Worcester Business Journal

December 21, 2015

Issue link: https://nebusinessmedia.uberflip.com/i/617295

Contents of this Issue

Navigation

Page 8 of 39

Worcester Business Journal www.wbjournal.com 2 016 Economic Forecast 9 2016 The Massachusetts legislature will increase the caps on net metering for solar projects above the 2-percent compromise proposal made in 2015. Despite all the talk about wanting to reign in government subsidies, lawmakers won't want to hinder the clean energy industry nor take the bad publicity that would come from such a move. } Community banks will continue to merge, either through traditional transactions or by joining together their holding companies. Larger banks will continue to wield significant power with their lending largesse, so community banks must pool their resources to compete. } The price per square foot of commercial real estate in Worcester will rise. With new investments in downtown properties -- particularly the high-profile renovation of the Front Street towers -- investor and tenant interest in the city will grow. } Recreational marijuana will be legalized in Massachusetts. } With an initiative headed for the November ballot and lawmakers visiting states where the drug is 100-percent legal, the state will build upon the momentum created first by the near-decriminalization of marijuana and then its legal use for medical purposes. Central Massachusetts hospital profits and surpluses will level off. Aer significant gains in fiscal 2016 for some area hospitals, financials will generally remain stable, but the huge gains from their recent turnarounds will plateau in 2016. } The percentage of women on corporate boards of area companies will increase and at least one major employer will make a high-profile hire of a woman to the C-suite. With all the attention in 2015 about the benefits of having diversity on corporate boards and in leadership positions, area companies will take notice in their hiring policies. } Following its acquisition by Dell, the Hopkinton data storage giant EMC will decrease its staffing and real estate holdings in Central Mass. Despite all the talk about wanting to keep a Massachusetts footprint, corporate mergers are all about efficiencies. With Dell holding all the power, the combined company will opt to find those efficiencies in its home state of Texas, not in expensive New England. } UMass Memorial Health Care will shift its Greater Worcester footprint. Aer the announcement this fall that it's putting 500 full-time and contract workers in two Front Street office towers, the system indicated that other potential administrative office moves may be on deck. } Devens will see the addition of a major corporate or commercial tenant this year. e home of wind power manufacturer AMSC continues to be a favorite of the commercial community, with its ready infrastructure and business- friendly attitude. } Dual tax rates will continue to be reduced or eliminated in Central Massachusetts. Even though theWorcester City Council decided to increase the gap between what residents and businesses pay, 11 of the other 16 communities in the region with dual tax rates sought to move closer to a single-tax rate. } ...and why it will happen Our prediction...

Articles in this issue

Links on this page

Archives of this issue

view archives of Worcester Business Journal - December 21, 2015