Economic Growth Archives

The Region Needs a Growth Strategy

By Editorial January 18, 2023

Editorial

As he talked with BusinessWest recently about the prospects for the region in 2023 and beyond, Rick Sullivan, president and CEO of the Western Massachusetts Economic Development Council, stressed the need for creation of a growth strategy for Western Mass.

And he’s right. A region that has become notorious, if that’s the right word, for its lack of growth over the past several decades needs a strategy for bringing more jobs, more businesses, and more vibrancy to the 413.

What goes into such a strategy? Many different things, but it starts with identifying areas where a region can grow and then putting specific strategies in place for making it happen. After all, growth doesn’t occur in a vacuum — it happens where there are opportunities, be it through developable land, location, a large and talented workforce, comparatively lower costs of doing business, an existing infrastructure and critical mass of businesses in specific sectors, a high quality of life, and … did we mention a talented workforce?

These elements have led to profound growth in areas ranging from Silicon Valley to the Research Triangle in North Carolina; from Cambridge to countless towns in Mexico.

The region has several of these attributes, including quality of life, a comparatively lower cost of living (for now, anyway); some available land; a solid workforce trained for some specific sectors, especially manufacturing; a location that provides easy access to Boston, New York, and other major cities; and emerging sectors such as cybersecurity, green energy, and even so-called water technology.

But is this region ready to grow? Can it accommodate more businesses and provide them with the workers they need?

That is a harder question to answer. On the surface, it would seem that, based on the fact that almost every business in every sector, especially healthcare, is struggling to find good help, the answer is ‘no.’ But throughout history, regions have found that, if you create jobs, people will come to that area.

Moving forward, the region needs to take some steps to enable growth to happen. It needs to build its workforce by keeping more young people here and prompting more young people to come here. To do that, there must be jobs, as in good jobs, and places to live. Right now, the region doesn’t have enough of either, which is a problem.

But while creating jobs is important in this new age, the jobs don’t necessarily have to be in the 413. With the advent of remote work, the jobs can be in New York, Boston, or elsewhere, and people can live here.

Either way, this region will need more housing, specifically affordable housing. It will also need a larger and more skilled workforce, which means more training programs and better utilization of one of the region’s best and perhaps least-appreciated assets — its four community colleges.

Meanwhile — and we know you’ve heard this before — it needs to do a better job of telling its story and marketing itself to businesses in other regions of this state and well beyond.

None of this is new, really. The region has known it needs to take these steps and others for years, if not decades now. What would help would be to formalize all this, put a plan together, and take steps to implement it.

Because growth doesn’t happen by accident.

East Longmeadow Continues Pattern of Growth

By Contributor June 24, 2022

Community Spotlight

By Mark Morris

Alex McGill says his company considered other options, but decided it wanted to be in East Longmeadow

Roughly 60 years ago, McGill Hose and Coupling opened on Benton Drive in East Longmeadow. About six months ago, it moved into a new building around the corner on Industrial Drive that is more than double the size of its old location.

McGill is a custom fabricator of hoses and tubes for a wide variety of industries, everything from fuel delivery to food and beverage to pharmaceuticals. In short, any industry that requires hoses and tubing can be served by the company. Alex McGill, vice president at McGill, said the pandemic and supply chain challenges have caused some hiccups, but at the same time brought more business from pharmaceutical companies, especially in the Northeast.

“The opportunity came about because of the level of service we offer and because we are accessible to our customers,” McGill noted. “Our willingness to work around the clock to make sure customers get what they need has won us quite a lot of business over the years.”

While the company could be located anywhere, and could have moved anywhere when expansion became necessary, McGill has chosen to remain in East Longmeadow.

“We’ve grown to love the neighborhood and our neighbors,” he said adding, “we rely on our retail business where people can come in for their supplies. It’s also a friendly location for our employees.”

Secure Energy Systems has a story that is similar in many ways. The company was located on Somers Road until 2016 when a fire destroyed the company’s building. Nearby Cartamundi provided temporary space for Secure Energy while it sought out a new location.

“We’ve grown to love the neighborhood and our neighbors, we rely on our retail business where people can come in for their supplies. It’s also a friendly location for our employees.”

