations must thoroughly evaluate AI tools and the AI practices of any potential vendors to ensure they are guarding against threats. Rigorous contractual risk management — including hold-harmless, indemnification, and insurance provisions — is a must.

• Conduct awareness training. All staff should be trained in the use of AI tools and general cybersecurity protocols.

• Ensure risk management. An experienced broker is an invaluable resource to help organizations assess their cyber risk. Organizations should work with their broker to ensure they have the right insurance for AI-related exposures, such as cyber insurance and intellectual-property coverage.

Contact HUB International’s nonprofit insurance specialists to learn more about how to protect yourself against AI-related risks and take full advantage of the technology.

 

Timm Marini is president of Personal Lines Insurance at Hub International New England.

 

Autos Special Coverage

Drive Time

Ben Sullivan, seen here with a Honda Prologue

Ben Sullivan, seen here with a Honda Prologue, says sales of all-electric vehicles, as well as hybrids and plug-in hybrids, have been rising as consumers become more familiar with them.

 

‘Almost normal.’

Those are the two words that Ben Sullivan, chief operating officer for Balise Motor Sales, used to describe 2024 when it comes to just about every aspect of the auto-sales industry.

After four years of relative turmoil generated by COVID and its aftereffects, things were back to normal — almost, said Sullivan. To get his point across, he referenced the southernmost end of the huge parking lot for Balise’s Chevy/GMC dealership on West Columbus Avenue in Springfield.

Even 18 months ago, it was so barren, several people asked Sullivan if Balise had sold the lot. Now, it is heavily populated with cars — especially the commercial vehicles that were visible several years ago but were simply not available due to supply-chain issues in the wake of COVID.

That’s the case in every one of the many dealerships Balise has in Western Mass., the Cape, and Rhode Island, said Sullivan, noting that, when it comes to inventory levels, things are almost back to what was seen pre-pandemic.

“Until this year, there were cars coming in and cars going out, but there was zero stock to walk in and say, ‘I want to take something home today,’” he told BusinessWest. “We’re not back to totally normal levels now, but it’s getting a lot closer to what people would say is normal.”

Carla Cosenzi, president of TommyCar Auto Group, which boasts Nissan, Volkswagen, Hyundai, Volvo, and Genesis stores, agreed. In fact, she said that, in some cases, inventories even exceed pre-pandemic levels.

“Until this year, there were cars coming in and cars going out, but there was zero stock to walk in and say, ‘I want to take something home today. We’re not back to totally normal levels now, but it’s getting a lot closer to what people would say is normal.”

Which helps explain some of the aggressive incentives being offered by some of those brands, including 0% financing on a Nissan Rogue and a $79-a-month lease deal on a Hyundai IONIQ 5 EV. And they help explain why, on the Monday of Thanksgiving week, normally a traditionally slower time, the TommyCar dealerships were “swamped.”

“I think they’re trying to build demand for the increased production,” Cosenzi said of the manufacturers, adding that these incentives were one of the key contributors to a very solid year.

Sullivan agreed that 2024 was a good year saleswise — better than most in the industry, and he puts himself in that category, were projecting roughly a year ago.

At Balise, sales were up roughly 10% (most years, 3% to 5% is the average), a performance he attributes to lingering pent-up demand from the COVID years and availability of most models and most trims, including the lower-priced options on cars and SUVs that manufacturers pushed to the sidelines in favor of the higher-priced trims during COVID.

“This year was the first time that you started to get what people would consider to be real availability back,” he said.

Mike Filomeno, left, and Mike Marcotte

Mike Filomeno, left, and Mike Marcotte show off a Mustang Mach-E, one of the many EVs now sold by Ford.

Mike Marcotte, president of Marcotte Ford in Holyoke, said his dealership has also recorded a nearly 10% increase in overall revenue in 2024, which he attributed to those same factors, particularly availability — on both the consumer and commercial sides of the ledger — with December, traditionally a big month, especially on the commercial side, still to go.

“Ford has put some great incentives out there to end the year out,” he said, adding that these cover everything from pickups to EVs that come with free chargers. “It’s been a good year, and we’re expecting to end it in strong fashion.”

Cosenzi said final numbers are obviously not in yet, but she is projecting 8% growth for 2024, and something along those same lines for 2025.

While things are returning to normal on most fronts, on the electric vehicle and hybrid segment, there isn’t really a ‘normal,’ because this is an emerging market, one that is building some momentum, although there are now real question marks about the future of the EV consumer tax credit.

“You’re seeing a big increase in customer demand for hybrids and plug-in hybrids,” said Sullivan, adding that many see them as an alternative to — or a bridge to — EVs, which are enjoying gradual growth in sales amid more options and better incentives, for the moment, anyway. “People might be scared to get into an electric, but they’re saying, ‘what can I do?’

“This hybrid technology has been out there for some time, it’s performing very well quality- and reliability-wise, and people are a lot more comfortable getting into these vehicles,” he went on. “The percentage of sales of hybrids versus non-hybrids continues to grow.”

 

To a Higher Gear

To get his points across regarding availability, getting back to normal, and even the EV and hybrid markets, Sullivan referenced Balise’s Honda dealership on Riverdale Road in West Springfield.

“During COVID and the post-COVID era, it was not unusual for us to finish the month with maybe 16 vehicles for sale,” he told BusinessWest. “Now that they’re starting to build more Hondas, I think we’ll finish this month [November] — and we had a very good month — with 80 to 100 to choose from if someone wanted to walk in and take one today.

“You went through three years of expecting to have to put a deposit down on something that was inbound on a ship, a train, or a truck,” he went on. “And now, you’re getting to the point where there’s a good chance you can find what you’re looking for available — not the same levels as before COVID, but at a level where the customer probably wouldn’t notice the difference.”

Elaborating, Sullivan said normal stocking levels would be 30 to 45 days of inventory, or maybe 140 cars in the case of this Honda dealership. At present, as noted, there are maybe 100, and they cover all trim levels.

“You went through three years of expecting to have to put a deposit down on something that was inbound on a ship, a train, or a truc. And now, you’re getting to the point where there’s a good chance you can find what you’re looking for available.”

It’s pretty much the same across the spectrum, he said, adding that inventory levels vary with the dealership, but most are working their way back to ‘normal.’

Improved availability is one of the key reasons why 2024 was a better year than most were expecting, said those we spoke with, noting that there is still a large amount of pent-up demand — and, now, many options for meeting that demand.

Indeed, during COVID and its immediate aftermath, manufacturers, hit with massive supply-chain issues, focused mostly on higher-end vehicles, driving up the average cost of a new car to levels many consumers were not willing to pay, said Cosenzi, adding that lots are now close to full with models across all trim levels, which has certainly helped drive sales.

“It was very hard to find middle and lower trim levels during that time,” she explained. “Now that things are opening back up again, it’s a lot easier to find a selection of low, middle, and high-end options of the same model. Buyers have more options than they’ve had in years.”

Meanwhile, other contributing factors include comparatively low unemployment, relatively strong consumer confidence, and those incentives from the manufacturers, Cosenzi said. “We’ve seen the manufacturers get more and more aggressive. Right now, we have 0% for 60 months — Nissan has it on its Rogue, which is a prime model, Volkswagen has it … 0% is back. Meanwhile, the Hyundai Tucson has 1.9%; those are examples of how aggressive the incentives are.”

Marcotte agreed, noting that these incentives come in many forms, including the Ford Power Promise, whereby those buying or leasing an EV become eligible for a complimentary home charger and standard installation.

 

Picking up Speed

With improved availability and overall sales up 10%, the question then becomes, ‘what are people buying?’

Some of everything is the obvious answer, but especially SUVs and crossovers — in part because there are simply fewer cars to buy — as well as trucks, EVs, and hybrids, said those we spoke with.

And commercial vehicles as well, noted Sullivan, adding that year end is traditionally a busy time for such sales as contractors and others look to take advantage of Section 179 tax deductions. But until recently, they simply weren’t available.

“We’re finally at the point where we can take care of those customers, and that’s making them happy, and it makes us happy,” said Sullivan, noting that the southern end of the crowded parking lot at the Chevy/GMC store reflects this reality. “The past several years, in many cases, people just said, ‘we’ll wait until next year.’ It was a very difficult time getting commercial vehicles.”

Mike Filomeno, Sales manager at Marcotte Ford, agreed, noting that truck sales, on both the commercial and consumer sides, remain solid as inventories grow. He cited, as one example, Ford’s Maverick, a small pickup with prices starting at $27,000.

“It comes in a hybrid and all-wheel drive, so it’s pretty popular; that’s a great price point,” he said, adding that Ford’s lineup of larger trucks is also performing well.

And used-car sales are also solid, said Filomeno, noting that inventories have improved somewhat, prices have returned to something approaching normal, and, as a result of both factors, sales are up, contributing to the dealership’s growth this year.

As for SUVs, they continue to dominate the market, with most manufacturers cutting back to one or two car models. Ford, for example, has just one, the Mustang.

But Sullivan said those in the industry are starting to see some movement among the younger generations toward cars.

“It’s too early to see if it’s a trend or just data, but there is some indication that the young people, the Millennials, don’t want to be in SUVs like their parents were,” he noted. “And you’re starting to see a lot of young people migrate into the sedan market.”

If that movement accelerates, then manufacturers may need to rethink their lineups and add more sedans, he went on. For now, the focus remains on SUVs. And larger numbers of these are coming in the hybrid, plug-in hybrid, and EV varieties, said those we spoke with, adding that sales of those vehicles are up across the board.

EVs still comprise only around 6% of all sales, said Sullivan, adding that the numbers continue to gradually improve as the options increase and consumers become more familiar with them.

To that point, he said Balise recently brought each of the 23 EVs sold across its stable of dealerships to an event at the Palmer Motor Sports Park, where consumers could get acquainted with the various vehicles — and drive them on a racetrack. More than 100 consumers turned out, and most all of them came away impressed with what they saw and experienced.

“I did not speak to one of them who didn’t say, ‘now that I’ve driven one, I believe it’s the car for me,’” he recalled, adding that familiarity breeds comfort.

Marcotte agreed, noting that Ford’s lineup of EVs includes everything from the Mustang Mach-E to the F-150 Lightning pickup to an E-Transit cargo van, and that, increasingly, consumers are becoming more comfortable with such vehicles.

Cosenzi concurred, noting that the Hyundai store put more than 30 people in the IONIQ 5 this month, thanks to the $79-a-month, 13-month lease deal. She said the outlook for continued improvement is generally positive, but much depends on whether the incoming Trump administration makes good on plans to kill the $7,500 consumer tax credit for EV purchases as part of broader tax-reform legislation.

“There’s a lot of speculation about what might happen with those incentives,” she said, adding that, at more than $10,000 in many cases, they certainly help some consumers get over the hump and into an EV.

 

Healthcare News Special Coverage

Beyond the Status Quo

Baystate Health is undergoing some pain now, including the loss of many leadership positions, but plans to be on solid financial footing by the end of 2025.

Baystate Health is undergoing some pain now, including the loss of many leadership positions, but plans to be on solid financial footing by the end of 2025.

 

Spiros Hatiras was looking for some wood to knock on.

The president and CEO of Holyoke Medical Center (HMC) had just told BusinessWest that his hospital had a solid year in 2024 and made progress with many of the challenges facing all providers, and he was generally optimistic about the immediate future.

“Knock on wood,” he added quickly, noting that he and others in this sector are always wary of the unforeseen — like a global pandemic, for example, or the extreme workforce challenges that came in its wake, or a cyber attack … or any changes to Section 340B of the Public Health Service Act, which requires pharmaceutical manufacturers participating in Medicaid to sell outpatient drugs at discounted prices to hospitals that serve many uninsured and low-income patients.

“That’s a program that’s a lifeline for hospitals, and it constantly gets attacked, usually by pharmaceutical companies who want to do away with it because they have to discount drugs at a very high rate,” said Hatiras, who, like and others we spoke with, is not expecting any real changes to the 340B program, but acknowledged they could happen. In the meantime, they stressed that, while the unforeseen is always concerning, the many challenges that are in plain sight are certainly daunting enough.

Indeed, ‘relentless’ was the word Dr. Robert Roose, president of Mercy Medical Center, used to describe these ongoing headwinds, which include everything from spiraling costs and inflation to persistently inadequate reimbursements from payers, especially those of the public variety; from continuing workforce challenges to access and capacity issues.

And then, there is the overriding issue driving all those listed above — caring for a population that is older and sicker than what has been seen historically.

Dr. Robert Roose

Dr. Robert Roose

“The challenges in healthcare over the past five years have shifted, but they have not let up. And they ultimately result in financial challenges that are stressing the ways in which we collectively provide access to care in our communities.”

“The challenges in healthcare over the past five years have shifted, but they have not let up,” Roose said. “And they ultimately result in financial challenges that are stressing the ways in which we collectively provide access to care in our communities.”

The many hardships facing hospitals large and small have been effectively encapsulated in recent headlines involving the Baystate Health system, which includes four hospitals.

The system went public recently to detail recent struggles — including $300 million in operating losses over the past few years — and its response.

That includes the sale of its lab (which helped stem the flow of red ink for the fiscal year that ended Sept. 30), the pending sale of Health New England, and, most recently, the announced elimination of 130 administrative positions.

Those steps are part of what Baystate’s new president and CEO, Peter Banko, called a “transformation plan, one that calls for making hard decisions, relieving cost pressures, some cuts, but also investments in the years to come and greater financial stability.

“Next year at this time, we’ll be talking about being in a growth mode,” he added. “Not contracting, not selling things, but investing $1.2 billion over the next six years.”

There has been a good deal of red ink within the industry — 75% of Bay State hospitals will lose money in 2024, according to the Massachusetts Hospital Assoc. — but Hatiras said HMC has been able to stay in the black, in part through help from the Commonwealth, which has been very supportive of its hospitals, but also by managing carefully.

“We don’t have a lot to fall back on, so we’re careful,” he noted. “We also try to think outside the box and be smart about the risks we take.”

As they looked ahead to 2025 and beyond, those we spoke with made heavy use of that phrase ‘guarded optimism’ when it comes to improvement of the overall bottom line as well as issues such as the workforce. But they also spoke of the need for real change when it comes to how people are cared for.

Peter Banko

Peter Banko

“We need to develop more personalized care. One-size-fits-all doesn’t work; someone who’s 85 needs different care than someone’s who’s 65 or 55 or 25. I’ve been in this industry for 40 years; we’ve never personalized care or personalized care models to each person — it’s ‘here’s our model, and you’re going to fit into it.’”

“We need to develop more personalized care,” Banko said. “One-size-fits-all doesn’t work; someone who’s 85 needs different care than someone’s who’s 65 or 55 or 25. I’ve been in this industry for 40 years; we’ve never personalized care or personalized care models to each person — it’s ‘here’s our model, and you’re going to fit into it.’”

For this issue’s look at the healthcare outlook for 2025, we talked with these hospital leaders about what’s happening today, and what needs to happen for tomorrow.

 

Age-old Problems

Nov. 2 at 4 a.m.

That’s when Mercy Medical Center flipped the switch, if you will, and converted to the Epic EHR electronic health records system. The conversion comes at a price tag “in the eight figures,” over the next several years, and has been, in general, both all-consuming and quite necessary, Roose said.

“This has been a journey for us for several years that intensified over the past year — it’s a transformational moment,” he explained, adding that the system will greatly improve coordination of care. “It’s been incredible investment in terms of time — tens of thousands of hours — and money.”

Conversion to systems like Epic, taking place across the country, comprise just one of the many challenges — and huge expenses — facing all healthcare systems today.

And those challenges have been, as Roose said, relentless — both since the start of COVID and, on many fronts, since well before that.

One of the larger issues facing all providers today is simply caring for a population that is older — the oldest Baby Boomers are approaching 80, and there are a lot of them — and, for reasons both known and unknown, sicker.

“There’s been a spike in things, which everyone is still trying to explain,” Hatiras said. “We’ve seen a spike in cancers, a spike in heart conditions, spikes in cardiovascular and stroke … people are very, very sick, sicker than in years prior.

Spiros Hatiras

Spiros Hatiras

“There’s been a spike in things, which everyone is still trying to explain. We’ve seen a spike in cancers, a spike in heart conditions, spikes in cardiovascular and stroke … people are very, very sick, sicker than in years prior.”

“People are still trying to figure out why this is happening,” he said, not wanting to speculate himself but while also listing theories ranging from long COVID to vaccines to people putting off needed care during the pandemic.

“The bottom line is, we’re a lot busier,” he went on, adding that this phrase applies to many constituencies, including employees. Indeed, the hospital, which is self-insured, has seen claims for such conditions as cancers, cardiac disease, and stroke up 30% to 40%, spikes that are certainly not normal.

Banko noted that, in many respects, what hospitals are seeing relates to demographics — a large percentage of the population reaching its 60s and 70s at the same time more people are living well into their 80s, 90s, and beyond — and the resulting consequences. Meanwhile, in Western Mass., there is virtually no growth among younger people, leaving an older, sicker population to care for.

“We look at our growth over the next five to 10 years … there’s a little in the 25-to-44 age range, the 45-64 range is declining, the zero to 25 is declining. The most rapid increase in our population here in Western Mass. and the Northeast is the 65 and older, and the largest increase is 75 and over.

“What that means is more complex care and more chronic conditions; today, we’re at 70% Medicare, and that’s only to increase moving forward,” he went on, adding that these statistics explain why hospitals in this region are under more financial stress than those in growth areas such as the Southwest and Southeast.

“People are living longer, and when they live longer, there are chronic conditions,” Banko continued. “Decisions made in your 30s, 40s, and 50s show up in your 70s and 80s … you’re probably going to experience cancer, and you may experience heart disease or stroke, and you may need a hip replacement or spine surgery.”

 

Work in Progress

This surge in business presents a host of challenges, including crowded emergency departments, with backlogs of people getting into beds, and then backlogs when those people are ready for discharge because there is a lack of beds in nursing homes and other facilities.

“We have access issues,” Banko said. “It’s hard to access primary care and specialists, we don’t have physicians and workforce to care for the needs of the community, we don’t have enough beds … we don’t have enough capacity.”

These capacity issues are compounded by financial struggles, which make it more difficult to make needed investments in facilities and personnel, he went on, adding that a big part of Baystate’s transformation plan is to invest and expand so that more people can be treated in this market and fewer people will have to go to Boston or other markets for care.

Looking ahead, he said 2025 and the years to follow will be “tough but invigorating.”

And these challenges come amid workforce issues, amplified by those aforementioned demographics — Boomer doctors, nurses, and other professionals are retiring — and the unprecedented levels of stress generated by the pandemic, which prompted some to leave healthcare for other sectors or retire early.

Those we spoke with said there has been some easing on the workforce front, especially as hospitals offer incentives to nurses and other professionals, as well as more flexibility with hours and work/life balance. But the challenge persists.

One of the reasons why is capacity, said Hatiras, noting that incentive programs, which all area hospitals have now implemented, mostly result in professionals moving from one hospital or system to another, with no general improvement in numbers across the sector.

“I wish that, rather than us trying to attract staff that works somewhere else — when we hire someone, that leaves a hole somewhere else — we could find some way to grow the pie rather than share it differently,” he said. “But if you’re a small player like us, in order to survive, you have to have staff. Unfortunately, the game we have to play is to make this place as attractive as possible to attract people here, even if it’s from other institutions, which I’d rather not do, but, unfortunately, I have to.”

To attract these professionals, HMC and other providers are focusing on culture, while also creating more flexibility with schedules, something that is in demand, especially from younger generations of workers.

“We find more people who don’t want to work weekends, or they don’t want to work nights,” said Hatiras, adding that someone has to work those shifts, and the challenge is to incentivize people to want to.

Roose agreed, noting that, through some creative initiatives involving schedules, compensation, and overall culture, Mercy Medical Center has recorded a 33% reduction in turnover rates over the past nine months.

