Worcester Business Journal Special Editions

10 2017 Economic Forecast • www.wbjournal.com • Worcester Business Journal ...and what actually happened Our prediction... The Massachusetts legislature will increase the caps on net metering for solar projects above the 2-percent compromise proposal made in 2015 In April, Gov. Charlie Baker increased the net metering caps by 3 percent- age points, although he did lower the rates large-scale installations will receive for their clean electricity. } 4 In addition to the merger that was approved between SpencerBANK and Southbridge Savings Bank in May, Marlborough and North Middlesex savings banks agreed to merge, as did Fidelity and Barre Savings banks. } Community banks will continue to merge, either through traditional transactions or by joining together their holding companies. 4 } 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. e highest-profile hire was Shira Goodman to be Staples CEO while the percentage of women on corporate boards rose from 19 to 20 percent nationwide. } Dual tax rates will continue to be reduced or eliminated in Central Massachusetts. While Worcester increased in gap between what commercial and residential owners pay, 10 of the other 15 regional communities with a dual tax rate decreased the difference. } Following its acquisition by Dell, the Hopkinton data storage giant EMC will decrease its staffing and real estate holdings in Central Mass. In September, reports surfaced that Dell had laid off 2,000 EMC workers. By December, the technology company had sold off EMC's long-time Hopkinton headquarters for $3.5 million. } The price per square foot of commercial real estate in Worcester will rise. With new developments like the Mercantile Center and the momentum by the city's growing economic development, both commercial and residential real estate prices rose in 2016, which will translate into higher rents. } Recreational marijuana will be legalized in Massachusetts. With 54 percent of voters approving the measure, the ballot initiative to legalize marijuana and regulate it like alcohol was approved in November. e drug officially became legal on Dec. 15. 8 } Following the 2015 announcement of it relocating 500 information- technology workers downtown, UMass announced in November it was expanding its footprint in the Mercantile Center by 20 percent. UMass Memorial Health Care will shift its Greater Worcester footprint. } Central Massachusetts hospital profits and surpluses will level off. e good times kept rolling for (almost all) regional hospitals, reporting positive margins ranging from $100,000 (Athol Memorial Hospital) to $43 million (UMass Memorial Medical Center). Only Milford Regional Medical Center and UMass Memorial - Clinton Hospital saw losses. } Devens will see the addition of a major corporate or commercial tenant this year. Following the rezoning of 33 acres as industrial and commercial in the economic development region, local officials said a major pharma employer would be opening a facility in Devens. is follows manufacturer Laddawn's doubling its space this year. 4 4 4 4 4 A look back at ... 2016 Predictions 4 4

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