AIMBlog_Logo_Resized

New Greenhouse Regulations Will Drive Up Costs for Employers

Posted by Bob Rio on Aug 11, 2017 11:29:19 AM

The Baker Administration will today introduce new regulations that set specific limits on sources of greenhouse gases, the emissions linked to climate change. State officials indicate that the regulations could increase costs to electric ratepayers by as much as 2 percent.

Electriclinessmall.jpgThe new rules aim to reduce the state’s carbon emissions 25 percent below 1990 levels by 2020, as required by state law.

Robert Rio, Senior Vice President of Government Affairs at AIM, issued the following statement:

“The 4,000 member employers of Associated Industries of Massachusetts are extremely disappointed with the Baker administration’s new electricity sector regulations. The administration openly admits that these rules will increase Massachusetts electric rates that are already among the highest in the nation.

“The increases produced by the proposed rules, when combined with other pending cost increases, could raise the electric bills of Massachusetts employers some 10 percent in the next year alone.

“These regulations are ultimately unnecessary. The administration could have chosen to work with the legislature to change the Global Warming Solutions Act to allow for alternative ways for the electricity sector to meet these obligations.  Instead, the administration has turned a blind eye to the corrosive impacts that high electric rates are having on struggling Massachusetts companies.

“The cost increases produced will harm consumers as well through higher rents, taxes and other costs of doing business.   

“AIM supports clean energy and is a leader in working with the administration to transition the power sector to cleaner sources.  These regulations are a setback to that effort."

Topics: Massachusetts economy, Environment, Energy

Business Confidence Weakens Slightly in July

Posted by Christopher Geehern on Aug 1, 2017 9:19:07 AM

Massachusetts employer confidence meandered through the first full month of the summer, edging down during July but remaining well within optimistic territory.

BCI.July.2017.jpgThe Associated Industries of Massachusetts Business Confidence Index (BCI) shed 0.3 points to 61.5 last month, leaving it 6.4 points higher than a year ago. The Index has gained ground in five of seven months so far in 2017.

The July slip was led by the Employment Index, which dropped 2.4 points from June. Experts on the AIM Board of Economic Advisors believe the slide reflects employers’ inability to hire skilled workers amid a tight labor market rather than a hiring slowdown caused by economic factors.

“Confidence levels at or above 60 signal continued strong confidence among employers in the direction of the state and national economies,” said Raymond G. Torto, Chair of AIM's Board of Economic Advisors (BEA) and Lecturer, Harvard Graduate School of Design.

“The labor shortage is a serious issue. We hear anecdotes from companies in multiple industries that are turning away business or postponing expansions because they can’t find tech specialists, manufacturing workers or electricians to take the new jobs.”

The AIM Index, based on a survey of Massachusetts employers, has appeared monthly since July 1991. It is calculated on a 100-point scale, with 50 as neutral; a reading above 50 is positive, while below 50 is negative. The Index reached its historic high of 68.5 on two occasions in 1997-98, and its all-time low of 33.3 in February 2009.

The index has remained above 50 since October 2013.

Constituent Indicators  

The constituent indicators that make up the overall Business Confidence Index were mixed during July.

The Massachusetts Index, assessing business conditions within the commonwealth, lost a point to 63.2, still six points higher than in July 2016.

The U.S. Index of national business conditions rose 0.5 points to 57.9 despite lingering uncertainty about federal health-care and economic policy. July marked the 88th consecutive month in which employers have been more optimistic about the Massachusetts economy than the national economy.

The Current Index, which assesses overall business conditions at the time of the survey, declined 0.7 points to 61.2 while the Future Index, measuring expectations for six months out, edged up 0.1 point to 61.8. The Future Index ended the month seven points higher than a year ago.

Operational Views

The Company Index, reflecting overall business conditions, lost 0.2 points to 62.2, up 6.3 points during the 12-month period. And though the employment Index dropped to 55.7 the Sales index rose for the third consecutive month, gaining 1.5 points to 64.1.

The AIM survey found that 39 percent of respondents reported adding staff during the past six months while 19 percent reduced employment. Expectations for the next six months are similar – 37 percent hiring and only 10 percent downsizing.

Elliot Winer, Chief Economist, Winer Economic Consulting, said workers with the type of skills needed by employers in growing industries remain in short supply, even though Massachusetts has posted significant increases to its labor force so far in 2017.