 

Bottom Line

As they looked ahead, those we spoke with again referenced the unforeseen, which is always a concern in this sector — again, because the ongoing issues are stern enough.

Hatiras said that, in addition to ongoing attacks by Big Pharma on Section 340B, there is some concern about planned cuts to the amount of support given to disproportionate-share hospitals, as contained in the Affordable Care Act.

Those cuts, included in the landmark legislation on the assumption that more people would have health insurance and that the need for additional support would be reduced, have not been implemented, he told BusinessWest, adding that the program expires Jan. 1, and there are questions about whether this lame-duck Congress will continue to kick that can down the road.

“If those cuts go into effect, it’s a lot of money — in Massachusetts, I think it’s $600 million, maybe $800 million,” he said, adding that hospitals like HMC will certainly be impacted.

Banko isn’t predicting any cuts to 340B or Medicaid’s Disproportionate Share Hospital program, adding that reductions to either would be devastating to the state’s hospitals and, therefore, unlikely.

As for the longer term, he noted that the demographics he cited earlier will continue to challenge hospitals and healthcare systems in this region, underscoring the need for real change in how care is provided.

“How we get paid versus how we provide care are two different things,” he said. “We’re going to have to figure out new care models with physicians, advanced practice providers, how we provide nursing, more virtual care, more outpatient care. Compared to other parts of the country, we don’t have a lot of ambulatory outpatient access points, so not a lot of imaging centers, surgery centers, or urgent care.

“So now, we’re stuck going to the big-box hospital,” Banko went on. “So we have to find ways to offload care to community settings, less costly settings, and starting to develop personalized care.”

Roose agreed. He called this an inflection point for the sector, one that requires a call to action and a transformation in how care is provided, with more intervention earlier that may prevent real problems later.

“Personally and professionally,” he said, “I see a real calling to try move upstream and intervene earlier — not only with individual improvements through lifestyle changes that can attend to the factors that can contribute to chronic disease, be that movement, appropriate nutrition, or good sleep, but also thinking more systemically about how we support the decisions and the resources within the community to lead people toward better health, better wellness.”

 

Environment and Engineering Special Coverage

The Next Generation of Entrepreneurs

Sundar Krishnamurty

Sundar Krishnamurty says I-Corps speaks to the vision of building a culture of innovation and entrepreneurship on campus.

 

The U.S. National Science Foundation has named UMass Amherst a partner in the NSF I-Corps Hub: New England Region. The university will receive more than $1.4 million from the partnership, which will be led by the Massachusetts Institute of Technology (MIT).

The hub will receive $15 million over five years to promote entrepreneurialism among STEM researchers, with I-Corps trained faculty, researchers, and students working to transform deep technology inventions into marketable products.

“We train our researchers to apply their findings to create value. We call it Innovation 101,” said Sundar Krishnamurty, faculty lead of the I-Corps program at UMass, Ronnie & Eugene M. Isenberg distinguished professor in Engineering, and department head of Mechanical and Industrial Engineering. “The interdisciplinary program reaches into the whole STEM world. This speaks to the chancellor’s vision of building a culture of innovation and entrepreneurship on campus.”

UMass has expertise in translating research from scientific and technology domains that are key focus areas for the I-Corps Hub: New England Region. These areas are bluetech (advanced technologies and innovations related to the marine and maritime domains), forestry/sustainability, and biotech/life sciences.

UMass has been an I-Corps site since 2018, but this new award marks the NSF’s shift from individual sites to what the NSF describes as “a more integrated model, I-Corps Hubs, comprising a lead and partner institutions, that form the operational backbone of the National Innovation Network.”

Now, in addition to running these trainings for the UMass community, the UMass I-Corps team will be recruiting from other universities within the UMass system, as well as Western Mass. institutions such as Smith College, Mount Holyoke College, and Springfield Technical Community College. The outreach initiative aims to correct persistent gender, race, and geographic disparities in entrepreneurship.

“The goal of the I-Corps program is to deploy experiential education to help researchers reduce the time necessary to translate promising ideas from laboratory benches to widespread implementation that in turn impacts economic growth regionally and nationally.”

“Our prior I-Corps site was highly successful in providing essential tech translation training programs to UMass faculty and student teams,” said Sanjay Raman, principal investigator of the UMass Amherst New England Hub I-Corps effort, professor of Electrical and Computer Engineering, and dean of the College of Engineering. “In total, over 60 regional teams were trained, 15 went on to the national level I-Corps program, and 12 new ventures were formed. We are thrilled to join MIT and our other New England partner universities to expand our impact throughout the region, in particular underserved, more rural regions.”

 

Examples of Impact

Successful I-Corps participants from UMass include Myrias Optics, an emerging developer of nanopatterned structures on glass called metaoptics; Latde, a company that designs inexpensive diagnostic tests to guide antibiotic treatment, starting with urinary-tract infections; and rStream, a startup creating AI-based systems to sort recycling.

Sanjay Raman

Sanjay Raman

“Innovation is a core value for our campus. The I-Corps Hub and the opportunity to participate as a partner directly aligns with existing campus efforts to create an environment that supports the research, development, and mechanisms leading to deep technology ventures,” said Mike Malone, vice chancellor for Research and Engagement.

Ina Ganguli, professor of Economics in the College of Social and Behavioral Sciences and the Isenberg School of Management, and director of the UMass Computational Social Science Institute, is the hub research lead. She brings her expertise in how to effectively involve individuals with diverse experiences and identities in university innovation and commercialization activities and how to create more inclusive entrepreneurial ecosystems.

Laura Burnham will continue to serve as program director. She brings more than 20 years of experience leading the development, design, and delivery of early-stage science and technology programs in the U.S. and globally.

“The goal of the I-Corps program is to deploy experiential education to help researchers reduce the time necessary to translate promising ideas from laboratory benches to widespread implementation that in turn impacts economic growth regionally and nationally,” said Erwin Gianchandani, NSF’s assistant director for Technology, Innovation, and Partnerships. “Each regional NSF I-Corps Hub provides training essential in entrepreneurship and customer discovery, leading to new products, startups, and jobs. In effect, we are investing in the next generation of entrepreneurs for our nation.”

The NSF I-Corps Hub: New England Region is one of three new regional hubs, bringing the total number of higher-education institutions with an I-Corps site across the country to 128. Led by MIT, the hub also includes Brown University, Harvard University, Northeastern University, Tufts University, the University of Maine, and the University of New Hampshire.

 

Community Spotlight

Community Spotlight

James Donahue says visitation at Old Sturbridge Village has nearly returned to pre-pandemic levels.

James Donahue says visitation at Old Sturbridge Village has nearly returned to pre-pandemic levels.

‘Converge.’

That’s the word you hear probably most often when people talk about Sturbridge. And with good reason.

That’s what families, wedding guests, members of trade associations, tourists, and other constituencies do. They converge here because … well, it’s easy to, given that this community of almost 10,000 residents is located at the intersection of I-84, the Mass Pike, and Route 20; sits just a short distance from Worcester Municipal Airport; and is not far from both Worcester and Springfield.

“Sturbridge has an amazing location — it’s right in the heart of Massachuetts,” said Monique Joseph, president and CEO of Discover Central Massachusetts, the regional tourism bureau for a 35-community area that includes Sturbridge. “It’s a very popular location for the meeting planner or the event planner, and for bus tours, and for weddings.”

But this convergence quality, if you will, is just part of the story in Sturbridge. Another part — and it’s related, and a reason why people meet here — is everything they can do after they converge.

They can take in some history — at Old Sturbridge Village (OSV), which recreates life in rural New England in the early 19th century, but also the historic town common and other spots. They can hike — there are dozens of miles of trails in this rural community, as we’ll see. They can shop and enjoy fine dining, craft beer, and some locally distilled spirits. They can camp, bicycle, and kayak. They can buy antiques — Brimfield is one town over. They can even do some axe throwing (although that’s mostly a ‘locals’ thing), and soon, they’ll be able to take in a movie with new ownership of an eight-screen complex at the Center at Hobbs Brook set to open later this year.

“It’s called Sturbridge Luxury Cinemas, a dine-in theater with luxury seating,” said Alexandra McNitt, executive director of the Chamber of Central Mass South, which includes 12 communities, including Sturbridge. She said the theater complex comprises one of several new businesses, including some retail, that will provide still more for visitors to do.

There wasn’t much converging — or much of anything listed above — during the pandemic, so Sturbridge suffered as much as any community in this region during the pandemic, losing several hospitality-related businesses, including the movie complex and the Stageloft Repertory Theater, while countless others experienced severe setbacks. But the town has made what most would say is an almost full recovery from COVID and the workforce challenges that followed, said Mike Harrington, a principal at the Publick House, an historic inn and restaurant known for its history, holiday-season activities, and even the occasional rumored ghost sighting.

“Our rooms business has been very good, up 6% from last year,” he said. “We see a lot more activity on weekends with people stopping through Sturbridge on their way to Maine, New Hampshire, or Vermont — they stay overnight — and we’re seeing corporate business come back, which is very helpful. We’re on a good path.”

James Donahue, president and CEO of OSV, agreed, noting that, while school field trips, a significant portion of total visitation, have not fully come back to pre-pandemic levels (transportation costs are certainly a factor), overall numbers are approaching those posted in 2019 and before, despite ever-growing competition for the time — and spending dollars — of families.

“Our rooms business has been very good, up 6% from last year. We see a lot more activity on weekends with people stopping through Sturbridge on their way to Maine, New Hampshire, or Vermont — they stay overnight — and we’re seeing corporate business come back, which is very helpful. We’re on a good path.”

“Technology plays a much bigger role in what people are doing now, and there continue to be more demands on families; the station-wagon trip isn’t as common as it was when I was growing up,” he said, adding that, despite these headwinds, ‘the Village,’ as it’s called, continues to draw visitors from across the region — and across the country.”

For this latest installment of our Community Spotlight series, we turn the lens on Sturbridge, where there’s a whole lot of converging going on.

 

Walking the Walk

McNitt told BusinessWest she recently welcomed an addition to the family, a new puppy.

Among other things, this canine companion has provided her with a greater (let’s say even greater) appreciation of the trail network in this community.

“The Sturbridge Trails Committee has created some really vast, fun, passive-recreation networks,” she said. “And they’ve made them accessible.”

Monique Joseph says Sturbridge’s location at the crossroads of New England makes it the ideal spot

Monique Joseph says Sturbridge’s location at the crossroads of New England makes it the ideal spot for weddings, association meetings, family reunions, and other types of gatherings.

There are more than 50 miles of trails in Sturbridge. They include the Grand Trunk Trail, also known as Titanic Railroad, because it follows the path of an old railroad bed, a project that was abandoned after its founder perished on the ill-fated ocean liner.

There’s also the Burgess Discovery Trail, located on the grounds of Burgess Elementary School, a short, family-friendly walk that offers many opportunities to interact with nature, including a wetland bog bridge, glacial boulders, and local wildlife; as well as the Tantiusques Reservation, where hikers can see remnants of New England’s first mining operation, a graphite mine operated by the native Nipmuc tribe and local English colonists until it was abandoned in the late 1800s.

The walking and biking trails, which often combine nature and history, are just one of the many converging (there’s that word again) stories in Sturbridge, where the phrase ‘something for everyone’ is certainly not hyberpole, Joseph said.

“It’s a charming town that strikes the perfect balance; it’s rich in history, and it’s modern-day fun, so it is a wonderful location to attract families,” she noted. “Whether you’re looking for history or outdoor activities, or you just want great food, Sturbridge has it all.”

One of the main attractions, of course, is OSV, the largest outdoor history museum in the Northeast, which includes more than 40 structures, everything from several houses and a law office to a bank and a blacksmith shop.

Donahue told BusinessWest that the Village had to close for several months at the height of the pandemic, a scary time during which gifts from donors helped the facility keep its employees, many of them with unusual skills, on the payroll.

“It’s a charming town that strikes the perfect balance; it’s rich in history, and it’s modern-day fun, so it is a wonderful location to attract families.”

“My fear was that, if I have to lay people off and I lose a blacksmith or a tinsmith or someone who’s an expert in textiles … those are difficult skills to find in the marketplace,” he said. “So the key, to me, was keeping everyone whole until we opened again.”

OSV has certainly been helped by the fact that it is mostly an outdoor museum, and over the past few years, it has seen overall attendance rise steadily — it was up 8% for the fiscal year that just ended in September — and approach the 250,000 mark that was the annual average pre-pandemic.

More recently, it’s been aided by several months of cooperative weather — a streak that has continued into November.

Sturbridge at a glance

Year Incorporated: 1738
Population: 9,867
Area: 39.0 square miles
County: Worcester
Residential Tax Rate: $16.49
Commercial Tax Rate: $16.49
Median Household Income: $56,519
Family Household Income: $64,455
Type of government: Town Administrator, Open Town Meeting
Largest Employers: OFS Optics, Old Sturbridge Village, Arland Tool & Manufacturing Inc., Sturbridge Host Hotel & Conference Center
* Latest information available

“I wrote a quick update to our board recently talking about the success of October, and one of the members said, ‘you’re doing a great job.’ I said, ‘it wasn’t me — it was Mother Nature all the way,” said Donahue, who is now gearing up for the holidays, perhaps the busiest time of year at OSV. Indeed, Christmas by Candlelight at the Village begins the day after Thanksgiving and includes decorations in all the houses, special food, bonfires, carolers, and, a new addition this year — a show in the museum’s theater on the history of Christmas carols called “Upon a Midnight Clear.”

 

If the Spirit Moves You

In addition to history, Sturbridge has a large and diverse hospitality sector that boasts several restaurants, lodging facilities, wedding venues, breweries, and a recent addition, Deep Roots Distillery, which is now also home to Into the Grain Axe Throwing.

Keith Devarenne, co-owner of both ventures, said the distillery, like many other recent entrepreneurial ventures, came about as a result of some soul searching during the pandemic.

“I retired from the Department of Corrections in Connecticut in 2020, and my wife started working at home,” he recalled. “She said, ‘we should open a distillery.’ I said, ‘you’re crazy.’ She told our other partner that, and he said ‘you’re crazy,’ too.”

They would put down the idea, but also research it — and that research told them there weren’t many distilleries in the area, which posed a business opportunity.

Michael Harrington, left, seen here with Michael Glick

Michael Harrington, left, seen here with Michael Glick, general manager of the Publick House, says 2024 has been a solid year for the Sturbridge landmark, marked by an increase in business gatherings.

They seized it, moving from home experimentation to buying an old cotton mill, where they now produce a wide variety of rums, vodkas, whiskeys, and liqueurs.

“The hardest thing was making the jump to doing this professionally and opening the doors,” he said, adding that the venue draws visitors from across this region and well beyond, including many stopping at Tree House Brewing Co. in neighboring Charlton.

The axe-throwing facility, which opened in May 2023, came about through a desire to provide something else for locals — and maybe some visitors — to do, said Devarenne, adding that a portion of the old mill behind the distillery’s tasting room was renovated for that purpose, and they made a fairly modest investment in axes, targets, and the lanes that keep participants safe.

As in the few other locations where such facilities have been created, axe throwing is catching on in Sturbridge, said Devarenne, noting that groups will often come in after dinner at one of the local restaurants (including the one at the distillery), on weekend afternoons, or for the league on Thursday nights.

“We’re very weather-dependent — if it’s rainy on Friday and Saturday, we’re usually very busy,” he said. “So far, so good; people are coming in and giving it a try.”

While axe throwing is new to Sturbridge, the Publick House is quite old, dating back to 1771, when it was a stagecoach stop. Harrington’s family acquired the property in 2003 and has made significant investments in new rooms and renovations to existing facilities.

The complex is one of several lodging destinations that play host to a wide range of different events, from business and trade-association meetings to family gatherings to weddings, which are a huge business in this community — again, partly because of its location in the middle of the state and the middle of New England, right off major highways.

Each of those segments is solid, if not booming, said Harrington, noting that the facility is on pace to handle 153 weddings this year, which is about average, although it has done as many as 180.

Meanwhile, corporate business is coming back, to about 70% of what it was before the pandemic, he added, noting that, after years of meeting by Zoom, business groups and associations are meeting in person again, and taking advantage of Sturbridge’s central location — which remains, as always, an ideal place to converge.

Banking and Financial Services

Weighing the Options

By Keara King

 

With the rapid growth of social media, we are more connected than ever, allowing immediate and constant access to a wealth of advice and information. Some of the financial advice you run into online may be beneficial, but be wary of making financial decisions based on advice that is not specific to your financial situation, nor provided by a verifiable source. Financial decisions are far from a one-size-fits-all approach.

One piece of advice that has been making the rounds on TikTok is making backdoor Roth IRA contributions as a tax-advantage tool to build your wealth.

 

What Is a Backdoor Roth IRA?

A Roth IRA is a retirement account that allows individuals to contribute after-tax dollars. The contributions and earnings grow tax-free, and you can take tax-free distributions once certain requirements are met.

However, not everyone is eligible to contribute directly to a Roth IRA. Eligibility to contribute to a Roth IRA is based on your modified adjusted gross income (MAGI). For 2024, the maximum contribution starts to reduce at MAGI of $146,000 for single filers and $230,000 for joint filers.

However, there is a way around the income limitation for high-income taxpayers. A backdoor Roth IRA is a strategy that allows high-income taxpayers to contribute to a Roth IRA by converting funds from a traditional IRA. This is typically done by making your annual contribution to a traditional non-deductible IRA and then immediately converting this to a Roth IRA. Doing this as soon as possible prevents earnings on your traditional IRA from being taxable on the conversion.

Keara King

Keara King

“A backdoor Roth IRA is a strategy that allows high-income taxpayers to contribute to a Roth IRA by converting funds from a traditional IRA. This is typically done by making your annual contribution to a traditional non-deductible IRA and then immediately converting this to a Roth IRA.”

Some financial advisors offer support in handling a backdoor Roth conversion for their clients, so reach out for help before starting the process of converting.

Nevertheless, before leaping to follow internet advice to contribute to a backdoor Roth IRA, you should consider these three things:

• Do you already have an IRA or Roth IRA account(s)?

• Does your current employer offer a 401(k) with a company match?

• What is your expected income for the year?

The IRS views all of your IRAs as a single account when determining the tax you owe on distributions, including Roth IRA conversions. If your traditional IRA accounts include both pre-tax (deductible, retirement-plan rollovers) and after-tax (non-deductible) contributions, the pro rata rule dictates that your Roth conversion will be taxed proportionate to your pre- and post-tax percentages. You cannot dictate that your Roth conversion will use only after-tax funds.

For example, if you have an existing $100,000 traditional IRA and $7,000 came from non-deductible contributions, your non-taxable percentage would be 3% (or 7,000/100,000). This turns your IRA conversion of $7,000 into $6,510 of ordinary income on your tax return.

Alternatively, if you do not have an existing traditional IRA or all your contributions were non-deductible, your pro rata would be 0%, and none of your IRA conversion would be considered taxable income on your return. Backdoor Roth IRAs can be valuable for the right taxpayer. However, it isn’t right for everyone.

In addition to the backdoor Roth IRAs, there are several other options to consider for retirement planning.

 

401(k) Plans and Company Matches

A 401(k) is a retirement savings plan that allows taxpayers to make contributions through their employer to a defined contribution plan. The contribution limit for 401(k)s is $23,000 in 2024 or $30,500 for those over age 50. Some employers will offer a company match; typically, around 3% of the employee’s salary will be contributed to your account, up to a set limit. This is the biggest benefit of a 401(k), as it is essentially free money to the taxpayer. It’s also important to note that your employer’s contribution does not count toward the annual contribution limit.

