Worcester’s Economic Outlook Still Hazy

Saturday, June 23, 2012

Ashley Palumbo, GoLocalWorcester Contributor

Which way is Worcester going?

Ask different businesses to describe the current economy in Worcester and you’re bound to get a bunch of different answers. Even the Chamber of Commerce describes the city’s economic outlook as “improved, but still a bit spotty.” So what does that really mean?

Chamber CEO and President, Dick Kennedy, believes people are cautiously optimistic.

“People are enjoying some uptick, but the horizon still is somewhat hazy. Being an election year, I think there’s a feeling of waiting to see long term prospects,” said Kennedy.

Bigger Doing Better

Things are good for big, established businesses like Polar Beverages. Executive VP and Treasurer Chris Crowley said the company has enjoyed the stabilization of energy costs and the weakening of the aluminum market, which is also good for consumers. What could hurt Polar is heavy regulation by the government.

“We love the city and we do wonderfully well, but it’s difficult on the state level. They seem to want to shut you down,” said Crowley. “We basically would go bankrupt if they instituted a penny-per-ounce tax.”

Crowley says companies have to be proactive to stay ahead of the curve, but not everyone has the necessary resources.

“We’re bigger, so we have people paid to do the regulatory work. I don’t know how a smaller business would do it,” Crowley said.

Room for Growth

For some businesses, the city itself is the best resource. That’s part of what attracted the new Planet Fitness franchise to Webster Square.

“There’s a high demand for something like this and it’s well-needed in this area at an affordable cost. So this is a perfect fit for us,” said manager Jason Benjamin.

Of course, new businesses mean new jobs. It’s a step in the right direction and something both Kennedy and Crowley, who also serves on the Board of Directors for the Worcester Business Development Corporation, would like to see happen more in the city. They believe the downtown revitalization efforts are necessary to attracting other new companies, but that won’t solve the unemployment problem overnight.

“We’re trying to encourage business retention and that entrepreneurial spirit,” said Kennedy. Unfortunately, it takes time between development to yield jobs.”

More Jobs Needed

Central Mass had a jobless rate of 6.4% in April according to the Workforce Central Career Center. That’s not particularly bad, but they have seen a mismatch in what employers are looking for and what skills people have.

“We’re seeing people obtaining jobs and they have very specific skills and show a flexible work history,” said Don Anderson, president of Workforce Central. “Workplaces are looking for people who can do more things.”

Anderson said the lack of good-paying, mid-level jobs is partially responsible for long-term unemployment, which has many discouraged. Kennedy agrees and is concerned that Worcester unemployment levels are lower because some people have given up.

“The summer months are very unpredictable. We’ll probably see less youth employed this summer,” Kennedy said. “One of things that will determine how the economy goes is how many people are working and how much disposable income they have.”