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V O L . X X V I N O. I JA N UA R Y 1 3 , 2 0 2 0 20 2 0 2 0 E C O N O M I C F O R E C A S T F O C U S » C O N T I N U E D F RO M P R E V I O U S PA G E B A N K I N G In central Maine, a bank CEO who's bullish on economic growth B y R e n e e C o r d e s A ndrew Silsby, CEO of Augusta-based Kennebec Savings Bank, is bullish on U.S. economic growth — and central Maine's economy — in 2020. "e economy is moving along at a very robust pace, and I remain optimis- tic," he says. Reflecting on the first decade in 170 years without a recession, he says, "e math would tell you that we would be due for another recession." He doesn't see it that way, predicting "another robust year." Silsby is equally upbeat on the central part of the state, whose largest employers include health care organizations and state government, meaning "we don't see quite as much of the highs or lows when the economic cycle changes." He's also excited about commercial and residential development in central Maine downtowns including Augusta, Waterville, Winthrop and Gardiner, noting that "growth begets growth." All those towns are on the home turf of Kennebec Savings, which employs close to 140 people and has $1.12 billion in assets. It has branches in Augusta, Waterville, Farmingdale, Winthrop and Freeport. It opened the Freeport branch in November after a two-year trial run as an electronic banking and service center. Silsby describes the Freeport location as "wildly successful for us," process- ing $100 million in loans over 23 months. While there are no immediate plans to open additional branches, Silsby says they're always on the lookout for expansion opportunities. At the same time, he admits that having a 33% market share of deposits and loans in Kennebec Country limits its ability to grow. On the hiring front, Silsby says the bank has not had any problems filling jobs, and has found it easiest to grow talent from within. And while it's difficult in the industry to add new loan products, Silsby said Kennebec Savings has been partnering with other community banks on large loans for development projects — a trend he expects to continue. "A lot of developers like the idea of supporting the banking community, to spread the love around," he said. Investing in technology will also remain a priority for Kennebec Savings, a century and a half after it was founded in 1870. "Banks are technology com- panies in a lot of ways," in terms of processing data and provid- ing technology to customers, he says. As for his bank's specific plans, he says: "We'll have a major investment in our inter- net banking and mobile bank- ing platforms this year." E D U CAT I O N Community colleges will play a key role in workforce development B y L a u r i e S c h r e i b e r I n 2020, Maine Community College System president David Daigler will continue to aggressively promote programs, partnerships and educational pathways as the state addresses the workforce shortage. "e need for skilled work- ers is intense and that need will increase as more people retire and fewer Mainers enter the workforce," he says. "at means the need for workforce development programs, tai- lored to today's job market, is more important now than ever, and will grow in the future." e community college system is already stretching its resources to expand academic programming and short-term job training, he notes. "Demand is so strong for these high-quality programs that we are turning away students and putting business partners on waiting lists for 2020-21," he says. "We cannot meet this need with current funding. We are seeking more funding from the legislature to keep up with the demand." In the last two years, the system created 11 workforce training programs in areas like medical assisting, welding and computer support; and built or expanded 10 degree and certificate programs in the trades and technologies. As a result, the number of trainees who completed short-term training pro- grams jumped almost 80%. "Looking ahead, we'll measure success by the number of people who get credentials of value that land them good jobs," he says. "at means differ- ent things for different people. It could be a short-term leadership training program that upskills a mid-career employee into a management position. It could be stackable credentials that allows for an entry-level job to pay the bills while the student continues their education. It could be a 2-year program." He adds, "e only thing holding us back from providing more workforce training is funding, and we're hard at work lining that up." Additional initiatives on the horizon include an increase in short-term job training programs and partnerships with companies to launch new programs tailor-made for their needs. Daigler sees the success of these initiatives in individual students. One is a recent graduate of the system's mechanized logging program, a no-tuition, three-month, hands-on training course. "Before this program, this student was making $11 an hour," he says. "He got no overtime, no benefits and he struggled to pay his bills and support his family. After he graduated from the program, he got a job at double his previ- ous wages. Other graduates had offers before they even finished." Well-paying jobs sit empty because people don't have certain skills, he says: "at's where we come in, creating the programs that result in skilled workers ready to enter the workforce." The need for skilled workers is intense and that need will increase as more people retire and fewer Mainers enter the workforce, he says. — David Daigler Maine Community College System The economy is moving along at a very robust pace, and I remain optimistic. — Andrew Silsby Kennebec Savings Bank P H O T O / C O U R T E S Y O F M A I N E C O M M U N I T Y C O L L E G E S Y S T E M P H O T O / C O U R T E S Y K E N N E B E C S AV I N G S B A N K Maine Community College System president David Daigler promotes programs, partnerships and other educational pathways across the system as essential to meet growing demand for skilled workers. Andrew Silsby, president and CEO of Kennebec Savings Bank, says his bank plans a major investment in its internet banking and mobile platforms this year.

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