Despite looming Intel loss, manufacturing base strong in Hudson

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By Emily Micucci

News that Intel will halt manufacturing operations in Hudson after this year wasn't welcome — and it wasn't all that much of a surprise — but business and economic development leaders say it falls short of a blow to the local manufacturing landscape.

In September, the computer chip maker announced that manufacturing would be phased out at the end of 2014, resulting in the loss of about 700 jobs in Hudson. Some of those employees have found work at other Intel locations elsewhere in the United States, according to Ann Hurd, a local spokeswoman for Intel. Research and development operations will continue at the Reed Road site, and Hurd said between 600 and 800 employees will remain.

Meanwhile, Intel is working to sell the site, which includes three buildings that total about 1.2 million square feet, and lease back the portion of the space that houses research and development. This is attractive to potential buyers because they don't have to worry about finding new tenants to occupy the space, Hurd said.

An asset to maximize

Hudson officials don't expect the plant to sit for too long. Don Garcia, chairman of the town Economic Development Committee and CEO of Hudson-based Boyd Coatings Research Co., declined to identify a particular company, or industries, but he said “there has been interest on multiple fronts.”

“We don't know what their plan is in detail, but we know this is an asset Intel has that they want to maximize,” Garcia said.

For Intel, the Hudson manufacturing facility has become obsolete due to its size. According to Hurd, it's the last semiconductor manufacturing site where Intel is making 8-inch wafers. Other facilities are producing 12-inch wafers, and will soon make 18-inch wafers, which can hold more information and accommodate more complex designs, according to Hurd.

Intel had been frank with town officials in recent years about the size restrictions at the plant, according to Garcia, and the news that manufacturing would end there was not surprising. While Intel outgrew the space, Garcia is confident it can be repurposed to accommodate another company's needs.

“The question is: Are there other players in the market big enough,” Garcia said, “or might they have to find several tenants who could move in?”

Asked about the implications of Intel's manufacturing operations ending in Hudson, Garcia said it's not good news, but it's nothing town leaders are panicked about.

“It's not like we're going to end up with a boarded-up building,” Garcia said.

He noted that Hudson is a geographic center in New England, accessible to neighboring states, Boston and Worcester. And the town is unique in that it operates a municipal power company — Hudson Power and Light — which offers lower rates than many commercial utilities. If he had his way, Garcia would like to see a biotechnology firm come to town. He pointed out that Worcester is a hub for technology-savvy students, which might support the workforce needs of such a company.

Hudson Manufacturing still rich

It appears that Hudson is home to a vibrant manufacturing scene. There are a number of small manufacturers that have been doing business in town for decades, despite the challenges facing the manufacturing industry, such as cheaper overseas competition and a so-called skills gap that's left some businesses scrambling to find qualified employees to replace retiring older workers.

“I think it's very viable and vibrant,” said Garcia, who has worked at Boyd since 1978, where he started out sweeping the floor.

Scott Ferrecchia, owner of Lincoln Tool in Hudson, agreed. He said there are a number of manufacturers in town that have stayed successful by investing in the latest technology and making sure they're diversified.

“It's definitely under the radar, but there is a fair amount of activity,” Ferrecchia said of Hudson.

Argeo Cellucci's contribution still felt

Much of the town's manufacturing success is also due to decisions made in a bygone era, when Argeo R.“Junior” Cellucci chaired the Economic Development Committee. The father of the late Gov. Paul Cellucci, Argeo Cellucci died in 2003, leaving a lasting legacy defined by his commitment to revitalizing Hudson — historically a mill town that produced shoes.

Junior Cellucci — as he was affectionately known by the community — is credited with convincing state officials to extend Interstate 290 to meet Interstate 495 at the border of Marlborough and Hudson, making Hudson far more accessible. I-290 spills onto Route 85 via a connector named for Argeo Cellucci; it prompted the now-defunct Digital Equipment Corp. to build a state-of-the-art manufacturing plant in town. Eventually, that became the Intel site.

It's easy to see how the project, designed largely to bring Digital to town, had a much greater influence on the town's economy. The roadway was completed in 1980, at a time when many old mill towns were struggling to redefine themselves as older industries were dwindling.

Michelle Ciccolo, director of community development for the town of Hudson, began working at town hall 19 years ago. She's seen how the project has created a ripple effect to boost the local economy at large.

“If you look at sort of the slow transformation of the Route 85 corridor, those sites —over time — became more viable for retail and for other business uses,” Ciccolo said.

And it wasn't just new business that the I-290 connector brought to Hudson. A number of housing developments sprouted up in the vicinity of the connector, as well, Ciccolo said. She said people and businesses consider travel time from work and home when they decide where to locate, and businesses in particular want to know if people will get off the highway to visit them.

“The answer is yes, when you have the infrastructure development,” Ciccolo said.