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AIM’s Leader Says the Commonwealth Is at an Inflection Point

By George O'Brien April 11, 2024

The State of the Bay State

Brooke Thomson said her story is of the kind the Bay State and its leaders like to write.

Hailing from the Midwest, she graduated from Mount Holyoke College, went to law school in Boston, and then made the decision to start her career and raise a family here.

It wasn’t easy, she recalled, noting that she needed roommates when she got her first apartment, and housing in the Boston area, as well as countless other expenses, made those early years — and even the later ones — a stern challenge.

But she stayed and is now president and CEO of Associated Industries of Massachusetts (AIM), a position from which she reflects on, and often retells, her story while noting, with large doses of frustration and even dismay, that it is becoming a harder story to write today.

Indeed, some of the thousands who graduate from Bay State colleges and universities each year are opting not to start their careers here, said Thomson, who sat down recently with BusinessWest to discuss the state of the Bay State. And some who did start here are finding it too difficult to stay amid sky-high prices for everything from homes to daycare and tax burdens that are far less friendly than many other states, including several in the Northeast.

This exodus, if you will, is one of many forces, most of them interconnected in some ways, that are colliding at what is an inflection point for the state, said Thomson, a critical time in its history, when the dust has largely settled from COVID and its aftermath, and this state, like all others, must devise a business plan, if you will, for coping with a new set of realities.

“Businesses, municipal leaders, state leaders, and federal leaders must make sure we’re putting in place the economic incentives and the regulatory pathways so that we can continue to have a strong economy in Massachusetts.”

These forces include the momentous shift in how and where people work post-pandemic, a swing toward remote work and hybrid schedules that is impacting everything from commercial real estate to hospitality and service businesses in central business districts in cities from Boston to Springfield and everywhere in between. They also include demographics — everything from smaller high-school graduating classes to huge numbers of retiring Baby Boomers — a persisting workforce crisis impacting most all sectors of the economy, falling state tax revenues, transportation issues led by the famously unreliable MBTA, a housing crisis that is impacting most of the 351 cities and towns in the Commonwealth, high energy costs and the growing need to address climate change, and, of course, the spiraling cost of living, punctuated by sky-high home prices, not just in Boston, but in an ever-wider radius around the city and many other parts of the state as well.

A poignant example of how many of these forces are intertwined came late last month, when Boston Mayor Michelle Wu proposed legislation to increase commercial property tax rates amid a decline in property values post-pandemic — and as many buildings suffer from remote-work-related issues — in an effort to protect residents from what she called “sudden and dramatic tax increases.”

The matter went to a subcommittee last week, where its fate is in question, especially in an election year, and amid warnings from real-estate trade groups and business leaders that the move would increase the burden on an already-struggling office market and could deter new investment.

Brooke Thomson says housing — and the need to build more of it — is among the many challenges confronting the Bay State at this critical time.

Wu’s proposal, and the reaction to it, are examples of how complicated these problems are — neither side is really in a position to absorb a higher tax burden — and how elected leaders, the business community, and even residents are going to have to work collaboratively in this time of stern challenges, Thomson noted, adding that the state’s businesses, despite some rumors to the contrary, cannot shoulder the burden itself.

“I think this is a critical time because there is so much uncertainty and because we are coming out of the COVID bubble,” said Thomson, who took the helm at AIM at the start of this year. “Businesses, municipal leaders, state leaders, and federal leaders must make sure we’re putting in place the economic incentives and the regulatory pathways so that we can continue to have a strong economy in Massachusetts.

“I think we’ve seen elsewhere in the country that, depending on what actions are taken, certain cities that used to be centers of business and growth are no longer there,” she went on. “Part of this was out of our control, part of it was this COVID bubble where everything was shut down and then people re-evaluated how they worked and where they worked, and businesses re-evaluated where they located and what their space looks like and where they draw talent from. But as we are moving out of that, we must collectively figure out the right sauce, the right recipe, sort of speak, for success.”

For this issue, BusinessWest talked with Thomson about this recipe and the ingredients that might go into it.

Work in Progress

Thomson said she can usually tell what day it is — or isn’t — by the volume of traffic in and around Boston.