“The owners of the company had purchased a property in Enfield, but it just didn’t feel right to them,” said Erin Bissonnette, senior energy sales representative for Secure Energy. “They wanted to stay in East Longmeadow because they felt this was their home and they didn’t want to leave.”

So, in 2018 Secure Energy found the right space a few doors down from the manufacturer Cartamundi on Shaker Road and bought the building that formerly housed the laser company Biolitec.

These stories are among many others that relate how East Longmeadow has become an increasingly popular home for families and businesses alike. As for the ‘why’ this is happening — there are many reasons for that, including quality of life, a still-favorable commercial tax rate, available land and property, and, overall, a pro-business approach that is prompting new businesses to settle there, existing businesses to stay, and entrepreneurs to find space there to get started, as we’ll see.

And while businesses owners are choosing to invest in the community, East Longmeadow is making investments in itself.

The East Longmeadow Town Council recently passed the Fiscal 2023 budget, which includes funding for 19 capital projects in town. One prominent project involves a major redevelopment of Heritage Park. According to Town Manager Mary McNally, the initial design and permitting phase of the redevelopment will come from Community Preservation monies. Funding from the American Rescue Plan Act (ARPA) will cover the other 18 projects.

“They range from investing in the town’s IT needs to police cruisers, a fire engine and DPW trucks,” McNally said. “There are enough projects to stimulate lots of economic activity in town, providing we can get the contractors and the materials to get it all done.”

For this, the latest installment of its Community Spotlight series, BusinessWest takes an in-depth look at how all these many kinds of investments are paying off for East Longmeadow.

Right Place, Right Time

After a renovation that Bissonnette described as “down to the steel beams” Secure Energy, which specializes in the procurement of natural gas and electricity for its commercial and industrial clients, now has a modern, airy office with amenities for employees such as a kitchen, large gym, and an outdoor gathering space. And there is plenty of room for growth.

“We negotiate with the same suppliers the utilities use and lock in the price and a term for the energy commodity, whether it’s for 6 months or 60 months,” Bissonnette said.

“These are women who have had certain passions and interests and now they are trying them out. They are exploring their ideas to see where it will all lead. It’s exciting to see.”

As a result, a business can know what their energy will cost for the length of the term, a service more valuable these days than ever before.

“Some clients will forget they extended their term beyond 2022 and will call us in a panic,” Bissonnette said. “Then we reassure them that our energy advisors grabbed the lowest prices months ago and locked in that rate. As a result, customers who were concerned are now very happy.”

Secure Energy is part of a growing, very diverse business community in East Longmeadow, one that takes full advantage of many amenities, including a favorable location near population centers and the border with Connecticut, as well as land on which to build and grow.

McGill Hose and Coupling is another example.

Erin Bissonnette says Secure Energy wanted to stay in East Longmeadow, because it “felt like home.”

As McGill employees settle into its new location, Alex McGill said the company’s next goal involves growing the business and the team working in East Longmeadow.

“We’re putting more of an emphasis on our employees,” McGill said. “We’re building a team atmosphere that has become a real catalyst for our recent growth.”

Using the strategy “if you treat your employees right, they will treat your customers right” is already paying off.

“We are poised for a nice shot of growth,” McGill continued. “We are paying attention to the future and investing in our employee culture serves as the guiding light for our growth.”

The same sentiments apply to the town and many of the investments it is making.

Indeed, as part of the budget, the town council also approved hiring for 13 positions in various town departments. McNally said Town Hall is scheduled to get 5 full time and one part time position out of the total.

“The staff at Town Hall work very hard to get things done,” McNally said. “Life would be easier if we had more staff, so I’m very pleased the council saw fit to fund these positions.” The extra staff presents a challenge of finding room where the new hires can work. The town is currently trying to find a balance between locating a department or two to another building without spreading municipal offices all over the town.

Meanwhwhile, a new high school represents a longer-term investment that is moving through town and state approval processes. The town will host three visioning sessions to show residents what a new school could look like and to solicit ideas from the public on what they would like to see for a new high school.

