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Video Blog | Economic Outlook 2019

Posted by Christopher Geehern on Feb 1, 2019 9:11:06 AM

The AIM Economic Outlook Forum on January 25 looked at creative solutions to the persistent shortage of skilled workers in Massachusetts. Watch as WBZ radio morning news anchor Jeff Brown moderates a discussion with Robin LeClaire, President of Lampin Corporation in Uxbridge; Massachusetts Secretary of Labor and Workforce Development Rosalin Acosta and UMass Amherst Chancellor Kumble Subbaswamy.

Topics: Skills Gap, Massachusetts economy, AIM Executive Forum

Many Job Openings, Few Job Seekers

Posted by Christopher Geehern on Jan 25, 2019 11:41:10 AM

At a time when there are more job openings than job seekers in New England and throughout the United States, Massachusetts must summon all its creativity and innovation to solve the structural shortage of qualified workers, AIM President Rick Lord and a group of experts said today.

SOMB2019“There are 6.9 million job openings throughout the United States this morning. There are 6.2 million unemployed people throughout the United States looking for work. Closer to home, there are 51,000 more jobs available in the six New England states than people to fill them,” Lord told an audience of 300 employers during his final State of Massachusetts Business Address.

“The good news is that we live in a commonwealth known for creative solutions to seemingly intractable problems. A state that has produced everything from the game of basketball to the microwave oven to Facebook should certainly be a leader in ensuring that all its citizens share in the economic possibilities that lie ahead.”

Lord offered several recommendations to help Massachusetts employers find the people they need to fuel economic growth:

  • Overhauling the work-force development system to ensure that people of all ages are being taught the skills that employers demand.
  • Ensuring that the public schools provide the basic skills that allow students to compete for jobs that were not even envisioned 20 years ago.
  • Supporting and expanding vocational education.
  • Resolving the immigration issue that has restricted the availability of skilled foreign workers in Massachusetts and other education and technology driven economies.
  • Expanding opportunity to the full diversity of the Massachusetts population. Lord noted that the unemployment rate among people of color exceeds 6 percent in Massachusetts and among Latinos is 5.6 percent.
  • Encouraging collaboration among employers, schools, community colleges, universities and training providers to establish a consistent and logical path from learning to employment.

Lord highlighted several examples of such collaborations, including an initiative by Prime Motor Group to provide scholarships and employment opportunities to automotive technology students at the Benjamin Franklin School of Technology in Boston.

Robin LeClaire, President of Lampin Corporation in Uxbridge, said the 35-person manufacturing company is working on multiple fronts to attract and train people to replace a workforce heavily tilted toward 40 and 50-somethings. The company speaks frequently to middle- and high-school students to let them know that manufacturing offers a rewarding career path to young people who don’t wish to attend college or who cannot afford to do so in the traditional manner.

“They don’t know that there are jobs other than those that require going to college,” said LeClaire.

“We tell them that when they come to Lampin, we’ll pay for them to go to college.”

Massachusetts Secretary of Labor and Work Force Development Rosalin Acosta said it is “astonishing” that the state economy added 185,000 people during 2018 amid a 3.4 percent unemployment rate. She warned, however, that the future work force – people 19 years of age or under – has virtually flattened.

“Where are we going to get all the people employers need, and how are we going to get the right people with the right skills,” Acosta said.

She told the audience that the Baker Administration is focusing its job-training resources on three key areas - manufacturing, health care and information technology.

University of Massachusetts Amherst Chancellor Kumble Subbaswamy said the commonwealth’s formidable lineup of colleges and universities are using internships and other experiential learning to ensure that students have the ability to meet the evolving needs of employers.

“Employers now look for employees who are more job ready that when we went to college,” Subbaswamy said.

Topics: Workforce Training, Skills Gap, AIM Executive Forum

Technology Becomes Fifth Utility for Cities

Posted by Christopher Geehern on Nov 16, 2018 11:19:01 AM

A sophisticated technology infrastructure and real-time data have allowed the Boston Police Department to reduce crime in the city by 20 percent while arresting far fewer people than in the past.

SmartCities.2“A lot of that is because we are policing smarter. All this technology allows us to do our jobs better,” retired Boston Policy Commissioner William Evans told more than 200 business leaders at an AIM Executive Forum on Smart Cities this morning.

Evans, now Chief of Police at Boston College, said police now have access to video feeds, body camera footage, “shot-spotter” sound data and predictive analytics as they assign police officers to areas most affected by crime. Beginning in January, he said, Boston police officers will collect all of that information on smart phones.

