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Respondents revealed careful optimism about the MetroWest economy in a 2014 survey issued in part by the Worcester Business Journal, and business leaders reinforced that sentiment at a forum showcasing the results last week at Framingham State University.
About 50 business leaders, many of whom took part in the second annual Business Climate survey led by the 495/MetroWest Partnership, attended the Employer Forecast Forum on Aug 28.
The survey, which was also sponsored by the university, revealed that while business leaders are confident the region is headed in the right direction, their sentiment is down slightly from 2013; 64 percent of respondents expect the local economy to improve in the coming year, down from 75 percent last year.
Meanwhile, more firms are planning to reduce their workforces than last year. In 2013, no survey takers said their companies would lay off at least 10 percent of their workforces. This year, the figure was 5 percent.
Michael Harrison, assistant business professor at FSU, analyzed the survey results and presented the findings at the forum. Harrison attributed the scaled-back optimism to instability in economic indicators, such as gross domestic product and unemployment levels. He noted that many companies are hiring part-time workers, which favorably skews unemployment figures.
But Harrison said it’s important to put 2014 results into context, especially considering how gloomy the economy was just a few years ago.
“We think it’s getting better, but we’re just not trusting it yet,” he said.
Highlighting the region’s strengths, weakness
A MetroWest location has several important attributes, according to survey respondents. They rated proximity to clients as the chief reason for location their businesses here. That was followed by affordability of real estate and quality of the workforce.
But there are obstacles, too, according to business leaders who spoke during a panel discussion after Harrison’s presentation.
“We face a lot of challenges out here that we are trying to help build bridges for,” said Bonnie Biocchi, president of the MetroWest Chamber of Commerce.
More rail commuting wanted
Business leaders discussed ongoing efforts to improve transportation options in MetroWest, especially for those who would like to commute by train.
Westborough has been particularly aggressive about this recently, adding shuttle trips to bring MBTA commuters to and from office parks.
Siobhan Bohnson, the new president of the Milford Area Chamber of Commerce, said chamber leaders have met with Milford officials to discuss boosting commuting options there, too.
More workforce prep, too
Challenges also include a “middle skills” gap, where companies have a difficult time hiring mid-level workers who meet their qualifications, Biocchi said.
She and other chamber leaders discussed partnerships with area technical schools, high schools and colleges designed to connect employers with qualified graduates.
However, part of the difficulty is a generational disconnect, said Susanne Morreale-Leeber, president of the Marlborough Regional Chamber of Commerce. Recent graduates entering the workforce are well trained, but are lacking in workplace social etiquette, she said.
“They need to learn those soft skills first,” Morreale-Leeber said.
Several business leaders chimed in to confirm Morreale-Leeber’s premise, but Andrew Coull, president of Maynard construction management firm JM Coull Inc., said he prefers to adapt to a new generation. Young employees are prone to distracted conversations given a tendency to Smartphone addiction, but Coull said that won’t change.
“I think it’s equally important to educate the employers about the new reality,” Coull said.
Coull added that this year’s Survey results reflect his feelings on the local economy. Business is slowly picking up at JM Coull, but not as fast as it is in Greater Boston, he said.
“What I see is a large amount of construction happening in Boston, which I think is skewing the optimism somewhat falsely for those of us who work outside of (Route 128),” Coull said.
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Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
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