While it’s still difficult to get where one wants to go most of the time, Mondays and Fridays are at least somewhat better, she said, adding that, by and large, these are the days when many who can and do work a hybrid schedule are not in the office. And the impact of that many people working from their home offices or dining-room tables is felt not just on the roads, but in the office towers in that city, where valuations are falling, and the countless diners, restaurants, and service businesses that rely on foot traffic from people working in the city.

“Tuesday, Wednesday, and Thursday — that’s when people are coming in,” she said. “And that presents a whole host of challenges; it exacerbates transit, and if you have a workforce, like ours, that’s in this sandwich generation where they’re caring for children but also caring for parents, not only do we not have enough support there, but our systems are not set up where daycare facilities have a Tuesday-Wednesday-Thursday schedule.”

“There are a lot of things we have to move on quickly, meaning right now, to set ourselves up to be in a place of continued growth so that, 10 years from now, some of these trends that we’ve seen, like outmigration and tax-return dips, don’t continue. But it’s going to require some strong action right now.”

While Boston is the poster child for the challenges that have come post-pandemic, the same issues are being seen in communities across the state and in businesses of all sizes and in most every sector.

Indeed, she said AIM, which employs more than 25 people full-time, exemplifies the current colliding forces and trends. It has seen a few of its valued employees leave the agency and the Commonwealth for more affordable states, she said. Meanwhile, it is preparing to move into new quarters and reduce its overall footprint to reflect a need for less space amid more remote work.

“Like a lot of businesses in the wake of COVID, we re-evaluated what our footprint should look like and where we should be,” she said, adding that the agency is slated to move in June into space that is slightly smaller, but also features more “collaborative space,” as she called it, and more gathering and event space amid fewer private offices.

As for losing employees to other states, “we’ve lost two people in the past year who were under 30,” she said. “It’s not because they didn’t love Massachusetts; it’s not because they didn’t love AIM. One moved to Tennessee, and one moved to Texas because those states are more affordable, and they have the prospect of buying a home.”

Extrapolate these recent developments across the state and its business community, and it’s easy to see why this is a critical juncture for the Commonwealth, Thomson said.

She can cite some positives and possible reasons for optimism — everything from the tax cuts Gov. Maura Healey signed into law last fall to projections that falling state tax revenues may pick up in the last few months of the fiscal year; from persistently low unemployment rates to signs on Beacon Hill that leaders there understand what needs to be done.

“I remain cautiously optimistic because many municipal leaders, and our administration, are laser-focused on providing incentives to try to make it very clear to the business community that Massachusetts wants businesses to be here and wants businesses to grow,” she said. “And they recognize that, for there to be good jobs and good quality of life and affordable housing, we have to have a strong economy.

“I haven’t seen that messaging in recent years as strong as I’m hearing it now,” she went on. “The question is … will the actions that go along with that be put into place and be effective? From AIM’s perspective, that’s why we’re working alongside the administration and the Legislature to say, ‘now is the time to act.’”

Elaborating, and citing ways in which in the state and its leaders need to act, she listed the housing bond bill proposed by Healey, as well as the so-called ‘Mass Leads’ legislation, an economic-development bill that contains incentives for businesses.

“We have to look at this because, as we see the demographic shift, as we see folks retiring, we’re going to have a real problem if we’re not saying to those young folks, ‘this is where you want to stay and work and raise a family.’”

“There are a lot of things we have to move on quickly, meaning right now, to set ourselves up to be in a place of continued growth so that, 10 years from now, some of these trends that we’ve seen, like outmigration and tax-return dips, don’t continue,” she went on. “But it’s going to require some strong action right now.”

It’s About Time

Thomson kept repeating those words ‘right now’ for emphasis, and they apply to everything from housing to how the state will meet its energy needs in the future as it moves on from nuclear power and some fossil fuels to natural gas and clean-energy sources such as solar, wind, and hydro, for which infrastructures must be built.

“If it’s not done quickly, 10 years from now, 15 years from now, I don’t think we’re going to be at a point where we have as much control over turning the ship around,” she told BusinessWest, adding, again, that the responsibility for turning the ship, and the costs involved, must be borne by all constituencies, and not simply the business community.

