Worcester Business Journal

10 Worcester Business Journal | June 25, 2018 | wbjournal.com CLIENT: MUNICIPALITY This large municipality wanted to reduce pension liabili es and costs for current and future non- union par cipants. The experts at H&H delivered an innova ve solu on that lets ac ve pension plan employees 'opt-out' of the exis ng DB plan and join a new DC plan with an employer match. Plus, re ring and termina ng par cipants with vested benefits can now choose from five different plan op ons specific to their unique re rement goals. Now that's something to talk about! Get the full story at hhconsultants.com/success Put our knowledgeable and dedicated professionals to work for your business. We offer a full range of comprehensive actuarial, investment advisory and re rement plan consul ng services. We iden fy our client's needs, custom design programs to achieve the highest level of success, and consistently exceed expecta ons. ACTUARIAL SERVICES ARE THE TALK OF THE TOWN Each client's situa on is different and results may vary from those presented here Worcester has positive momentum While the narrative about Worcester's economic growth says the city and region have turned the corner, key indicators show the region is lagging behind similar metro areas nationally. When polled online, the majority of WBJ readers said the region has positive momentum but hasn't fully arrived yet. F L AS H P O L L "Opening a bunch of restaurants isn't economic growth. It's stupidity. People need affordable housing, not giant apartment buildings that are overpriced. Get real." COMMENTS: Is Worcester undergoing a true renaissance? Yes. The region has reached Boom Town status. "I have been in Worcester since 1975 and witnessed several prior renaissance periods. But this one is different. This one is truly transformational. All of the planning and all of the build up and all of the prior foundational work has led us to this moment. It is real." "It has been disappointing that major employers have left the city. There needs to be a boost to the business economy to secure long-term financial stability and growth." Yes. Worcester is not all the way there but has positive momentum. 52% Yes. The city has entered a renaissance but the rest of the region has to catch up. No. The region needs a few more victories before reaching that level. 27% No. Talk of economic growth is all smoke and mirrors. 10% 6% 5% team last year, but they came only aer the Worcester Sharks le in 2015. Worcester has opened two new hotels in the past year, but ranks last among its national peers in number of hotel rooms. Central Mass. isn't exactly a tourism hotbed, but neither is Albany, Albuquerque or Tulsa. "It's hard to compare yourself to some places down South or out West," said Timo- thy Murray, president and CEO of the Worcester Region- al Chamber of Commerce. "You're seeing a trend that has begun, and I think that's going to continue." Worcester vs. New England Metro Worcester's geography appears to illustrate its economic standing these days. It stands close to Greater Boston and has made strides like that area has. "e benefits of being near a major metropolitan area are real," White said. "But we've kind of become the little brother that can't keep up." In the Massachusetts economic growth, Metro Worcester is caught between thriving Boston and relatively struggling smaller cities, said Robert Na- kosteen, a professor at UMass Amherst's Isenberg School of Management. "e thing with the Massachusetts economy is there's geographic schizo- phrenia," Nakosteen said, describing Boston on one end and lagging areas on another. "And then there's Worcester." Greater Boston has a high number of healthcare and higher education jobs, which benefits Metro Worcester as it relies on those industries. But Boston's pull can result in Worcester losing talent to Boston, Nakosteen said. "It's a blessing and a curse," Timothy McGourthy, the exec- utive director of the Worcester Regional Research Bureau. "In the end, Worcester will benefit from its proximity to Boston. I think as Boston continues to grow, Worcester will grow with it. But it does mean we're a bit in the shadow, and we'll follow and not lead on most things." In looking at New England's other major cities, Metro Worcester's per-cap- ita GDP growth from 15 years ago is lower than in Boston, Springfield, Provi- dence and Hartford. e Providence and Hartford areas, which are larger than Metro Worcester, have added at least 25-percent more new housing in the past 15 years, as has the smaller Greater Portland, Maine market. On the other hand, the Washington, D.C. think tank Brookings Institution believes Metro Worcester's economic growth in the next three decades will rank 54th in the nation, better than Providence, Springfield and Hartford. A renaissance to come? Talk of a booming greater Worcester isn't new. A Telegram & Gazette editorial called Worester up-and-coming in 1989. Convincing people to move to the region remains a challenge. A survey of Worcester college students this year found 49 percent didn't plan to stay in the city aer graduation. Like the Brookings report shows, Worcester may not be in the midst of a renaissance, but on the cusp of one. "ere's definitely some momentum here, and I expect it will continue," Murray said. In the most recent one-year data, Met- ro Worcester is outpacing the average of its 10 national peers in key areas: 6 percent vs. 2 percent in GDP growth; 9 percent vs. -4 percent in new housing starts; and 0.61 percent vs. 0.59 percent in population growth. Yet, a forecast last year by the U.S. Conference of Mayors does not expect Worcester to keep up with its national peers. e mayors group projects the Worcester area to grow by 9.5 percent by 2046, but the national peers by 21.8 per- cent. Jobs in the Worcester area would grow by 3,000 by 2020, while the others would add an average of 4,230. "We're seeing is an influx of new investors into the core of the city ... at hasn't existed in the past couple de- cades," McGourthy said. "We need to be in this for the long haul when it comes to transformation for Worcester." Continued from Page 8 Timothy Murray, CEO, Worcester Regional Chamber of Commerce W

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