Worcester Business Journal

www.wbjournal.com • Worcester Business Journal • 2 018 Economic Forecast 3 Editor, Brad Kane, bkane@wbjournal.com News Editor, Grant Welker, gwelker@wbjournal.com (Real estate, higher education) Staff Writers Zachary Comeau, zcomeau@wbjournal.com (Manufacturing) Emily Micucci, emicucci@wbjournal.com (Health care) Contributors Susan Shalhoub Livia Gershon Research Director, Stephanie Meagher, smeagher@nebusinessmedia.com Research Assistant, Heide Martin, hmartin@nebusinessmedia.com Production Director, Kira Beaudoin, kbeaudoin@wbjournal.com Associate Art Director, Mitchell Hayes, mhayes@wbjournal.com Senior Accounts Manager Matt Majikas, mmajikas@wbjournal.com Custom Publishing Project Manager Christine Juetten, cjuetten@wbjournal.com Senior Special Accounts Manager Mary Lynn Bosiak, mlbosiak@wbjournal.com Marketing & Events Manager Kris Prosser, kprosser@wbjournal.com Events & Marketing Intern Megan Irish, events@wbjournal.com COO, Mary Rogers, mrogers@nebusinessmedia.com Accounting Manager, Valerie Clark, vclark@nebusinessmedia.com Accounting Assistant, Rae Rogers, rrogers@nebusinessmedia.com Collections Manager, Raki Zwiebel, rzwiebel@nebusinessmedia.com Human Resources, Jill Coran, jcoran@nebusinessmedia.com Publisher, CEO, Peter Stanton pstanton@nebusinessmedia.com Associate Publisher, Mark Murray mmurray@wbjournal.com President, Joseph Zwiebel jzwiebel@nebusinessmedia.com Worcester Business Journal (ISSN#1063-6595) is published bi-weeky, 24x per year, including 5 special issues in April, July, September, November and December, by New Engand Business Media. 172 Shrewsbury St., Worcester, MA 01604. Periodicals postage paid at Worcester, MA. Copyright 2017. All rights reserved. Postmaster: Please send address changes to: Worcester Business Journal, PO Box 330, Congers, NY 10920-9894. Subscriptions: Annual subscriptions are available for $54.95. For more information, please email wbjournal@ cambeywest.com or contact our circulation department at 845-267-3008. Fax: 845.267.3478 Advertising: For advertising information, please call Mark Murray at 508-755-8004 ext. 227. Fax: 508-755-8860. Worcester Business Journal accepts no responsibility for unsolicited manuscripts or materials and in general does not return them to the sender. Worcester Business Journal 172 Shrewsbury Street, Worcester, MA 01604 508-755-8004 tel. • 508-755-8860 fax www.wbjournal.com A division of: Worcester Business Journal WBJ W orcester Business Journal's annual Economic Forecast issue gives us a chance to take a step back and reflect on everything that happened in the past year, which we use to predict what will come for the Central Massachusetts busi- ness community in 2018. Both the WBJ editorial staff and WBJ readers (through our annual Economic Forecast survey) are creatures of habit. We're not doing deep dives into economic indicators or warning signs, so all of us see next year as an extension of what hap- pened this year: The economy improved slightly in 2017 and will improve slightly in 2018; the Worcester restaurant scene grew and became more prominent in 2017 and will do more of the same next year; housing prices went up in the past 12 months, and that trajectory will con- tinue. Sure, we'll look at upcoming mile- stones like the applications for recreation- al marijuana facilities opening up in April to predict a drastic upturn in the weed manufacturing and retailing industries, but largely, though, we expect more of what we've already seen. In my two years since I came to Worcester to take on this role, what I've seen is a region very passionate about its future. Companies and industries have had their ups and downs, but when it comes down to it, business leaders are bullish about what the Central Massachusetts economy will look like in 2018, 2020, 2030 and beyond. My main direct interaction with the region's movers and shakers comes with the Shop Talk interview I do for the biweekly print edition. This Q&A-style story appearing on the inside back cover of every issue is a sit down with an owner or executive of a company making some noise, in one way or another. Of course, I'm mostly interacting with these people when they're making some kind of posi- tive development like a second location, anniversary or new product line (profes- sionals who are about to close their busi- nesses or lay off their workers typically don't want to be interviewed), so this may skew my impression somewhat, but these Shop Talk interviewees all are excited to be a part of the growing economy. My favorite Shop Talk interview from 2017 was – by far – with Renee King, the founder and owner of The Queen's Cups bakery. When we talked in September, King had just moved her cupcake busi- ness from Millbury to Worcester's Canal District, where after a month she had already seen a 300-percent increase in sales. As we sat and talked in a quiet cor- ner of her new eatery – and she still had a little bit of flour on her apron from her hands-on approach in the kitchen – King was unguarded and honest in a way most professionals aren't when talking about their business. King discussed openly the debt she had taken on in moving the store; her need to remake her staff to meet a higher standard; the extra time and resources needed to sell quadruple the amount of product; and the times she cried when she first opened her Millbury shop because of the long hours and unforeseen problems. In her new location, King still cries, but they are tears of joy from what she has created. In this way, I view King as the symbol of the Central Massachusetts economy in 2017 and beyond. She and her business don't have the long history like the manu- facturing or higher education industries do in Worcester, but she is a young up- and-comer riding the new wave of excite- ment and attention in the region's econo- my to grow her business. In her plans, she has encountered numerous setbacks and obstacles; but rather than being defeated by them, she uses her passion to surge forward. That is what I see in the Central Massachusetts business community, and I can't wait to see how it plays out in 2018. - Brad Kane, editor Drive and passion will carry Central Mass. forward in 2018 TABLE OF CONTENTS WBJ readership survey • Summary of Economic Forecast projections ......................... 5 • Results of business environment polls ................................. 6 • Top Economist contest ......................................................... 7 WBJ editorial staff economic predictions • Predictions of what will happen in Central Mass. in 2018 ..... 9 • Checking in on our 2017 predictions .................................. 10 List toppers • The No. 1 companies leading WBJ's various lists from 2017 ........................................................ 11 ECONOMIC FORECAST 2018 Industry forecasts for 2018 and top stories from 2017 • Manufacturing & technology .............................................. 13 • Hospitality ......................................................................... 17 • Real estate ........................................................................ 21 • Health care ........................................................................ 25 • Education .......................................................................... 29 • Banking & finance .............................................................. 35 W

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