When you open a 401(k) with your employer, you can usually decide for yourself between a traditional and/or Roth account. The difference is primarily how they are taxed. With a traditional 401(k), the employee contributes pre-tax dollars and thus reduces their taxable income in the current year. This is beneficial for high-income taxpayers, who are currently paying a premium tax rate. When the taxpayer withdraws the retirement funds, they should be in a lower tax bracket, thus the tax on the withdrawal (money contributed plus earnings) should be minimal.

On the other hand, with a Roth 401(k), the employee contributes post-tax dollars — thus, paying the tax on the income in the current year so that it can grow tax-free in your retirement account. There is no tax deduction on this type of contribution, as you reap the benefits in the future. This type of account is beneficial for taxpayers who want to shield themselves from potential increases in tax rates in the future by paying the tax now. Moreover, it is important to note employer contributions can be made to both traditional and Roth 401(k) plans no matter what option you pick.

If your employer doesn’t offer a company match, consider looking at other IRA or Roth IRA contributions. Going through a separate broker outside of your work plan will give you access to a larger selection of investments and help avoid administrative fees.

 

IRAs

Taxpayers are allowed to contribute a combined total of $7,000 to all traditional and Roth IRA accounts in 2024, or $8,000 if you are over age 50. There is no employer match for contributions to either type of IRA.

Traditional IRA contributions are ideal for taxpayers who are seeking an immediate tax break. However, if you are covered by an employer retirement plan, your deduction may be reduced or eliminated based on income levels. In 2024, single or head-of-household taxpayers who have an adjusted gross income of $87,000 or more (and are covered by a retirement plan through work) are not eligible for the deduction. Meanwhile, the phaseout from a full deduction to a partial deduction starts at $77,001 for single or head of household.

Similarly, married-filing-jointly taxpayers who have an adjusted gross income of $143,000 or more (and are covered by a retirement plan through work) are not eligible for the deduction. The phaseout for married filing jointly starts at $123,001. However, you are still eligible to contribute to a non-deductible IRA even if your income is over the eligibility threshold.

Roth IRA contributions are ideal for taxpayers who are not eligible for the traditional IRA deduction and for those who expect to be in a higher tax bracket in the future. They are also ideal for younger investors with a long-time horizon until retirement who can really benefit from the tax-free growth. A taxpayer’s eligibility for a Roth IRA is not impacted by their 401(k) retirement through work. However, as mentioned above, there are income limitations to keep in mind.

 

Bottom Line

When deciding what savings vehicle you want to contribute to this tax year, it is important to weigh the tax advantages, eligibility, and contribution limits beforehand. Talk with a financial advisor and/or your tax accountant about the best strategy to implement for your future today.

Finally, remember that this article is intended to serve only as a general guideline. Your personal circumstances will likely require careful examination and should be discussed with an appropriate professional.

 

Keara King is a senior associate with Meyers Brothers Kalicka, P.C. in Holyoke.

 

Business Innovation

Team Efforts

STCC’s Marketing and Communications team

STCC’s Marketing and Communications team includes, from left, Jim Danko, Nicola Ludwig, and Eli Freund.

 

Two local community colleges took home awards at the District 1 Conference of the National Council for Marketing & Public Relations (NCMPR), held Oct. 23-25 in Baltimore.

Springfield Technical Community College (STCC) won Medallion Awards in three categories: Microsite/Landing Page (bronze); Social Media Post or Story A (bronze); and TV/Video Paid Advertisement (single) (silver).

Meanwhile, Holyoke Community College (HCC) won the top two Medallion Awards in the category of Excellence in Writing – Short Form, for stories up to 800 words.

NCMPR, which supports marketing and public-relations professionals at community and technical colleges, holds the District Medallion Awards annually in the fall. These awards are regarded as a benchmark for excellence in communications and marketing in higher education.

 

STCC Wins for Design and Communication

Competing against colleges across the Northeast (District 1), STCC’s marketing team was recognized for design and communication. Peers from other districts in the U.S. judged the entries.

“I am proud of the talented STCC Marketing and Communications team for being recognized for their terrific work,” said Karen Walker, assistant vice president of Advancement, who oversees the Marketing and Communications team. “This achievement underscores the department’s excellence in promoting STCC’s mission, student success stories, and innovative programs, while also showcasing its impactful communication strategies.”

The STCC Marketing and Communications Department’s recent success at the NCMPR awards is a testament to its dedication to delivering high-quality, effective communication that resonates with students, families, and the community, said Eli Freund, director of Marketing and Communications at STCC.

“We are thrilled to receive these awards, which reflect the hard work and creativity of our team,” he added. “Our mission is to inspire and inform through the stories of our students and the impactful programs STCC offers, and it’s an honor to be recognized by our peers in higher-education marketing.”

The NCMPR District 1 awards affirm STCC’s role as a leader in community-college marketing and communication, showcasing the institution’s commitment to supporting student success and connecting with the community, he noted.

The team includes Freund, Assistant Director of Communications Jim Danko, and Digital and Social Media Manager Nicola Ludwig.

 

HCC Honored for Writing Excellence

HCC won the top two Medallion Awards in the category of Excellence in Writing – Short Form, for stories up to 800 words. Taking gold was “Name That Tune,” a short profile of HCC math major Tom Dulac ’23, now a student at Westfield State University. In 2023, Dulac won a national award for musical composition that he submitted under the pseudonym ‘Zac Dune.’

Taking silver was “Ready to Go,” a commencement profile about Tatiana McKnight ’23, who suffered from agoraphobia as a teenager. Encouraged by her grandmother, the Puerto Rican educator and author Sonia Nieto, McKnight enrolled at HCC, where she excelled, using her experience as a springboard for transfer to Mount Holyoke College.

HCC Media Relations Manager Chris Yurko and Multimedia Specialist Louis Burgos with the college’s gold and silver Medallion awards.

HCC Media Relations Manager Chris Yurko and Multimedia Specialist Louis Burgos with the college’s gold and silver Medallion awards.

Both stories were written by HCC Media Relations Manager Chris Yurko. “Name That Tune” was published in the Alumni Out & About section of the spring 2024 issue of HCC’s award-winning college magazine, the Connection, and “Ready to Go” in the Spotlight section of the HCC website in July 2023.

“It always feels good to be recognized by one’s colleagues, but it gives me even greater joy to be able to bring attention to the great work being done at the college and the remarkable achievements of our students,” said Yurko, who is also editor-in-chief of the Connection, which received a national Paragon award from NCMPR in 2023.

 

Recognized Across a Broad Territory

NCMPR represents marketing and public-relations professionals at community and technical colleges in the U.S. and beyond. The NCMPR Medallion Awards recognize outstanding achievement in design and communication in each of NCMPR’s seven districts.

STCC and HCC resides in District 1, which includes Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, the District of Columbia, the United Kingdom, and the Canadian provinces of New Brunswick, Newfoundland, Nova Scotia, Prince Edward Island, and Quebec.

Faces of Business Features Special Coverage Special Publications

Financial services is a broad and robust sector in Western Mass., running the gamut from banking and lending to insurance and accounting to wealth management.

On the following pages, meet leaders from two local institutions — Matt Lauro, senior vice president and Western Massachusetts Commercial Lending team leader at MountainOne, and Deb Esposito, senior vice president and Business Banking officer at Greenfield Cooperative Bank.

We asked these financial leaders to share why they were first drawn to their work, how their journeys brought them to their current leadership roles, how the rewards and challenges of banking and finance have evolved, and why this sector presents attractive options for young people seeking a meaningful career.

Faces of Finance is part of BusinessWest’s Faces of Business series, which was launched with Faces of Construction earlier this year. So read on as these hardworking and thoughtful professionals tell you what they love about their work, what they do for fun, and why they’re deservedly proud of the success they’ve built.

 

Matt Lauro

Senior Vice President, Western Massachusetts Commercial Team Leader, MountainOne

Matt Lauro, Senior Vice President, Western Massachusetts Commercial Lending Team Leader, MountainOne

Matt Lauro, Senior Vice President, Western Massachusetts Commercial Lending Team Leader, MountainOne

Matt Lauro says he’s the product of “outstanding mentorship.”

That started the summer before his junior year of college, when he interned at Fidelity Management and Research Co., which encouraged networking and collaboration, setting an example of the kind of leader he would eventually be.

“I fell in love with analyzing different industries and businesses and listening to executive management speak about all the changes that would exist in my career lifetime,” Lauro recalls. “I loved the hybrid challenge of communicating with people and utilizing analytic abilities.”

In 2021, his career brought him back to Western Massachusetts. Through his network, he was introduced to Robert Fraser, president and CEO of MountainOne. “Bob was looking to add depth to our commercial lending team. I met with Bob and Richard (Dick) Kelly, our senior commercial risk officer, and the rest is history.”

These days, as MountainOne’s commercial leader for Western Massachusetts, Lauro is responsible for motivating, managing, and expanding a team of commercial bankers, as well as growing the region’s commercial portfolio. In addition, he oversees a diverse portfolio of clients across the Commonwealth.

“I am lucky,” he says. “I have an incredibly talented team in place with many years of experience, and we have built an outstanding portfolio of high-quality companies and individuals.”

He has achieved this during a time of significant challenge and opportunity in the financial-services sector. “The economic environment and the industry are evolving rapidly. The key opportunity is for banks and bankers to lead these changes,” he explains. “For instance, a banker who stays updated on economic trends can engage in more informed conversations with clients, fostering stronger, long-lasting relationships. It’s not just about making loans; it’s about managing relationships over the long term and helping clients navigate through periods of uncertainty.

“Additionally,” Lauro adds, “investing in new technology, introducing innovative products, and enhancing the customer experience are crucial for offsetting the long-term trend of rising costs.”

In all, it’s been a gratifying career, one he says young people would be wise to consider. While there’s no straight-line path to success, he offered some advice to anyone pursuing this field.

“Maintain intellectual curiosity and a desire to learn from the right people. Create a network of individuals that you can rely on for advice and lean on for their own expertise. Create mentorship opportunities for yourself, and identify people that you look up to and aspire to have careers similar to. Work tirelessly to master the skills most important in your path.”

Lauro’s life is much more than his work at MountainOne, of course.

“My family is my biggest motivation, and spending time together is my favorite hobby, whether that be on long drives, walks, or dinners,” he tells BusinessWest. “Between my wife Susanna, my daughter Annie, and our dog Nipsey, we have created an incredible support system for one another, and we’re very grateful for our lives together.”

He added that his parents instilled a sense of civic involvement while growing up, and he saw how committed they were to causes they were most passionate about — an example he has followed with his own family. He and his wife serve on several nonprofit boards and donate countless hours to charitable foundations; Lauro currently sits on the boards of Grit & Gratitude Wrestling Academy, Pittsfield Affordable Housing Trust, and Berkshire County Education and Correction.

“Overall, we are interested in continuing our involvement with youth and animal-welfare causes across the Commonwealth,” Lauro adds. “We take tremendous pride as a family with our charitable giving, nonprofit involvement, and community involvement.”

While his long-term professional goal is to be president of a financial institution, Lauro says he’s focused on helping to make MountainOne the best commercial banking organization it can be, and takes pride in that work.

“Personally, I am most proud of the flexibility I have in my career. I have been a peak performer at every level and have been flexible and curious enough to be a part of multiple different banking teams with different goals and accomplishments,” he notes. “Professionally, I am most proud of our portfolio of clients that our team has built. We have developed an outstanding commercial portfolio comprised of accomplished business owners, investors, and developers. I have spent countless hours with many of these individuals and have learned a great deal from them myself.”

In short, “our team plays to win,” Lauro says. “We win when our customers excel, when we forge new relationships, and when we collaborate creatively to develop effective solutions. The most gratifying part of the job is working with our customers to find ways to add value. As a team, we take great pride in being able to create tailored solutions for each client.”

 

Deb Esposito

Senior Vice President – Business Banking Officer, Greenfield Cooperative Bank

Deb Esposito, Senior Vice President – Business Banking Officer, Greenfield Cooperative Bank

Deb Esposito, Senior Vice President – Business Banking Officer,
Greenfield Cooperative Bank

Young people have plenty of options when it comes to choosing a career. For Deb Esposito, the factors were simple.

“I had an interest in business and finance, and a passion for everyone to enjoy a better financial future,” she says of her entry into the world of financial services — a path that has led to her latest role as senior vice president and Business Banking officer at Greenfield Cooperative Bank (GCB).

“As a senior in high school in the Midwest, I was recruited out of a business program, hired into a local bank, and worked there until I graduated from college,” she recalls. “After my college graduation and my foundation in banking, it was a natural career path for me to continue in.”

In her current role — a newly created one at GCB — Esposito leads the growth and development of new and existing business relationships in partnership with the Commercial Lending, Government Banking, and Retail departments. She also takes an active role implementing marketing strategies to strengthen the bank’s brand awareness across Franklin, Hampshire, and Hampden counties.

The bank offers some explanation why that new role is important. “As a community bank, Greenfield Cooperative Bank strives to provide a full compliment of products and services to our customers. Debbie is a terrific addition to GCB’s team and will ensure we continue to provide excellent service to the businesses throughout Western Mass.”

That service, Esposito notes, includes “the ability to host consultative conversations with clients, companies, and organizations and walk away with a business plan of action for them. I’m able to guide them on banking solutions they need for efficiency, their cash flow and lending needs, challenges they may be facing, the growth or sale of their company, and so much more.”

To do that, she says, she needs to stay current in terms of financial matters such as the economy, the Federal Reserve and potential rate adjustments, stock-market activity, and banking regulation changes. “As a subject-matter expert, clients seek our guidance on managing their financial affairs, both on a personal level and business level.”

Esposito holds a bachelor’s degree in communications, public relations, and marketing from the University of Wisconsin – Whitewater and a nonprofit certification with a financial focus from the University of St. Thomas in Minnesota. With more than two decades of experience in the financial industry, she brings a wealth of expertise in business, commercial, and cash-management solutions. Prior to joining GCB, she served as vice president of Cash Management Sales for PeoplesBank and vice president, senior Treasury Management relationship manager for Citizens Bank.

She is also committed to community involvement, actively volunteering for various organizations across Western Mass.

“A recent favorite was our team build day for children play homes with Habitat for Humanity,” she notes. “An annual favorite includes my husband and I volunteering at the Boston Marathon finish line, scoring all runners and interacting with the press and media from various countries.”

It makes sense that she seeks roles that get her outside. “I am a outdoor enthusiast, originally from the Midwest, who loves the Northeast and the four seasons,” she tells BusinessWest. “Family time includes biking, hiking, traveling to Maine to enjoy the coastal beaches, Vermont and New Hampshire for the mountains, and so much more.”

In addition, “I’m an avid fan of all Boston sports as we are nicely spoiled by the success of our New England teams.”

That sense of gratitude extends deeply into Esposito’s work at GCB.

“I am pleased to have worked with a variety of excellent mentors who shaped my financial career to where I am today,” she says. “In my new role as senior vice president with Greenfield Cooperative Bank, I’m proud to be a part of a local community bank that mirrors my vision of helping people achieve their financial goals.”

It’s a challenging but satisfying career she says would be suitable for any young person with a desire to learn — and help people.

Her advice for them? “Be patient — very patient — in your career, and the rewards will follow. Enlist a good mentor and be a sponge to absorb knowledge in each of your roles. Enjoy being a professional networker and stay active in your community.”

Esposito’s recognition that each client is unique, and their banking services should never be one-size-fits-all, as well as her ability to listen to her customers and develop tailored financial solutions, is clearly the right fit for this important new position.

“We are thrilled to welcome Debbie to the Greenfield Cooperative Bank team,” says Tony Worden, president and CEO of GCB. “Her extensive experience and deep understanding of the local business landscape will be a tremendous asset as we continue to provide our customers with innovative financial solutions.”

Banking and Financial Services Special Coverage

Turning the Corner

Jeff Sullivan says the ‘drill’ is now part of doing business — an important part, and an expensive part.

He was referring to a recent exercise at Springfield-based New Valley Bank, in which a cyber attack was carried out and the staff’s response was chronicled, scored, and evaluated.

“You come in the morning and your screen is black — what do you do now?” said Sullivan, president and CEO of the institution. “Then someone gets an email, and it’s says, ‘pay X amount of ransom by the end of the day.’ What do you do? They test your preparedness for things that can happen.”

This simulated cyber attack is one of many aspects of disaster planning at the bank — there’s another drill where there’s a tripledemic and no employees can come to work — and at all banks, large and small. It represents aspects of a “brave new world,” as Sullivan called it, and one of many ongoing challenges and expenses for financial-services institutions.

And there are many others. They include:

• Continually growing competition, both from non-bank financial institutions (NBFIs) and players within the industry, including regional and national powers such as JPMorganChase, which has opened 75 branches in Massachusetts, including several in the 413 in an aggressive bid for market share;

Jeff Sullivan

Jeff Sullivan

“You come in the morning and your screen is black — what do you do now? Then someone gets an email, and it’s says, ‘pay X amount of ransom by the end of the day.’ What do you do? They test your preparedness for things that can happen.”

• The many aspects of technology, including the need to keep up with the larger players with deeper pockets while also correctly gauging what customers want and not investing for the sake of investing;

• Artificial intelligence, specifically the need to understand this emerging technology and then deploy it in ways that improve the customer experience and overall efficiency while maximizing the time of human talent;

• Margin compression, a function of rapidly rising interest rates and corresponding huge increases in the cost of deposits in 2023 and early 2024. Interest rates are coming down, and the situation is easing, but there will be a lag;

• A still-sluggish housing market marked by fewer sales because people don’t want to trade a lower-rate mortgage for a much higher one, and a virtually nonexistent refi market; and

• The ongoing need to grow, and the question of how to accomplish this given all of the above.

These issues and others were addressed by several area banking leaders as BusinessWest asked them to put 2024 in perspective and speculate on what they expect to happen over the next several quarters.

“The rate increases by the Fed really hammered bank margins and, therefore, bank profitability; it was a tough grind in 2024,” said Matt Sosik, president and CEO of bankESB, who described this year as one in which the price was paid for 500 basis points worth of interest-rate increases that started early in 2023. “Most banks are just now starting to turn the corner.”

Most area banks were fortunate to have their balance sheets structured in a way that allowed them to be resilient and absorb the blows, and even record decent, if less-profitable, years in 2024, but the rate hikes still took a toll, Sosik went on, adding that, as rates come down (the Fed approved another drop earlier this month), margins will start to improve. But there will be a lag, just as there was when rates started climbing.

Matt Sosik

Matt Sosik

“The rate increases by the Fed really hammered bank margins and, therefore, bank profitability; it was a tough grind in 2024. Most banks are just now starting to turn the corner.”

As for technology, it remains the quintessential combination of challenge and opportunity for banks. The opportunity comes in the form of improved service to customers and thus the ability to retain and perhaps grow market share. The challenge comes with keeping up, the cost of keeping up, not paying for something customers don’t want, and keeping customer information safe.

“You don’t want to be chasing shiny objects or next greatest thing,” said Matt Garrity, president and CEO of Florence Bank. “You really want to be rooted in understanding what it is your client wants from you and that you’re delivering the best possible product, the best possible service, to address what they’re after.”

 

By All Accounts

As he told BusinessWest that “banks have hit bottom,” Sosik acknowledged this might not be the best way to describe the current state of the industry.

But it works.

“We’ve seen the bottom, and we’re on the upswing,” he said, adding that, as interest rates come down and pressure on margins eases, banks should see some improvement on the bottom line. “There will be positive earnings impacts in the fourth quarter and into 2025, and slow movement back toward more normal margins.”

Matt Garrity

Matt Garrity

“You don’t want to be chasing shiny objects or next greatest thing. You really want to be rooted in understanding what it is your client wants from you and that you’re delivering the best possible product, the best possible service, to address what they’re after.”

Overall, while 2024 was, indeed, a grind, most area institutions fared comparatively well because they took a conservative approach, although performance, meaning profitability, was off from previous years due to the margin squeeze resulting from a slow, persistent, 550-basis-point increase in interest rates over roughly a year, which was largely unprecedented, by most accounts.