Several miles to the south in Quincy, Chris Cassani is overseeing a $1.3 million project to install an adaptive signal platform that will allow the city’s traffic signals to share data to improve traffic flow. He said the system contains a software algorithm that can grow alongside the tremendous amount of economic development taking place in Quincy.

“There has been a tremendous amount of change, a tremendous amount of investment,” said Cassani, the city’s Director of Traffic, Parking, Alarm and Lighting.

Smart Cities technologies represent a kind of “fifth utility” for municipalities alongside water, electricity, gas and waste, according to three senior executives from Dell who lead the discussion. The executives said that technology not only makes more efficient the city services upon which businesses depend, but also increasingly makes reams to data available to employers on everything from flooding history to refuse collection.

“We absolutely have to build out a digital infrastructure,” said Corky Allen, Regional Field Director for State and Local Government Affairs for Dell EMC.

Rich Barlow, Field Chief Technology Officer for Dell, described how the City of Virginia Beach recently developed the ability to coordinate data from hundreds of flood sensors to minimize damage from hurricanes and other natural disasters.

AIM President Rick Lord said all the changes have important implications for employers.”

“Technology is transforming the world outside your business,” Lord told the gathering.

“It’s changing the management of the roads your employees travel to work, the infrastructure that “provides power to your building, and the municipal emergency services you call if the worst happens.”

Topics: Technology, AIM Executive Forum

Non-Voters Will Outnumber Voters in November, Pollster Says

Posted by Christopher Geehern on Sep 14, 2018 3:28:11 PM

The number of registered voters in the United States who will choose not to cast ballots in the mid-term elections is more than twice that of people who will vote for Democratic and Republican candidates combined, Suffolk University political pollster David Paleologos told the AIM Executive Forum this morning.

Paleologos2018The director of Suffolk’s Political Research Center estimates that 77 million Americans will vote in November, but that 160 million registered voters will stay home. Paleologos challenged the 280 business leaders in the audience to take a leadership role in urging employees to participate in the political process.

“You have people working for you who are not registered to vote. You have people working for you who are registered but who will not vote,” he said.

Paleologos, who typically interviews only probable voters for his political surveys, conducted an unusual poll in April of people not registered to vote or registered voters who have not voted. These non-voters showed the same preference patterns as their voting neighbors in terms of candidates and the country’s direction but cited a multitude of reasons for sitting out elections.

Their reasons ranged from a feeling that their votes would not make a difference to apathy to lack of trust in the candidates on the ballot. More than 78 percent of the non-voters believe the nation needs more than the two current two major political parties to represent the political views of the American people.

Paleologos predicts that if the current trend continues, the 2036 presidential election will mark the first race for the White House in which the total votes cast for Democrats and Republicans will be less than the people who don’t vote.

“This will be the number one topic in 2020,” he told the audience. “The numbers don’t lie.”

The swelling ranks of non-voters represent an opportunity for both Republicans and Democrats as they battle for control of the US House of Representatives and perhaps even the Senate in November. Unregistered voters preferred President Trump against a generic Democratic nominee in the Suffolk survey, but registered non-voters strongly favor the Democrat against the incumbent president.

More than 80 percent of non-voters say they would consider casting ballots if they knew their votes could swing a close election in either direction.

Paleologos’ polling of people who do vote indicates potential trouble for Republicans in Congress. Fifty percent of Americans in a generic poll favor Democrats versus 39 percent Republicans in the mid-terms, while 58 percent say they want to elect a Congress that “stands up” to President Trump.

Those results remain consistent in statewide polls in key jurisdictions such as Pennsylvania, Ohio, Nevada, Maine, Minnesota and Wisconsin.

At the same time, Paleologos stressed that voters by a slim margin do not appear inclined to impeach the president. Forty-seven percent of voters oppose impeachment, even following the guilty pleas of former Trump lawyer Michael Cohen, while 44 percent favor impeachment and 9 percent are undecided.

Paleologos2

 

Topics: Election 2018, AIM Executive Forum

Economic Development Chief Staying Busy

Posted by Christopher Geehern on Mar 23, 2018 12:22:16 PM

Jay Ash acknowledges that it’s a great time to be Secretary of Housing and Economic Development in Massachusetts.

