Mainebiz

V O L . X X I I I N O. X V I 34 FA C T BO O K / D O I N G B U S I N E S S I N M A I N E B U S I N E S S R E S O U R C E S From concept... to creation. On schedule and on budget, you can trust our experienced and collaborative team to make your idea come to life. WWW.PEACHEYBUILDERS.COM | 207.622.7531 PO Box 2508 Augusta, ME 04338 44 Degrees North Architects Lincoln Academy - Advanced Engineering & Technology Center Gabe at UMaine says the hospital- ity sector saw an increase of 4,600 jobs from 2010-15. " at was one of the better sectors in terms of the number of new jobs," he says. But it represents an 8% growth rate, com- pared with 17% nationally. Enthusiasm for the hospitality industry employment is tempered by the seasonality of many jobs and their relatively low pay scale. Maine's agriculture and food/bever- age industries — from global demand for lobster to local farming to craft beer — also remain a source of continued growth. Manufacturing is still a force Large-scale manufacturing off ers a compelling story, says Neale of the Maine Development Foundation. Although manufacturing's GDP is down a bit, "It's a double-edged sword," he says. "We don't see as much large- scale manufacturing as we used to. But we see a lot of niche precision manufac- turing, which doesn't necessarily have as many jobs but is much more highly skilled employment that takes place in a diff erent environment." Amada Rector, the Maine state economist, Maine has seen a "continued shift from goods-producing to service- providing industries that has taken place across the country, but we also have some particular struggles here in terms of the cost of doing business. Workforce availability, transportation access and cost, and energy costs are all detrimental to companies that are trying to compete on a national and global scale." R&D aspirations Research and development off ers great potential as it aids expansion at places like the payment processing fi rm WEX Inc., the nonprofi t Jackson Laboratories and Maine's largest publicly traded company, IDEXX Laboratories Inc. "As they expand, not only are they contributing to growth in Maine's economy, but they're raising the profi le of Maine around the world," Rector says. Economists agree that R&D can lead to transformative developments for older industries like wood products. "Companies that are successful are leading the way in R&D, innovation in new products and new techniques," says Neale. While older mainstays like the paper industry are seeing challenges, R&D guides the way to continued via- bility. Neale cites Sappi North America, which has paper mills in Maine, as an example. In partnership with Biobased Maine, Sappi is developing technology to process Maine's wood resources into higher-value bio-based materials such as fi bers, fuels and chemicals. Maine's total R&D investment in 2014 was 1.1% of the state's total GDP — not where it should be, Neale says "Our goal is to get to 3%," Neale says. "New England is at nearly 5%. Ultimately, innovation is the key driver in any economy." 'Two Maines' problem persists Economists continue to note a "two Maines" eff ect, with southern Maine seeing the strongest growth and indus- tries elsewhere harder hit by factors like population loss and high energy prices. Housing construction and remodel- ing is strong in southern Maine, while arts, cultural and recreational tourism are strong in southern and midcoast Maine. Coastal developments include expansion of the International Marine Terminal in Portland and the Front Street Shipyard in Belfast. Small business growth also depends largely on geography, says Lawton: Greater Portland and other urban cen- ters are positive for small business, but rural areas continue to struggle. In terms of new economy sectors — industries like professional services and information — Maine trails the rest of the country. From 2010-15, the informa- tion sector grew nationally by 5%, but declined in Maine by 10%. L S , M a i n e b i z s t a f f writer, can be reached at @ . a n d @ M R E I » C O N T I N U E D F RO M PA G E 3 2 Maine's exports increased while U.S. numbers declined According to Measures of Growth 2017: Maine's international sales grew by nearly 5% from 2015–16, while U.S. exports declined by 3.3%. Maine's 2015–2016 growth was second-best among the New England states and ranked 8th nationally In total, Maine sold $2.9 billion to 175 international markets in 2016 Over 2,000 Maine companies participated in some kind of inter- national transaction in 2016. S O U R C E : Measures of Growth 2017, Maine Development Foundation, Maine Economic Development Council When it comes to business banking, we do the work for you because you're busy running your business. 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