“We have to be thoughtful and intentional about how everyone has a role,” she went on. “What AIM has said consistently is that this cannot be a burden that is carried by the business community alone. We know that our businesses are really taxed right now; they’re at a point where many of them are just barely getting by, and they’re in a real competition for talent and resources.”

While she’s generally optimistic that the ship can, in fact, be turned, she is troubled by much of what she’s seeing, especially the exodus of talent to other states. She noted that 22- to 35-year-olds are leaving the state at a rate of 35%, a number significantly higher than it has been historically.

And they’re leaving primarily because of the high cost of living, she said, noting that, while it’s always been expensive to live in Greater Boston — she had to work two jobs to afford her first home — it is much harder to make ends meet now, as evidenced by those two AIM employees who packed the car and moved south and west.

“That’s what I worry about — that’s your talent, those are your creative minds,” Thomson said. “Those are the folks who are going to bring the innovation that has made our economy so great. And we’re not selling them on staying here in Massachusetts.”

And these young people are leaving just as the Baby Boomers are leaving the workforce, she went on, noting that the state now has what would be called an older workforce, with an average age around 40.

“We have to look at this because, as we see the demographic shift, as we see folks retiring, we’re going to have a real problem if we’re not saying to those young folks, ‘this is where you want to stay and work and raise a family,’” she noted. “I really do worry about it, and it’s worse in certain areas and worse in certain industries; the average age of a utility lineman is 57 years old. How are we going to make the energy investments, upgrades, and transitions we need if we don’t have the workforce that’s capable of doing it?”

There are ongoing initiatives to generate interest in such fields, Thomson went on, but the challenge is the full slate of issues that must be addressed simultaneously — and soon.

Which begs the question: where to start?

“The hard thing is, we’re going to have to do a lot of things at once,” she said. “We must take aggressive actions on housing because it’s going to take long, and the price of not acting now is that, once you start losing folks at a high rate, they’re not going to come back. And even if we can build more housing and find creative ways to make some affordable housing, Massachusetts is going to be more expensive than some states.”

It’s the same with the other issues on that long list as well, Thomson went on, adding that, when it comes to housing, new businesses, or other forms of change, communities will need to be willing to adjust — or suffer the consequences.

“Communities that say, ‘this is what my community looks now, change is hard, and we don’t want to adapt,’ those communities are going to lose out to those who are willing to be more adaptive,” she noted. “And then the question is … do we have enough consensus as a state, enough communities willing to step up and do it, that we’re successful?”

AIM Elects New Officers

By BusinessWest Staff April 29, 2022

Daily News

Patricia Begrowicz, president and co-Owner of Onyx Specialty Papers in Lee, was elected Thursday as chair of the board of directors of Associated Industries of Massachusetts (AIM), the statewide business association.

A respected business and community leader in Berkshire County, Begrowicz has led the rebirth of a successful manufacturing company she acquired with a partner from MeadWestvaco during the great recession. She will become the second woman to chair the board of the largest business group in the Commonwealth and the first person from Berkshire County to lead AIM since 1953.

Representatives of 3,400 AIM-member businesses elected Begrowicz during the association’s annual business meeting. Members also elected Donna Latson Gittens, principal and Founder of MORE Advertising in Watertown, as clerk of the corporation, and Gregory Buscone, executive vice president and senior commercial banking officer, Eastern Bank, Boston, as treasurer.

“Our new leadership epitomizes AIM’s commitment to diversity in all its forms – racial, gender, geographic, industry and company size,” said outgoing board Chair Joanne Hilferty, president and CEO of Morgan Memorial Goodwill Industries in Boston. “Pat Begrowicz is an accomplished entrepreneur and manufacturing executive who will be the perfect leader for Associated Industries of Massachusetts as it renews its commitment to helping businesses succeed.”

Begrowicz bought the MeadWestvaco specialty papers business with partner Christopher Mathews in December 2009 and formed Onyx Specialty Papers. The company, which currently employs 150 people, provides skilled manufacturing jobs in a region that has seen many manufacturers downsize or close. Onyx produces highly engineered papers for technically demanding applications in global markets including automotive, medical filters, fine art, decorative surfaces and filtration.