“Employers report that it is increasingly hard to fill jobs. Job vacancies now significantly exceed new hiring. And yet, wage growth in the state has been near zero when adjusted for inflation,” Winer said.

Eastern Massachusetts companies were more confident in June than those in the western portion of the commonwealth. Eastern Massachusetts employers posted a 61.5 confidence reading in June versus 60.5 for employers in the west.

Manufacturing companies remained optimistic about the economy with the 59.6 confidence reading, but not as optimistic as employers outside the manufacturing sector, who posted a 63.6 result.

Massachusetts Backlash?

AIM President and CEO Richard C. Lord, also a BEA member, noted that employer confidence in the Massachusetts economy has stalled as the state legislature has taken several troubling votes, including one last week to force employers to close a $200 million gap in MassHealth with no long-term reforms to the program.

“Employers are thus left not only to struggle with the rising cost of providing health insurance to their own employees, but to bail out an unsustainable public insurance program as well,” Lord said.

“There are consequences to raising the cost of doing business and declining confidence is a red flag for what may come next.”

Topics: AIM Business Confidence Index, Massachusetts economy

Employer Confidence Strengthens Again

Posted by Christopher Geehern on Jul 5, 2017 10:08:03 AM

Massachusetts employer confidence rose for the ninth time in 10 months during June amid optimism about an economy that is finally attracting more people into the work force.

BCI.June.2017.jpgThe Associated Industries of Massachusetts Business Confidence Index (BCI) rose one point to 61.8 last month, leaving it 5.7 points higher than a year ago. The Index has gained ground in each of the past two months after slipping in April.

The results come a month after state officials reported a long-awaited expansion of the Massachusetts labor market – the labor-force participation rate rose to 66.7 percent in May, its highest mark since before the Great Recession.

“Employer confidence in both the state and national economies remains well above the level we saw a year ago, especially among manufacturers,” said Raymond G. Torto, Chair of AIM's Board of Economic Advisors (BEA) and Lecturer, Harvard Graduate School of Design.

“Key Massachusetts indicators such as total jobs, wages and gross state product far exceed pre-recession levels and that is outweighing concerns about long-term growth.”

The AIM Index, based on a survey of Massachusetts employers, has appeared monthly since July 1991. It is calculated on a 100-point scale, with 50 as neutral; a reading above 50 is positive, while below 50 is negative. The Index reached its historic high of 68.5 on two occasions in 1997-98, and its all-time low of 33.3 in February 2009.

The index has remained above 50 since October 2013.

The constituent indicators that make up the overall Business Confidence Index were mostly positive during June.

The Massachusetts Index, assessing business conditions within the commonwealth, gained 2.1 points to 64.2, leaving it 5.7 points higher than in June 2016.

The U.S. Index of national business conditions rose 2.8 points to 57.4 despite lingering uncertainty about federal economic policy. June marked the 87th consecutive month in which employers have been more optimistic about the Massachusetts economy than the national economy.

The Current Index, which assesses overall business conditions at the time of the survey, rose 1.5 points to 61.9 while the Future Index, measuring expectations for six months out, increased 0.4 points to 61.7. The Future Index was 5.1 points higher than a year ago.

The Company Index, reflecting overall business conditions, was unchanged for the month at 62.4 and up 4.7 points during the 12-month period. The Employment Index fell 0.4 points to 58.1 while the Sales index rose 0.6 points to 62.6.
The AIM survey found that 39 percent of respondents reported adding staff during the past six months while 18 percent reduced employment. Expectations for the next six months are stable – 38 percent hiring and only 10 percent downsizing.

Alan Clayton-Matthews, a professor in the School of Public Policy and Urban Affairs at Northeastern University, said the supply of workers remains one of the most important factors in the ability of Massachusetts to maintain long-term economic growth.

“There is little slack left in the labor market. Unemployment rates are back to pre-recession levels, and employment rates are very close to pre-recession levels. The slack that does remain is largely among young workers, those with less than a high-school education, and part-time workers who have been unable to find full-time work, suggesting that many workers lack the skills that employers are seeking,” Clayton-Matthews said.

Overall participation in the labor force nationally has hovered below 63 percent during the recovery, compared with more than 66 percent before the recession.
Eastern Massachusetts companies were more confident in June than those in the western portion of the commonwealth. Eastern Massachusetts employers posted a 61.8 confidence reading in June versus 60.8 for employers in the west.

