Worcester Business Journal

6 Worcester Business Journal | March 7, 2022 | wbjournal.com Business confidence Why a new regional index shows local employers as particularly optimistic BY KATHERINE HAMILTON WBJ Staff Writer A lthough it's practically brand new, the Central Massachusetts Business Confidence Index has revealed employer attitudes in the region are trending more optimistic than the rest of the state. In November, Boston-based trade organization Associated Industries of Massachusetts released the first-ever Business Confidence Index focused specifically on Greater Worcester. While statewide business confidence has notched down over the last six months and hit a 10-month low in January, Central Massachusetts has appeared insulated from these declining attitudes. e region's index has been on the rise since the report's launch. In January, Central Massachusetts had the highest ranking at 57.5 on a 100-point scale, compared with 54.5 in the four western counties, 56.6 in the northeast, 52 in the Boston area, and 49.2 in Cape Cod and islands, said Chris Geehern, executive vice president of AIM. e scores are reflective of businesspeople's confidence in the future of the economy, where scores over 50 are considered positive. e BCI was created in 1991 for Massachusetts, but in the last year AIM has made an effort to break down the data by region by collaborating with individual business associations, like the Worcester Regional Chamber of Commerce. "We talk about the Massachusetts economy sometimes as a monolith," said Geehern. "ere are regional differences in terms of the industry mix and the technology mix." Central Mass. standing out Industry mix may be one of the main contributing factors to why confidence has been slightly higher in Central Massachusetts than the rest of Massachusetts. Central Massachusetts has a higher percentage of manufacturing and construction jobs than the state as a whole, with the two industries making up roughly 14% of the region's nonfarm jobs, as opposed to less than 12% statewide, according to the U.S. Bureau of Labor Statistics. "It's fair to say that manufacturing and construction companies are generally more bullish about the economy now than service companies or companies in the hospitality industry," said Geehern. "ese companies have certainly been affected by Omicron in terms of absenteeism, but less affected in terms of the markets they serve." Government policy played a hand in keeping manufacturers on their feet, as well, said Bruce Platzman, CEO of Leominster office furniture manufacturer AIS. "Central Mass., for the most part, has a large manufacturing base that was able to remain open during COVID for the last two years," Platzman said. Local manufacturers saw a rise in demand because other states were burdened by more intense lockdowns, said Platzman. Most of AIS's competitors are located in Michigan, where office supply manufacturers were not considered essential. Meanwhile, Gov. Charlie Baker designated AIS as essential, allowing the firm to pick up a portion of its competitors' business. "Surprisingly, we by far had our best year last year," Platzman said, explaining that top line sales were as high in 2021 as they were before COVID-19. "ere was a lot of pent-up demand that we've been able to work through and enjoy that." AIS CEO Bruce Platzman said sales were as good in 2021 as they were pre-pandemic, thanks to pent-up demand. PHOTO/MATT WRIGHT

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