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V O L . X X X I N O. I JA N UA R Y 1 3 , 2 0 2 5 22 E C O N O M I C F O R E C A S T F O C U S and tourism. e state's professional and technical industries and R&D efforts could also suffer, he says. Interest rates and housing Trends suggest that interest rates are likely to remain at current levels or slightly evaluated due to anticipated modest cuts by the Federal Reserve to prime rates, Damicis says. at means interest rates will remain relatively high, and that in turn will make the cost of buying a home that much more challenging. "As a result, states and localities must take aggressive approaches to support affordable housing develop- ment, including subsidies for new housing development and rehab development, along with zoning and land use changes to enable develop- ment," Damicis says. "Communities and regions that do not take aggres- sive approaches will have a harder time supporting economic and com- mercial development." Small business outlook Going into 2025, small businesses will have be nimble. "e impact on small businesses will greatly depend on the markets and local economic conditions in which they exist. It will require planning and the ability to adapt to investment in new markets and opportunities, which can be dif- ficult for small businesses that may be constrained by debt, small profit margins, and the inability to pivot to different markets," he says. And he offers word of caution about what could be a contentious policy environment in Congress. "A danger sign to watch is the political and policy environment. Political instability and division continue to lead to the inability to pass legislation that supports market stability and growth," he says. "is includes passing budgets while taking into consideration lowering federal debt, taking a modest approach to lowering taxes on the wealthy, passing bipartisan immigration policies that limit the flow of illegal immigrants with- out going too far, too quickly and dramatically reducing the avail- able workforce, and policies that compact the effect of high inter- est rates and construction costs that impact workforce housing. A divisive policy and political envi- ronment are often overlooked in economic development and require citizens, businesses, and communi- ties to start and continue engaging in conversations." MEREDA's 2025 Forecast Conference Thursday, February 27 • Holiday Inn By the Bay, Portland Gold Sponsor: Register today: MEREDA.org (207) 874-0801 • 900+ Attendees • Meaningful Networking with Industry Leaders • Continuing Education Credits • 60+ Showcase Exhibits with Member Organizations (Sold Out) REGISTRATION IS OPEN NOW Expert insights. Expert analysis. Expert outlooks. Mainebiz is my source for business news! They do a great job staying on top of the real issues and connecting me to the right people through Mainebiz events and forums. I love Mainebiz! — Margo Walsh CEO of MaineWorks 85% of Mainebiz readers spend 15 minutes or more reading each issue 81% of Mainebiz subscribers are the #1 decision-makers at their business. INFORM. ENGAGE. CONNECT. ENGAGED AUDIENCE FOR ADVER TI S I NG OPPOR TU NI TI ES, EM AI L ADVERTISING@MAINEBIZ.BIZ F U L L C O N T E N T S O N PA G E 4 F O C U S S O U T H E R N M A I N E M U S H RO O M A N D C O N S T R U C T I O N P H O T O S / T I M G R E E N W AY P O R T S M O U T H N AVA L S H I P YA R D P H O T O S / J I M N E U G E R 12 Anchoring Kittery The Portsmouth Naval Shipyard, a major employer in southern Maine, gears up for the future. 16 A real estate surge A shortage of existing homes has contractors scrambling to meet the demand for housing. 19 Ag's next wave? Mushroom growers are cultivating a variety of fungi to keep up with demand from chefs and consumers. Southern Maine builds on diverse industries S O U T H E R N M A I N E F O C U S Economy motion S O U T H E R N M A I N E F O C U S S TA R T S O N PA G E 1 1 » in $2.00 July 10, 2017 VO L . X X I I I N O. X V www.mainebiz.biz 85% of Mainebiz readers are college graduates STATEWIDE, SUBSCRIPTION-BASED BUSINESS PUBLICATION IN MAINE. WE ARE THE ONLY AUDITED, A Look at Maine's Future Economy REGISTER WEDNESDAY, JANUARY 17 » C O N T I N U E D F RO M P R E V I O U S PA G E F I L E P H O T O A danger sign to watch is the political and policy environment. Political instability and division continue to lead to the inability to pass legislation that supports market stability and growth. — Jim Damicis Camoin Associates Jim Damicis, a policy analyst and senior vice president at Camoin Associates, says the outlook for 2025 may be "too early to call" but he cites concerns about trade tariffs, the impact of stricter immigration policies on workforce shortages and a continued lack of affordable housing.

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