AIM President and CEO Richard C. Lord, also a BEA member, said employers are increasingly concerned about a passel of potentially expensive and disruptive Beacon Hill proposals, including a surtax on incomes more than $1 million, paid family leave and an employer assessment to close a budget gap in the MassHealth program.

“Massachusetts employers have led what is now one of the longest and most consistent economic recoveries of the past 100 years. Much of that growth reflects the fact that policymakers have refrained from unnecessarily raising business costs and imposing inefficient regulation,” Lord said.

“We look forward to working with the Legislature and the Baker administration to ensure that those policies continue.”

Topics: Employers, AIM Business Confidence Index, Massachusetts economy

Employer Confidence Rebounds in May

Posted by Christopher Geehern on Jun 6, 2017 8:29:22 AM

Massachusetts employer confidence resumed its upward trajectory during May as companies expressed renewed optimism about their own business prospects and hiring plans.

BCI.May.2017.jpgThe Associated Industries of Massachusetts Business Confidence Index (BCI) edged up 0.6 points to 60.8 last month after retreating from a 13-year high in April. The Index has increased in eight of the past nine months and now stands 3.1 points higher than in May 2016.

The May advance was led by strengthening employer confidence in their companies, rather than their overall views of the state and national economies. Manufacturers were particularly bullish, ending May a full 7 points higher than a year earlier.

“We were not surprised to see confidence readings correct slightly in April, and the May results suggest that employers still feel positive about the future,” said Raymond G. Torto, Chair of AIM's Board of Economic Advisors (BEA) and Lecturer, Harvard Graduate School of Design.

“In fact, employers seem to have more confidence in their own economic prospects than in the broader economies in which they operate.”

The AIM Index, based on a survey of Massachusetts employers, has appeared monthly since July 1991. It is calculated on a 100-point scale, with 50 as neutral; a reading above 50 is positive, while below 50 is negative. The Index reached its historic high of 68.5 on two occasions in 1997-98, and its all-time low of 33.3 in February 2009.

The index has remained above 50 since October 2013.

The constituent indicators that make up the overall Business Confidence Index were mixed during May.

The Massachusetts Index, assessing business conditions within the commonwealth, lost 1.2 points to 62.1, leaving it a slim 1.8 points higher than in May 2016.

The U.S. Index of national business conditions shed 2.3 points to 57.2, its second consecutive decline. May marked the 86th consecutive month in which employers have been more optimistic about the Massachusetts economy than the national economy.

The Current Index, which assesses overall business conditions at the time of the survey, rose 0.5 points to 60.4 while the Future Index, measuring expectations for six months out, increased 0.8 points to 61.3. The Future Index was 3.2 points higher than a year ago.

The Company Index, reflecting overall business conditions, gained 2.2 points for the month and 3.2 points for the 12-month period to 60.2. The Employment Index rose 2.3 points to 58.5, and the Sales Index was up 1.5 points to 62.

The AIM survey found that nearly 39 percent of respondents reported adding staff during the past six months while 19 percent reduced employment. Expectations for the next six months are more optimistic – 38 percent hiring and only 10 percent downsizing.

Sara L. Johnson, Senior Research Director, Global Economics, IHS Markit, and a BEA member, said it is encouraging that employers are looking at their own balance sheets and feeling confident enough to anticipate stepped-up hiring.

“The overall AIM Index continues to move in a range that suggests solid optimism among employers, both in the current time frame and six months into the future. As optimism turns to hiring, the tight labor market is likely to put upward pressure on wages,” Johnson said.

The changing dynamics of the labor market were underscored last week when the government issued a jobs report that reflected a decline in the share of working-age adults who have a job or are in the market for one. Overall participation in the labor force has hovered below 63 percent during the recovery, compared with more than 66 percent before the recession.

For the second time in three months, Western Massachusetts companies were more confident in May than those in the eastern portion of the commonwealth. Western Massachusetts employers posted a 61.2 confidence reading in May versus 60.9 for employers in the western part of the state.

AIM President and CEO Richard C. Lord, also a BEA member, said employers appear to be drawing encouragement from within rather than looking for clues amid the chaotic and often contradictory signals of the overall economy and political debate.

“Employers, like everyone else, are still trying to digest the economic implications of the United States pulling out of the climate-change accord. They are also trying to balance the promise of meaningful federal tax reform with concern about renegotiated trade agreements and Medicaid changes that could blow a $2 billion hole in the state budget,” Lord aid.

“Amid all those factors, the potential acceleration of hiring speaks to the resiliency of Massachusetts employers and the global pre-eminence of their products and services.”

