Editorial: It's the cost-of-living, stupid
News that Fidelity Investments would be closing its customer phone service operations in Marlboro - affecting some 300 workers - should have come as no surprise to local and state officials.
The Boston-based mutual fund giant has obvious and strong roots in the state and the region, with about 3,500 employees in Marlboro alone, but it's been clearly edging toward the exit door for some time. The company - which has about 12,800 employees statewide - isn't pulling up stakes completely, but it's been sending clear signs about its intentions.
Last year, Fidelity said it would send up to 1,500 Massachusetts jobs to Rhode Island and New Hampshire.
Meanwhile, in other parts of the country, the financial powerhouse has been growing.
Just last month, Rick Perry, governor of the Lone Star State, added a feather in his cap announcing that Fidelity would boost the Texas economy "upwards of $200 million" by adding more than 1,500 jobs at its operations in a Dallas suburb.
The reason for the expansion outside of Massachusetts? A Fidelity representative said the Dallas area "offers the strong demographic profile that Fidelity considers important when making location decisions." By demographics, the spokesman was no doubt referencing the fact that Texas is gaining population by leaps and bounds, meaning it has an ample labor pool from which draw. Last year, Texas was number one on a list compiled by the U.S. Census Bureau based on increase in population from 2005 to 2006.
Massachusetts, by contrast, was near the bottom of that same list at number 42. But Massachusetts does outrank Texas in one area: median income. The Bay State is in the top 10 in terms of average salaries, while Texas ranks number 36.
The reason why Texas is celebrating growth while Massachusetts is bemoaning losses has everything to do with cost-of-living.
Want to buy a house near Westlake - the Dallas suburb where Fidelity is expanding? A four-bedroom abode can easily be had for $145,000.
By contrast, the median home price in Massachusetts is more than double that at $348,500.
So, the question is what is Marlboro - and Massachusetts in general - going to do in order to stop people and jobs from moving out for greener pastures?
The first step would be to get a handle on the state's exorbitant cost-of-living.
Many of our large corporate headquarters have moved out of state. But Fidelity has long and strong ties to Massachusetts. Any indication that it is losing patience with escalating costs in the Bay State does not bode well for other companies that might have less affection for the commonwealth's environs.
The way to keep other companies like Fidelity from shipping jobs across the border is for Massachusetts leaders to stop paying lip service to affordable housing and start getting serious about encouraging growth of affordable homes.
The most recent announcement about Fidelity's phone center is yet another sign that costs in the Bay State are becoming too prohibitive for business. If our leaders don't heed this most recent sign, the next one might be a lot bigger - and a lot more painful.
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