A native of New Jersey, Ms. Begrowicz earned a bachelor of Science degree in Chemical Engineering at the University of Notre Dame and a master of Science in Paper Science and Technology from Lawrence University. She serves on the boards of directors for Power Options, 1 Berkshire, the Boys and Girls Club of the Berkshires and the Berkshire Business Roundtable. She also serves on the University of Notre Dame Engineering College Advisory Council.

“I am honored to chair the board of directors of AIM at a time when the need has never been greater for business organizations to create a sense of collective purpose among employers,” she said. “We are proud that everyone involved in the legislative or business life of Massachusetts praises the professionalism, preparation and civility that AIM shows on behalf of employers and the jobs they create.”

Dawn Creighton Wants to Be a Connector and Program Builder

By Joseph Bednar November 26, 2019

Workforce Development

Meeting the Need

Dawn Creighton says she’s excited about finding solutions to area employers’ needs.

During her decade-long tenure as regional director for Associated Industries of Massachusetts (AIM), Dawn Creighton’s role was basically to support member businesses in the 413.

“I went out and met with member companies, with their executive directors, and they would tell me what their biggest business challenges are, and I would try to find them a solution,” she told BusinessWest. “Sure enough, every single one of them said, ‘Dawn, if you could get me the bodies, I could double my workforce.’ No matter what the industry was, I’d meet with the HR person, and she’d say, ‘oh my God, Dawn, help me find somebody.’”

In those years, she formed connections between companies and resources like the region’s colleges and universities, but she wanted to be more than a connector.

And now she is. In her new position, as chief Workforce Development officer for Greenfield Community College (GCC), she can actually help build the programs that create that worker pipeline — and she’s excited about the possibilities.

“This opportunity became available, and I was like, ‘wait — I actually get to do something about this.’ It’s really exciting.”

Creighton, who works at GCC’s Downtown Center at 270 Main St. in Greenfield, had been on the job only three weeks when she sat down with BusinessWest to share that excitement, although she described her job in vague terms for a reason: at the moment, she’s mostly listening — and learning.

“What’s the purpose of higher education if we’re not building the student for the workforce they’re entering? We get it, and want to be able to do that.”

“My first 30 days have been really meeting with the employees at GCC and what they’re doing in the community. Then I’m spending the next 30 days meeting with the employers in the community, finding out what their needs are to make sure we’re building the programs they need. Then the next 30 days will be spent with our community partners, finding out how we can build programs together,” she explained.

“Once all that comes together, we’ll be figuring out what we’re already doing and doing well, and building new programs,” she went on. “What does that look like? Do we need to add more technology training? What are the needs of the community?”

Creighton is no stranger to GCC — she’s a 2005 graduate of the college who began her career as an employment specialist at MassLive before becoming AIM’s regional director for Western Mass. in 2009. During her tenure at AIM, she served thousands of employer members, uniting them around issues ranging from healthcare and employment law to sustainability, budgeting, and hiring.

In doing so, she developed an understanding of the diverse needs of employers across the region, including manufacturing, but she is also invested in furthering innovation and bolstering the creative economy. Thus, she’s in a good position to help GCC integrate the liberal arts and technical education it offers, said college President Yves Salomon-Fernandez.

“As an alumna, we are especially proud of Dawn’s professional achievements and are delighted that she wants to serve her alma mater and community this way,” Salomon-Fernandez said. “She rose to the top in the search process. There is much anticipation for her to lead us to new heights.”

Growth Potential

Among her responsibilities, Creighton oversees the college’s non-credit programs, from manufacturing to personal enrichment — “you’d be amazed how many people are interested in taking ukulele lessons and salsa dancing and tango.”

But when it comes to crafting programs that better train students for fertile career opportunities — thus helping companies grow — “there’s always more potential, and that’s why I’m here,” she said.

“Many, many moons ago, the impression [of community colleges] from the business world was, ‘here’s our student, take it.’ Now the business community has a chance to be the model for the student,” she went on. “What’s the purpose of higher education if we’re not building the student for the workforce they’re entering? We get it, and want to be able to do that.”