As a result, most institutions in this region were simply less profitable than usual, said Sosik, noting that 2025 should see the pendulum continue its swing back to where bottom lines were a few years ago.

Sullivan agreed, and projected improvement on everything from margins to the yield curve, although it may come at a slower pace than the industry would want.

“The bond market has sensed inflation being persistent, and it shows by the long-term rates running back up over the past two months,” he noted. “That is actually normalizing the yield curve; an investor should get paid more for locking her money up for a longer time period.

“The inverted yield curve that we’ve had the past two years [short-term rates higher than long-term] is really bad for community banks, so this change back to a normal yield curve is welcomed,” he added. “We’ll see about whether the Fed cuts interest rates a lot next year; there is now talk that the short-term rate reductions will be slower, but Trump will want them to be faster to juice the economy.”

But there are several caveats that make it difficult to project how pronounced a bounceback will be seen over the next few quarters. Indeed, while there is general agreement on perhaps another 100 basis points worth of rate cuts in the year to come, there is less consensus on the prospects for a recession or what will happen with inflation.

Dave Glidden

Dave Glidden

“As rates decline and the pressure relieves a little on margins, banks, if they’re smart, will stay laser-focused on the cost of funding and their deposit mix.”

Indeed, Glenn Welch, president and CEO of Freedom Credit Union, said the kinds of tariffs on foreign products trumpeted by President-elect Trump could cause inflation to spike — and have other repercussions.

“If those tariffs are put in place, we’re going to see higher inflation, and then the Fed won’t be able to drop interest rates as quickly as many are projecting,” he noted.

Meanwhile, although interest rates are expected to continue their downward trend, there will be a lag when it comes to the overall impact on deposit rates, especially with banks hard-focused on protecting their deposit bases.

“The competition for deposits will continue through the balance of this year and into 2025,” said Dave Glidden, president and CEO of Middletown, Conn.-based Liberty Bank, which has expanded its footprint into Western Mass. “Each bank will have to make their own decisions based on their deposit composition and cost of funding overall, but I expect that the rates on deposits won’t come down as fast as the Fed drops interest rates because deposits are the lifeblood of banks. As rates decline and the pressure relieves a little on margins, banks, if they’re smart, will stay laser-focused on the cost of funding and their deposit mix.”

 

Points of Interest

Glidden didn’t really want to speculate too much on Chase Bank’s strategy of adding new branches; like others, he preferred to talk about his own institution.

But he said the Jamie Dimon-led institution’s aggressive push is yet another indication that competition continues to increase — and come from seemingly everywhere.

That includes NBFIs, also known as NBFCs (non-bank financial companies), such as investment banks, hedge funds, private equity funds, private mortgage lenders, and other players. And it includes area banks and credit unions that are continually expanding their footprints — in this region, this state, and into neighboring Connecticut. It even includes the federal government. “People can get better rates on T-bills than they can get in the banks,” Sullivan said.

Dan Moriarty

Dan Moriarty

“Organic growth is becoming tougher and tougher. But as the bigger banks get bigger, we feel we can provide services and faster response times for small to mid-size companies. That’s our niche, and that’s what we’ll continue to focus on, but it’s getting tougher.”

As for Chase’s move, Glidden said there is lot of science and analytics behind it, and the bank, which he called the “900-pound gorilla,” is already making a dent when it comes to market share. “Branches are very expensive, and they’re always going to be a critical part of a bank’s distribution network, but you don’t build branches today haphazardly. Jamie Dimon hasn’t called me to let me know what he’s doing, but he puts a lot of science behind it.”

And this heightened competition from Chase and elsewhere comes as banks face the many challenges detailed above — at a time when they need to continuing growing in the wake of the many rising costs they’re facing and the need for economies of scale.

In this environment, the community banks that dominate this region need to focus on blocking and tackling, said those we spoke with, meaning an emphasis on what they do right, specifically a generally higher brand of personalized service.

“Organic growth is becoming tougher and tougher,” said Dan Moriarty, president and CEO of Monson Savings Bank. “But as the bigger banks get bigger, we feel we can provide services and faster response times for small to mid-size companies. That’s our niche, and that’s what we’ll continue to focus on, but it’s getting tougher.

“We’re trying to go against the super bigs and sell our services and our reputation,” he went on, adding that Monson Savings picked up some market share when a Citizens Bank branch closed.

Garrity concurred. He noted that, while mergers and acquisitions will continue — and perhaps pick up as the skies clear — the cleaner path is organic growth, and that comes through customer service, new branches when and where they are appropriate, and keeping pace with the larger institutions on technology.

Sullivan agreed, noting the sizable investments New Valley is making both in cybersecurity and new online banking products.

“We have to stay relevant with the big players, we’ve got to have the same sort of offerings that they have, and, in some cases, we have to be even better,” he said, adding that keeping up is a big part of doing business in this environment.

 

Technically Speaking

As he talked about technology, Sosik spoke for all those we interviewed when he said customer expectations are high — as in sky-high.

“When customers use technology, they want it to work. When you turned on your laptop this morning and the wheels spun a little bit or it took longer to load your email, you said, ‘what’s going on here?’” he told BusinessWest. “So the expectations are really high, and the margin for error is really thin; you have to have near-perfect execution.”

Couple high expectations with the equally high cost of technology, security, and compliance, and banks and credit unions are under enormous pressure to get it right.

“Twenty years ago, it was basically bad loans that could kill a bank,” Glidden said. They would kill a bank over time, and you could kind of see it coming. Today, with technology, a privacy breach, a cyberattack, ransomware … those things can change the fate or status of a bank in seconds.

“That’s why I call that side of technology ‘table stakes,’” he went on. “You have to invest, and invest heavily.”

By that he meant investments in new technology aimed at improving customer service, in training and drills like simulated cyberattacks, and in AI, which amounts to a new frontier for financial-services institutions, and another area where they need to get it right.

Welch said Freedom has recently deployed AI in its call center, a strategy with many goals.

“We’re rolling it out slowly, and we rolled out the first part over the past few weeks; it’s answering the phone and transferring people to where they want to go,” he explained. “Shortly, customers will be able to get balances and do transactions like transferring money between accounts.

“The whole idea is to free up the call-center people to deal with more complicated financial issues that customers have when they call in, rather than ‘what’s my balance?’ and ‘transfer $1,000 to this account,’” he went on, adding that maybe 25% to 40% of the calls to the center can be handled by AI.

Other area institutions are in similar early-stage rollout phases, but most are still doing research and deciding how to best implement the emerging technology.

Moriarty, like others we spoke with, said his bank is looking at AI not to replace face-to-face interactions and decision making, but instead to help make decisions faster.

And like other institutions we spoke with, Monson will measure twice and cut once when it comes to all aspects of AI, especially when it comes to security.

“Confidentiality is a critical component of a bank’s reputation,” he told BusinessWest. “If banks start using this too quickly, they could run into a situation where information might be out in the open or in the cloud somewhere. So we’re going to be very prudent about when and how we use AI to give information.”

Garrity agreed. “We want to integrate AI in our business, but it’s going to be a longer process overall to make sure that we understand what the risk components are,” he said. “We want to look at how we can use those tools to make our team members more efficient in serving our customer. It’s a tool to use, and a not a replacement of that team member.”

And it’s just one more challenge — and opportunity — banks face as they turn the corner from a tough 2024 into an uncertain 2025.

Business Innovation Special Coverage

Delivering a Message

Alfonso Santaniello says a marketing strategy begins with figuring out who the customers are and then taking the message to where they are.

Alfonso Santaniello says a marketing strategy begins with figuring out who the customers are and then taking the message to where they are.

When Alfonso Santaniello launched the Creative Strategy Agency 15 years ago — into the teeth of the Great Recession, no less — digital marketing was a simpler world, though not always a more effective one.

By that, he means it was easier to navigate the fewer available online channels back then, but the myriad options for getting a message out today pose more opportunities to finely target a message.

“When I started consulting, I wanted to focus on digital, and at the time, it was really websites and emails, and Facebook had just become public to everyday users,” he said. “And Facebook didn’t have business pages at the time. There was no advertising. Their algorithm was pretty great because you would see the feed in chronological order, before the algorithm came in, before advertising came in.”

When the recession began to fade and company advertising budgets grew, the digital marketing landscape changed as well, Santaniello said, with Instagram, LinkedIn, and Twitter growing in scope alongside other options.

“People were starting to realize it wasn’t going anywhere, and it wasn’t just Facebook — more were popping up,” he said. At the same time, “that’s when Facebook started pivoting to business pages, creating advertising platforms for businesses to target. But then other things changed, where a post would reach only 10% of your audience.”

“Companies think they’re doing good. And it’s important that their consumers know what they’re doing. That can be product-oriented to some extent, and it can be community-oriented to some extent. But whatever it is, it’s got to be interesting to their audience.”

John Garvey, president of Garvey Communication Associates Inc. (GCAi), said the digital world has opened up countless opportunities for marketers.

“What we’re about, I think, is success and education. Companies think they’re doing good. And it’s important that their consumers know what they’re doing. That can be product-oriented to some extent, and it can be community-oriented to some extent. But whatever it is, it’s got to be interesting to their audience.”

A better word, he added, might be ‘relevant.’ “If it’s not important to me, I’ll move on,” he said. So, from a marketing perspective, the question becomes, “what’s important to the audience, and where is this audience? How am I going to reach this audience on various platforms? You have to chase audience to some degree.”

Dylan Pilon, who started Cloud 9 Marketing Group a decade ago, said Facebook and Instagram remain key channels for content creation and targeted advertising, but a number of clients also leverage LinkedIn, Google Business Profile, and YouTube channels, as well as email marketing and other tools.

“People would probably say that 2010 to 2012 was the heyday for Facebook; organic reach was really good back then. A message could go a lot farther without the need to put paid, targeted advertising behind it,” he explained.

“Since then, Facebook has sort of throttled down the organic reach because they realized that they were giving the milk away for free. Nobody was buying the advertising cow, right? So since then, it’s been more difficult to break through because there’s also a lot more content being created. There’s a lot of noise.

“So the goal is to create a piece of content that will stop somebody from scrolling and capture their attention with a nice hook and then keep their attention engaged so you can deliver your message,” Pilon added. “Now, the focus is more on finding a way to craft creative that can stop someone’s thumb from moving.

While the tools may evolve, John Garvey says marketing always comes back to what’s important to the audience.

While the tools may evolve, John Garvey says marketing always comes back to what’s important to the audience.

“It’s not a cookie-cutter approach,” he went on. “We don’t have packages; we don’t have tiers. Our entire service is a la carte. You come in, and we present you a menu: ‘here are the things that you could do. What are you interested in?’ We’ll give you feedback on what we think would be the most beneficial and the most impactful. And then we build you a customized plan tailored just for you.”

Again, there are more opportunities in digital marketing today, but also, as Pilon noted, more noise — meaning more challenges.

“I feel like it was easier then, where now it’s highlighting the brand in a way that will reach the right people, but in a way that they will engage, or they will consume,” Santaniello said. “And every demographic consumes different content in different ways. Some people like to read, some people want videos.

“So now, it’s multiple targets. You’re not just targeting Western Mass.; now, we’re targeting this specific age group in Western Mass., with this interest, and we can do all that now within Facebook or Instagram or any platform,” he explained. “So the targeting and the way we want to reach people now is much more accessible, where before, we were just throwing things out there and hoping that we reach our audience.”

 

Medium and Message

All three company owners BusinessWest spoke with said they work with clients in traditional media as well — print, radio, TV, etc. — but digital marketing offers a new way to take a message directly to the public. And sometimes, one campaign can encompass both traditional and new media.

For example, Garvey’s firm specializes in a unique style of video storytelling in its campaigns.

“The goal is to create a piece of content that will stop somebody from scrolling and capture their attention with a nice hook and then keep their attention engaged so you can deliver your message.”

“It starts with shooting a video,” he said. “We then take narrative from the video. In this case, that narrative has to be approved. So there’s a third party that has to say, ‘yeah, that all works.’ And we can take the narrative from the video and turn part of it into a printout. Or we can take that narrative from the video and turn it into audio and create a promoted radio campaign with that. And that video can be a digital campaign on LinkedIn or various platforms. We have a multiple array of channels that we can go through to get this information out.”

Pilon said Cloud 9 has strong in-house capability for graphic design and copywriting, while working with strategic partners on photography and videography. “So we are able to act in the capacity of a full-service agency, but you don’t have to pay full-service agency pricing.”

When working with clients — its main industry focuses are real estate, building trades, and food and beverage — Cloud 9 offers a robust digital toolbox but also works in traditional media.

“Sometimes we have clients that are interested in print or radio, direct mail, those types of things. We don’t discriminate. Everything might not work for everyone,” Pilon said. “So depending on who the client is and who they’re trying to get their message out to, traditional methods could very well be a fit for sure.”

Dylan Pilon says it’s critical to make sure the messaging being created is providing value to the audience.

Dylan Pilon says it’s critical to make sure the messaging being created is providing value to the audience.

Santaniello added that “I usually spend a lot of time building out a strategy — first, really figuring out who the customers are, and then going to where they are. We’re not in a day where you build it and they will come. It’s kind of build it, find out where are they are, and then get it in front of them.”

In other words, “you don’t need to be on Facebook if that’s not where your audience is,” he said. “It’s really focusing on who the audience is and going where they are. That’s where you engage. You can’t wait for people to come to you. You have to go to them.”

For many clients, he added, “we do a lot of content and story. So it ties into the website, then we connect it to social. It’s a more multi-channel approach, compared to, ‘let’s just create a post and throw it on social.’ For me, it’s more, ‘OK, with that post, what is the call to action? What do we want them to do? Do we want them just to engage with the post? Do we want them to click a link to go somewhere, and if so, where are they going? What’s on that page? What do we want them to do?’ It’s a much more thought-out, strategic process than just throwing this out on social media and seeing what happens.”

Santaniello said traditional media is important to some clients, especially in pockets of this region that don’t have high-speed internet, and while he thinks in terms of digital first, the goal is always the same: “how do you connect with people offline and bring them online? And when they’re online, how do you bring them to your storefront offline? It’s full-circle. It’s not just that you’re doing only traditional, or only digital — you should be doing both.”

 

Checking the Numbers

Whatever the medium, it’s critical to assess the analytics to determine who is engaging with a campaign, and in what ways.

“If you’re not evaluating at least on an annual basis — if not biannually or even quarterly — what you’re doing and where you’re doing it and how you’re doing it, you’re at a disadvantage,” Pilon said. “So it’s not only having a strategy, having a plan, having a budget, but being able to say, ‘here is the measurable impact; here’s what we’ve been able to accomplish in three months, six months, a year, what have you.’”

Garvey said he offers detailed tools to measure not only impressions, but engagement actions, and for good reason: “video views and link clicks are two different results.”

Elaborating, he added, “I like to talk about what’s important to that audience, what’s helpful to them, what’s relevant. And the outcome that’s going to measure whether or not it’s relevant is engagement. The tools and measurement aspects are all available to the client, so we can say, ‘here’s what’s working.’”

Pilon agreed. “One thing that’s very important is making sure that the messaging that you’re creating is going to provide value with the audience. A lot of people talk at their customers on the internet instead of talking to their customers on the internet. And digital marketing and social media has such a customer-service aspect to it.”

Santaniello agreed that businesses need to examine the data.

“For marketing be more successful than the way it used to be done, they have to look at the numbers — they have to know why people are coming to the website, where are they coming from, what posts are doing well. Going in and regularly looking at the data will tell you what you’re doing right and what you’re doing wrong.”

As for the next big thing in digital marketing? Santaniello had an easy answer.

“If you want to know what the next platform is, ask a high-school student. They’re going to know,” he said. “Then give it five years, and they’ll find a way to add advertising revenue to it and introduce it to businesses.”

Commercial Real Estate Special Coverage

Developing a Strategy

Community Development & Planning Coordinator Sean O’Donnell (left) and President and CEO Jeff Daley.

Community Development & Planning Coordinator Sean O’Donnell (left) and President and CEO Jeff Daley.

 

 

Since its inception in 1960, the role of Westmass Area Development Corp. has remained remarkably consistent in many ways.

Created by the Commonwealth of Massachusetts as a not-for-profit economic and real-estate development firm, its mission has long been to develop and manage properties and enhance and strengthen communities through investments that create jobs, housing, and sustainability. But the way Westmass is accomplishing those goals is evolving.

“Traditionally, we would build infrastructure, sell off individual lots, have the town adopt those as public ways, and then we would go on and do the next projects. We are the economic-development agency for Western Mass. to really advance job creation and increase the economic tax base for communities in the region,” said Sean O’Donnell, Community Development & Planning coordinator, noting that the firm’s work has helped facilitate more than 10,000 jobs in the region.

While Westmass has done some consulting work in the past, it has mostly focused on its own real-estate projects, he noted, from its business parks to Ludlow Mills, which has been its flagship project since 2012.

“But over time,” O’Donnell went on, “and with my background and with the team we have here, we increasingly see opportunity in Western Mass. where we can play a facilitator role and a consulting role.”

Specifically, he explained, Westmass can take on this role for brownfield developers and municipalities that are trying to come up with creative ways to publicly finance their infrastructure. “We can put together different financing tools to make some of these more challenging real-estate projects in Western Mass. pencil out, and build these public-private partnerships.”

“We see a lot of opportunity in underserved areas in Western Mass. that could be thinking about economic development — not necessarily in the traditional sense, but how that embeds within a community that might want to stay rural.”

One example is the Ferry Street Mills project in Easthampton, where Westmass is assisting on the pre-development side and seeking cleanup funding to facilitate some of the planned housing work there. Others include a current business-park feasibility study for the town of Northfield and work with the town of East Longmeadow on the former Carlin Combustion Technology site at 70 Maple St., coordinating with the Massachusetts Department of Environmental Protection and looking into funding resources.

“My interest and background is in planning, particularly rural economic development, and we see a lot of opportunity in underserved areas in Western Mass. that could be thinking about economic development — not necessarily in the traditional sense, but how that embeds within a community that might want to stay rural,” O’Donnell said. “In the case of Northfield, that’s a business park that aligns with a recreation-based economy, rural tourism, agritourism, that type of thing. We’re trying to find all these different niches in Western Massachusetts.

Sean O’Donnell presents at the Western Massachusetts Brownfields Roundtable hosted by the Pioneer Valley Planning Commission on Sept. 17.

Sean O’Donnell presents at the Western Massachusetts Brownfields Roundtable hosted by the Pioneer Valley Planning Commission on Sept. 17.

“We have a lot of experience as a nonprofit developer and are very much a community-based developer,” he went on, “but I think we can play, and we have been playing, a really strong intermediary role and facilitating role with private projects and communities, while also looking out to Boston to see what new programs and financing and funding sources might be available to pull into Western Mass.”

Jeff Daley, president and CEO of Westmass, told BusinessWest that another growth area for the company is helping with or taking on projects that most developers can’t handle on their own.

“A lot of projects don’t pencil out anyways, and if you throw in the mix of outdated, dilapidated buildings that have potential contamination, brownfields, whatever, they can’t pencil financially for any developer,” Daley said. “So not only do we take on projects ourselves, but we also partner with projects to get through.”

One example is the most recent housing units to open up at Ludlow Mills, in Mill 8, a joint venture with Winn Development that allowed Westmass to retain 48,000 square feet on the first floor for commercial use.

“We invested our own money, we invested our own time, and we invested other monies that we received through grants and/or other mechanisms of financing to offset some of the cost explosion during COVID. We’re technically a joint-venture partner with Winn in that project,” Daley explained.

“By partnering with others, we certainly can bring added value to the team to make sure these things actually do pencil out at the end of the day.”

“So we can do projects like that to help make projects pencil, because it’s very, very hard today. In the economy we’re in, plus the cost of doing business, it’s really hard to make a lot of projects work. So by partnering with others, we certainly can bring added value to the team to make sure these things actually do pencil out at the end of the day.”