“These will be hybrid meetings so the public can take part in person or virtually,” McNally said. “I hope we get a good turnout and that people will participate.”

One of those 18 ARPA projects includes roof repairs to the current high school.

“This is a fix that can’t wait for the years-long process of building a new school,” said McNally.

Another investment trend in East Longmeadow involves people investing in themselves.

Grace Barone, executive director of the East of the River Five Town Chamber of Commerce, said recent networking events she has held are attracting many young entrepreneurs. Barone said new pop-up shops are beginning to appear and most of them are women-owned businesses.

Grace Barone

“These are women who have had certain passions and interests and now they are trying them out,” said Barone. “They are exploring their ideas to see where it will all lead. It’s exciting to see.”

One of those entrepreneurs recently leased space in the Reminder Building, where the Chamber office is also located. Chris Buendo, owner of the building, said he has welcomed startups to the Reminder Building and now has an eclectic mix of tenants. In fact, he allows tenants to provide a 60-day notice to break their lease instead of holding them to a typical one year or longer term.

“The shorter notice takes a little pressure off a start-up company,” said Buendo. “Rather than signing a long-term lease that they may later regret, I have faith that what they are doing is going to work so I want to relieve some of that pressure so they can succeed.”

The height of the pandemic was a scary time for commercial real estate, and Buendo said he lost many tenants who abandoned their office space to work from home. As the world slowly emerges from COVID concerns, he said business has come back.

“The good news is I’m getting calls again,” Buendo said. “Working from home is nice but it’s not a perfect scenario, so people are calling me to say it’s time to return to the office.” And return they have, as Buendo noted he has only one available space in the Reminder building.

Chris Buendo says growing interest in office space in the town is a sign of progress.

At the town level, in addition to the new jobs approved by the council, several key positions have turned over because of retirements and career changes. McNally explained that over the last year the town has brought on a new planning director and a new library director. McNally herself plans to retire when her contract ends on June 30.

At press time the town had chosen a new town manager and was in the process of negotiating the final contract before announcing the new person.

The Bottom Line

As for McNally, her next move is well planned.

“I’ll be on the golf course, at the ocean, or with my family, not necessarily in that order,” McNally said. “I’m a lawyer by training so I could re-new my license if I get bored, but for now I’m ready to call it a day.”

As she prepares for retirement, McNally is pleased that thanks to investments from the private sector and the town, East Longmeadow is in solid financial shape going forward and in a position to continue the remarkable pattern of growth it has seen in recent years. u

Enfield Is Well-positioned for Economic Growth

By Joseph Bednar October 29, 2019

Community Spotlight

Mike Vezzola says the North Central Connecticut Chamber of Commerce’s new headquarters at Enfield Square has given the organization greater visibility.

If a long-discussed tribal casino takes shape in East Windsor, Conn., the town of Enfield would find itself in an intriguing geographic spot between two destination casinos — which could bring benefits in a number of ways, Mike Vezzola says.

“It’s still going through a large permitting process, but if the casino does wind up coming to East Windsor, we’re right smack dab in the middle of MGM Springfield and that proposed East Windsor site, so the hope here is that Enfield can become a little bit more of a destination,” said the executive director of the North Central Connecticut Chamber of Commerce during a recent conversation at the chamber’s office in the mall known as Enfield Square.

“It’ll certainly create a lot of runoff for hotels and restaurants,” he went on. “We have a plethora of great restaurants, stores, and activities right at our fingertips. We need to build on those things and make sure the right pieces are set in place, and certainly the town is doing its part to try and see that through. We’re excited for what’s on the horizon over the next five to 10 years.”

As a border town that may eventually be flanked by two casinos, Enfield is, in many ways, at a crossroads — one that town officials hope will be bolstered by a new train platform in the Thompsonville neighborhood.

Earlier this month, the Town Council unanimously voted to transfer $670,000 from the general fund into a separate fund for the development of a train platform in Thompsonville, a project that has been 15 years in the making and is expected to attract traffic to town and give residents and businesses more reason to relocate or stay there.

