“Honestly, this was one of our busiest years I can remember.”
“It’s been a very challenging year.”
Those are two quotes from this issue of BusinessWest, one from the world of construction, the other from hospital administration.
And if you asked leaders of other sectors — from education to auto sales; from real estate to insurance — how things are going, you’d probably encounter the same range of answers.
Because these are unusual times. In some ways, the economy is strong, with historically low unemployment, real wages rising, and energy prices falling. But in other ways — indeed, the ways in which people feel it most immediately — things are not getting better: inflation is still too high, housing is increasingly unattainable, and employers are struggling to find talent.
But even by those negative measures, the U.S. has seen improvement over the past year, and in many industries, business is steady. We hope for even more improvement in 2024, of course, and while we do, here are four other developments we wouldn’t mind seeing, both locally and nationally.
• Lower interest rates. Not only has it been a terrible year for banks on that front, but consumers have been struggling with the dual issues of housing availability and higher mortage rates. Now that inflation is easing, mortgage rates are expected to make a slow decline throughout 2024. Realtor.com forecasts that rates will be 6.8% on average for 2024 and 6.5% by the year’s end, following a high of 7.79% earlier this year.
• Movement on east-west rail in Massachusetts. Obviously, any movement here will be painfully slow, but there has been some progress toward connecting Springfield (and even Pittsfield) with Boston. This fall, the federal government awarded a grant of $108 million to Massachusetts for infrastructure upgrades, and Gov. Maura Healey signed off on $12.5 million in DOT funding in the state’s FY 2024 budget toward the effort.
• Federal cannabis decriminalization. Well over half of U.S. citizens live where cannabis is legal in some way statewide, that number is rising every year, and about 60% of Americans want the drug legal for recreational use. But the federal government’s continued categorization of cannabis as a Schedule 1 drug — and the related Section 280E issues in the Internal Revenue Code — continue to hamper the industry in many ways, from banking and taxes to security and transportation. Descheduling marijuana seems to have bipartisan support in Congress, but there has been little movement.
• More momentum in downtown Springfield. The good news is plentiful: MGM posted some of its best-ever months this year. The Thunderbirds generate a $126 million effect on the local economy, according to a UMass Donahue Institute study. The market-rate housing development at the former Court Square Hotel has been taking applications, with the promise of bringing more foot traffic to the area. All the downtown office towers report new tenants or progress toward that goal. Downtown may never attain the energy of its mid-20th-century heyday, but the progress has been encouraging.