 

Opportunity Knocks

O’Donnell said Westmass’s expanding work in development services can benefit all types of projects, from housing to recreation to downtown revitalization.

“We’re increasingly looking on the housing side, keeping a close eye on the housing bond bill that passed in Boston a couple months back, seeing what new programs might be coming down the pipeline, and maybe finding a project that was thinking more commercial — maybe there’s an opportunity for mixed use, to have a residential component, because that can tie in new funding sources that can make the overall project more feasible.”

O’Donnell sees the client roster continuing to include both municipalities and private developers.

“It’s sometimes municipalities that maybe have a private development that’s proposed in town, but they know they need to get public infrastructure to the site. So they’re thinking about things like district improvement financing or grant writing to make that more plausible or more affordable for the community,” he explained. “But on the developer side, with us as a nonprofit partner, we might be able to help tap into some grant-funding resources that a private, for-profit developer might not otherwise be able to.”

Westmass also took over leadership of Develop Springfield late last year; one current project on that front is McCaffery Interests’ work on the Clocktower Building in Springfield’s South End, which will include market-rate housing. “We’re working with them as consultants, helping them with their capital stack, figuring out where financing can come from,” Daley said.

The Ferry Street Mills project in Easthampton is an example of the brownfield and mill properties Westmass works on.

The Ferry Street Mills project in Easthampton is an example of the brownfield and mill properties Westmass works on.

And housing — specifically the need for more of it in most area cities and towns right now — poses significant opportunities for Westmass, O’Donnell added.

“Communities are trying to be proactive, but many communities might not have a full-time planner on staff or have the capacity to re-examine where they might want to expand public infrastructure to make a certain site or area of town viable for housing. They’re also looking at maybe recalibrating their zoning so they can allow for more mixed-use or multi-family in certain areas of the town. I think that’s where we can help, in partnership with other planning firms and the planning commissions as well.”

He noted that Westmass is uniquely situated to be a resource to municipalities and developers, especially in the case of brownfields sites, of which there are hundreds in Western Mass.

For example, in the case of the Ferry Street Mills project in Easthampton, “as a nonprofit, we’re doing a land lease of the property to have site control in order to go after cleanup dollars from the federal Environmental Protection Agency. Even though the development following the cleanup will be led by the for-profit developer and the partners there, as a nonprofit, if we have site control during the EPA grant, we can receive those grant funds, clean up the site, and get it ready for projects.

“That’s a huge role that I think is increasingly needed in Western Mass.,” he added. “There’s more funding right now at the federal level, particularly for cleanup and brownfield mill redevelopment work. And I think that we can play a really great, active role with those types of projects around here.”

 

Community Support

O’Donnell took his current role at Westmass in 2020, the year after Daley took the reins at the company.

“I was Facilities manager over at Ludlow Mills, so I cut my teeth over there. And I was Leasing manager over there for a while,” said O’Donnell, who earned a master’s degree in regional planning from UMass Amherst and has worked at planning commissions at the municipal level. “But my interest is really in economic development and mill redevelopment.”

As for Ludlow Mills, progress continues apace at that complex, where the residential units at Mill 8 were recently completed and Westmass is finishing about $3 million worth of roads and sewer and water service to all the buildings on campus.

“All the electrical’s going in; instead of overhead wires, we put conduit underground, and every single building there will have their own meter, and it will all be underground,” Daley said, adding that Westmass is also partnering with the town through a MassWorks grant to have a $3.5 million road built. “Once that’s built and the town accepts it, then we’ll probably have about 40 acres to develop. So it’s moving; there’s a lot of stuff going on.”

Pre-development work continues on Mill 11, the largest building with about 400,000 square feet, which is awaiting some cooperative work with the National Park Service to remove a historical building on site. “But once we do that, we think it will probably generate about 220 apartments and probably 15 or 20 condominiums, and 60,000 to 100,000 square feet of commercial space,” Daley said. “That’s the big gorilla that we need to get done over there. It’s projected to be a quarter-billion-dollar project.”

Ludlow Mills is a project that clearly impacts an entire neighborhood and town, and O’Donnell sees further opportunities to make similar impacts around Western Mass. in the future.

“Ludlow is a unique case, but I don’t think it would be possible without the community support that started before even we bought it. Westmass started those conversations early, started to lay out what a plan might look like for the entire campus, and the town has been such an incredible partner all the way through,” he told BusinessWest. “And we’re seeing the same thing at Easthampton with the mill projects over there. You need that community buy-in and to have those conversations early to make these large-scale redevelopment projects successful. We want everybody paddling in the same direction, for sure.”

Among its other recent projects, Westmass has worked in a number of ways on the proposed data center in Westfield — from helping the developer through tax-financing programs to securing energy costs with Westfield Gas & Electric to working on state legislation for a personal property-tax exemption — and played a construction-management role for Baystate Health on its Mary Lane Hospital decommissioning, to name just a couple. Westmass was also recently selected also as a house doctor for MassDevelopment projects.

And it’s just getting started.

“We just want to continue expanding our impact,” O’Donnell said. “I think we’ve played a really strong role in these discrete projects, but I think we have an incredible team and the bandwidth to start thinking about potentially larger partnerships and projects throughout Western Mass.

“It’s going to be an evolutionary process on our part, and hopefully we keep bringing in enough work that we can hire some more staff and a team to keep growing this thing,” he added. “It’s incremental at this point, but we’re really trying to build those relationships and get those projects moving.”

Community Spotlight

Community Spotlight

Mayor Peter Marchetti says several projects in various stages of development should help ease a critical housing shortage in Pittsfield.

Mayor Peter Marchetti says several projects in various stages of development should help ease a critical housing shortage in Pittsfield.

Starting early in his career in financial services at Pittsfield Cooperative Bank, Peter Marchetti, like many of his colleagues, made it a point to get involved in the community.

He donated time and energy to everything from the United Way to youth bowling; from Pittsfield Community Television to the Pittsfield Parade Committee.

But starting in the late ’90s, he took that involvement to a higher plane, running, successfully, for a seat on the City Council. In 2011, he sought to take things to a still higher level, running for mayor, only to lose a very tight race. After a hiatus from elected office, he returned to the City Council, and in 2023 launched another bid for the corner office, this one successful.

When asked why, he indicated that there was still much work to be done as this city of roughly 44,000, the largest in the Berkshires, continues its transition from being, in essence, a company town — in this case General Electric — to a city with a far more diverse economy, and one that has moved on from GE in every way, including a reimagining of the huge, mostly undeveloped tract that was its massive transformer-manufacturing complex.

“I saw our city at a crossroads, where we have the opportunity to reinvent ourselves; there are many people who still look at us as the old GE manufacturing community. I think we have some opportunities to turn the corner, and I wanted to lead that turnaround,” said Marchetti, who retired from Pittsfield Co-op as senior vice president of Retail Banking Operations. Ten months into his first four-year term, he can cite progress on several fronts.

These include the William Stanley Business Park, created at the GE site, where work is set to commence on a 20,000-square-foot facility that will provide room to grow for many of the startups that now call the Berkshire Innovation Center home.

And also the city’s downtown, still evolving from the GE days, where new businesses have landed and much-needed housing initiatives are taking shape (more on these later).

Beyond Marchetti’s first year in office and his emerging agenda, there are plenty of other developing stories in Pittsfield, many of them taking place downtown, where several issues and trends are colliding, and where that ongoing process of evolution continues.

The expansive downtown area, while now home to several new business and with a falling vacancy rate, continues to experience fallout from the emergence of remote work and a broad decline in daily foot traffic, which is impacting many hospitality and service-oriented businesses.

“Downtown has shifted away from some of our larger companies that would have people here during the day and out for lunch, grabbing coffee, or going out to a bar after work. Now that they’re remote, we’re definitely in need of people downtown regularly. The addition of housing in our downtown will make that difference.”

This decline has been one of the driving forces in the return of First Fridays at Five and other events geared toward generating additional foot traffic, while also helping to inspire efforts to redevelop some downtown properties into housing, which is in short supply and thus a negative force in economic development and business growth.

Indeed, like other communities facing this challenge, Pittsfield is looking at ways to convert office and retail spaces into housing — opportunities that will help meet the need for housing while also bringing back some of the vibrancy lost to remote work.

The return of First Fridays at Five

The return of First Fridays at Five has helped bring more foot traffic to downtown Pittsfield.
Photo by Autumn Phoenix Photography

“Downtown has shifted away from some of our larger companies that would have people here during the day and out for lunch, grabbing coffee, or going out to a bar after work. Now that they’re remote, we’re definitely in need of people downtown regularly,” said Rebecca Brien, managing director of Downtown Pittsfield Inc. (DPI). “The addition of housing in our downtown will make that difference.”

Jonathan Butler, president and CEO of 1Berkshire, the county-wide economic-development agency, agreed.

“I think it’s naive to think that everyone is going to go back to 9-to-5 at the office,” he said. “So what we’re doing throughout the Berkshires, with downtown Pittsfield being a centerpiece of this, is looking at the housing crisis, how we can get more housing built, and looking at some of this commercial space in our downtown.”

For the latest installment in its Community Spotlight series, BusinessWest turns its lens on Pittsfield, a city that continues to move on from its GE-dominated past and put the focus squarely on the present and future.

 

Progress Report

Marchetti grew up in Pittsfield, and, like everyone his age who did, he has fond memories of life in the city when GE was bustling and employing north of 10,000 people, most of whom would be spending their paychecks in a thriving downtown dominated by all kinds of retail, including several large department stores.

Like his immediate predecessors in the mayor’s office, Marchetti stresses a need not to look back, but to instead continue turning the pages on an ongoing evolution.

“People can’t find quality housing in the rental market that is desirable enough for them to stay here. Or, when you’re recruiting and looking to bring transplants to the region, they’re not able to buy a home at a price point that’s realistic, or find quality rental housing that meets their expectations. That’s a huge issue for us.”

He noted progress in many corners of the city, including the former GE site. Once a huge and imposing mass of concrete, the site is being made less intimidating and more ready for redevelopment, one parcel at a time.

Indeed, the parcel known as site 9, has been “completely rehabilitated,” said Marchetti, meaning there has been landscaping and other improvements designed to make it shovel-ready. Meanwhile, $500,000 in grant funding has been received to do the same for sites 7 and 8.

Plans are also moving forward for the construction of a new facility near the innovation center, one that will accelerate new-business development in the park, he noted.

“We have several businesses that have started in the innovation center, and they’re running out of space at that location. This is their opportunity to expand and allow space to be cleared up for additional incubator companies.”

Meanwhile, there has been progress on the housing front, the mayor said, noting that, like most Berkshires communities, Pittsfield is suffering from a shortage of housing, especially of the affordable variety, which is making it increasingly difficult for many to live — or stay — in the city, while also impacting businesses already facing challenges with building and maintaining a workforce.

First Fridays at Five is just one of many initiatives undertaken by Downtown Pittsfield Inc.

Rebecca Brien says the return of First Fridays at Five is just one of many initiatives undertaken by Downtown Pittsfield Inc. to bring foot traffic, and vibrancy, to the downtown area.
Photo by Autumn Phoenix Photography

Within the downtown, there are two projects in early-stage development. One involves conversion of the Wright Building on North Street and an adjacent shoe store, formerly home to a candlepin bowling alley and several offices and shops, into roughly 30 units of affordable housing. The other involves redevelopment of the White Terrace apartments, which will bring another 25 to 30 units online.

Meanwhile, two transitional housing projects are slated to be underway in the coming months, and plans are being forwarded for conversion of a former elementary school into housing, said Marchetti, who said projects currently in the pipeline will add another 100 units, but the city needs another 250 to 300 units, minimum, to meet the growing need.

“The hardest part of bringing new housing online is the millions of dollars it costs to redevelop these properties,” he said, adding that the price tag for the Wright Building project exceeds $17 million.

Butler concurred, but noted that housing is critical to Pittsfield’s ongoing efforts to reinvent itself and sustain the businesses that now call it home.

“Housing is the issue contributing to the workforce problems facing employers today,” he explained. “People can’t find quality housing in the rental market that is desirable enough for them to stay here. Or, when you’re recruiting and looking to bring transplants to the region, they’re not able to buy a home at a price point that’s realistic, or find quality rental housing that meets their expectations. That’s a huge issue for us.”

 

Downtown Developments

Additional housing is expected to bring more vibrancy and new opportunities to the downtown area, said Brien, noting that there are already several initiatives in various stages of development to bring more foot traffic to the area.

One has been the return of First Fridays at Five, which is an amalgam of the former Third Thursday and First Friday Artswalk events, aimed at bringing back what Brien called a “street-festival vibe.”

Pittsfield at a glance

Year Incorporated: 1761
Population: 43,927
Area: 42.5 square miles
County: Berkshire
Residential Tax Rate: $18.45
Commercial Tax Rate: $39.61
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 started small,” she said, referring to what was essentially a one-block initiative that started in May and featured everything from musical performers to a small-vendors market; from a beer garden hosted to Hot Plate Brewing to restaurants with on-street dining.

In September, the concept grew with something called Taste of Pittsfield, which featured additional music, dancing, art, food trucks, and activities stretched over another block, from Park Square to Columbus Avenue.

That larger footprint will be used next year, said Brien, adding that the goal moving forward is to continue to add new draws, such as a car show, to bring individuals and families into the downtown and let them experience all that is happening there.

And there is quite a bit in that category, she told BusinessWest, adding that downtown continues to change, evolve, and present a solid mix of anchors (the Colonial Theater and Barrington Stage Co.), long-time businesses such as Carr Hardware and Museum Outlets, and new or relatively new additions, such as Hot Plate; Thistle and Thorn, a gift shop; Witch Slapped, a “haven for all things metaphysical and mystical”; and the Plant Connector, which has a mission “to connect people to the joy of plants and foster a thriving green community.”

Meanwhile, the roster of restaurants continues to grow and evolve, she went on, listing a new steakhouse in Hotel on North; BB’s Hot Spot at the Lantern Bar, a Jamaican restaurant on North Street; and Marie’s North Street Eatery and Gallery, a contemporary deli located in the historic Shipton Building.

This mix is succeeding in making downtown more of a destination for locals and tourists alike, Brien said, adding that one challenge moving forward is to grow a steady pace of foot traffic that extends well beyond First Fridays and other event days.

Another challenge is sustainability, she went on, adding that DPI has created educational opportunities for business owners with the goal of helping them work on, though not necessarily in, their businesses to help ensure continued success.

“Stability is something we need to be focused on, with both existing businesses and the businesses that are coming in,” she explained. “We had a grant opportunity for some of our existing businesses this past summer that enabled them to work with a consultant on such things as marketing and workflow and accounting systems. And next year, we’ll be offering some co-op marketing dollars. We’re great at telling people downtown that we’re here, but we need to make that sure that word is getting out beyond us.

“And in January, we’ll be offering seminars on things like how to read a P&L sheet and how to use Facebook,” she went on, adding that DPI is committed to providing members with educational opportunities to help ensure that they thrive.

That’s just one of many examples of how leadership in this community, on many different levels, is indeed focused on the future and not on the past.

 

Employment

Retaining Talent in 2025

By Nicole Polite

 

In 2025, the business world faces a significant challenge: employee retention. The job market has become fiercely competitive, and the shifting expectations of employees demand proactive and innovative approaches from organizations seeking to retain their top talent. As we navigate this evolving landscape, our focus is on current trends influencing employee retention and offering actionable strategies to engage and keep our workforce.

The outlook in 2025 is one where employees place a high value on workplaces that prioritize their mental and physical well-being. The global shift toward understanding mental health means employees are drawn to environments where their welfare is respected and nurtured. Organizations ignoring these critical aspects risk higher turnover rates as employees gravitate toward healthier work-life balances.

Nicole Polite

Nicole Polite

“The global shift toward understanding mental health means employees are drawn to environments where their welfare is respected and nurtured.”

Flexible working arrangements are now standard. The advent of remote work and hybrid models offers individuals the flexibility to effectively balance personal and professional responsibilities. Companies not willing to offer this flexibility may struggle to attract or retain talent in an era when work-life integration is vital.

Career development is another major factor. Employees are now looking beyond their current roles. They seek continuous learning opportunities and routes for career advancement. The organizations that invest in their employees’ growth not only improve their skills, but also increase loyalty and retention.

In 2025, diversity and inclusion are more important than ever. Workplaces that celebrate and support diverse backgrounds create a sense of belonging, leading to higher employee satisfaction and commitment. Strategic integration of AI and automation can also attract tech-savvy employees, provided workplaces maintain a balance between technology and human-centric approaches.

 

Positive Steps

Let’s explore strategies for employee retention that you can utilize.

First, fostering a positive workplace culture is vital. Building a culture of respect, inclusivity, and appreciation is foundational for retaining talent. Encourage open communication and ensure every employee feels valued and heard.

Second, enhancing work-life balance is critical. Provide flexible working conditions that enable employees to manage their personal and professional lives effectively. Encourage time off to prevent burnout and increase productivity.

Third, investing in career development is crucial. Offering professional-development programs, mentorship, and clear career-advancement pathways shows your commitment to employee growth, fostering loyalty.

Fourth, recognizing and rewarding efforts is key. Acknowledging contributions through structured programs reinforces positive behavior and boosts morale.

Fifth, improving employee benefits is important. Regularly reviewing your benefits package will ensure it meets the changing needs of your workforce. Consider comprehensive health plans, retirement savings options, and wellness programs to enhance employee satisfaction and retention.

Sixth, solicit and act on feedback. Regular surveys and feedback sessions provide valuable insights into employee concerns and aspirations. Acting on feedback shows a true commitment to an improved work environment, bolstering trust.

Seventh, emphasize diversity, equity, and inclusion. Creating an environment where all employees feel they belong boosts morale and engagement.

Eighth, leverage technology wisely. Use technology to improve work processes, but ensure it doesn’t replace human interactions. Investing in tools that enhance communication without compromising personal connections is important.

 

Bottom Line

By focusing on these strategies, businesses can significantly reduce turnover rates. Prioritizing employee well-being and growth, creating inclusive cultures, and adapting to changing workforce demands positions your organization for higher retention rates and success.

A future-proof workforce is not just about retaining talent; it’s about nurturing a thriving organizational culture that encourages growth, innovation, and collaboration. Success on this front results in not only higher retention rates, but also enhanced productivity and success.

 

Nicole Polite is the owner and founder of the MH Group and author of Expectations Aligned: Forging Better Paths for Employers and Employees to Meet in the Middle.

 

Health Care Healthcare News

‘He Truly Shows Up’

 

The Massachusetts Council of Human Service Providers recently presented state Sen. John Velis with the 2024 Legislator of the Year Award during the council’s 49th annual convention and expo in Boston.

“Our human-service workers are truly some of the most selfless people out there, directly caring for those in our communities with disabilities or those struggling with a behavioral-health challenge. I am truly beyond honored to be recognized by the Providers’ Council and their members for my work advocating for these frontline heroes,” said Velis, who serves as the Senate chair of the Joint Committee on Mental Health, Substance Use, and Recovery.

Velis was joined the Providers’ Council at Westfield State University as a guest speaker this past September during the organization’s Western Massachusetts Caring Force Rally, which highlighted the essential services provided by direct-support professionals.

“Senator Velis demonstrates his commitment to the individuals of Massachusetts who need support and services to manage the challenges that substance use and behavioral health bring to their lives. His support of our industry, the providers that work hard every day to make a difference, is unwavering, and he ensures his advocacy for the resources we need to carry out our missions.”

In the current legislative session, Velis helped usher an expansive substance-use and recovery bill through the Senate, which would establish a licensure process for recovery coaches in the Commonwealth. If included in the final Senate-House compromise package, this provision would provide recognition of the importance of lived experience and help grow this profession within the human-services sector.