Topics: AIM Business Confidence Index, Massachusetts economy, Jobs

Governor Baker Addresses AIM Annual Meeting

Posted by Christopher Geehern on May 12, 2017 12:19:02 PM

Governor Charlie Baker delivered the keynote address at the 2017 AIM Annual Meeting last week in Boston. The governor reviewed the accomplishments of his administration and ended with a passionate plea for bipartisanship.

Here is his full speech...

Topics: AIM Annual Meeting, Massachusetts economy, Charlie Baker

Business Confidence Retreats After Seven-Month Rally

Posted by Christopher Geehern on May 2, 2017 9:46:20 AM

Massachusetts employers hit the pause button on a seven-month rally in business confidence during April, but their outlook remained solidly optimistic in the face of mixed political and economic signals.

BCI.April.2017.jpgThe Associated Industries of Massachusetts Business Confidence Index (BCI) lost 2.2 points to 60.2 last month, 4.0 points higher than its level of a year earlier. Every constituent element of the confidence index lost ground after reaching a 13-year high during March.

The results came as the Massachusetts economy contracted at a 0.5 percent annual rate during the first quarter and the state unemployment rate rose to 3.6 percent.

“We should not be surprised to see confidence readings correct slightly after advancing six points since September,” said Raymond G. Torto, Chair of AIM's Board of Economic Advisors (BEA) and Lecturer, Harvard Graduate School of Design.

“It bears watching to determine whether the broad April decline becomes a trend as we move into the summer.”

Analysts believe the numbers may reflect growing concern among employers about the ability of the Trump Administration to deliver the many pro-growth policies it promised during the campaign.

The AIM Index, based on a survey of Massachusetts employers, has appeared monthly since July 1991. It is calculated on a 100-point scale, with 50 as neutral; a reading above 50 is positive, while below 50 is negative. The Index reached its historic high of 68.5 on two occasions in 1997-98, and its all-time low of 33.3 in February 2009.

The index has remained above 50 since October 2013.

Employers grew less confident about both the overall economy and their own operations during April.

The Massachusetts Index, assessing business conditions within the commonwealth, lost 0.4 points to 63.3, leaving it 6 points higher than in April 2016.

The U.S. Index of national business conditions shed 2.7 points after gaining ground for the previous sixth months. April marked the 85th consecutive month in which employers have been more optimistic about the Massachusetts economy than the national economy.

The Current Index, which assesses overall business conditions at the time of the survey, declined 1.9 points to 59.9 while the Future Index, measuring expectations for six months out, dropped 2.5 points to 60.5. The future outlook remained 3.2 points higher than a year ago.

The Company Index, reflecting overall business conditions, fell 2.6 points to 60.2. The Employment Index fell 2.8 points to 56.2, and the Sales Index declined 2.1 points to 60.5.

The AIM survey found that nearly 39 percent of respondents reported adding staff during the past six months while 19 percent reduced employment. Expectations for the next six months were stable – 37 percent hiring and only 10 percent downsizing.

Barry Bluestone, Stearns Trustee Professor of Political Economy at Northeastern University and a BEA member, noted that the Massachusetts economy is running up against tightness in the labor market that makes it difficult for employers to grow.

“The combination of a prolonged economic recovery and the demographics of skilled workers retiring with no one to replace them is creating an impediment to growth for Massachusetts employers. The shortage underscores once again the importance of creating an education and training system that responds to the demands of the economy,” Bluestone said.

The April survey also reversed an unusual result in March when Western Massachusetts companies were more confident than those in the eastern portion of the commonwealth. Eastern Massachusetts employers posted a 61.7 confidence reading in April versus 58 for employers in the western part of the state.

AIM President and CEO Richard C. Lord, also a BEA member, said employer confidence is also facing headwinds from accelerating health-care and health-insurance costs. Massachusetts has exceeded its objective for health-care spending in each of the past two years and employers continue to pay some of the highest costs in the nation.

“The good news is that Massachusetts is beginning to identify some answers. And there appears to be enough common ground and political will on the issue to pursue some solutions,” Lord said.

“New research conducted by the Massachusetts Health Policy Commission suggests that Massachusetts employers, insurers and policymakers could reduce total health-care expenditures anywhere from $279 million per year to $794 million per year, or 0.5 to 1.3 percent, by making several key improvements to the health-care system.”

