Staff writer
March 04, 2008 07:14 am Thank you. It's wonderful to be here this afternoon. I would especially like to thank the North Shore Chamber of Commerce for hosting this annual event and the many local and regional businesses who annually step forward to sponsor it. In this, its 90th anniversary year, the Chamber—with over 1,200 members—can certainly point with pride to all it has done in nearly a century of advocacy on behalf of the businesses of our region. To Bob Bradford, the Chamber's president, thank you for this invitation to speak. I look forward to working with you to enhance the value of the North Shore region for all of us in the months and years to come. To my friend and colleague Wayne Burton, president of North Shore Community College and chair of the Chamber, my thanks not only for your collegial support during these first seven months of my presidency, but for the leadership you continue to show in advocating for public higher education in the Commonwealth of Massachusetts. Thank you, Wayne. I have thoroughly enjoyed these initial seven months of my presidency, and I look forward to a long tenure at the College. In this short time, I have learned a great deal about Salem State, the North Shore, and the many different individuals, organizations, and companies that are part of the extraordinary mosaic that comprises the large geographic entity in which we all live, work, recreate, and conduct our business. When I look at this region I see something extraordinarily special—a beautiful cultural and historic area that is not only deeply rooted in America's history, but deeply committed to its future as well. I see a region that works together and, likewise, responds together when there is a need. One such example that comes immediately to mind is the incredible outpouring of support recently for the Salem schools. It was truly heartwarming. Today we are all gathered at the North Shore Chamber's annual business expo. Over 100 companies are represented here. Large and small, start-up and established—all of you are here because you wish to share, collaborate, network, and work together to advance this region. Collectively we represent the wide swath of economic diversity that is the North Shore's most significant asset; the base upon which we can—and will—continue to add strength to our communities. Today, I want to talk about the economic challenges and opportunities on the North Shore, about our strengths, and about an action plan we can collectively use to advance our agenda. Those of you who were here this morning for Bob Coughlin's talk about biotechnology will hear some parallels with his message in my own. Our challenge will be to apply these strategies to a broader economic base. The most important question that we must all address is this: what is our region's future? I would be doing us all a disservice if I were to stand here today and tell you that both Massachusetts and the North Shore are not facing challenges. They most definitely are, and some are difficult ones, indeed. At the same time, however, we are blessed with unique opportunities. Those I will address later. There is much talk well beyond our borders and across the country about the dreaded "r" word. Are we in a recession, preparing to go into one, or soon to emerge from one? This I don't know, but I do know that Massachusetts is not immune to the market forces affecting the country as a whole, and is itself beginning to see some of the nation's economic slowdown in certain areas. For the North Shore and Essex County, this occurs at a time when we still have not fully regained jobs lost since our employment peak in 2001. In Massachusetts, there continues to be an alarming population loss. Over the last six years, the Commonwealth has lost roughly 230,000 residents, many of them the young professionals we can so ill afford to lose. If this trend continues, the state will face serious consequences: fewer seats in Congress, companies choosing to locate or expand elsewhere, a shrinking labor force, and less federal funding for transportation, housing, and other initiatives. For Massachusetts, however, there are also signs of growth: The Massachusetts unemployment rate continues to outperform the national rate, something it has consistently done throughout the past year. Massachusetts has added jobs this year, with nearly 22,000 created since January 2007. Where are we seeing the greatest growth? Primarily in the Commonwealth's major sectors of scientific and business services, education and health services, and the tourism and leisure industry. In 2005, the only sector in the state to grow jobs was the nonprofit sector, and I would like to take this opportunity to recognize them as a critical component of our economic future—most particularly in the medical, tourism and creative economy areas. Now then, where does the North Shore factor into all of this? Thanks to the work of the North Shore Workforce Investment Board, which is charged with workforce development within our region, we are able to keep tabs on trends in our area and regularly monitor its pulse. The agency's most recent Labor Market Blueprint for the North Shore has some very interesting data for those of us interested in promoting the region's health and economic growth and expanding its sphere of influence. The four industries in our area that stood out in 2007 as critical drivers of labor market demand on the North Shore were construction, financial services, health care, and durable goods manufacturing. One common theme that emerges from the report relative to these critical drivers is the need for increasingly higher levels of skills, training, and education. What once were considered entry-level production jobs in manufacturing, for instance, are now called "engineering associate" positions, requiring problem solving abilities in addition to a basic knowledge of machinery. This same Labor Market Blueprint identifies biotechnology as an important emerging industry in the North Shore region; one that is not only anticipated to grow rapidly, but which offers strong wage and career options. Massachusetts is the number two state in the nation in terms of biotechnology employment, and with the clusters of biotechnology-based businesses sited in our own region, the North Shore is poised to become a center of this emerging employment boom. I dare not talk about the emerging economies of the North Shore without mentioning one that has only in the past several years acquired a name. We call it the creative economy—and it is big. Just how big is it? A study undertaken by the Lawrence Eagle Tribune revealed that in 2003 nearly 1,000 creative economy businesses with approximately 6,000 employees generated $1.3 billion in our region. New research to be released in April indicates that these numbers may actually be twice as large as the original research indicated. Many of you are probably wondering what, exactly, the creative economy is. At its core, it consists of those industries that have their origin in individual creativity, skill, and talent, and which have a potential for wealth and job creation through the generation of ideas, products and/or services. They are our software developers, multimedia companies, small computer games business, design of all kinds—including engineering and web design—publishing, education, tourism, arts and culture, advertising, management consulting, IT consulting, and more. With the support and leadership we have received from Senator Fred Berry, the Salem Partnership, and the Enterprise Center at Salem State, there is a clear process to advance a strategic plan to determine how to further capitalize on the creative economy for the region. Like so many other areas of economic development, however, this and other emerging economies will require