“Senator Velis demonstrates his commitment to the individuals of Massachusetts who need support and services to manage the challenges that substance use and behavioral health bring to their lives. His support of our industry, the providers that work hard every day to make a difference, is unwavering, and he ensures his advocacy for the resources we need to carry out our missions,” said Lois Nesci, CEO of Gándara Center. “He does this in both words and action. I have often shared with the senator that, when he visits a program or attends an event, he truly shows up — ready to support, ready to listen, and ready to take the next steps. My sincere congratulations to someone who makes an incredible difference every day.”

Added Velis, “I am particularly grateful to my dear friend Lois Nesci and all those at the Gándara Center for nominating me for this award. It is such a privilege to be able to work alongside such dedicated community partners like the Gándara Center to learn about the challenges that need to be addressed to make behavioral healthcare more accessible.”

The Massachusetts Council of Human Service Providers is Massachusetts’s largest human-services membership association, representing more than 220 community-based agencies around the Commonwealth, including Gándara Center. During the ceremony, the Providers’ Council recognized 13 other individuals from across the state for their work in the human-services sector.

Employment Special Coverage

A Hand Up, Not a Handout

Springfield Rescue Mission CEO Kevin Ramsdell

Springfield Rescue Mission CEO Kevin Ramsdell

Springfield Rescue Mission has long helped its homeless clients find jobs. Sabra Ramsdell was concerned about how often those jobs didn’t stick.

“What is the value in work? A lot of people don’t understand that the value in work is that it teaches you a discipline,” she told BusinessWest. “It’s not just a paycheck. It teaches you how to build self-esteem in yourself.”

And for whatever reason, motivation or otherwise, “we would find that guys would just hit a brick wall and quit. And we were scratching our heads going, ‘why? What’s going on?’ But we had no mechanism to call an employer and say, ‘well, what happened?’ And if you talk to the residents, you get one side. So I finally just said, ‘this isn’t going to work this way.’”

So Ramsdell, chief of staff at Springfield Rescue Mission (and the wife of CEO Kevin Ramsdell), started thinking about different models.

“The one entity that I’ve seen that does this over the long haul is the DDS,” she said, referring to the state Department of Developmental Services. “They have a mechanism that works between HR departments, companies, and employees. Many of these guys who are housed in group homes come to, say, Big Y through an agency. Well, we’re an agency, so how come we can’t develop a program that would ensure to companies that they would have a fallback to contact us if they were running into an issue? It’s really that simple.”

That’s how the mission’s Workforce Development Outreach program was born. And on Oct. 30, the program got a major boost of funding — and a vote of confidence, really — from KeyBank Foundation in the form of a two-year, $150,000 grant to create a liaison position that will work with employers to help the mission’s transitional residents secure jobs best suited for them, and then keep them and grow in their careers.

“This grant reflects our ongoing dedication to investing in local communities and helping individuals build brighter futures.”

“One of KeyBank’s philanthropic focus areas is workforce development and helping individuals achieve the skills, education, and capabilities they need to succeed in current and future employment opportunities,” said Matthew Hummel, KeyBank’s market president for Connecticut and Massachusetts. “This grant reflects our ongoing dedication to investing in local communities and helping individuals build brighter futures.”

Essentially, the Workforce Development Outreach program matches mission residents with potential employers, while providing training and support to the residents to become effective, retainable employees. The grant is a way to build and expand partnerships with local companies and, through the new liaison, coordinate efforts between employers, employees, and the mission’s case-management team.

the $150,000 grant to Springfield Rescue Mission

KeyBank’s Matthew Hummel, flanked by Sabra and Kevin Ramsdell and joined by local and state leaders, presents the $150,000 grant to Springfield Rescue Mission.

“We are incredibly grateful to KeyBank for the generous funding, which will greatly enhance our Workforce Development Outreach program,” Kevin Ramsdell said during the check-presentation ceremony. “This support will empower us to help more individuals in need gain valuable skills and opportunities to secure sustainable employment and self-sufficiency.”

 

Shared Mission

Hummel told the crowd gathered at the check presentation that KeyBank Foundation’s focus on helping people attain the skills and education needed to succeed in careers fits squarely with the mission’s work.

“The Workforce Development Outreach program is not just about job training, it’s about equipping people with the skills, the confidence, and the support they need to rebuild their lives. It’s about giving people hope, dignity, and the opportunity for a better future. That’s also a mission that we can stand behind,” he said. “With this grant, we’re helping them create a pathway to success, offering tools to allow individuals to secure meaningful employment, achieve financial independence, and ultimately contribute to the privacy of this community.

“Employers are going to have that support, too. They’ve got somebody else that they can talk to about what’s really going on. And we genuinely want these guys to realize their dream and become effective employees.”

“By partnering with not-for-profits and nonprofits like Springfield Rescue Mission,” Hummel added, “we can help individuals rise above their challenges and build a foundation for long-term success.”

It’s a message that also resonated with state Rep. Carlos Gonzalez, who touted Springfield Rescue Mission’s status as the first shelter of its kind in the state of Massachusetts, and the fifth-oldest in the U.S.

“This is about our community. This is not about helping with a handout, it’s helping with a hand up. That’s what this program is about,” he said. “These opportunities are about not only sheltering, but about rehabilitation.”

City Councilman Melvin Edwards spoke to the Christian values that undergird the mission’s work.

“I know that the mission is biblical, and we’re supposed to feed those in need and house them,” he said. “I believe this program is about the fact that some of us are in a better position than others, but … our collective success is dependent on the people around us and whether they’re willing to reach out and give us a helping hand. So for those of you who are providing the services, thank you.

“For those who are receiving services, look in the mirror and recognize you do have value, you are loved, and people in the community do respect you,” Edwards added. “Sometimes we can’t control how people speak about us and look at us. But you should look at yourselves and realize you do have value.”

Sabra Ramsdell emphasized during her short address that the underserved population needs more than just simply a job. “Most of us could go get a job,” she noted. “The trick is to get a job doing something you love because, as my husband likes to say, you’ll never really work a day in your life if you love what you’re doing.

Matthew Hummel

Matthew Hummel says workforce development is one of KeyBank’s philanthropic focus areas.

“Secondly, you need real support from employers who understand that the population we’re dealing with … may not completely have all the skills necessary to perform the way we would like. So this program was born to bring about a relationship between employer, case management, and resident in an effective way that we hope solves problems and produces more active, robust employees.”

 

More Than a Job

Springfield Rescue Mission’s Taylor Street site hosts an emergency shelter accommodating 45 men nightly, offering meals, showers, and clothing, while its Rehabilitation Program supports transitions with healthcare, addiction services, and mental-health support. At the mission’s Mill Street location, the New Life Rehabilitation Program aids up to 60 men over six to 12 months through a holistic wellness track, including medical care, academic support, workforce development, and life-skills training. The mission also distributes 3.1 million pounds of food annually, benefiting hundreds through meals and community outreach.

After the check presentation, Sabra Ramsdell told BusinessWest that she wants to help people succeed in life by creating more of a mentoring partnership between employers and underserved populations.
“Employers are going to have that support, too. They’ve got somebody else that they can talk to about what’s really going on. And we genuinely want these guys to realize their dream and become effective employees.”

If the liaison to be hired with KeyBank Foundation’s grant funding is as effective as hoped, Ramsdell said she could see this program becoming a model that could be incorporated into other social services.

“I don’t have a social-service background. I was a banker for 20 years. I did mortgage work. So I know what I know — the pathway to becoming independent financially as a first-time homebuyer. But I don’t know this other piece, which is getting somebody from where these guys are to that point.”

To aid in that process of economic advancement, the mission also provides digital-literacy training to help residents gain the basic skills they need to work in many settings.

As for long-term goals, she noted, “you have to look at that whole person and say, ‘how old are you? What is your dream? What did you dream? What did you like doing when you were a kid? Tell me about your life, your family.’ You’ve got to analyze where they really are and then figure out where they need to go.”

The Workforce Development Outreach program is open to all the mission’s transitional-living clients, more than 100 at a time. So the impact could be significant, boosting local businesses in need of workers while providing not just jobs, but potentially career pathways beyond minimum wage.

“If it’s a difference between $15 an hour and $25 an hour or more,” Ramsdell said, “that gets them out of that cycle of poverty.”

Accounting and Tax Planning Special Coverage

Despite Uncertainty in Washington, Solid Advice Abounds

By Kristina Drzal Houghton, CPA

As we come to the end of 2024, it’s time to discuss end-of-year tax planning. This past year has seen some significant tax legislation that, if enacted in its current form, would impact year-end tax strategy. Understanding this legislation, and how it might affect 2024’s tax obligations, is essential for making informed tax-planning decisions.

Kristina Drzal Houghton

Kristina Drzal Houghton

In this article, I will address both business and individual tax-planning strategies and provide some insight on how possible legislation might affect your year-end planning decisions. Many of my clients ask me about my thoughts on taxes depending on a Republican or Democratic victory for president. My reply is that no one person can determine legislation, and the makeup of the House and Senate need to be considered.

One of the most notable legislative proposals this year was the Tax Relief for American Families and Workers Act of 2024. This bipartisan bill would have provided tax relief to parents by enhancing the Child Tax Credit.

For businesses, the bill would have restored immediate expensing for U.S.-based research and development (R&D) investments, instead of deducting such expenses over five years. Full and immediate expensing for investments in machinery, equipment, and vehicles would also have been restored, and the amount of investment that small businesses can immediately write off would have been increased to $1.29 million. The bill also addressed the treatment of business interest expense, bonus depreciation, and research and experimental costs.

Although the bill failed to pass in the Senate, various provisions have been resurrected separately. However, Congress has yet to pass a 2025 budget or address various expiring provisions and extenders, including the expiring provisions of the Tax Cuts and Jobs Act.

Possible legislative changes, which may include an increase in the corporate tax rate to 28%, along with adjustments to tax brackets, retirement contribution limits, and the gift-tax exclusion, underscore the importance of staying informed and prepared.

 

YEAR-END TAX PLANNING FOR BUSINESSES

Whether or not tax increases become effective next year, the standard year-end approach of deferring income and accelerating deductions to minimize taxes will continue to produce the best results for most small businesses, as will the bunching of deductible expenses into this year or next to maximize their tax value.

If proposed tax increases do pass, however, the highest-income businesses and owners may find that the opposite strategies produce better results: pulling income into 2024 to be taxed at currently lower rates, and deferring deductible expenses until 2025, when they can be taken to offset what would be higher-taxed income. This will require careful evaluation of all relevant factors.

 

What’s New for Businesses in 2024?

As noted earlier, one of the most notable legislative proposals this year was the Tax Relief for American Families and Workers Act of 2024.

Without more legislation, bonus depreciation will fall to 60% for most qualified business property placed in service in 2024 (down from 100% in 2022 and 80% in 2023).

However, more taxpayers can deduct business loan interest in 2024 as the adjusted gross income limit for small taxpayers increases to $30 million.

 

Depreciation and Expensing

One consideration is the possibility of changes in the taxpayer’s tax rate in future years, whether based on predictions about the taxpayer’s business or about legislative changes in tax rates. For example, a possibility of sufficiently higher future rates may result in trying to defer deductions by deferring purchases of property eligible for full expensing or bonus depreciation. On the other hand, an example of a reason not to defer purchases is that the rate of bonus depreciation is phasing down to 0% in 2027.

 

Bonus Depreciation

For 2024, a first-year bonus depreciation deduction falls to 60% of the adjusted basis of depreciable property allowed for qualified property acquired and placed in service during the year.

For 2024, the maximum amount of section 179 property that can be expensed is $1,220,000 ($1,250,000 for 2025). That full amount is available until qualifying property placed in service during the year reaches $3,050,000 ($3,130,000 for 2025), at which point a phaseout begins.

 

Proposed Changes

While not actually proposed legislation, a presidential candidate has discussed the idea of raising the corporate income-tax rate to 28%. This adjustment would raise federal revenue but could impact the bottom line of large corporations. These companies may need to reassess their financial strategies, including cost management and investment plans, to accommodate the higher tax burden.

 

Net Operating Losses

For the 2024 tax year, net operating losses (NOLs) of corporate taxpayers may not be carried back (except for farm losses, which may be carried back two years), but may be carried forward indefinitely. In addition, for the 2024 tax year, the NOL deduction is subject to an 80% of taxable income limitation (not counting the NOL or the qualified business income deduction).

A taxpayer that may have difficulty taking advantage of the full amount of an NOL carry-forward this year should consider shifting income into and deductions away from this year. By doing so, the taxpayer can avoid the intervening year modifications that would apply if the NOL is not fully absorbed in 2024. This may also avoid potentially higher tax rates next year on the accelerated income and increase the tax value of deferred deductions.

 

 

Losses and Shareholder or Partnership Basis

A shareholder can deduct its pro rata share of S-corporation losses only to the extent of the total of its basis in the S-corporation stock and debt. This determination is made as of the end of the S-corporation tax year in which the loss occurs. Any loss or deduction that can’t be used on account of this limitation can be carried forward indefinitely.

If a shareholder wants to claim a 2024 S-corporation loss on its own 2024 return, but the loss exceeds the basis for its S-corporation stock and debt, it can still claim the loss in full by lending the S corporation more money or by making a capital contribution by the end of the S corporation’s tax year (in the case of a calendar-year corporation, by Dec. 31).

Similarly, a partner’s share of partnership losses is deductible only to the extent of their partnership basis as of the end of the partnership year in which the loss occurs. Basis can be increased by a capital contribution, or in some cases by the partnership itself borrowing money or by the partner taking on a larger share of the partnership’s liabilities before the end of the partnership’s tax year.

 

YEAR-END TAX PLANNING FOR INDIVIDUALS

Whether or not tax increases become effective next year, the standard year-end approach of deferring income and accelerating deductions to minimize taxes will continue to produce the best results for all but the highest-income taxpayers, as will the bunching of deductible expenses into this year or next to avoid restrictions and maximize deductions.

If proposed tax increases do pass, however, the highest-income taxpayers may find that the opposite strategies produce better results: pulling income into 2024 to be taxed at currently lower rates, and deferring deductible expenses until 2024, when they can offset what would be higher-taxed income. This will require careful evaluation of all relevant factors.

What’s New for Individuals in 2024?

• Penalty-free withdrawals from retirement accounts. Domestic-abuse victims under age 59½ may take up to $10,000 in penalty-free withdrawals from retirement accounts. Individuals with an emergency can take a penalty-free withdrawal up to $1,000 penalty-free.

• Increased catch-up retirement contributions. IRA catch-up contributions are indexed for inflation beginning in 2024. In 2025, the 401(k) catch-up contribution amount increases from $7,500 to $10,000 for workers ages 60 to 63.

• Some catch-up contributions must be made to a Roth account. Beginning in 2024, taxpayers with income of $145,000 or more must make any catch-up contributions to a Roth or Roth 401(k) account.

• Leftover money in a 529 plan. Leftover money in a 529 plan can be rolled over tax-free into a Roth IRA. Restrictions apply.

• Increased RMD age. RMD age remains age 73 in 2024 and increases gradually to age 75 in 2033.

• Qualified charitable distribution cap. IRA owners can transfer up to $105,000 tax-free to a charity.

 

Filing Status and Dependents

When considering year-end tax-planning strategies, think about your expected filing status this year and next and the number of dependents that you expect to claim in each year.

Additionally, the Massachusetts millionaire’s tax allows an exemption of $1 million for all filing statuses. For 2024, Massachusetts requires, in most situations, that the Massachusetts filing status mirror the federal filing status. Potential Massachusetts savings for higher-income earners needs to be compared with any federal benefit of married filing jointly.

 

Who Should Increase Income?

A taxpayer who expects to be taxed at a higher rate next year should explore strategies to increase income this year by accelerating the recognition of income. An individual taxpayer might be in a higher tax bracket next year if:

• The taxpayer is graduating from school or a training program and moving into the paid workforce;

• Head-of-household or surviving-spouse status ends after this year;

• The taxpayer plans to get married next year and will be subject to a marriage penalty; or

• The taxpayer expects to be eligible for one or more credits next year (e.g., the child tax credit) that is subject to phaseout when AGI reaches specified limits and is otherwise not eligible for the credit this year.

Caution: any decision to accelerate income from a later year into an earlier one should consider the time value of money.

 

Who Should Decrease Income?

A taxpayer who expects to be subject to the same or a lower tax rate next year should consider deferring income recognition. A taxpayer might be in a lower tax bracket next year if:

• The taxpayer becomes eligible for head-of-household status next year;

• The taxpayer expects to have a lower income next year due to retirement, job change, or other change in circumstance; or

• The taxpayer is currently a child who will escape the kiddie tax next year and be in a lower bracket than their parents.

Numerous tax benefits phase out at specified income thresholds. As year end nears, taxpayers who otherwise qualify for a tax benefit should consider strategies to reduce income this year to keep their income level below the relevant phaseout threshold.

 

Capital Gains and Losses

The appropriate year-end planning strategy for capital gains and losses depends on many factors, including an individual’s taxable income, tax rate, amount of adjusted net capital gain, and whether the individual has unrealized capital losses. For high-income taxpayers, planning must also account for the 3.8% net investment income tax (NIIT).

 

Installment Sales

An installment sale can be an effective technique for closing certain transactions this year while deferring a substantial part of the tax on the sale to later years.

 

Passive-activity Limitations

Losses generated by passive activities may be used only to offset passive-activity income. Passive-activity credits may be used only to offset tax on income from passive activities, with a carryover of any unused credits. In addition, the 3.8% NIIT applies to income from passive activities, but not from income generated by an activity in which the taxpayer is a material participant. Taxpayers can employ several year-end strategies for managing passive-activity limitations.

 

Pass-through Income

A key dollar threshold on the 20% deduction for pass-through income rises in 2024. Self-employed individuals and owners of LLCs, S corporations, and other pass-throughs can deduct 20% of their qualified business income, subject to limitations for individuals with taxable incomes of more than $383,900 for joint filers and $191,950 for all others.

 

Itemized Deductions and Charitable Contributions

Many taxpayers won’t want to itemize because of the high basic standard deduction amounts that apply for 2024 ($29,200 for joint filers, $14,600 for singles and for married filing separately, $21,900 for heads of household), and because many itemized deductions have been reduced (such as the $10,000 deduction limit on state and local taxes) or abolished (such as the miscellaneous itemized deduction and the deduction for non-disaster-related personal casualty losses).

Some taxpayers may be able to work around these deduction restrictions by applying a bunching strategy to pull or push discretionary medical expenses and charitable contributions into the year where they will do some tax good. For example, a taxpayer who will be able to itemize deductions this year but not next will benefit by making two years’ worth of charitable contributions this year.

Individuals may deduct contributions to charitable organizations up to a certain percent of their contribution base (generally, AGI). Through 2025, that percentage is 60% for cash contributions and 30% for non-cash contributions.

For year-end planning, it’s beneficial to review whether you have charitable-contribution carryovers from a prior year. If income will decline, care should be taken to use the carryovers before they expire.

Taxpayers with low-basis, highly appreciated stock may want to consider funding a charitable contribution with the stock. The charity can sell the stock without incurring any income tax. The donor can also claim a charitable deduction in the year the gift was handled that is equal to the fair market value without recognizing the gain, subject to limitations.

 

Tuition Credits

There are two credits that taxpayers can claim to offset the cost of education: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit. Both credits phase out for higher-income taxpayers.

AOTC is a credit for qualified education expenses paid for an eligible student for the first four years of higher education. The maximum annual AOTC is $2,500 per eligible student, and it is refundable up to $1,000.

The Lifetime Learning Credit is a credit up to $2,000 per return for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. This includes undergraduate, graduate, and professional degree courses, as well as courses to acquire or improve job skills. There is no limit on the number of years a taxpayer can claim this credit.