Topics: AIM Business Confidence Index, Massachusetts economy, Economy

Employer Confidence Rises Again in March

Posted by Christopher Geehern on Apr 4, 2017 8:47:09 AM

Massachusetts employer confidence inched higher during March amid a swirl of contradictory economic and political signals.

BCI.March.2017.jpgThe Associated Industries of Massachusetts Business Confidence Index (BCI) increased 0.3 points to 62.4 last month, 5.9 points higher than its level of a year earlier and the highest reading since August 2004. The seventh consecutive monthly improvement reflected an increase in the U.S. Index of national business conditions, which has risen 9.1 points during the previous year, and a bullish overall view of current conditions.

The results came as the government announced that the U.S. economy grew in the fourth quarter at a faster pace than previously reported on higher consumer spending. At the same time, the Massachusetts unemployment rate rose to 3.4 percent as employers created jobs at an annual pace of 57,700.

“Massachusetts employers remain broadly confident about both the state and national economies,” said Raymond G. Torto, Chair of AIM's Board of Economic Advisors (BEA) and Lecturer at the Harvard Graduate School of Design.

“Slight declines in the Employment Index, the Manufacturing Index and projections about the economy six months from now perhaps reflect some of the uncertainty about the direction of economic policy in Washington.”

The AIM Index, based on a survey of Massachusetts employers, has appeared monthly since July 1991. It is calculated on a 100-point scale, with 50 as neutral; a reading above 50 is positive, while below 50 is negative. The Index reached its historic high of 68.5 on two occasions in 1997-98, and its all-time low of 33.3 in February 2009.

The index has remained above 50 since October 2013.

The sub-indices based on selected questions or categories of employer were mixed during March.

The Massachusetts Index, assessing business conditions within the commonwealth, rose 0.5 points to 63.7, leaving it 6.2 points higher than in March 2016.

The U.S. Index of national business conditions gained ground for the sixth consecutive month. Views of the national economy rose one point to 59.9. Still, February marked the 83rd consecutive month in which employers have been more optimistic about the Massachusetts economy than the national economy.

The Current Index, which assesses overall business conditions at the time of the survey, surged 1.9 points to 61.8 while the Future Index, measuring expectations for six months out, lost 1.4 points to 63.0. The future outlook was 4.9 points higher than a year ago.

The sub-indices bearing on survey respondents’ own operations were also ambiguous.

The Company Index, reflecting overall business conditions, remained unchanged from February at 62.8. The Employment Index fell 1.4 points to 60.4, but the Sales Index gained 1.1 points to 62.6.

The AIM survey found that nearly 39 percent of respondents reported adding staff during the past six months while 19 percent reduced employment. Expectations for the next six months were stable – 37 percent hiring and only 10 percent downsizing.

One of the most unusual results of the March survey was that Western Massachusetts companies were more confident (63.6) than those in the eastern portion of the commonwealth (62.2). Confidence outside of the white-hot Boston economy has been increasing steadily for months, but experts say it is too soon to say whether the geographic shift represents a long-term trend or a statistical anomaly.

Paul Bolger, President, Massachusetts Capital Resource Company, and a BEA member, noted that the March confidence survey was taken just as Republican efforts to repeal federal health reform fell apart.

“Employers have anticipated that a Republican Congress and a Republican president would deliver traditional pro-growth measures such as tax reform and infrastructure improvements. The failure of those parties to pass health-reform legislation seems to have created uncertainty about other legislative priorities that matter to employers,” Bolger said.

AIM President and CEO Richard C. Lord, also a BEA member, echoed the sense of uncertainty that hangs over Massachusetts as federal policymakers in Washington struggle to establish a direction.

“Many growth industries in Massachusetts such as health care, higher education, research and defense, depend upon federal funding and are vulnerable to potential budget reductions,” Lord said.

“Discussion of transitioning Medicaid, the health-insurance program for low-income Americans, to block grants also has significant implications to the health care system that is already straining employers.”

Topics: AIM Business Confidence Index, Massachusetts economy, Massachusetts employers

Fidelity, Bright Horizons, WHOI Honored with 2017 AIM Vision Awards

Posted by Rick Lord on Mar 30, 2017 9:07:00 AM

Three organizations that have transformed Massachusetts by carving out preeminent places in their disciplines – Fidelity Investments, Bright Horizons Family Solutions and the Woods Hole Oceanographic Institution -  will be honored with 2017 Vision Awards by Associated Industries of Massachusetts.