highly educated workers, including many with advanced degrees. Of all job vacancies currently available in the Commonwealth, 52 percent require a college degree. In the future, that percentage will only increase. What are this region's existing strengths? I would cite education as one. The North Shore population is the most educated in the Commonwealth. Richard Florida, in The Rise of the Creative Class , identified regions like ours as the places where knowledge workers want to live, and suggested that attracting knowledge workers attracts companies that need that talent. Our region is also home to thousands of micro-businesses and sole proprietorships; these alone represent 88 percent of the region's businesses. The small business sector is the bedrock of our regional economy and a major growth opportunity for the region. Our region hosts six colleges, which collectively educate thousands of students and annually return thousands to the local workforce. At Salem State, tracking data shows that nearly 75 percent of our graduates remain in the Commonwealth to work and raise their families. We have an energetic business community led by the North Shore Chamber. We have a robust and vital business incubator in The Enterprise Center at Salem State, which helps small businesses succeed through education and resources. The Small Business Development Center, also housed at Salem State, assists thousands of small businesses annually, is an important resource. Last year alone, the SBDC counseled 577 companies on the North Shore, and facilitated 52 client business loans in the amount of $11 M. We have major nonprofit organizations that include medical centers, the Peabody Essex Museum, and North Shore Music Theater. We have growing healthcare businesses, both service companies and those that manufacture medical devices, as well as major business centers such as the Cummings Center in Beverly, Centennial Park in Peabody, and Shetland Properties on the waterfront in Salem. We also have a strong tourism industry, one with the potential to grow significantly, and a diverse arts and culture scene. To build on these strengths and advance our economic future, I believe we need to accept a shared responsibility to work collaboratively. We must ensure that our region is recognized throughout the Commonwealth as more than just a scenic coastline, an area rich in history, and a source of superior seafood, but as a major economic force with which to be reckoned. We need to take our rightful place in this state as one of its most valuable resources. I believe that by working together and by listening to the needs of our changing workforce, by incorporating a broad range of workers in our future plans, and by anticipating and responding to the economic needs of this place we all call home, we can build something quite remarkable here. Mass Inc. issued a report at the end of last year titled "Massachusetts Jobs: Meeting the Challenges of a Shifting Economy." The report presents four priorities for the Commonwealth, and we should consider their recommendations for our own North Shore. Taking some liberty with the wording of the report, and bringing it into our context, I would suggest the following: We must create a regional agenda for economic development. To do this, I believe it is imperative that we create a regional economic development entity to both brand our region and drive its economic stimulus. At present, the North Shore is the only heavily populated region in the state that does not have one, and we are not only notable by our absence, but perhaps losing both business investment and a well-trained workforce to other areas of the state as a result. As an example of the positive benefits such an entity can bring us, let me cite the South Coast Regional Partnership, which encompasses Fall River, New Bedford, Dartmouth, and a number of smaller towns in between. Several years ago, Massachusetts had no such area called "the South Coast." There were, instead, these several cities, all of which faced a declining industrial base, a massive loss of jobs, and no enticement for businesses or workers to relocate there. Under the leadership of UMass-Dartmouth, the region's business, government, and political leadership came together, re-branded the region as "the South Coast," and created the South Coast Regional Development Partnership. Today, the re-branding and heavy advertising have paid off. The term "the South Coast" has taken on an identity of its own, and the region has been successful in attracting biotech companies looking for manufacturing space along with state and federal grants. Our region at the moment has no clear economic identity. We no longer manufacture shoes and textiles. The GE presence has diminished. We no longer send ship captains off to China on trading ventures, and we no longer have Parker Brothers in our midst. We are very much a mixed-use region with many small companies, a few large ones, medical and legal establishments, colleges, arts and culture venues, tourism, oceans, and parks. In other words, we have a wonderful place to live and work, but limited visibility—and no clear brand. If the North Shore region is to grow and remain competitive in the Commonwealth, we, too, must create an economic entity to advance our interests and a brand by which others will come to know and value us. My question to you, my partners in this region's future, is this: How can we leverage all that we have and create growth? We can begin, I believe, by sharing our resources and continuing to network, as we are doing so effectively here today. I fear, however, that in today's volatile economy, this will not be enough. Changing times dictate changing strategies, and we, as a region, must take bold new steps to re-energize, reinvigorate, and re-brand ourselves. We must create that which we want to be. To do so and kick off this effort, I am pleased to announce today that Salem State will step forward to expand its role in the economic development of our region by asking you to join with us, and with North Shore Community College, the North Shore Chamber, and business and civic leaders in creating an organization charged with branding our region, advocating our region , and addressing the need for human talent to work in the emerging economies of our region. I am, therefore, establishing the college's Enterprise Center as the economic development engine of Salem State. The Enterprise Center will work with this new coalition to frame an economic development plan for the region. Together, we can capture the vision for economic growth for the North Shore. Together, we will create a favorable business environment for the region. Together, we can match job vacancies with educational offerings through a workforce strategic plan. Together, we can provide well-educated workers to larger businesses such as OSRAM SYLVANIA, General Electric, and others that find themselves talent starved. Together, however, we must be certain that our voices are heard so that, as the North Shore Chamber so clearly states, "we can speak for the North Shore with one powerful and respected voice in the halls of Beacon Hill and Capitol Hill" on issues of importance to our communities. We have so much, but we are capable of so much more. Today, I want to challenge each and every one of you to step forward and commit to the branding of our region and the economic alliance we will collectively create. Let me conclude my remarks to you today by thanking of you for all that you do to promote and advocate for this uniquely special North Shore region of Massachusetts. I may be the newcomer, but I want to partner with you for the future. Together, I believe we can look forward to a long—and very fruitful—collaboration. Thank you.
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