The college is currently crafting a strategic plan, seeking input from the community and companies of all types and sizes, to better hone and respond to those workforce needs, she explained. “It’s an exciting time, and the vision for what people want to see from the community college is huge. We’re reaching out to people and asking for their time to help us build the product they need — the student.

“They’re so excited to have their voice heard,” she added. “They’re calling me and telling me what they need, and they want to be a part of it — ‘how can I help?’ It’s this contagious vibe of getting involved. I’ve had people say, ‘if you build this program or do this training, I’ll even send some of my people in to talk about it in a real-world context. I’ll even do apprenticeships; I’ll do internships.’ They’re not interested in a handoff; they want to be hands-on.”

The goal, Creighton noted, is to get those ‘bodies’ in positions of need — actually, not just any bodies, but well-trained individuals — and help companies grow, at the same time establishing Western Mass. as a strong job market, attracting still more talent, which helps companies grow more, and it becomes a snowball effect.

“Every industry has a shortage of people,” she said, but specifically people with essential life skills — what some call soft skills, though she doesn’t like that term. “It sounds fluffy — but it’s real.”

For example, many employees and job seekers simply don’t understand the need to be punctual, or to stay off their smartphone during work hours, or that a 9-to-5 job means actually working 9 to 5. “To some people, it’s common sense; to others, it’s not. It’s just not an environment they’ve been in.”

And while Millennials have gotten a bad rap, this soft-skills gap spans the generations, Creighton said. In fact, in many ways, Millennials are a positive force, forcing companies to rethink old ways of doing business.

“With all this new leadership in the community, it’s just a fun, exciting buzz and vibe in Franklin County.”

She recalled participating on a panel with a banker who told her about a job he had early in his career. He was so savvy with technology, he’d get a day’s work done in five hours, but his boss wouldn’t give him additional duties, as not to show up his co-workers, so once his day’s work was complete, he’d sit at his desk, buried in his phone.

“Everyone looks at him like he’s this slacker,” she said. “He ended up leaving — no surprise there. And how many other people are leaving because they’re underutilized?”

The bottom line is that companies and their employees can learn from each other to help each other succeed, she explained — and that’s another way organizations can grow.

New Blood

As the former board president of Dress for Success, Creighton also built Foot in the Door, a workforce-readiness program dedicated to helping women develop critical skills for entering and re-entering the workforce. So she’s no stranger to these issues.

And she’s energized by all the new blood in regional leadership. For example, Salomon-Fernandez has been on the job just a year, and so has Diana Szynal, executive director of the Franklin County Chamber of Commerce.

“With all this new leadership in the community, it’s just a fun, exciting buzz and vibe in Franklin County,” Creighton said. “Everyone’s saying, ‘let’s try it this way,’ and nobody’s saying, ‘no, we did that before.’ And we’re working collaboratively together.”

While touring manufacturers and other businesses to determine what they need to grow, she added, it’s important to understand that many tools and programs are already in place. “We just need to package them differently. I’m excited when I hear the things people want and realize we’re already doing it and we could just do it in a more robust way.”

Finally, Creighton wants to celebrate the region’s economic successes while striving to add to them — and make sure GCC has a key role in doing so.

“So many people talk about how many people leave the region. OK, people leave — we get that,” she said. “But let’s focus on how many people stay, and what their economic impact is on our community. That’s where our focus should be.”

Joseph Bednar can be reached at [email protected]

AIM President Urges Caution Amid Concerns on Economy

By George O'Brien October 15, 2019

Features

Warning Signs on the Horizon

John Regan says the state should do what many business owners are doing with a possible recession looming — refrain from taking on too much at once.

John Regan says Associated Industries of Massachusetts (AIM) recently surveyed a cross-section of its members regarding the economy, the direction they believe it will take, and the steps they are themselves taking as a result.

Roughly 75% of those surveyed anticipate an economic contraction before the end of 2020, and a sampling of the gathered remarks hints strongly at an undercurrent of caution, if not outright concern:

• “Scaling back on hiring plans; slowing down certain capital expense/equipment purchases until we get a clearer picture of what the next six months will bring.”

• “Concentrating on expense reduction … evaluating closely the need to replace positions.”

• “Diversifying our service options.”

• “We have temporarily eliminated overtime, which was formerly unlimited.”

