As The Economy Drags, Green Shoots Hint At Growth In Mass.

From WBUR

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By ADAM RAGUSEA

Published October 9, 2009

BOSTON
- Around this time every year, Northeastern University political
economist Barry Bluestone offers-up a widely-read assessment of the
housing market and the economy as a whole in Greater Boston. In 2008,
it was pretty scary.

This year's report is due out in a couple of weeks and it indicates
several green shoots. Unemployment in Massachusetts has leveled out,
beating national averages, largely due to growth in higher education
and medical sectors. One surprise: tremendous growth potentional in
manufacturing.

"Here in Massachusetts, we've really in much of our manufacturing
made a transformation to true 21st century advanced manufacturing.
Sixty percent of the more than 700 firms we talked with actually
expected to add jobs between now and 2017," Bluestone said.

Old Style Manufacturing In The 21st Century

Bluestone highlighted companies that seemed like old style
manufacturers, but are doing sophisticated things: such as Boston
AccuRounds and Centerless, a maker of precision metal components for
applications with extremely low tolerances like medical devices and
defense.

"The commonwealth has gotten more and more business-friendly as of
the last several years," said President and CEO Michael Tamasi,
explaining why he has not outsourced the jobs as many other
manufacturers have done. "There's workforce training fund grants,
there's industrial development bonds that have helped us build our
building in Woburn 10 years ago."

The firm has seen a dramatic up-tick in orders since August. The 60
or so workers at their Avon plant are starting to work overtime again.
In the long run, Tamasi said he's confident about the firm's growth
potential.

Biotech, Green Tech To See Upswings

In other sectors, there is still a lot of excitement around green
tech and biotech, according to Bluestone. One example is Acceleron
Pharma in Cambridge, where scientists have isolated a protein with
incredible potential.

"This molecule, when given to mice, in three days their lean body
mass and their skeletal muscle increase by about 10 percent, and over
the course of a month it can increase as much as 40 percent muscle
mass," said Jasbir Seehra, the chief scientific officer. His research
is aimed at developing treatments for neuromuscular diseases,
particularly Duchenne's - a severe form of muscular dystrophy.

Keeping Jobs Close To Home

Acceleron has added about 40 research and development positions this
year and are still based in greater Boston. A big question is whether
companies like Acceleron will stay in the area once they progress
beyond the research and development stage and move into commercial
production.

"Well, for these industries it's always good to have a well-trained
labor force. Relative to other states, we are pretty good at that,"
Bluestone said. "On the other hand we have very high cost housing,
particularly here in eastern Massachusetts."

Bluestone also pointed out the higher energy costs in Massachusetts
and red tape might prompt companies to set-up production operations
elsewhere - like North Carolina or India - after their big ideas
translate into products for the market.

Click "Listen Now" to hear WBUR's Bob Oakes and Adam Ragusea discuss the report.

WBUR Topics: Boston · Economy

Your Comments

• 
  
  
  
  
  

  I'm
  in the pallet & box business and find a good deal of the report
  echoes our experience this quarter. That type of customer has been busy
  for us. We are hiring and working overtime too partly because of what
  the author points to. [And thanks to Mr. Sarvey for his intelligent,
  less jaded comment.]

  
  Posted by Jack Thomas on October 12, 2009, at 11:33 AM
  
  
  


• 
  
  
  
  
  

  Jonas,
  
  It's difficult to even find your point. What "false liberal economic claim" do you think Bluestone and WBUR are making?

  
  

  He is simply saying that there is much more vitality within the
  manufacturing sector of Massachusetts than most folks realize and that
  we've got some advantages (quality of our workforce, proximity to
  technology) and some disadvantages (high cost of housing and energy,
  government red tape which slows down permitting).

  
  

  Also many businesses are beginning to realize that global
  outsourcing is not as profitable as they initially thought - once you
  factor in total costs of managing a global supply chain plus lower
  productivity among less-skilled workers.

  
  

  Bluestone and the Dukakis Center have also done research which
  revealed that tax breaks are not the most important or effective
  strategies to lure or keep business in the Commonwealth.

  
  

  Where is the propaganda that you speak of?

  
  Posted by John Sarvey on October 9, 2009, at 2:51 PM
  
  
  


• 
  
  
  
  
  

  Come
  on, we have heard these false liberal economic claims before; what
  happens when these "new" industries become profitable (as a result of
  Mass taxpayer subsidies) and their owners then say that they are
  leaving for other states or other countries where employees work for
  virtual slave wages?

  
  

  This is then followed by another round of wage reductions and tax
  benefits given to industry while raising the taxes that working people
  pay.

  
  

  Bluestone and his ilk, and his npr enablers, will go on another
  round of claiming that Mass has to be "realistic" and reduce business
  taxes and wages. (He was already hinting at that in his comments).

  
  

  Haven't we seen this show before, both the phoney economic game,
  enablers such as bluestone, and the phoney media coverage that doesn't
  even bother to remind listeners of the past or provide an alternative
  prospective?

  
  

  Then, just to add insult to injury you wind up with an "analyst" who is a spin artist for an indutry lobbying group.

  
  

  You go, npr!!! Don't forget to immediately do an add asking for
  working people to send you money because nowhere else can we hear this
  sort of propaganda, opps, sorry, informative stories.

  
  Posted by jonas on October 9, 2009, at 1:31 PM
  
  
  


• 
  
  
  
  
  

  If
  you are interested in reading last year's Housing Report Card or this
  year's report (after October 28th), please visit the Dukakis Center
  website at http://www.neu.edu/dukakiscenter.

  
  Posted by Dukakis Center on October 9, 2009, at 9:24 AM