Taxpayers can claim credits for eligible expenses paid for education that begins this year or during the first three months of next year. A taxpayer who hasn’t already maximized education credits for the student this year should consider making the spring tuition payment before year end. Conversely, if a child is expected to graduate and begin employment, delaying paying tuition might give them the benefit of a tuition credit otherwise limited by the parents’ income level.

Caution: if educational expenses paid and deducted in 2024 are refunded in 2025, be mindful of the tax-benefit rule — the taxpayer may need to include the benefit amount in income this year, even if the student is no longer the taxpayer’s dependent.

 

Conclusion

It is difficult to do tax planning in anticipation of what might happen in Washington, especially with this being an election year and the great divide on tax policy between the parties. Maybe the best planning would be to plan for possible tax changes in 2025 depending not only on the party that wins the presidential election, but also on the makeup of the House and the Senate.

It could well be time to accelerate gifting, accelerate income, and postpone deductions. Perhaps with optimism, you can imagine that those postponed R&D and interest deductions will give you a deduction at a higher tax rate, and maybe this can lessen the pain of accepting possible increased tax rates.

Finally, remember that this article is intended to serve only as a general guideline. Your personal circumstances will likely require careful examination and should be discussed with your tax adviser.

 

Kristina Drzal Houghton is a partner at the Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.

 

Healthcare News Special Coverage

Meeting Them Where They Are

Charles DiRosa and Lauren Temple say MiraVista has found success

Charles DiRosa and Lauren Temple say MiraVista has found success going out and meeting addicts where they are, instead of waiting for them to walk through the doors.

 

Charles DiRosa knows all about the challenges of substance-use recovery. And looking back on 11 years of sobriety, he also knows how the treatment landscape has changed for the better.

“Being in recovery myself, I’m so proud to be a part of the resources we have here,” said DiRosa, a recovery support navigator at MiraVista Behavioral Health Center in Holyoke. “Looking back on it, 11 years ago, it wasn’t like this. It was a lot harder to get sober and to work a recovery.”

One example is same-day methadone dosing.

“In the past, you would have to make an appointment, maybe wait a couple of days to see the doctor, even a week, and then come in. For addicts, when they make that decision to get clean, usually we have to follow up with them pretty quickly because their mind is constantly changing.”

By accepting walk-ins, he noted, “our goal is, hopefully within an hour, we’ll get them in our system, get them an ID card, and get them dosed, all in the same day. We also offer transportation.”

But another key change at MiraVista has been an emphasis on reaching out into the community, rather than wait for people struggling with addiction to walk through the doors.

“By going to the individual instead of waiting for them to come to us, we’ve noticed a big increase in our numbers, and also our success rate,” DiRosa said. “It’s just providing our resources, letting them know that what we have to offer. If they’re already seeking our services, then we ask them to bring the word of mouth back to their loved ones or people they might know in the community.”

Kimberley Lee, MiraVista’s chief of Creative Strategy and Development, agreed that proactive outreach is making a difference.

DR. ROBBIE GOLDSTEIN

DR. ROBBIE GOLDSTEIN

“It is heartening to see this significant decrease in fatal overdoses — a direct result of the ongoing hard work in our communities to reach those struggling with substance-use disorder.”

“We’ve gone into parks, we’ve gone and hung out at McDonald’s on Appleton Street, in front of other well-known high-traffic areas. We’re just setting up a table, having a little snack, bottles of water, and using that as an opportunity to engage individuals,” she explained.

“What’s really heartwarming and really supports our work is that, when you’re in a park, and you make a connection with an individual, and you give them your card and the flyer, they may not be ready in that moment. But the next day, we see them in the front lobby. It’s very reassuring to know that type of connection has worked for that individual, and then to see them progress from when they first arrived to later on in their treatment — to see the change, the metamorphosis that takes place for these individuals.”

DiRosa called it “planting seeds.” And in his role, he can help people grow those seeds from a place of empathy and compassion.

He’s currently involved in a program called State Opioid Response, which provides extra funding to MiraVista’s outpatient methadone clinic to help those who need extra resouces to be successful throughout their recovery.

“What that might look like is, they would come to me and let me know they’re in need of — let’s say housing, or they lost their insurance, or maybe they need a new cell phone because theirs broke, or whatever the case may be. My role is to look out in the community, find those resources, bring it back to them, and bridge the gap. That way, they can continue to be successful in their recovery.

“Especially in early recovery, it’s very easy for them to get overwhelmed with all these steps or goals that they have in mind. A lot of times, they don’t have the guidance; they don’t have the support,” he added. “So we’re making sure that we’re supporting our clients, making sure we’re finding those resources out in the community for them.”

By reaching out and bridging these gaps, DiRosa said he’s helping to provide hope at a critical time.

“A lot of times, we meet individuals on the streets that might not have an ID, might not have insurance, and we tell them, ‘hey, we can still get you in and get you enrolled.’ So I’m not only providing resources in-house, but also bringing resources out to the streets, which has been pretty successful, in my opinion.”

 

Mixed Bag of Data

This outreach and support work is especially critical in MiraVista’s environs. While opioid-related overdose deaths in Massachusetts decreased by 10% in 2023 — the largest single-year decline since 2009-10 — according to Massachusetts Department of Public Health (DPH) data, Holyoke actually saw an increase.

Statewide, there were 2,125 confirmed and estimated opioid-related overdose deaths in 2023 — 232 fewer than in 2022, when Massachusetts had a record 2,357 fatal opioid-related overdoses. As noted, the opioid-related overdose death rate decreased by 10% to 30.2 per 100,000 people compared to 33.5 in 2022.

Kimberley Lee

Kimberley Lee

“They’re approaching our clients and our patients with either their own personal experience or their own personal knowledge of the disease of addiction and how important it is for people who are starting their pathway to recovery to know that they’re not alone.”

“While we are encouraged by the overall decrease in overdose deaths, this report also is a reminder of the work that we still need to do to bring deaths down for all people and all areas of the state,” Gov. Maura Healey said when the report was released late in the spring. “Our administration remains committed to prioritizing prevention, treatment, and recovery efforts to address the overdose crisis that continues to claim too many lives and devastate too many families in Massachusetts.”

Preliminary data from the first three months of 2024 indicated a continued decline in opioid-related overdose deaths in Massachusetts, showing 507 confirmed and estimated deaths, a 9% drop compared to estimates from the same time last year.

“It is heartening to see this significant decrease in fatal overdoses — a direct result of the ongoing hard work in our communities to reach those struggling with substance-use disorder,” said Dr. Robbie Goldstein, Department of Public Health commissioner. “To sustain these hard-won gains, we must focus even more deeply on the populations that have not yet seen such dramatic improvements. This means doubling outreach efforts in communities of color, particularly for Black residents, and people living in our most rural communities, who, as the data show, are most disproportionately impacted by overdose deaths.”

DiRosa posed one reason why overdose death rates are still high in Holyoke, while cities like Brockton, Lawrence, and Pittsfield saw declines, and it has to do with accessibility and cost.

“In a lot of the outreach that we do in the community, we’ve noticed the drop in the cost of the drugs. Back maybe five, seven years ago, where one bag of heroin would cost $10 or $15, it’s now going for $3 to $5. So it’s keeping people actively using these substances longer and not seeking treatment.”

When they do seek help, addicts have treatment options. MiraVista’s Intensive Outpatient Program is an enhanced level of care for individuals who need more intensive support for their recovery from addiction and want to remain in the community, while the Opioid Treatment Program (which includes the methadone dosing) offers a continuum of outpatient services, including individualized medication management, comprehensive addiction assessments, individual and group counseling, case management, referral support, harm-reduction education, and more.

“We’re bringing education into the community that we’re here, and we’re going to be able to care for the patients when they’re ready to come through our doors,” said Lauren Temple, director of Clinical Services, adding that prompt appointments are a big part of that. “We’re going to get you a same-day appointment as quick as we can. We don’t want you to wait.”

 

One Step at a Time

“Every overdose death is tragic, preventable, and unacceptable,” Secretary of Health and Human Services Kate Walsh said when the state’s report was issued earlier this year. “While we are proud and encouraged that fewer Massachusetts residents were lost to overdose last year, we know that inequities persist, and our work is not done. Our understanding of where gaps in treatment and services occur, and the people who we are not yet reaching, drives our work and helps focus our efforts.”

Those thoughts dovetail well with MiraVista’s efforts in Greater Holyoke.

“We try to stay with our clients moving forward. We check up on them on a regular basis,” DiRosa said. “Sometimes our clients might need that extra phone call; they might need extra support. We want them to take pride in their recovery, but also help them see that we do care.”

Like DiRosa, much of Miravista’s outpatient-services team have lived experience with these challenges, Lee added.

“So they’re approaching our clients and our patients with either their own personal experience or their own personal knowledge of the disease of addiction and how important it is for people who are starting their pathway to recovery to know that they’re not alone,” she added. “We are here to walk with them, whether it’s the first step they’re taking or the 100th step. There are people here who understand and who can appreciate the journey. They’re not alone.”

Holiday Party Planner Special Coverage

’Tis the Season

Mick Corduff has been in the restaurant business long enough to know what brings customers in.

In many cases, it’s a simple change in the weather.

“It kind of clicks into gear right now. I think most people’s grills are being put away, and the patio furniture has been brought in, so people are starting to go out a little bit more,” he said. “And now we’re gearing up for the holiday season.”

Ah, yes, holiday parties. As owner of two venerable Holyoke dining spots — the Log Cabin, with plenty of space for large company events, and the Delaney House, suitable for smaller gatherings — Corduff understands the draw of corporate get-togethers, and he’s hoping other strong signs from 2024 carry over into November and December.

“We’re coming off a really busy wedding season, and foliage season has been going really well. We just finished some Thanksgiving menus, finished up the Christmas to-go packages, and the reservations for holiday gatherings are starting to trickle in now.”

Corduff said companies who like their experience with the Log Cabin or Delaney House have learned to rebook early.

“There’s always a last-minute Sally, but then there’s the customer base that has the same Friday every year — the Friday before Christmas, or two weeks before, or the first Saturday in December. We’re actually seeing some holiday Christmas parties in November, a little earlier than usual, especially with the bigger ones. They really want to have it on a Friday night or a Saturday night, and the Saturday nights tend to be grabbed up really quick. So we have a few customers that are doing it in late November, mid-November, in and around Thanksgiving.

“We just finished some Thanksgiving menus, finished up the Christmas to-go packages, and the reservations for holiday gatherings are starting to trickle in now.”

“You can work with them on pricing when there isn’t such a high demand, so that’s always a good thing for them,” he added. “Or they might get the whole facility, rather than having to do smaller rooms because it fits what we have. Like I said, we’re really starting to pick up on Fridays and Saturdays right now.”

Holiday bookings seem comparable to where they were in 2023, he added, partly due to the loyalty factor.

Mick Corduff

Mick Corduff says many repeat customers for holiday parties like to book the same dates year after year.

“We have a loyal customer base that comes to us year over year. Some of the larger companies have come to us on the same dates,” he told BusinessWest. “It also really depends on how the holidays fall. Christmas falls in the middle of the week this year, so it’s a little different.”

Edison Yee, principal managing partner of the Bean Restaurant Group, which boasts more than a dozen establishments, ranging from quick service to fast casual to more upscale, said the holiday season is an exciting time of the year for the company.

“We began planning months ago; for most restaurants, it’s the busiest time of the year,” he said, noting that the Student Prince, on Fort Street in Springfield, and the Boathouse, on the Connecticut River in South Hadley, do most of the function-type business, and holiday bookings start coming in during the summer.

“Christmastime on Fort Street is very, very festive. It’s decorated — we have great new decorations this year — and we have the Fort carolers, which are always a smash hit. People come back, families come back, businesses come back year after year for the festivities. With the traditions of Fort Street, it’s a great time to be there.

“At the Boathouse, it’s usually the same — that’s a function house as well, with ample room,” Yee explained. “They both do great business over the holidays, and we have Christmas with Santa at both locations.”

In short, it’s a busy time, he said. “The other restaurants are busy as well, but they don’t do so much the big functions of 300, 400, or 500 people because they don’t have the room. They do have a lot of smaller functions throughout the holidays, though. Right after Black Friday, everything kicks off.”

 

Slow Climb Back

The pandemic four years ago crushed the holiday-party season, and 2021 started a slow climb back, but a national survey conducted toward the end of 2023 suggested that companies are clamoring once again to celebrate the holidays with their teams in-person.

According to survey results from global outplacement and business and executive coaching firm Challenger, Gray & Christmas Inc., 64.4% of companies reported having in-person holiday parties in 2023, up from 57% who reported the same in 2022 and 27% who held in-person parties in 2021. It marked the highest percentage of companies holding in-person holiday parties since 75% of companies reported they held parties in 2019.

Local restaurant leaders like Corduff and Yee hope that trend continues, though only time will tell.

“We have quite a few that are post-holiday,” Corduff said. “It brightens up the winter. We see them probably until the end of January, even.”

Such a choice makes sense for businesses with a heavy end-of-year load, but it makes life easier on many fronts regardless of the company, he pointed out.

“If you do it early or you do it late, you have a little bit more flexibility. Sometimes the space can be more grandiose, and usually other vendors are more available — a DJ is not as busy in late January. So it’s not just us as a venue, but the availability of any vendor. A company can probably get a better deal and maybe do more for their customers or staff or whoever they’re trying to entertain.”

Edison Yee

Edison Yee

“Times are challenging now for restaurants. Food inflation and wage inflation and insurance costs have escalated. So it’s important to be on top of it.”

Yee said restaurant workers are among the groups who might want to get past the holidays to celebrate, adding that November and December are certainly much busier for parties across the Bean Group than January.

Corduff said the Log Cabin has found much success with large holiday parties that many small businesses attend, with a variety of price points.

“At the public holiday parties, you can have a hairdressing salon with a table of lawyers and a mechanic shop down the street, all intermingling and having a great time. It’s an economic way for businesses to take people out to a big Christmas party.

“You might have a small, more intimate event at the Delaney House, whether it’s 8, 10, 16, 20 people,” he went on. “Usually in that environment, it tends to be more about the dining experience, whereas, at some of the group holiday parties, we have the entertainment built in. Whether it’s comedy or a DJ and dancing, food and wine pairings, you have a wide variety of options there. We’re always trying to think outside the box to keep it fresh and stay creative and have a good time with it.”

One trend Corduff has noticed is that people are going out to eat, and planning events, a little earlier in the evening than before.

“I think it’s not just a Western Mass. thing, but a lot of restaurants are seeing 9 o’clock at night and the restaurant’s empty. Some of the restaurateurs that I talk to in Springfield say, ‘we used to have 9 o’clock reservations; we don’t anymore. You know, 8:30 is our last reservation these days.’ So either people are going to bed earlier, or who knows what it is, but the trend has shifted to an earlier dining slot.”

 

Back to Normal

As for the restaurant business is general, Yee said the gradual fade of the pandemic saw a rush of people tired of staying indoors.

“They wanted to go celebrate, and finally, they could do that. And now things have kind of leveled off for a more normal holiday.”

Corduff agreed. “COVID has still been around, unfortunately. But I think people are just getting on with their lives. If you’re sick, you stay in bed. Don’t go out. If you have the flu, you do the same exact thing.

“But I do think people are going out, having a good time; people aren’t as fearful as they were, and it’s showing in the numbers of people going out,” he added. “The group holiday parties were non-existent post-COVID. If a hairdressing salon was having a party, they probably had it at their shop. And we saw a lot of catering business post-COVID; we survived off those catering parties. So we still do it.”

Yee said he’s happy to see things returning to normalcy.

“We have restaurants throughout Western Mass. and Northern Connecticut, and overall, we’re up a small percentage, about 4%. I’m hearing mixed signals from different restaurateurs; some are up, some are down. For us, we like to say we have pockets or different regions that are stronger than others.”

For example, the Connecticut eateries have been fairly strong. “The quick service has been a little bit weaker overall. Our casual dining has been strong. Elevated dining is a little flat.”

That said, “times are challenging now for restaurants,” Yee said. “Food inflation and wage inflation and insurance costs have escalated. So it’s important to be on top of it. We think we’re in a good place.”

With a busy holiday season ahead to bring the cheer — and the business.

Holiday Gift Guide Shop Local Special Coverage

Beyond the Big Box

Paw Street Barkery

Paw Street Barkery

The gift-giving season is quickly approaching, and the business of everyday life can make it difficult to find the perfectly thoughtful gift. Fortunately, the 413 is full of good ideas. For our annual Shop Local Gift Guide, BusinessWest offers up 18 such options, whether you’re looking for a physical gift to wrap up, a service, or an always-welcome gift card.

 

 

Arts Unlimited Gift Gallery

25 College St., South Hadley

(413) 532-7047

www.facebook.com/artsunlimitedgifts

Arts Unlimited was founded with one goal in mind: to provide customers with a high-quality, smart, and reliable gift shop. Offerings include a wide variety of art, accessories, and decorations, and gifts for birthdays, retirements, weddings, holidays, and more.

 

The Baker’s Pin

34 Bridge St., Northampton

(413) 586-7978

www.thebakerspin.com

This extensive kitchen store carries a wide range of cookware, cutlery, electric devices, bakeware, kitchen tools, home goods, cookbooks, and food products as well. But it also offers an array of cooking classes, both online and in person, exploring different foods and techniques appropriate for the season.

 

The Blue Marble

150 Main St., Northampton

(413) 253-0328

www.thebluemarble.biz

The Blue Marble, located in Thornes Marketplace, describes itself as “displayers and purveyors of American-made and fairly traded, handcrafted work,” with gifts including jewelry, scarves, pottery, wall art, and more. Its Little Blue line offers gift and clothing options for babies and preschoolers, also focusing on sustainable, organic, and ethically sourced options.

 

The Bookstore and Get Lit Wine Bar

11 Housatonic St., Lenox

(413) 637-3390

www.bookstoreinlenox.com

The Bookstore, a fixture in Lenox for more than 40 years, was actually born in the neighboring town of Stockbridge, in the living room of a small rented house behind an alley that housed a then little-known café that later came to be known as Alice’s Restaurant. The bar is open whenever the bookstore is, and the bookstore stays open later some nights when the bar is open as well.

 

Greenfield Games

238 Main St., Greenfield

(413) 774-5225

www.greenfieldgames.com

Touting itself as the largest game store in the region, Greenfield Games carries a huge selection of collectible card games, board games, family games, classic games, role-playing books, RPG miniatures, party games, gaming supplies, puzzles, and poker supplies. Tables are available for in-store gaming.

 

Paw Street Barkery

1519 Memorial Dr., Chicopee

(413) 437-8014

www.pawstreetbarkery.com

For more than 10 years, Paw Street Barkery has been making tasty, healthy dog treats, including seven signature and five gourmet treats, with many seasonal flavors throughout the year. The shop also sells a selection of toys, bandanas, and other items for your furry friend.

 

Pioneer Valley Food Tours

(413) 320-7700

www.pioneervalleyfoodtours.com

This enterprise creates walking food tours that explore local flavors from Northampton and around the region. It also creates gift boxes sourced from the region’s fields and farms, as well as Pioneer Valley picnic baskets of selections ready to bring on an outdoor adventure. Choose a pre-set tour itinerary, or create a custom tour to suit your tastes.

 

Positively Africana

150 Main St., Northampton

(413) 297-8010

www.positivelyafricana.com

Located in Thornes Marketplace, this authentic gift shop focuses on handmade crafts and accessories made in Africa or inspired by the continent’s strength and beauty. It offers a wide range of handmade products, including jewelry, accessories, home decor, and clothing, as well as group exercise classes, and 25% of all profits support women entrepreneurs and artists in the Congo.

 

Razzmatazz Kids

803 Williams St., Longmeadow

(413) 754-3654

www.facebook.com/razzmatazzkidsstore

Formerly Zen’s Toyland, Razzmatazz Kids sells a variety of items ranging from baby teethers to adult puzzles, including high-quality, unique items that aren’t available elsewhere. All the toys are handpicked, and the shop also has a playroom for children to ‘test drive’ items.