Ash.jpg“I am getting a call a week from a company talking to me, not about bringing 100 or 200 or 500 jobs, but 1,000, 5,000 or 10,000 jobs,” Ash told 300 business leaders during a presentation to the AIM Executive Forum this morning.

Ash has recently played a key role in the recruitment or expansion in Massachusetts of major employers ranging from Amazon, General Electric and MassMutual to IBM Watson Health, Kronos and Siemens. These expansions promise thousands of high-quality new jobs for Massachusetts residents while cementing the state’s reputation as a global center of innovation and growth.

“What an unbelievable time to be involved in economic development, and what an unbelievable time to be involved in a great state like Massachusetts,” he said.

Ash, an avuncular Democrat who has overseen economic development for the Baker Administration during its first three years, said Massachusetts benefits from a uniquely bipartisan approach to issues affecting the economy. He noted that the economic development bill announced by the Republican governor just two weeks ago has already been scheduled for a hearing Tuesday by the Democratically controlled Legislature.

The bill would commit $100 million to regionally significant economic development projects throughout the commonwealth, establish an apprenticeship tax credit, double grants to community colleges and vocations high schools to purchase equipment and establish a permanent sales-tax holiday.

Ash said the administration is pursuing its economic agenda in tandem with efforts to expand the availability of housing and to address persistent educational achievement and funding gaps. He thanked Associated Industries of Massachusetts for efforts to streamline the process used by communities to permit both low-income and market-rate housing.

 “There’s reason to be optimistic. Let’s roll up our sleeves because the best jobs done are the one we do ourselves.

Topics: AIM Executive Forum, Economic Development, Economy

Video Blog: How Will Automation and Robotics Affect the Economy?

Posted by Christopher Geehern on Feb 5, 2018 8:30:00 AM

How will artificial intelligence, automation and robotics affect the Massachusetts economy? The Associated Industries of Massachusetts Economic Outlook Forum tackled that question on January 26. Expert analysts included, left to right, moderator Jeff Brown, Business Editor of WBZ radio in Boston; Peter Russo Director of Growth and Innovation at the Massachusetts Manufacturing Extension Parntership; Martha Sullivan, President and CEO of Sensata Technologies in Attleboro; and David Askey, Co-Founder and CEO of Ascend Robotics in Cambridge.

Topics: Technology, robotics, AIM Executive Forum

AIM President: Technology Key to Solving Worker Shortage

Posted by Christopher Geehern on Jan 26, 2018 1:14:00 PM

Robotics, artificial intelligence and automation hold the unique promise of resolving the shortage of skilled workers that threatens the economic future of Massachusetts, AIM President and Chief Executive Officer Richard C. Lord said this morning.

Lord.Speaking.jpgDelivering the fourth annual State of Massachusetts Business address before 300 senior business executives, Lord acknowledged that automation suffers from a grim image problem in the larger society where people fear that robots will take their jobs. But he said Massachusetts employers starved for qualified employees are using robots in collaboration with people to extend the reach of their work forces.

“In a state where employers created 70,000 jobs last year and unemployment stands at 3.6 percent, the structural shortage of skilled workers stands as the primary impediment to sustained economic growth,” Lord told the 2018 AIM Economic Outlook Forum.

“Massachusetts companies across industries ranging from software to manufacturing to hospitality have postponed expansions, declined to bid for contracts or outsourced work because they simply can’t find people with the training needed to compete in a complex world. The only way out of this economic dead end for Massachusetts is to rely upon productivity improvements fueled by intelligent technology to extend the reach of the talented people we employ.”

Lord highlighted the example of Barrett Distribution of Franklin, which is using robots to improve productivity and reduce the amount of time its 500 employees spend moving throughout large warehouses to provide orders for retailers and e-commerce customers. Established as a single warehouse in 1941, Barrett now operates more than 2.1 million square feet of state-of-the-art warehouse space across the country.

“The industry is changing very fast, the robots will get smaller, more adaptive, (and) a little bit cheaper, so I think you’ll see the adoption rate go up very high across the industry. And certainly for us, we’re going to be on the leading edge of this technology,” Scott Hothem, Senior Vice President of Customer Solutions at Barrett, said in a video shown the audience.

Lord said the good news is that Massachusetts is a global center of robotics, AI and automation. Driven by academic research institutions like MIT, Harvard, UMass and BU, Massachusetts occupies a unique position as the crucible of intelligent industries ranging from driverless vehicles to Patriot missiles to Roomba vacuum cleaners.

