WBJ's 10 bold predictions for 2025
Photo | Edd Cote
The Cannabis Control Commission is based in Worcester's Union Station.
Every December for this Economic Forecast special edition, the journalists in the WBJ newsroom forecast 10 possible news events for the coming year, based on their expertise and the trends in the Central Massachusetts business community.
The Massachusetts Cannabis Control Commission will be placed into receivership.
Since its founding in 2017, the CCC has suffered from a power struggle between its commissioners and full-time leadership. Now, a WBJ investigation found a toxic work culture at the agency is actively impeding businesses in the legal marijuana industry. The Massachusetts Legislature appears primed to follow an inspector general’s recommendation and place the agency into receivership, or simply scrap the CCC altogether in favor of a new regulatory body.
[Related: Click here to see how many of the WBJ newsroom's 2024 predictions came true.]
No hospital will replace Nashoba Valley Medical Center in the Ayer region.
After Texas-based Steward Health Care filed for bankruptcy and closed two of its Massachusetts hospitals at the end of August, Gov. Maura Healey assembled a working group of business and community officials to address the new hole in the region's healthcare system. While something along the lines of an urgent care center might open at or near the empty Nashoba Valley facility, the return of a hospital is unlikely.
The City of Worcester will reform its inclusionary zoning policy.
When the City Council created inclusionary zoning in 2023, it seemed like a good idea to require new developments to include affordable units or contribute to the Worcester Affordable Housing Trust Fund. What happened, though, is constructing new housing developments became unviable economically, impeding the city’s ability to add new units and ease the housing crunch. After lobbying by the industry, the City Council in 2025 will modify the law, such as capping the amount of money a developer must contribute to the trust fund.
No female CEO will be among the highest-paid CEOs in Central Massachusetts.
This year, none of the top 20 highest-paid CEOs in the region were women. A handful of executives at companies like TJX in Framingham make seven figures in total compensation, but none of them are the CEOs at their organizations. Next year will be more of the same, as large-company CEOs remain entrenched in their roles and any named successor is most likely to be a man.
WuXi Biologics will open at its $300-million Worcester facility.
The last four years have been a wild ride for the city’s signature life sciences development. First envisioned pre-COVID, the China-based WuXi has expanded its original $60-million plans for the site twice and then halted construction briefly this year as U.S. Congress weighed legislation to specifically bar WuXi from dealing with any American companies. Despite the uncertainty surrounding President-elect Donald Trump’s attitude toward Chinese companies, WuXi has resumed construction in Worcester and appears poised to open the facility in 2025.
International enrollment at Central Massachusetts colleges and universities will fall.
Some institutions of higher learning, such as Worcester Polytechnic Institute, rely on international students more than others, but all have some percentage of learners from other countries. With Trump’s open hostility toward immigrants and other foreigners, this will have a cooling effect on college student populations throughout the country. Central Massachusetts won’t be the exception.
No new Worcester hotels will open in 2025.
The city’s underwhelming hotel stock was thrust into the limelight earlier this year when WPI bought two hotels in Gateway Park, with plans on converting them into student housing in a few years. The move was decried by government and business officials, who were concerned how the reduction of hotel rooms would impact the city’s ability to attract events like sports tournaments and trade shows. Even though new hotels are proposed for Washington Square, the Canal District, and near Route 146, none seem far along enough to open in the next 12 months.
The economic output of Central Massachusetts will spike noticeably.
The GDP of the Greater Worcester metro area has risen steadily over the year, hitting $52 billion in 2023. The last major percentage jump came between 2020 and 2021, when GDP rose 5% in the region. With inflation now under control and interest rates dropping, the region will see another spike in 2025, along the lines of 3%.
Worcester Regional Airport will add at least one more nonstop destination.
The region’s main airport had something of a banner year in 2024, with passenger figures likely surpassing the record 204,000 travelers seen in 2023. Three airlines operate out of Worcester Regional, with nonstops to New York City, Orlando, Fort Lauderdale, and Fort Myers. As the airport becomes a more viable travel hub, airlines will seek to add more routes in 2025.
Worcester County will again add biomanufacturing jobs.
Between 2022 and 2023, Worcester County was the only county in Massachusetts to see an increase in biomanufacturing employment, gaining 279 jobs, according to the Massachusetts Biotechnology Council. This came despite a slowdown in the life sciences industry, following its rapid expansion post-COVID. Even though the industry still faces headwinds, Worcester County will remain defiant next year.
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