From AI to the Courthouse Search, the Landscape Is Changing

By George O’Brien and Joseph Bednar

It is December, time to look ahead to what might happen in the new year, but also look back, at what has been an eventful year, to say the least.

For example, Springfield has become engrossed in the search for a site for a new courthouse, the Western Massachusetts Economic Development Council has named a new director, AI is changing the landscape in all kinds of ways, and remote work is becoming more entrenched in the workplace. Then there’s the constantly changing story of tariffs, federal budget cuts that are challenging nonprofits, and an ongoing housing crisis.

As we said, it’s been an eventful year. Here’s a look back at some of the biggest stories of 2025:

A Softening of the Job Market

“Job hugging.”

That was one of the workforce trends to unfold in 2025, a year that saw the pendulum swing from this being an employees’ market to one favoring employers. The phrase refers to people hanging onto their jobs longer amid concerns that the grass isn’t any greener elsewhere, amid forces ranging from AI to severe cutbacks within the federal government.

“People are feeling a sense of volatility and continuous change, and when you feel like that, you look for some personal anchors, and for a lot of people, their job is their personal anchor,” Allison Ebner, president of the Employers Assoc. of the NorthEast, told BusinessWest recently, adding that this is a fairly recent phenomenon dating back to last spring or early summer. “Everything in the world is changing, and they want to keep something consistent, and maybe it’s their job.”

But while people may be hugging their job, they’re still looking around, as evidenced by the strong turnout at the recent job fair staged by the MassHire Springfield Career Center. The turnout was strong on both the job seeker and employer sides of the coin, indicating that, while some sectors are seeing a slowdown, many others, especially healthcare, are still struggling to find qualified help.

Seeking New Sources of Funding

This issue of BusinessWest includes the annual Giving Guide, encouraging readers to support local nonprofits. And it couldn’t come at a better time, at the tail end of a year in which federal funding for nonprofits of all types was significantly slashed.

That has caused frustration, but also a new determination among nonprofit leaders to be more creative and collaborative in meeting the many needs of the community.

“People are reaching out, and not just with appeals for direct funding,” Denise Hurst, vice president of Community Impact and Partnerships with the Community Foundation of Western Massachusetts, told us in May. “They’re asking about opportunities to partner with one another, share ideas, and collaborate in real time to navigate these difficult times.”

Meanwhile, a coalition of local nonprofits working in farming, conservation, food security, health, and environmental justice has come together under the name Resilient Valley to respond to federal funding cuts that have slashed organizational budgets by 25% to 40% or more.

“We realized we were all telling the same story,” said Billy Spitzer, executive director of the Hitchcock Center for the Environment. “Our budgets had been gutted overnight, and the ripple effects were only beginning. We decided we couldn’t face this crisis in isolation. We needed to find strength in each other.”

The Impact of Tariffs

President Trump ran on the promise of new, sweeping tariffs, and he has certainly followed through, announcing ‘Liberation Day’ on April 2, followed by months of trade talks, new deals, deadlines made, deadlines extended, and seemingly never-ending speculation about the impact of tariffs on prices, individual businesses, and entire sectors.

Dave Fontaine, CEO of Fontaine Bros. Inc., told BusinessWest earlier this year that tariffs will certainly impact project costs because tariffs on products, such as steel or copper, are applied not when they are ordered, but when they enter the country.

“I think it’s vitally important to bring this area back — it raises the quality of living for those living downtown, and it provides places for people to go and eat.”

“I would equate it to walking into a store … the sales tax is 6.25%, and then, while you’re purchasing the item, the sales tax gets doubled or tripled,” he explained. “That’s going to impact at the register.”

Uncertainty around tariff decisions also triggered fluctuations in the stock market this past spring — and plenty of client phone calls to investment firms. But Jeffrey Liguori, executive vice president of Bradley Foster & Sargent Inc., was one of several experts who told us it’s wise to take a longer view.

“The data is 100% in your favor. Nothing ever goes straight up. We’ve lived through most of these crises — the housing crisis, the tech bubble, the Great Recession,” he said. “All of those, time and again, have been incredible buying opportunities. It’s almost like, if there’s no pain, there’s no gain.”

The Search for a New Courthouse

The search for a replacement for the troubled Roderick C. Ireland courthouse in Springield entered an intriguing new phase when the state’s Department of Capital Asset Management and Maintenance (DCAMM) decided to let a private developer build and manage the facility and have the state lease it.