Other financial hurdles need to be cleared, as the total cost of a platform would be around $2.5 million. A full train station could follow down the road, at a cost of tens of millions; Enfield is just one of several train-stop communities in the Nutmeg State waiting for DOT action on such projects. In Enfield, town officials say any upgrade will bring a number of economic benefits, particularly for Thompsonville itself, which has been the focus of a planned revitalization project for some time.

The town implemented a tax increment financing (TIF) plan in Thompsonville and the Enfield Square area earlier this year. TIF is an economic-development tool that allows municipalities to use tax revenues generated from new capital investment to assist in a project’s financing.

“We have a plethora of great restaurants, stores, and activities right at our fingertips. We need to build on those things and make sure the right pieces are set in place, and certainly the town is doing its part to try and see that through.”

Patrick McMahon, CEO of the nonprofit Connecticut Main Street Center, who was hired by the town as a consultant in January to help revitalize Thompsonville, told legislative and business leaders at a recent economic-development breakfast that Enfield leaders envision significant private investment in new business ventures, redevelopment of historic properties, and new public infrastructure.

“Hopefully, the new TIF project will bring some revitalization to that specific area, especially with the commuter rail between New Haven and Springfield,” Vezzola told BusinessWest. “We’re one of the primary stops on that rail, and they’re hoping to get the platform built in the next couple of years.”

Pipeline to Progress

At the same time, Enfield has seen growth in recent years in its manufacturing, distribution, and warehousing sectors, while Asnuntuck Community College (ACC) — which hosted the recent breakfast — has built a reputation as a manufacturing-education leader through its Advanced Manufacturing Technology Center (AMTC).

Connecticut Gov. Ned Lamont and other guests toured the space, speaking to students and taking in the 11,000-square-foot machining lab with its 90 CNC and manual machines, the state-of-the-art additive manufacturing lab, and other high-tech training areas.

Enfield at a Glance

Year Incorporated: 1683
Population: 44,654
Area: 34.2 square miles
County: Hartford
Residential Tax Rate: $34.23
Commercial Tax Rate: $34.23
Median Household Income: $67,402
Median Family Income: $77,554
Type of Government: Town Council, Town Manager
Largest Employers: Lego Systems Inc., MassMutual, Retail Brand Alliance, Enfield Distribution Center
* Latest information available

With programs that get students working at good-paying manufacturing jobs in two years or even one in many cases, ACC — and, by extension, its town — has become a promising answer to workforce needs at area plants, which have long lamented persistent skills gaps.

Asnuntuck has forged partnerships and talent pipelines with area manufacturers and businesses including Pratt & Whitney, Sikorsky, Eppendorf, and Stanley Black & Decker, among others, contributing to a 98% job-placement rate for AMCT graduates.

“With more than 25,000 skilled workers needed in the next two decades, the advanced manufacturing technology centers at Connecticut community colleges offer the opportunity for people of all ages and backgrounds to find a rewarding career in our state,” said Connecticut State Colleges and Universities President Mark Ojakian, who participated in the tour.

The rise in Enfield’s manufacturing reputation coincides with retail struggles, particularly in Enfield Square, where the only remaining anchor is Target. However, numerous small stores still call the property home, and Party City made a major investment there two years ago.

“The mall is very open to interpretive ways of using their retail space,” Vezzola said, the chamber’s presence there being just one example. “We get a lot of foot traffic in here, community members looking for referrals to some of our members or just information about who we are and what we do and how that benefits the community. Certainly, we’re here and excited to help facilitate any potential new clientele the mall might see in the future.”

While Enfield hasn’t attracted many new large retail establishments over the past year, the community continues to be a haven for sole proprietors, he noted.

“These are folks who have their own businesses and work from home, whether it’s social-media development or graphic design, things of that nature,” he said. “A lot of young people are starting these businesses — and we’re excited that they want to put their talents and work skills to use right here.”

So excited, in fact, that the chamber is hoping to launch a young professional networking group next year as a subsidiary of the chamber.

“We want to encourage other younger folks who might not necessarily know how to navigate creating their own business or are looking for a new opportunity to learn and develop, so it’ll be a bit of an educational piece as well as a networking piece,” Vezzola explained. “That’s a big focus of what we do; we’re continuing to encourage our businesses to help each other, utilize each other, and benefit each other the best way they can.