Slicing through all that, Regan said AIM’s members are looking at the conditions, gauging how they will effect things short-term and long-term, and, by and large, deciding not to take on too much until the picture becomes much clearer.

And, as the organization’s new president and CEO — he took the helm in May — he is essentially advising the state to do the same.

“A possible takeaway from the survey for state policymakers as they begin considering billions of dollars in new spending is this could be a difficult time ahead for the state economy,” Regan told BusinessWest. “Businesses are assuming a defensive posture, and significant tax increases — beyond the $1 billion for the new paid family and medical leave system — even for worthwhile causes, could harm the overall economy, most especially the manufacturing sector.

“This might not be the time to really go all in on lots of different tax proposals,” he went on, listing everything from new spending initiatives to the so-called ‘millionaires’ tax,’ a step he believes will pose dire consequences for the Commonwealth. “Legislators should do what our members who answered the questions are doing — delaying their ambitious agenda and letting the things they’ve already done take their course and put some away for a rainy day.”

Passing on members’ concerns about the economy and urging caution when it comes to business-related legislation are two of the many lines on the job description for AIM’s president, said Regan, who moved to the corner office after a dozen years as AIM’s executive vice president of Government Affairs and almost two decades with the agency in that realm.

Another line on that job description involves presiding over annual ceremonies such as the one staged earlier this month at Wistariahurst in Holyoke, at which three area companies — MGM Springfield, American Saw, and Peerless Precision — were presented with Next Century and Sustainability awards for their efforts in creating the next era of economic opportunity for state residents.

A few hours before that ceremony, Regan sat down to talk with BusinessWest about a variety of topics, including his appointment, the state of AIM and its 3,500 members, and even his thoughts on how to achieve more balance between east and west in the Commonwealth.

“Businesses are assuming a defensive posture, and significant tax increases — beyond the $1 billion for the new paid family and medical leave system — even for worthwhile causes, could harm the overall economy, most especially the manufacturing sector.”

But the condition of the economy and the results of that aforementioned survey soon dominated the conversation.

Regan noted that, overall, the state’s economy continues to expand, albeit at a slower pace than earlier in the year. Meanwhile, AIM’s Business Confidence Index, generally a reliable barometer of economic conditions, remains in optimistic territory (58.9), although it has lost nearly four points over the past 12 months. Unemployment remains low (2.9%), and private employers created nearly 7,000 jobs between August 2018 and August 2019.

Still, there are some ominous warning signs of a recession, and a number of businesses are already starting to feel the effects of tariffs and other federal and state measures, said Regan, adding that these businesses are starting to play defense — and the state should do the same.

Background — Check

If Regan seems to know his way around the State House — in every sense of that phrase — it’s because he does.

Indeed, before coming to AIM, before serving as vice president of Operations for MassDevelopment and leading its efforts to repurpose Fort Devens, before directing the Massachusetts Office of Business Development (MOBD) for five years, and even before serving as chief of staff to the mayor of Marlboro, he worked in the State House, first as a researcher on the Joint Committee on Banks and Banking, and then as a special assistant to the House Ways and Means Committee.

“I started out on the constituent side, and quickly moved to the policy side,” he said of his work with the Legislature. And, on many respects, he has remained on the policy side ever since.

When asked how he went from working for the state to becoming an advocate for its business community, Regan said there’s a story there. It involves the former Lunt Silversmith (an AIM member) in Greenfield, he recalled, adding that, as director of MOBD, he was asked to help convince the state Highway Department to put up signs that would direct motorists to the company’s new showroom facility. Long story short, he played a big role in getting the signs up.

“AIM was so impressed that state government actually got something done that they asked if I would consider joining the agency and its Government Affairs Department,” he recalled. “At the time, I wasn’t really looking, but I knew AIM from my days at the State House — it was a well-respected group and well-regarded in the building — and I thought this was a good opportunity for me.

“I never wanted to be a lobbyist in that sense that you’re out chasing clients to represent individually,” he went on. “The opportunity to come to AIM represented a chance to use my relationships in the building, but not lobbying for individual clients; at a 3,500-member organization, you’re working on policy, not just individual company issues.”

