Mainebiz

V O L . X X I V N O. X V I M aine's tourism, trade, real estate and craft brewery industries all enjoyed rising tides in 2017, while the state's health care providers invested heavily in expansions to meet the growing demands from Maine's aging population. And there were promising developments in burgeoning markets like aquaculture — including a proposal to build one of the largest land- based salmon farms in Belfast, expected to be a $500 million project. "We're trending in the right direc- tion," says public policy analyst Jim Damicis, senior vice president of Camoin Associates. He cautions that perennial challenges threaten to stifle economic growth. Aging roads, ports, rails and bridges need major upgrades, while broadband infrastructure doesn't offer enough coverage or fast-enough capacity to support growth. And then there are Maine's demographics: the state's aging population and tepid popula- tion growth contribute to a tight labor market, and threaten to slow potential development. And then there is the concentration of development in the southern part of the state. "Rural and urban markets are not competitive on their own," says Damicis. "ey need each other to survive in a symbiotic relationship." at said, there has been lots of economic news to cheer. Here are five hot spots in Maine's economy to watch in 2018. 1.Tourism e number of visitors to the state reached a five-year high in 2017, with 36.7 million people visiting the state, according to the Maine Office of Tourism. at was up by 2.5% over the year before. Tourism supports a total of 106,806 jobs, or 16% of the state's employment. ough the rate of growth slowed compared to the five- year average, and tourism-related expen- ditures were flat at $6 billion, there were some encouraging signs. e number of first-time visitors to Maine hit a five-year high of 5.3 million. Off-season visitation also grew — there was a 3.5% increase of visitors in the fall and a 13% increase in winter tourists. And 2017 was the busiest year ever for the Portland International Jetport, with 1.8 million passengers, an increase of 4.2% over the previous year. United Airlines doubled the frequency of its flights to Washington, D.C., while Delta Airlines started service to New York City and Elite Airways added Sarasota/Bradenton, Fla., service. 2. Real Estate For real estate, the second-most-impor- tant driver of Maine's GDP, 2017 was a record-setting year. e MEREDA Index, a quarterly measure of real estate activity compiled by the Maine Real Estate & Development Association, hit record levels through the first quarter of 2018. e index, a composite measure- ment of residential and commercial transactions plus new construction, was 100.4, up 4% from the year before. e growth included a wave of office expansion by Tilson Technnologies in Portland; Tyler Technologies in Yarmouth; WEX Inc. in Portland; Bangor Savings Bank in Bangor; and IDEXX Laboratories Inc. in Westbrook. Damicis said he is encouraged not only by the level of activity but the fact that it involves commercial, industrial and resi- dential markets. e fact that industrial vacancy rates have hit an all-time low "is a real positive," he said. Development of industrial properties will produce not just property taxes, but commercial activity that will create jobs and equipment that generate tax revenues, he noted. He also sees as a positive the wave of multifamily and mixed-use developments geared for young professionals, empty nesters and aging residents in need of assisted living. 5 hot spots in Maine's economy Five industries that are making an impact on the economy B y J e n n i f e r V a n a l l e n B U S I N E S S R E S O U R C E S P H O T O / T I M G R E E N WAY R E N D E R I N G / C O U R T E S Y M A I N E M E D I C A L C E N T E R P H O T O / C O U R T E S Y S E B A G O B R E W I N G C O. P H O T O / C O U R T E S Y M A I N E D E PA R T M E N T O F T R A N S P O R TAT I O N TOP TO BOTTOM: Tyler Technologies in Yarmouth is one of the companies investing in the workplace as a way to recruit and retain employees. / Maine Medical Center plans a $512 million expansion. / Sebago Brewing Co., part of the growing craft beer industry, attracts visitors to its brewery. / Eimskip, an Icelandic shipping concern, runs weekly container ships from Portland harbor. 38

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