BUSINESS CLIMATE OVERVIEW
From Massachusetts Economic Development Guide 2023-24
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How the Bay State Became A Juggernaut

Investors and metrics point to one thing: a top business environment.

BUSINESS CLIMATE OVERVIEW
Photo: Getty Images
by RON STARNER
T

he best way to evaluate a state business climate is not just to look at the various rankings; it is to look at the companies choosing to make sizable investments in that state.

Take that approach with Massachusetts, and you find that many of the fastest-growing companies in advanced technology sectors are setting up shop and growing in the Bay State.

Consider the corporate expansions in 2022: Eli Lilly Institute for Genetic Medicine created 400 jobs and added 334,000 sq. ft. of high-tech space in Boston. Factorial added 136 jobs and 78,000 sq. ft. in Methuen. Altaeros Energy added 161 jobs and 108,000 sq. ft. in Hopkinton.

MassEcon facilitated 18 business investment projects that added 1,503 jobs and 1 million sq. ft. in 2022. 

Source: MassEcon

Joining these firms in the 2022 business expansion wave were names like Nanoramic in Wakefield; Pharmaessentia in Burlington; EyePoint Pharmaceuticals in Southbridge; and Aegle Therapeutics in Beverly.

Altogether, MassEcon (Massachusetts Alliance for Economic Development) facilitated 18 business facility investment projects that added 1,503 jobs and over 1 million square feet of facility space to the state last year.

More are on the horizon. In 2022, MassEcon assisted 90 prospective companies seeking space across the Commonwealth. Combined, these prospects represent the possible generation of 8,000 new jobs in the state.

First Place in Many Rankings

What makes the Bay State so attractive to corporate investors? Is it access to world-class higher education institutions and research? Is it the ability to hire best-in-class talent? Is it proximity to one of the richest locations of venture capital on the planet?

It is all of that and more, and that is where the rankings come into play. It begins with the presence of top-notch talent. By various metrics, Massachusetts is home to the No. 1 best educated workforce in the country. It is a place where 44% of adults hold at least a four-year degree — the highest rate in the nation.

Massachusetts ranks No. 2 in workforce productivity (27% higher than the U.S. average), accounting for the second-highest GDP (Gross Domestic Product) per capita in the U.S., according to the U.S. Bureau of Economic Analysis.

The Bay State also produces the highest performing public schools. The National Education Assessment Program consistently ranks Massachusetts schools No. 1 in the nation.

BusinessClimate-NM-one

Photo: Getty Images

On top of that, Massachusetts possesses a superior economic engine in science, technology and innovation. Bloomberg rates the state as having the No. 1 Most Innovative State Economy. The Milken Institute rates Massachusetts No. 1 in its annual Science and Technology Index; and various agencies place the Bay State first in venture capital for life sciences.

List of Places Ripe for Investing

Leaders at MassEcon, Mass Development (Massachusetts Development Finance Agency) and other state agencies aren’t resting on any laurels, however. They constantly look for ways to make Massachusetts even more attractive to business investors. One of the ways they do that is through the ReadyMass 100 inventory of available building sites: https://massecon.com/services/readymass100/search/

This easy-to-use tool provides access to details on development-ready sites statewide. From the 44-acre Reactory in Worcester to CenTech Park North in Shrewsbury, the ReadyMass 100 directory makes finding your next business location a snap.

847,000 sq. ft. of ReadyMass properties were absorbed in 2022. 

Source: MassEcon

In 2022, 11 new properties were added to this database, which is MassEcon’s premier tool for showing properties in Massachusetts to business prospects. About 847,000 sq. ft. of ReadyMass properties were absorbed in 2022.

Students of economics recognize that indicator for what it is: a harbinger of growth. 


For more information on the business environment in Massachusetts, go to www.massecon.com.




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