The largest employer association in Massachusetts will present the Vision Awards at its Annual Meeting on May 5 in Boston. Accepting the awards on behalf of the honorees will be Abigail Johnson, Chairwoman and Chief Executive Officer of Fidelity Investments; Linda A. Mason, Co-Founder of Bright Horizons; and Mark Abbott, Director and President of Woods Hole Oceanographic Institution.

Governor Charles D. Baker will deliver the keynote address.

The Vision Award recognizes companies, organizations and individuals who have made unique contributions to the cause of economic opportunity in Massachusetts. The award reflects AIM’s mission to stand for jobs, economic prosperity, innovation and a government that acknowledges that the private sector has the unique responsibility to create the common wealth for the people of Massachusetts.

“The 4,000 member employers of Associated Industries of Massachusetts are delighted to honor three world-renowned organizations that have truly changed the way we live,” said AIM President and Chief Executive Officer Richard C. Lord.

“Fidelity Investments became a cornerstone of the financial industry by offering investment services to a broad set of customers from individual investors to advisors and large companies. Bright Horizons is the largest provider of employer-sponsored day care in the United States. And Woods Hole Oceanographic Institution remains both a global leader in ocean science and a key driver of the economy on Cape Cod.”

Johnson1.jpgFidelity Investments is the fourth largest investment firm in the world. With assets under administration of $6.0 trillion, including managed assets of $2.2 trillion as of February 28, 2017, the firm focuses on meeting the unique needs of a diverse set of customers: helping more than 26 million people invest their own life savings, 23,000 businesses manage employee-benefit programs, and providing more than 12,500 financial advisory firms with investment and technology solutions to invest their own clients’ money.

Founded in 1946 by Edward C. Johnson 2d, Fidelity was an early pioneer in the development of mutual funds. Fidelity was also innovator in many other areas throughout its history, including check writing for money market accounts, selling mutual funds over 800 number phone lines, the development of sector funds, the growth of the defined-contribution retirement savings industry, and using online and mobile technology to make investing quicker and easier for millions of customers.

The company has used innovation and an unrelenting focus on customer service to mold itself into a diversified financial services firm that is a leader in personal investing, workplace investing, and tools and services for financial intermediaries. Fidelity is now the nation's No. 1 record keeper of 401(k) retirement savings plans and is also the largest US online brokerage firm, with 17.9 million accounts and $1.7 trillion in client assets.  

Abigail Johnson became chief executive officer in 2014 and assumed the title of Chairman in December 2016. A recent Investor’s Business Daily article on Fidelity’s 2016 financial results praised the company’s ability to change: "Fidelity is profitable, strong, innovative and driven to growth," said Jim Lowell, editor-in-chief of Fidelity Investor, an independent newsletter. "That's not true for many financial services companies."

Mason1.jpgBright Horizons Family Solutions – Watertown-based Bright Horizons has forged a trusted global presence as an indispensable resource for employers and their workers seeking to address an increasingly complex array of work-life issues.

Linda Mason and her husband, Roger Brown, founded Bright Horizons with the goal of providing high quality child care at work sites. Together, they created a company with the mission to nurture each child’s unique qualities and potential, support families through strong partnerships, and collaborate with employers to build family-friendly workplaces.

Bright Horizons today operates more than 1,000 child-care centers in the U.S., the UK, Ireland, the Netherlands, India, and Canada. It also works with more than 1,000 employers to provide a complete family of employer solutions, including child care, back-up care for children and adults/elders, and educational advising for employees and their college-bound dependents.

And they do it well. Eighty organizations on Working Mother magazine’s "100 Best Companies" list are Bright Horizons clients. Bright Horizons itself has consistently been named to the "100 Best Companies to Work for in America" list by FORTUNE magazine and the Top Places to Work in Massachusetts by The Boston Globe.

Bright Horizons employs 2,100 people in Massachusetts and more than 20,000 worldwide. The company’s revenue jumped 8 percent during 2016 to $1.6 billion, while net income rose 1 percent to $95 million.

The company’s blue-chip client list reads like a who’s-who of global business leaders, from Allstate Insurance, Comcast NBC Universal and Booz Allen Hamilton to Sprint, Target, Discovery Communications, General Mills and Memorial Sloan Kettering Cancer Center.

Ms. Mason and Mr. Brown in 1988 also created an independent, nonprofit organization, Horizons for Homeless Children (formerly The Horizons Initiative) dedicated to providing high-quality child care and educational services to homeless children and their families.