An RFP was issued mid-year, and 11 proposals were received involving a wide range of properties, from the park created by the demolition of the former Steiger’s department store to the Republican building; from the current courthouse site itself to the home of the former Mardi Gras strip club.

DCAMM is now weighing those proposals and is expected to have a decision in the first or second quarter of next year, making for a long and agonizing wait to see how the city’s landscape will be changed.

Progress in the Entertainment District

Many of the windows in the storefronts are still boarded up or covered by brown paper, but behind all this, there is some progress in Springfield’s entertainment district.

Noted attorney and developer Raipher Pellegrino, with support from the city in the form of a $2 million grant, is filling in a canvas along a city block of buildings on Worthington Street.

He envisions five restaurants in all, most with doors opening out onto Worthington Street and outdoor dining, in addition to a club and other businesses that will support each other and bring people and energy back to that corridor.

“I think it’s vitally important to bring this area back — it raises the quality of living for those living downtown, and it provides places for people to go and eat,” he told BusinessWest in June, adding that the project is a work in progress. “That was my desire with this, and it’s a much more difficult project than I think anyone envisioned, but I think we’re starting to see it evolve, and we’re seeing a lot of momentum.”

A Work of Arts

Another intriguing story in 2025 was the opening of the Hope Center for the Arts in downtown Springfield. Created in the former CityStage space, the center is the culmination of a long-held dream of Bob Bolduc, former owner of Pride Stations and Stores and founder of the Hope for Youth and Families Foundation.

The center, which opened its doors during the summer, and created at a cost of more than $14 million, is designed as flexible learning, rehearsal, and performance space that will advance the mission of the foundation and several partner organizations focused on the arts and helping youth and families in Springfield thrive.

Bolduc said the facility is designed to educate young people, immerse them in the arts, and perhaps inspire careers in that realm.

“The arts are not just entertaining and cultural, which we need in this city; they’re also inspiring,” he told BusinessWest. “Imagine a kid who gets turned on to dance or vocals or an instrument and then goes to a good school on a scholarship … we’ve changed their life.”

AI Has Become a Force

Wherever artificial intelligence takes us, we’ll look back at 2025 as the year it firmly established itself as a force to be reckoned with. Businesses in sectors ranging from law to accounting to healthcare are finding new ways to utilize AI to create new efficiencies and, in some cases, trim their workforce expense.

Meanwhile, for those in the workforce, as well as those looking to enter it, the ability to use AI has rapidly become a skill they must have.

Indeed, Ebner told us, “the phrase you hear now is, ‘AI won’t replace all the people, but it will replace people who don’t have AI skills.’”

Nicole Polite, CEO and founder of the East Longmeadow-based MH Group, agreed, telling BusinessWest that employers are becoming more skills-focused in their hiring.

“I often talk to people during the interview process and ask them what training they’ve had in terms of AI and make sure they stay in front of it,” she noted, “because AI is here for the long haul, so we have to adjust to it.”

Remote Work Is Here to Stay

Also seemingly here for good is remote work, as 2025 saw remote and hybrid models becoming more entrenched, regionally and nationally, even as some major employers were scaling back on the practice, if not cutting it out.

Indeed, while business leaders such as J.P. Morgan CEO Jamie Dimon enforced return-to-office policies, requiring most employees to work in person five days a week — arguing “you can’t learn working from your basement” — most businesses locally have preferred to stay with hybrid schedules as a way to retain valued talent — and attract new talent.

And while the practice seems to work for most businesses and their employees, it is definitely having an impact on businesses in central business districts in cities regionally and across the country — as well as the commercial real estate owners who rely on them, not to mention the restaurants and retailers who count on people working nearby and stopping in.

The Housing Crisis Continues

An ongoing story in 2025 was the housing crisis that has enveloped the county and this region. As BusinessWest continued its Community Spotlight series, leaders in cities and towns across the 413 spoke of the need for more housing of all kinds, especially the affordable variety.

Housing is needed for many reasons, they said, from helping seniors stay in their hometowns as the cost of homes skyrockets to enabling those in the workforce to afford to live in or close to the communities where they work, a problem that is especially acute in the Berkshires, where home prices have soared.

And while new housing projects are underway or planned in several area communities, from Pittsfield and Lee to Springfield and Chicopee, in many cases, the new units will only scratch the surface when it comes to what is needed.

A New Effort to Spark Entrepreneurship

They’re calling it VVM 2.0, and that’s a poignant name.

VVM is an acronym for Valley Venture Mentors, the nonprofit started to inspire entrepreneurship and provide fledging businesses with the mentorship and technical support needed to get to the next stage. The agency thrived for several years, but essentially didn’t survive the pandemic and other challenges to its existence.