And over the years, he has advocated for members on issues ranging from unemployment-insurance reform to non-compete agreements; from pay-equity law changes to paid family and medical leave.

Since taking over as president and CEO, Regan said he spent much of the first several weeks focusing largely on internal matters, including membership, marketing, finances, technology, and hiring his successor in Government Affairs — Brooke Thomson, formerly with AT&T.

“I wanted to make sure I understood the parts of AIM I never really had to worry about as head of Government Affairs,” he noted. “And part of what the board charged me with was coming up with an operational plan for the balance of 2019 through 2021.

“It’s not a strategic plan,” he went on, “but just making we’re able to explain what we thought we could do and should do, and get that on paper and in front of the board.”

Reading the Tea Leaves

These days, though, he’s more focused on the Commonwealth’s businesses, the uncertain state of the economy, and policy matters, such as helping to secure a three-month delay in the start of payroll deductions to fund the program.

Returning to that recent survey of members, Regan said it is quite revealing and clearly depicts both the concern felt by business owners and their commitment to act responsibly, and defensively, in such a climate.

“They’re doing the things you might expect,” he noted. “They’re saving money versus investing it, and they’re only doing capital projects that have a very swift return on investment. They’re looking for additional, profitable product lines that might allow them to weather the storm. But mostly, they’re thinking ahead and being ready.”

And this is the mindset Regan believes both the federal and state governments should embrace given both the current conditions and the possibility, if not likelihood, of a recession in 2020.

“Uncertainty around trade, in particular, grows by the day. It seems like every day you wake up and there’s another round of tariffs. One of our longest members is Ocean Spray cranberries, and they’re getting killed by tariffs.”

With the former, Regan noted that tariffs and the trade war are already taking a steep toll — on manufacturing but also other sectors of the economy, including agriculture — and the threat of more such actions loom large over the state and the region.

“Uncertainty around trade, in particular, grows by the day,” he said. “It seems like every day you wake up and there’s another round of tariffs. One of our longest members is Ocean Spray cranberries, and they’re getting killed by tariffs.”

As for the State House, Regan said lawmakers there should consider the current economic conditions and the threat of recession as they ponder additional mandates and taxes, including what is known officially as the Fair Share Amendment, but has been dubbed the millionaires’ tax.

That name conjures up thoughts of rich people sitting on a beach, he told BusinessWest, but the reality is that most of those who would be impacted by this measure, which would impose a 4% income-tax surcharge on annual income beyond $1 million, are business owners, as in the small to medium-sized business owners who dominate the state’s economy and especially the Western Mass. economy.

And recent research, including an in-depth report by Bloomberg News, shows that individuals hit with such taxes often leave for safer havens, taking their income with them, he noted.

“Bloomberg found that Connecticut, New York, and New Jersey face the largest financial drains from the 5 million Americans who move from one state to another each year,” AIM wrote in a recent blog post, citing other states that had passed taxes on high earners. “Connecticut lost the equivalent of 1.6% of its adjusted gross income, according to Bloomberg, because the people who moved out of the Nutmeg State had incomes that were 26% more, on average, than those people who moved in.”

Regan agreed, and said these numbers paint a grim picture and present a competitive disadvantage for the Commonwealth, one the Legislature should consider as it moves closer to joining other states in enacting such measures.

“I love it when elected officials roll out statistics that show ‘30 states do this’ or ‘20 states do that,’” he said. “We can tell them we have a whole list of states that have tried the wealth-tax approach, and it’s bombed, and they say, ‘well, that’s different.’

“How is it different?” he went on. “How are we not going to experience the same things that they’ve experienced?”

Bottom Line

Returning to that survey of AIM members, a few of the business owners polled expressed confidence about riding out what appears to be a storm on the horizon.

“We think we’ll be immune from the contraction,” wrote one, while another said, “our industry is counter-cyclical; when the economy contracts, our industry usually receives a boost.”

Those sentiments don’t apply to most businesses, certainly, and Regan knows that. And that’s why AIM’s new president and CEO is working hard to convince lawmakers to do what his members are doing — what’s best for business and what’s best for long-term economic health.

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

AIM President Urges Caution Amid Concerns on Economy

By George O'Brien October 8, 2019

Features

Warning Signs

John Regan