Abbott1.jpgWoods Hole Oceanographic Institution (WHOI) is the world’s largest, private non-profit oceanographic research institution and a global leader in the study and exploration of the ocean. An unmatched reputation for intellectual discovery under the water has allowed the organization to contribute to its economic surroundings out of the water as well.

Woods Hole scientists and engineers have played a part in discoveries that form the modern understanding of the ocean and how it interacts with other parts of the planet, including human society. WHOI professionals combine access to specialized tools, ships, labs, and underwater vehicles with knowledge of how to explore the ocean to create a detailed understanding of the global ocean system.

The institution, founded in 1930, employs more than 1,000 researchers, engineers, information technology specialists, and crews for ships and underwater vehicles like the Alvin that famously explored the wreck of the Titanic in 1986. A combination of government grants and contracts, foundation and private donations and industry contracts provide the organization with an annual operating budget of $215 million.

Increasingly WHOI is involved in projects that apply the knowledge gained from basic research to societal issues, providing high-quality data and analysis across a range of topics, from climate to biodiversity to resources to natural hazards mitigation. These efforts have given WHOI’s work reach into new and important arenas.

In 2010, the Institution rapidly mobilized researchers from several different disciplines to assist the Coast Guard and other responders during the Deepwater Horizon oil spill. In response to the Fukushima disaster in March 2011, WHOI mounted another rapid response and mobilization to gather data and water samples quickly to determine the amount of radioactivity released into the ocean. That monitoring effort continues.

Engineers and scientists at WHOI worked for nearly two years to successfully locate, in May 2011, the deep-water wreckage of Air France flight 447, using the WHOI-designed and -built REMUS 6000 autonomous vehicle.

Topics: AIM Annual Meeting, Massachusetts economy, AIM Vision Award

Employer Confidence Hits 13-Year High

Posted by Christopher Geehern on Mar 7, 2017 8:45:12 AM

Confidence among Massachusetts employers hit a 13-year high during February, fueled by optimism among manufacturers and an increasingly positive view of the national economy.

BCI.February.2017.jpgThe Associated Industries of Massachusetts Business Confidence Index (BCI) rose 0.7 points to 62.1 last month, seven points higher than its level of a year earlier and the highest reading since August 2004. Driving the increase was the U.S. Index of national business conditions, which has risen 11.5 points during the past year, and the Manufacturing Index, which surged 9.1 points.

The results came amid increasingly mixed economic signals that included a 2.8 percent Massachusetts unemployment rate and a significant slowdown in economic growth both in Massachusetts and nationally during the fourth quarter.

“The increase in confidence was more modest than we have seen in previous months. Employers projected a generally positive view of the economy, but were also taking the measure of potential economic policy changes in Washington,” said Raymond G. Torto, Chair of AIM's Board of Economic Advisors (BEA) and Lecturer, Harvard Graduate School of Design.

“Employers remain more optimistic about the future than about the present - a good indicator of the potential for continued growth and investment both in Massachusetts and nationally.”

The AIM Index, based on a survey of Massachusetts employers, has appeared monthly since July 1991. It is calculated on a 100-point scale, with 50 as neutral; a reading above 50 is positive, while below 50 is negative. The Index reached its historic high of 68.5 on two occasions in 1997-98, and its all-time low of 33.3 in February 2009.

The index has remained above 50 since October 2013.

Almost all of the sub-indices based on selected questions or categories of employer were up during February.
The notable exception was the Massachusetts Index, assessing business conditions within the commonwealth, which declined 0.2 points to 63.2. The state index nevertheless remained 6.8 points higher than in February 2016.

Meanwhile, the U.S. Index of national business conditions gained ground for the fifth consecutive month. Employers appear encouraged by the possibility that Congress and the new administration will pass growth measures that could include tax and regulatory reform.

February marked the 82nd consecutive month in which employers have been more optimistic about the Massachusetts economy than the national economy.

The Current Index, which assesses overall business conditions at the time of the survey, increased 0.5 points to 59.9 while the Future Index, measuring expectations for six months out, rose 1.1 points to 64.4. The future outlook was 8.5 points better than a year ago and higher than at any point since May of 2004.

The sub-indices bearing on survey respondents’ own operations were mixed.

The Company Index, reflecting overall business conditions, rose 0.9 points to 62.8 while the Employment Index gained two points to 60.4. The Sales Index lost 0.4 points to 62.6.