“We peg ourselves on changing with the times, and certainly the scope of what a chamber does is completely different now than it was 20 years ago,” he added. “We’re just trying to stay relevant and active and evolve with the times.”

Life on the Border

Vezzola understands, too, the potential for his chamber and its members to make connections across the state line as well.

“Being a border town, I think it helps us get some exposure over the border in Massachusetts for our businesses and vice versa, and we’re considering some partnerships with chambers in Western Massachusetts to maybe do some cross-border development with each other, with networking groups,” he said. “Again, it’s about always evolving and just trying to do the best we can with what we’ve got here.”

Joseph Bednar can be reached at [email protected]

Berkshire Blueprint 2.0 Charts Ambitious Course to Economic Growth

By Joseph Bednar April 30, 2019

Jonathan Butler, left, and Benjamin Lamb

Berkshire County

Designs on the Future

Jonathan Butler, left, and Benjamin Lamb discuss the plan at a recent public forum.

Jonathan Butler knows what happens to a lot of reports, and he’s determined to avoid that fate.

“This wasn’t intended to be just a two-year study that ends up as a report that sits on a shelf,” he said, referring to Berkshire Blueprint 2.0, an 80-page action plan of sorts for the Berkshire County economy. “It very much means to be a new look at our economy, a new baseline for where we are that identifies challenges we have in different areas and action steps needed to move forward.”

The project, the successor to the original Berkshire Blueprint released in 2007, was overseen by 1Berkshire, the regional economic-development agency Butler serves as president and CEO.

The report’s most notable feature is how it breaks down the economy into five ‘clusters’ — advanced manufacturing, the creative economy, food and agriculture, healthcare, and hospitality and tourism — and then lays out the challenges facing each cluster, who some of the main stakeholders are, and a series of ‘action steps’ aimed at spurring economic growth.

“We’ve made a process that’s accountable to itself and the stakeholders,” Butler told BusinessWest. “We have a small-business economy in the Berkshires, with a lot of business sectors, and approaching it from this vantage point is a helpful way to establish more creative problem solving and open up doors to more scalability for our economy.”

He admitted there are far more than five key clusters in the region’s economy, specifically citing education, financial services, and e-commerce as three others that may be woven into future iterations of the blueprint. But 1Berkshire had to start somewhere, and chose clusters that import wealth — in other words, bring money into the region from outside — and have shown growth over the past decade with the potential to scale up further.

“It’s all about getting different businesses outside of their silos to create more collaboration, more interactivity — to create an environment where things can take off organically.”

‘Scalability’ is a word that comes up repeatedly with Butler, who unveiled the plan at a recent, well-attended public forum alongside Benjamin Lamb, 1Berkshire’s economic development director.

“We’ve lived through the dialogue of a declining economy and job loss, and the narrative for many years has been to bring more jobs into the region,” he explained. “But we’ve pivoted away from that. We don’t need more jobs in the region; we need scalability for existing jobs and a better hiring pipeline. There’s a disconnect between the available workforce and the skill set and type of workforce businesses need.”

“There’s also a strong sense of momentum and progress that wasn’t here 15 years ago. That’s something to be excited about, and something we want to see evolve in the coming years.”

For evidence, Butler said there’s typically 1,300 to 2,000 jobs posted in the region at any given time, and they span the spectrum of the workforce, from entry-level to mid-career, management, and upper management. Many of the blueprint’s action steps take direct aim at identifying, connecting, and training potential workers for lucrative careers.

“A lot of employers here do a great job innovating in their sector, in their market, and are in a position where they can be scaling up, growing, expanding into new products and expanding product lines — but they’re not confident they can take the leap and scale the company because they’re not finding the workforce they need to fill those jobs.”

The Nitty Gritty

As an example of how the report dives into the five sectors, let’s consider the creative economy, which comprises segments like visual arts, performing arts, literary arts, design, film and media, and museums and cultural institutions.

The blueprint notes that the sector has seen 9.5% job growth since 2010, and the concentration of employers in this realm is 62% higher in the Berkshires than it is nationally, spurred by rapid growth in the northern part of the county.