 

Richardson’s Candy Kitchen

500 Greenfield Road, Deerfield

(413) 772-0443

www.richardsonscandy.com

In 1954, Henry & Viola Richards opened a roadside candy kitchen in a schoolhouse-red clapboard storefront in the historic town of Deerfield. Seventy years later, current owner Kathie Woodward Williams still uses the original recipes and celebrates the sweet traditions of the seasons, crafting scrumptious confections like hand-twisted candy canes and signature chocolates.

 

Springfield Museums

21 Edwards St.

(413) 263-6800

www.springfieldmuseums.org

Located in the heart of downtown Springfield, the Springfield Museums offer access to five world-class museums, including the Amazing World of Dr. Seuss Museum and the Dr. Seuss National Memorial Sculpture Garden, all under a single admission. Gift certificates are available to share the fun, culture, and learning.

 

Springfield Thunderbirds

Springfield Thunderbirds

45 Bruce Landon Way, Springfield

(413) 739-4625

www.springfieldthunderbirds.com

A great deal for big-time hockey fans and folks who simply enjoy a fun night out with the family, Thunderbirds games are reasonably priced entertainment in Springfield’s vibrant downtown. The AHL franchise plays home games through April at the MassMutual Center, with a constant stream of promotions.

 

Springfield Wine Exchange

1500 Main St., Springfield

(413) 237-6187

www.swewines.com

Located on the ground floor of downtown Tower Square, the Springfield Wine Exchange offers customers local select craft beers and wines from around the world. The shop has assembled a collection of wines sourced and hand-selected from growers around the world, from everyday, affordable bottles to fine and rare collectibles.

Springfield Wine Exchange

 

Summit Center for Vibrant Living

25 Franklin Street, Lenox

(518) 441-6336

www.summitcenterforvibrantliving.com

Dolores Mannix, an intuitive body worker, spiritual mentor, and yoga teacher, brings together close to three decades of initiations and study in the Path of Light in Ecuador with her training in bodywork and yoga for somatic, spiritual, and emotional release in a safe, nurturing environment, fostering transformational experiences.

 

Sweet Lucy’s Bakeshop

7 South St., Bernardston

(413) 648-3160

www.sweetlucysbakeshop.com

Sweet Lucy’s Bakeshop is a new-American bakery in the heart of New England, passionately committed to providing the most craveable, high-quality pastries and cakes. Meanwhile, owner Lucy Damkoehler offers a wide array of cooking classes and sells gift certificates that can be applied to any class.

 

The Toy Box

201 North Amherst St.

(413) 256-8697

www.thetoyboxamherst.com

The Toy Box was born in late 2003. A few years later, the store expanded to twice its original size, expanding its product selection to include lots of gift and hard-to-find items as well as toys and games for older kids and adults. The website features a robust online sales platform with items in dozens of categories.

 

World Eye Bookshop

134 Main St., Greenfield

(413) 772-2186

www.facebook.com/profile.php?id=100057448487826

World Eye Bookshop opened more than 50 years ago, and even though it has several locations, it is still Greenfield’s only independent bookshop for new books, as well as greeting cards, toys, games, journals, stuffed animals, art supplies, tarot, and more.

 

Zanna

187 North Pleasant St., Amherst

(413) 253-2563

www.zanna.com

Zanna describes itself as “a city style store in a little downtown,” and adds, “we toss clothes over dressing room doors, fit shoes, give honest advice, and lots of TLC. We’ve created lasting friendships for over 50 years.”

Where Are They Now?

Where Are They Now?

 

Tad Tokarz

Tad Tokarz in 2007 as a 40 Under Forty honoree (right) and today in his office at Springfield Central High School.

Tad Tokarz

Tad Tokarz

Only a few months after being named to BusinessWest’s inaugural 40 Under Forty cohort in 2007, Tad Tokarz won a promotion.

At the time of that first award ceremony, he was wrapping up another school year as assistant principal and director of Athletics at Springfield’s Central High School. But then-Principal Dick Stoddard retired, and Tokarz, then just 33 years old, applied for and won the job.

It altered his life’s course in some ways, but has impacted the lives of young people in far more meaningful ones.

As for his career, he was the owner of the Western Mass. Sports Journal at the time, which covered sports at a variety of levels, but always with a Pioneer Valley slant. Operating out of the Scibelli Enterprise Center at Springfield Technical Community College, it was, in essence, a second full-time job, and one he couldn’t keep going after his promotion at Central.

“Once I became principal, it was just too much work. So we had to shut it down,” Tokarz recalled. “But it was good while it lasted. The experience that I got from from running my own business has helped me tremendously here, because this is a business, with the hiring and the partnerships and the thinking outside the box. So I think that experience really helped me push Central forward in a unique direction.”

And that he has, in more than one way. “Physically, it’s a different place,” he said, citing the addition of a three-story science wing with 12 classrooms, a renovation to the athletic complex, and a current project to renovate the theater and gymnasium.

But socially, Central is also different, he added, noting that “we have put so many safeguards in place and wraparound services for our kids.”

And academically, well, the numbers speak for themselves; last year’s seniors set a Central record with $24 million in scholarship offers.

“We sent kids to some of the best colleges and universities in the country, and it’s great giving kids an opportunity to excel in whatever interests them once they graduate. We tell our kids, ‘we want you to have options when you graduate,’ and I think we’re doing a pretty good job.

“It’s very rewarding to see where these kids actually end up, and to feel like you played a small part in their development.”

“We have a tremendous staff, and the district has given us an amazing amount of support,” he went on. “Yes, COVID was a real challenge for us. But we came out stronger, I think, after COVID. What transpired was kids starting to participate more in clubs and activities. That’s a big part of who we are. We want our kids to participate, whether it be ROTC, athletics, clubs, whatever it is.”

Students have also improved academically, and that success has been mirrored by Central’s athletic programs, which bring in 10 to 15 Division I athletic scholarships each year, “so we’re watching our kids play on TV, which is fun,” Tokarz told BusinessWest.

“Now, we have every college in the country recruiting our students, athletically and academically. This year, we created a new position of recruiting coordinator; he meets with a lot of the seniors about the kinds of colleges would best suit them, along with our guidance counselors, adjustment counselors, and graduation coaches. So we’re done a lot of different things the last 17 years, put in a lot of different positions, to push kids forward, not just in the classroom, but far beyond that.”

Tokarz, always willing to work toward self-improvement — for instance, he completed an Ironman triathlon in 2005 just two years after starting to train on a bike and in the pool — has earned a doctorate degree in educational leadership since his promotion to principal. But while working toward becoming a better leader, he still says it’s the students and staff that make his job fulfilling.

“They make this place what it is. And it’s never boring; you’re helping people get to the next chapter in their life, and that, to me, is very rewarding,” he said. As for the staff, “the people that we have surrounding our students are second to none, and the reason why we’ve been so successful over this time period.”

New challenges are always emerging in education; right now, Massachusetts schools are waiting to see if voters decide on Nov. 5 to keep the MCAS test as a graduation requirement.

If they decide to change course, Tokarz said, “I’m interested to see how that’s going to change the testing and the accountability, because we’ve always focused on accountability — that’s important to us.”

No matter how the standardized test is deployed, Tokarz said he and his team will continue to help students get the best grades possible and envision a future where anything is possible.

“I just came back from the 10-year reunion of the Central High School class of 2014, and we have dentists, doctors, veterinarians, people working downtown in New York City on the Today show … all kinds of stuff. It’s very rewarding to see where these kids actually end up, and to feel like you played a small part in their development.”

Education

Emerging Challenges

By Kathleen E. Dion and Sabrina Galli

By Aug. 1, 2024, universities across the country were required to implement the Biden administration’s new regulations concerning Title IX of the Education Amendments of 1972, which contained numerous expansions on the law’s protections.

Kathleen Dion

Kathleen Dion

Sabrina Galli

Sabrina Galli

For example, the regulations, released in April 2024, redefined sex discrimination to include “all forms of sex-based discrimination,” as opposed to only sexual harassment, and include discrimination based on sex stereotypes, sex characteristics, pregnancy or related conditions, sexual orientation, and gender identity.

While these regulations are intended to expand protections for all under the Title IX umbrella, not all are happy with the expansions. As anticipated, litigation has emerged, challenging multiple portions of the new regulations and resulting in district courts issuing preliminary injunctions throughout the country barring enforcement of the 2024 regulations. Challengers to the new regulations oppose the expansion of the sex-discrimination definition to include discrimination based on gender identity, the ‘de minimis harm’ standard, and the definition of hostile-environment harassment as it applies to gender-identity discrimination.

As a result of these lawsuits, the 2024 regulations have not been enforced in nearly 26 states, encompassing a large portion of the South and Midwest, including but not limited to Alabama, Arkansas, Florida, Georgia, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, South Carolina, Tennessee, and Texas. Not only were these injunctions issued on a state-by-state basis, but one injunction out of Kansas barred enforcement of the 2024 regulations on any campus that had a chapter of one of three conservative organizations: Young America’s Foundation, Female Athletes United, or Moms for Liberty.

“As anticipated, litigation has emerged, challenging multiple portions of the new regulations and resulting in district courts issuing preliminary injunctions throughout the country barring enforcement of the 2024 regulations.”

The U.S. Department of Education (DOE) responded by asking the U.S. Supreme Court to partially stay the injunctions, allowing the non-challenged parts of the new regulations to go into effect. On Aug. 16, the U.S. Supreme Court, in Department of Education v. Louisiana, denied that request, citing the lower court’s findings that the provisions in dispute were too intertwined with other provisions of the rule to allow severability.

A dissent written by Justice Sotomayor and joined by Justices Kagan, Gorsuch, and Jackson disagreed, finding that the injunctions barring enforcement of the entire rule are too broad.

While the states enjoining enforcement of the 2024 regulations have fluctuated over the last few months, the U.S. Department of Education’s website provides a full list of enjoined states: Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming. The Department also maintains a list of schools where the 2024 Title IX regulations currently cannot be enforced.

It should also be noted that schools on the department’s list are not limited to schools in the above-listed states. For example, the list currently has nine schools listed from Connecticut, four schools in Massachusetts, 20 schools in New York, and several schools in California.

Institutions included in either list may be asking, what now? In light of the litigation and injunctions, the DOE has issued guidance explaining that — in states or schools where the 2024 regulations are enjoined — the Title IX regulations, as amended in 2020, apply.

Some institutions covered by the regulations have not amended their policies that applied during the 2023-24 school year. Other schools, particularly those that are not in the 26 states covered by a statewide injunction, have decided to implement policies that are consistent (either wholly or in part) with the new 2024 regulations, reasoning that the injunctions do not apply to the schools themselves but rather to the DOE’s ability to enforce the new regulations to those schools.

As the litigations play out in due course, institutions in affected states will want to be on the lookout for any changes to these preliminary injunctions as well as consider whether any state laws weigh into their consideration whether to amend their policies to be consistent with the new regulations.

 

Kathleen E. Dion is chair of the education industry team at Robinson+Cole. She represents private schools, colleges, and universities in a variety of civil matters, such as tuition disputes, allegations of staff misconduct, and Title IX matters. Sabrina Galli is a member of Robinson+Cole’s business litigation group and education industry team. She represents corporate clients in general commercial litigation matters involving breach of contract and business torts, as well as in arbitrations, mediations, and settlement negotiations.

Features Special Coverage

Digging Out

Baystate Health

Peter Banko says he wasn’t necessarily looking for a turn-around job when he was exploring options for his next career opportunity, but he found one as the new president and CEO at Baystate Health.

Still, he was quick to note that, these days, there are very few CEO opportunities at large hospitals and health systems that do not involve turn-around efforts.

The one at Baystate certainly does, as was made clear in a press release of sorts — it was more of a statement, actually — issued by the institution early this month. It detailed everything from $300 million in operating losses over the past few years to a Leapfrog Safety Grade of ‘D’; from erosion on the balance sheet (particularly days of cash on hand, which declined from 180 days in FY 2020 to 109 by early October) to the launch of a 24-month ‘focused transformation’ to improve core operations (acute care, ambulatory, and physician enterprise) by more than $225 million.

The statement was issued in an effort to be transparent about the system’s current fiscal situation and the plan in place to return it to sound financial health, and also prepare the ground for steps that may come next, including workforce reductions, said Banko, who arrived in Springfield in June, fully aware of exactly what he was getting himself into.

He elaborated on its various points in a recent round of interviews with media outlets from across the state, including one with BusinessWest, during which he noted that Baystate is suffering from the same affliction as most all other healthcare providers in these post-pandemic years — a situation where revenues are simply not keeping pace with expenses — and will have to make some hard decisions, and many of them, to get back on track.

“We have a clear path, and we’re working on implementing it; it’s a two-year plan to improve our core operations by more than $225 million.”

“We have a clear path, and we’re working on implementing it; it’s a two-year plan to improve our core operations by more than $225 million,” said Banko, noting that the basic playbook in this case, as it does with any struggling business in any sector, calls for growing revenues and reducing expenses, efforts carried out simultaneously.

“We’re leaving no stone unturned,” he went on, noting that the system has already taken several steps, including the termination of its defined-benefit pension plan, sale of its laboratory to Labcorp, and the pending sale of Health New England to Point32Health, a move that will “remove a distraction we don’t need right now” more than it will help the bottom line, he noted.

In the growing-revenues category, he said the system is engaging in a strategic-planning process, one involving the entire organization and community, and one that will define where the system wants to grow. Elaborating, he explained that the system is working on revenue-cycle management, especially billing-and-collection operation, “to make sure we’re collecting every dollar, no more, no less.”

Meanwhile, the system is also working on improving access to physicians as well as the larger issue of throughput — in the operating room, endoscopy, heart and vascular, and more.

On the expense side, the system is looking to reduce corporate overhead, “things that don’t touch the bedside,” he said. “We’re looking at external spends — supplies, pharmacy, the must-haves versus nice-to-haves, what pens and paper we’re using.”

But obviously, the largest item on the expense side is workforce, Banko went on, adding that reductions are all but inevitable, although he could not say where they will come or how many.

Peter Banko

Peter Banko says he arrived at Baystate fully understanding the challenges facing the health system.

“We’re still working on the plans and execution, and we will be transparent as we make those changes, both externally and internally,” he said, adding that the system will start with reducing corporate overhead and improving billing and collections.

As he goes about leading this ‘transformation,’ a word he used instead of ‘turnaround’ to describe what’s taking place, Banko said he will call on his considerable experience with such efforts (more on that later).

Ultimately, he is confident that Baystate can and will pull out of this dive and return to something approaching profitability.

“I have complete confidence in where we’re headed,” he said. “Everyone knows where we need to go; we’re aligned about where we want to go. Everything here is fixable, and there’s a great path forward to be able to invest $1.2 billion over the next six years and get into the fun stuff.”

For this issue, BusinessWest talked at length with Banko about how Baystate Health arrived at this moment, but mostly about what happens now — especially those hard decisions, the turning over of all those stones, and everything else needed to move the system into recovery.

“The light at the end of the tunnel can’t be another train coming — it has to be something better.”

While doing so, he provided some insight into the challenges facing virtually every healthcare system in the region — and the country, for that matter.

 

Numbers Game

As noted earlier, Banko knew exactly what he was facing when he agreed to succeed Dr. Mark Keroack as president and CEO at Baystate Health.

“The board was very transparent, and there have been no surprises,” he said, joking that, while there was a very short honeymoon period as he transitioned into the job, it is long over, and the hard work of returning the system, which includes four area hospitals — Baystate Medical Center, Baystate Noble Hospital, Baystate Wing Hospital, and Baystate Franklin Medical Center — to sound financial health is well underway.

Similar work is taking place almost everywhere in healthcare, especially across the Commonwealth, he said, noting that a recent Massachusetts Hospital Assoc. report noted that, in 2023, 75% of the hospitals in the state lost money, with some losing at a more dramatic rate than Baystate, while most others lost less.

“The American Hospital Association reported that, over the past few years, inflation grew by 12.5%, so let’s say it’s 6.25% per year,” he said, while explaining how Baystate arrived at this moment. “Our revenue at Baystate over the past 10 years has grown 5.3%, and there’s the issue: our expenses have been growing faster than our revenue.

“We have an aging population, so more than 70% of our patient base is Medicare and Medicaid, and we know neither of those cover their costs,” Banko went on. “So we rely on the other 30% to cover the cost of Medicare and Medicaid. We’ve lost commercial market share and key services to Boston and Hartford, including cancer, heart and vascular, and to a lesser extent orthopedics, neurosurgery, and gastroenterology. So all the key procedural areas that are profitable for us … we’ve lost some business to elsewhere, and for a variety of reasons.”

Listing some of them, he mentioned access to physicians — “if you call us and it’s a month and you call someone in Boston and it’s ‘we’ll see you next week,’ you’re going to go to the place that will see you next week, if you have the ability to get there” — as well as a lack of awareness within this region of the talent and services available at Baystate.

This loss of revenue, compounded by rising expenses, has had far-reaching ramifications, he said, adding that it limited the system’s ability to reinvest back into itself and the community, while also stunting its ability to grow and impacting the balance sheet.

The plan to stem this tide is fundamental, Banko said, adding that it involves both growing revenue and reducing expenses, and, ultimately, growing revenues faster than expenses.

“That means we have to start growing revenue 6% to 8% a year, and we’ve got to transform our cost structure to get below that,” he said. “We’re still early on, so the more we get on the revenue side, it takes some of the pressure off on the cost side, but we’re still early in the process.”

He said Baystate is not interested in cutting back on operations or discontinuing services, in large part because it is a safety-net hospital, and many of those services are not available elsewhere.

 

Bottom Line

As the system goes about putting a plan in place and then implementing it, it will use some consultants, while also drawing on some of the lessons generated by providers who have managed to recover financially from the pandemic quicker than most others.

There are only a handful of those, Banko said, stressing, again, that most systems — in this region, across New England, and across the country — are fighting the same battle, although Baystate has a deeper hole from which to dig out.

“We got hit harder — our fall, post-pandemic, was further than most systems, and our recovery has been slower,” he noted, adding that those that recovered faster made the hard decisions earlier.

As noted earlier, Banko has considerable experience with turn-around projects. He’s confronted them at several of his earlier career stops, including Centura Health in Colorado, and others as a turn-around specialist in New Jersey, Tennessee, Texas, Pennsylvania, and elsewhere.

As he looked around his office at the system’s corporate headquarters on Chestnut Street, Banko said that, somewhere, there’s a book on turn-arounds he read earlier in his career.

He doesn’t have to reread it because he’s lived through many of them now, and also because it isn’t exactly rocket science. It’s about fundamentals, execution, and “not relying on luck,” he noted. “For me, what’s more important than what you do is how you do it.”

Elaborating, he said one key is maintaining morale and getting buy-in on the strategic plan that is developed. This comes through transparency and focusing on the endgame. He noted that the poor Leapfrog score was a “gut punch” for the system, one that doesn’t reflect the work being done and the quality of talent within the Baystate family of hospitals.

“Still, it’s a grade, and it’s how we’re being graded; I said we’re going to be an ‘A’ organization — everyone wants to work for an ‘A,’ said Banko, who said he also serves as ‘chief culture officer’ for Baystate Health, and in that role it’s his job to set a tone and generate optimism for the system moving forward.

“The light at the end of the tunnel can’t be another train coming — it has to be something better,” he noted. “We’ve got a really nice picture of being able to grow the organization and invest a significant amount of money over the next six years if and when we do the plan.

“We don’t have to sell to someone, we don’t have to turn over the keys, we’re not in the same situation as Steward,” he said, referencing the Texas-based health system that filed for bankruptcy in May and has closed several hospitals, including two facilities in the Bay State. “We have a clear path, and if we execute on the path, we’re going to be healthy and growing and thriving for the next 140 years.”