The AIM survey found that nearly 39 percent of respondents reported adding staff during the past six months while 19 percent reduced employment. Expectations for the next six months were stable – 37 percent hiring and only 10 percent downsizing.

Michael Tyler, Chief Investment Officer, Eastern Bank Wealth Management, and a BEA member, noted that the traditional confidence gaps between manufacturing companies and non-manufacturers, and between companies located in the eastern and western portions of Massachusetts, have closed in recent months.

“Confidence among Massachusetts manufacturers has risen 9.1 points during the past year and now stands at 61.2 compared to 63.0 for non-manufacturers. And confidence among companies in western and central Massachusetts hit 61.8 in February compared to 62.6 for companies in the eastern part of the state,” Tyler said.

"Those results suggest that the benefits of economic growth are finally spreading from Greater Boston to the entire state. What's more, as the dollar's rise has stabilized, manufacturers are finally sharing the positive view that service sector employers have felt for several years."

AIM President and CEO Richard C. Lord, also a BEA member, said the 2.8 percent unemployment rate in Massachusetts and the commonwealth’s designation last week as the best state in the nation by US News and World Report underscore the fact the Bay State economy remains strong.

At the same time, Lord said, employers face an uncertain mix of policy initiatives in Washington.

“Employers are certainly enthusiastic about lower corporate taxes, streamlined regulation and a meaningful infrastructure program. They are not as enthusiastic about withdrawing from trade agreements and once again having to process major changes in health reform,” he said.

Topics: AIM Business Confidence Index, Massachusetts economy, Massachusetts employers

Immigration Chaos Poses Unique Threat to Massachusetts Economy

Posted by Christopher Geehern on Feb 24, 2017 3:15:37 PM

The ongoing chaos surrounding US immigration policy poses a unique threat to the Massachusetts economy in its role as a global center for technology and medical science. Employers should be concerned.

FinancialServicesGraph-1.jpgThe Boston Globe published two compelling articles this week illustrating the vulnerability that knowledge-economy states like Massachusetts face amid potential travel bans, visa limitations and expedited removal proceedings.

The first article detailed how limits on H1B visas for skilled foreign workers hinder the growth of technology and other companies in Massachusetts. The Globe told the story of Brightcove, a high-flying video cloud services company and its fruitless attempts to obtain an H1B visa for a British software engineer who worked for 18 months to create the company’s new media delivery platform.

The H1-B program, as most employers know, is capped at 65,000 visas, with an additional 20,000 available to graduates of US universities with advanced degrees. Employers sought more than 236,000 H1B visas last year, so visas are awarded through a highly competitive lottery run by the US Citizenship and Immigration Services.

Technology companies fear that President Donald Trump, who has called the H1B a “cheap labor program,” may reduce the already strained visa cap.

The issue is an important one for Massachusetts. Brightcove employs 500 people and added 100 new employees last year, according to the Globe, but finds it increasingly difficult to attract skilled people in an economy running at 2.8 percent unemployment.

Brightcove ended up sending its key engineer back to England and creating a five-person product team overseas.

“If you want to go hire someone out of a top engineering school like MIT, by the time you get there, they’ve got five offers from big software companies that are many times larger than us,” Brightcove CEO David Mendels told the newspaper.

The second article reported that Massachusetts’ teaching hospitals are under intense pressure to reject qualified international medical students applying for residencies in the United States because of fears that President Trump’s immigration policies may bar the students from entering the country. Those fears escalated after an Iranian scientist who had obtained a visa to conduct research at Brigham and Women’s Hospital was twice prevented from entering the United States under President Trump’s initial immigration order.

Dr. Darrell G. Kirch, chief executive of the Association of American Medical Colleges, said “hospitals are being given an impossible choice” between hiring the best candidates, regardless of nationality, and ensuring they have residents ready to care for patients in July.

“This has served our country so well,” he said of the system used to funnel foreign medical graduates into the United States, “and it’s a tragedy that it’s being disrupted by uncertainty.”

Massachusetts has a significant stake in the issue not only because health care represents a significant contributor to the economy, but also because a shortage of primary care physicians put upward pressure on health-insurance premiums.

Both articles provide vivid reminders that the global industries upon which the Massachusetts economy is built are particularly sensitive to federal policy changes and budget decisions. And immigration issues will be child’s play compared to the potential fallout of changes to federal health care reform and Medicaid funding.

Should be an interesting spring.

Topics: Massachusetts economy, Donald Trump, Immigration

Subscribe to our blog

Browse by Tag