Assets include a diversity of business establishments, institutional support by the likes of the Berkshire Taconic Community Foundation (BTCF) and Massachusetts College of Liberal Arts, and existing collaborative relationships across the county. Challenges, the report notes, include further engaging local residents, overcoming perceptions to demonstrate the economic importance of the arts, sustaining organizational support, and providing housing and transportation for seasonal employment.

With these factors in mind, the blueprint’s recommended action steps include convening the region’s major cultural institutions in dialogue, developing an intensive business-resources-awareness campaign, providing support to the BTCF and the Creative Commonwealth Initiative, reconvening the Creative Resources Conference, creating a partnership between the Berkshire Innovation Center and the creative community, and expanding the Assets for Artists program, a MASS MoCA initiative that provides professional-development opportunties — and housing — to emerging artists.

Collectively, that’s a mouthful, and it’s only the barest summary of just one of the five sectors. (The full report, and an executive summary, are available at 1berkshire.com.) But it suggests the copious work that must follow if the blueprint is to avoid becoming just another binder collecting dust.

“There are real challenges, and we have to work in collaboration to overcome them,” Butler said. “But there’s also a strong sense of momentum and progress that wasn’t here 15 years ago. That’s something to be excited about, and something we want to see evolve in the coming years.”

While much of the Berkshire Blueprint focuses on the five central clusters, the report also identifies several cross-cutting issues that impact the region at large, including all clusters.

For example, consistent access to high-speed broadband internet has long been a challenge in Berkshire County. Recently, actions on the state level have helped bring communities up to an equitable standard of broadband access and internet speed, but further advocacy and work are still needed, especially for residential access.

In addition, New England’s energy costs are significantly higher than they are in other regions of the country. With the retiring of regional power plants, lack of new plant construction, high cost of fuel distribution, and a limited pipeline infrastructure, the Berkshires face significantly higher energy costs compared to other areas of the country and the Commonwealth.

In the realm of transportation, gaps in public-transit services, inadequate evening bus service, a lack of coordination of private and public transportation assets, and challenges of getting to and from employment reliably are among the region’s nagging challenges.

Finally, population loss has been a persistent issue for decades in the region. 1Berkshire’s Berkshire Initiative for Growth began to lay groundwork for recruiting and retaining individuals to the region to curb this trend. While portions of the report were implemented, a number of components were laid out as the responsibility of other members of the regional business community to integrate.

“Population loss has been a mature conversation in the Berkshires,” Butler said. “The reality is, we’ll probably see another decline of some sort in the 2020 census, which would continue a half-century trend. But I’m optimistic that a lot of work done over the past five or six years will eventually shift that. We’re seeing more and more young families come to the Berkshires for a variety of reasons: quality of life, work-life balance, and the fact that our economy is quite big and diverse for such a small region.”

Then and Now

The blueprint authors were quick to note that the decades-long national decline of traditional manufacturing has had a negative effect on Berkshire County, and that the departures of long-time major employers such as General Electric and Sprague Electric devastated the local economy.

“For too long, the narrative has been that our best days were behind us, confined to faded newsprint and wistful memory,” they note. However, “that narrative is out of date. For several years, Berkshire County leadership has felt a sense of cautious optimism that the tide is turning. New buildings, businesses, and partnerships are springing up everywhere. With the knowledge that Berkshire County has seen $1 billion in investment over the last three years, the writing is on the wall: the days of doom and gloom are over. The new Berkshire narrative is about growth and opportunity in a diversified regional economy, and there is room for everybody at the table.”

That’s optimistic talk for sure, and Butler believes it, noting that he and his wife are in their late 30s, want to stay in the region for a long time, and believe it’s a good place to be.

“When we made the move home to the Berkshires in our late 20s, we saw a lot of potential,” he told BusinessWest — along with plenty of challenges. “But the narrative then and what we see happening in the future are different — and that’s become a more mainstream idea now.”

An idea that, with any luck, will do much more than sit on a shelf.

Joseph Bednar can be reached at [email protected]

The Region Needs a Growth Strategy

Editorial

East Longmeadow Continues Pattern of Growth