It’s also worth noting, according to Lord, that there is plenty of room for improvement on the productivity front. The United States posted an historically low annual labor productivity growth rate of 1.1 percent between the great Recession and 2016. The McKinsey Global Institute estimates that automation could raise productivity growth globally by 0.8 to 1.4 percent each year.

A panel of experts largely agreed with the idea that automation will enhance, rather than replace, most human labor.

David Askey, founder of Ascend Robotics in Cambridge, said the manufacturing companies that use his technology have realized productivity increases approaching 40 percent that have also raised the compensation and value of workers.

“Most of our calls come from customers who are not able to find enough skilled workers or want to expand,” Askey said.

Martha Sullivan, President and CEO of Sensata Technologies of Attleboro, said that while the technology for mass use of autonomous vehicles remains several years away, it is a technology that could change the entire business model of the auto industry from one that sells vehicles to consumers to one that helps companies manage fleets.

“Will you have private ownership anymore? Will you need private automobile insurance? … It becomes an asset- management question,” she said.

Lord said employers acknowledge the need to engage in debate about the hard issues raised by the technological revolution: Does automation ultimately create or cost jobs? Do Amazon and similarly disruptive companies ultimately help or harm the economy? And are technology driven productivity increases to blame for the slow rate of wage growth eight years into an economic recovery?

“But the ultimate truth is this – technology and innovation are here to stay; they do not regress, they do not go away and they do not waiver from the relentless pursuit of removing inefficiencies from the business economy.,” Lord said.

“If large numbers of workers are not going to walk through the doors of our companies to write code or make jet engine parts, employers will have to find ways to do more with less.”

Topics: AIM Executive Forum, Massachusetts economy

DraftKings CEO Sees Bright Future

Posted by Christopher Geehern on Nov 17, 2017 11:33:48 AM

The worlds of sports, media and gaming are likely to coalesce during the next several years and the co-founder and chief executive of Boston-based DraftKings believes his company and its 8 million customers will be a major player in that new world.

Robins.jpgJason Robins, who built DraftKings into a $1.5 billion fantasy sports colossus in just five years, told 250 business executives at the AIM Executive Forum this morning that companies like his have raised interest in professional sports and given fans an entirely new experience of watching everything from NFL Football to major league soccer

“A lot of exciting things on the horizon,” he said during a 45-minute conversation with AIM President Richard Lord.

"What technology and mobile have done for gaming and media, it's incredible, and we've only sort of reached the tip of the iceberg. I think you're going to see a convergence of media and gaming.

"I also think this sort of media landscape where all the content is scattered around different places and you have to have a bunch of different services or you have to sort through 800 cable channels to find what you're looking for, it's not necessary anymore."

Daily Fantasy Sports (DFS) allows fans to enter daily and weekly fantasy sports contests and win prizes based on individual players’ performances. Industry researchers estimate that players spent an estimated $3.26 billion on daily fantasy sports in 2016.

Robins said DraftKings surpassed more established competitors to became the pre-eminent DFS company “because we had a better mousetrap.” The keys to that mousetrap, he said, were products, technology and analytics that created a “game within a game” for sports fans.

What Robins and his partners did not anticipate in 2012 was the intense level of regulatory scrutiny that DraftKings and other DFS companies would engender both in Massachusetts and across the country.

DraftKings has supported consumer-protection regulations for the fantasy industry implemented by Massachusetts Attorney General Maura Healey in 2016 covering issues such as excluding minors, ensuring “fair” gameplay, prohibiting contests on college sports, and spelling out standard marketing practices. Robins said those regulations, though not perfect, have become the basis for DFS legislation in more than a dozen other states.

The company is less enthusiastic about a commission report several months ago that recommended that the Massachusetts Legislature enact a law that would label DFS as gambling and give the Massachusetts Gaming Commission oversight over the industry.

“I will continue to work with them on the way they have gone about their analysis,” Robins said.

He believes the future is a bright one for DraftKings in large measure because of its customer demographics. DraftKings, he said, have the customers everyone wants – millennials in higher income brackets who do not hesitate to spend money on entertainment.

"What we've tried to do is position ourselves as a platform, partner with companies that own these types of rights, and say, look, we can help you in the world where you're trying to grow your subscriptions, your direct-to-consumer business," Robins said.

"We have the customers you want, we know exactly what they're interested in and we have the data to target them."

