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Recap: How the Commonwealth Competes

October 24, 2024 Greater Boston Chamber of Commerce

At the Greater Boston Chamber of Commerce’s recent panel event, “How the Commonwealth Competes,” experts from various sectors gathered to explore the intricate factors influencing Massachusetts’ competitiveness. Organized in partnership with the Massachusetts Taxpayers Foundation, the event featured insights from industry leaders, including Sara Fraim, CEO of the Massachusetts Technology Leadership Council; Doug Howgate, President of the Massachusetts Taxpayers Foundation; James E. Rooney, President & CEO of the Greater Boston Chamber of Commerce; and Jane Steinmetz, Boston Office Managing Principal at EY. 

Understanding Competitiveness 

The conversation opened with a presentation by Doug Howgate, emphasizing the need for a clear understanding of competitiveness in Massachusetts. He pointed out that while the topic is widely discussed, there is often little consensus on its meaning or measurement. The recently released Massachusetts Competitiveness Index serves as a critical tool for examining the state’s standing against key competitor states across 26 metrics. 

Howgate noted that the decline in our state’s working-age population (down 200,000 in the last 20 years) is a central issue that needs addressing. He highlighted that Massachusetts must become more attractive to retain residents, especially given the significant birth rate decline over the past 30 years. The index shows that economic competitors like Florida, Texas, and California are gaining ground, which raises alarms for local policymakers. 

Strengths and Weaknesses 

The panelists discussed the state’s strengths, including its highly educated workforce and quality of life, marked by strong healthcare and public safety. Massachusetts ranks first in national education assessments, which supports its innovation-driven economy. Howgate emphasized the importance of voting No on 2 in the upcoming election, to maintain our educational standards (a position that the Chamber strongly supports), and urged attendees not to underestimate how critical our educational system is to our success. While our state has many strengths, some key challenges such as a declining labor force size, high housing costs, and long commute times pose significant threats to its competitiveness. The good news, Howgate noted, is that we’re seeing efforts to address issues of affordability and transportation by policy leaders. And as Jim Rooney stated, “one of the strengths of Massachusetts that has sustained us over many years is our willingness to confront challenges, as we’re doing here today.” 

Jane Steinmetz remarked on the nature of the issues at hand, stating how the complexity of the situation is not one factor that is the silver bullet; it is multifaceted.” This complexity necessitates a comprehensive approach to policy solutions. 

Housing as a Priority 

As the discussion delved deeper, the need for actionable policies emerged as a focal point. Sara Fraim underscored the importance of addressing housing, stating that towns need to step up and facilitate the addition of more housing units. Additionally, Jane Steinmetz described the current situation where many young people are attending universities in the Southern United States and the need for solutions to ensure they can afford to come back and live here. 

The panelists agreed that while some issues, like transportation, may require long-term strategies, others, such as housing and tax incentives, can be addressed more swiftly through legislation. The urgency to stabilize the Massachusetts economy was palpable, with the recognition that creating a supportive environment for young professionals is essential to curbing outmigration.

In light of these discussions, we invite you to join us on Wednesday, October 30, for the first installment of the Chamber’s new series, Transportation First, which will address the transportation crisis in Massachusetts. This series offers a platform to discuss the urgent challenges Greater Boston faces, bringing in experts and changemakers to explore the issues and potential solutions for the future of the Commonwealth. It will also raise broader awareness among employees and employers affected by the transit system every day.

Connecting the Dots 

The interconnectedness of various issues was a recurring theme throughout the event. As the challenges of funding and traditional investment practices in Massachusetts were highlighted, it revealed that innovation must be supported by a conducive business environment. As Sarah Fraim said, “we have all of the things to want people to stay here, talent, startups, all of it. We just somehow make it hard.” Whether that is solved in part through removing the perceptions of how expensive it is to do business in Massachusetts or enabling new small and medium sized businesses to be able to access capital for growth, ultimately, the panelists emphasized, these challenges facing the Commonwealth are not going to be solved in one fell swoop. 

In closing, the event served as a vital reminder that Massachusetts has the potential to maintain its competitive edge, but it requires a collective effort to address its challenges. As policymakers consider the findings from the Competitiveness Index, there is hope that collaborative strategies can enhance the Commonwealth’s attractiveness for residents and businesses alike. 

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