Paul Silva, one of VVM’s founders, with support from the Davis Foundation and the MassMutual Foundation, recently launched a new initiative called Innovate413 that is designed to spark new tech-based startups in the region.

When asked how it would work, Silva said the initiative will provide startups with what he called “an unfair advantage,” in the form of access to potential customers, meaning large, regional employers that will talk about problems facing them and all those in their industries, and access to the latest artificial intelligence and product development techniques.

“When you’re in Silicon Valley or in Boston, you have access to that stuff, but the vast majority of the country doesn’t,” he told BusinessWest.

Aaron Vega Chosen to Lead the EDC

Rick Sullivan, president of the Western Massachusetts Economic Development Council (EDC), announced his retirement early in the year, and soon thereafter, a nationwide search for a successor commenced.

It ended this fall with the announcement that Aaron Vega, director of the Office of Planning and Economic Development in Holyoke, would assume that high-profile position in January. Vega brings a diverse résumé to his new job. Indeed, he worked for many years as a freelance film editor and also owned his own yoga studio before becoming a city councilor in Holyoke and then a state representative.

Vega told BusinessWest that his first order of business is to conduct a lengthy listening tour. Longer-term, he wants to build on progress made with developing new business sectors, such as food science, clean energy, and cybersecurity, while also being more aggressive with efforts to promote the region and tell its story.

Hub of Progress

Speaking of the EDC, it recently celebrated a major milestone for the innovation economy, with Western Mass. being designated as both a Quantum Technology TechHub and a Food Science TechHub through the Massachusetts Technology Collaborative. In addition to the two designations, funding in the form of $1 million to advance a feasibility and design study of a quantum supply chain accelerator (QSCA) was awarded to Springfield Technical Community College.

“Western Massachusetts is the only region in the Commonwealth to receive two TechHub designations, which is a testament to the strength of our innovation ecosystem and the collaboration that defines it.”

The QSCA will build on the foundation established in Holyoke at the Massachusetts Green High Performance Computing Center and the state’s first quantum computing complex launched with QuEra Computing Inc. The accelerator, which will be the first regional facility of its kind to drive commercialization, support startups, and strengthen advanced manufacturing supply chains across the Pioneer Valley, will be located at the Springfield Technology Park.

“Western Massachusetts is the only region in the Commonwealth to receive two TechHub designations, which is a testament to the strength of our innovation ecosystem and the collaboration that defines it,” said Rick Sullivan, outgoing president and CEO of the EDC. “These designations, and the $1 million dollar investment in the quantum supply chain accelerator, represent years of hard work and vision from our regional partners.”

A New Chapter for the Monson Developmental Center

Housing is one of the many potential new uses for the Monson Developmental Center, which is an intriguing new addition to the large portfolio of Westmass Area Development Corp.

Indeed, in July, the Commonwealth officially transferred the sprawling campus to Westmass, touting the transaction as part of ongoing efforts to utilize existing properties to build more housing in the state.

And with that transfer, Westmass, in partnership with DCAMM, will commence work to create what will be known as the Village at Sawmill Brook, named for the brook that runs through the property, which closed in the ’90s. This village will take shape over the next 10 to 20 years, said Westmass President and CEO Jeff Daley, adding that this is a large and difficult undertaking for the agency, but one laden with potential.

“It’s an imposing site, and there’s a ton of work that has to be done,” he told BusinessWest. “And there’s a lot of money that has to be invested just to make the site developable again.”

Something to Sink Your Teeth Into

BusinessWest continued a 30-year tradition by honoring its Top Entrepreneur in 2025, with the award going to John and Chris DeVoie, founders of the Hot Table chain of panini restaurants.

Launched in 2007, the chain has grown to 13 locations and well beyond its roots at the Brightwood Plaza — to several communities in the 413 and also Central Mass. and into Connecticut.

The past few years have been extremely busy, with the opening of five new restaurants — in Westfield, Chicopee, West Springfield, and Franklin, as well as Manchester, Conn., a time that has been followed by a period of absorbing such rapid and profound growth. Further expansion is possible, but the high costs of building has prompted the partners to hit pause while they continue to search for new opportunities.

“We always want to be nimble — the market changes quickly; that’s one of the things COVID taught us,” Chris said. “We always have our eyes open and our ears to the ground, watch what’s happening in other cities and with trends, and not chase every shiny object, especially when it comes to the menu — do what you do, and do it well.”