Topics: AIM Executive Forum, Technology

Speaker Calls for Employer Policy Engagement

Posted by Christopher Geehern on Sep 15, 2017 11:33:00 AM

The first time Robert DeLeo spoke to the Associated Industries of Massachusetts after being elected Speaker of the Massachusetts House of Representatives in 2009, unemployment was 8.8 percent.

The new speaker drove to the AIM speech past empty buildings along Route 128. Traffic was minimal. Consumer and business confidence was at a nadir in the wake of the financial crisis and Great Recession.

Speaker DeLeo reminisced about that first speech this morning as he returned to address more than 300 business leaders at the AIM Executive Forum. He noted that unemployment now stands at 4.2 percent and that Massachusetts employers added 11,000 jobs in August alone. And Boston is on the short list of cities being considered for major development by Amazon just as General Electric settles into its new corporate headquarters.

The speaker attributed the economic resurgence in part to a unique collaboration forged by legislators and the business community to develop pro-business policies and that also benefit the society at large.

“They are not mutually exclusive. One does not detract from the other,” Speaker DeLeo said in a wide-ranging speech during which he thanked AIM and employers for helping to build consensus on issues such as education, wage equity and the Pregnant Workers Fairness Act.

“We are very mindful of the impact that changes might make on our employers, which we always remember are our economic engine,” he said.

The speaker outlined several key priorities as the Legislature heads in the fall, including moderating the cost of health insurance and monitoring what has become a persistent sluggishness in state tax revenues.  That sluggishness is affecting states throughout the country, despite the overall healthy economy.

“We obviously haven’t seen the revenue growth we have seen in past economic recoveries,” Mr. DeLeo said.

The speaker expressed optimism in the wake of a recent report that health-care costs in Massachusetts increased at a moderate 2.8 percent in 2016, well below the growth benchmark established by the 2012 health-cost control law. Such stability is essential at a time when federal health-care policy remains in flux.

“We have been successful in driving down health-care spending growth, even in a difficult and unpredictable environment,” he told the crowd.

“We appreciate willingness of business community to work with us and nd their patience on how to move forward.”

Topics: Massachusetts Legislature, House Speaker Robert DeLeo, AIM Executive Forum

Uber Envisions New Transportation Model

Posted by Christopher Geehern on Mar 30, 2017 4:16:43 PM

The ride-sharing app Uber has logged the fastest ascent in Silicon Valley history, growing from a startup eight years ago to a company operating across 450 cities in 73 countries and serving 40 million customers each month.

But the company’s Boston-based regional manager, Meghan Verena Joyce, said the company’s ultimate objective is much larger - to merge traditional transportation infrastructure with new technology to create a new model of moving from one place to another.

“I often wonder whether my daughter will ever have a driver’s license,” Joyce mused as she spoke to 300 people at the AIM Executive Forum in Waltham this morning.

The new transportation model, Joyce said, will make efficient use of private automobiles and public transit to reduce traffic congestion, greenhouse gas emissions and land-intensive parking. It will create a system in which everyone – including people in low-income urban areas often left out of the transit grid – will have access to reliable and affordable transportation.

“We believe there is a better way,” said Joyce, a Harvard MBA who served as an associate at Bain Capital and as a senior policy advisor at the US Treasury before joining Uber in 2013.

The challenge is not the one billion automobiles that exist worldwide, according to Joyce, but the solitary manner in which we use them. A show of hands from the audience indicated that the vast majority of people had driven to the Executive Forum with only one person in the vehicle.

Joyce said that Uber has already taken steps to integrate technology with existing transportation infrastructure to streamline the system. Many Uber customers in Boston combine ride-sharing with the MBTA, while others use a modified car-pooling initiative called UberPOOL to share rides with neighbors who travel to the same locations at similar times.

Almost one-third of Uber trips in Great Boston come from UberPOOL, according to Joyce. In San Francisco, where UberPOOL has existed for a longer time, the program has reduced car traffic in that city and saved an estimated 6.2 million gallons of gasoline while cutting carbon dioxide emissions by an estimated 55,000 metric tons.

Joyce said Uber’s vision also includes providing transportation options for people in low-income urban areas. People in Dorchester and Mattappan, who she said formerly waited an average of 25 minutes for taxi pickups, now enjoy 96 percent reliability and pickups within 3-5 minutes with ride sharing.

“Our vision is to create a transportation ecosystem that is better for everyone,” she said.

Topics: AIM Executive Forum, Associated Industries of Massachusetts, Transportation

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