CEO Newsletter

I am pleased to introduce a new monthly communication from the North Shore Chamber of Commerce – an email designed to keep you closely connected to the important work happening across our business community and within the Chamber itself.

As the voice of business on the North Shore, the Chamber’s mission is clear: to advocate for the interests of our members, to educate on the issues and opportunities that impact us all, and to collaborate to strengthen our regional economy. This monthly CEO update is another way for us to live out that mission.

In today’s fast-moving environment, businesses face new challenges and opportunities every day. Whether it’s changes in state and local policies, economic shifts, or the innovation we see from our members, staying informed is essential.

This communication is also about transparency and connection. The Chamber is strongest when our members are active participants – sharing ideas, raising concerns, and coming together to advance our common goals. I invite you to be part of the conversation, and the action.

Thank you for being part of this remarkable network of businesses. Together, we make the North Shore stronger.

ECONOMIC ENGINE

Massachusetts has always enjoyed its reputation as an innovation powerhouse.

Now, however, there is growing concern that the state’s traditional strengths – a highly educated workforce, elite research universities, and dominant positions in innovation and health care – are being overtaken by rising costs.

“Our state’s foundation in talent, innovation and quality of life remains strong,” said Doug Howgate, president of the Massachusetts Taxpayers Foundation, which just released its report, The Massachusetts Competitive Index 2025. “But rising costs, especially in housing, energy, and health care, are stifling private-sector growth and pushing residents away.”

The report outlined in stark terms the Jekyll-and-Hyde nature of the state economy.

There’s plenty of good news. Massachusetts, for example, offers exceptionally strong K-12 education when compared with other states, ranking first nationally in eighth-grade reading and math scores. It boasts the highest percentage of residents with a bachelor’s degree. It ranks second in life expectancy and remains a venture capital powerhouse, again ranking first in the nation.

But storm clouds aren’t on the horizon. They’re already here.

Massachusetts ranks last in the country in private employment growth, seeing a 0.6% decline in private-sector jobs from 2023 to 2024. Our commute times clock in at roughly 30 minutes – the worst in New England and 47th nationally.

The Bay State ranks 48th in health-care costs, with premiums rising nearly 20%, or $1,000 per employee, over the past year. We have the nation’s highest median infant child-care costs, topping $23,000 a year.

That has put the future at risk as more young people move away in search of less-expensive places to live. Massachusetts, the MTF report notes, ranks 48th in the country for “domestic outmigration” of young adults aged 26 to 35.

Our Chamber will continue to advocate on these issues, speaking with legislators and others who hold the keys to making meaningful policy changes that will benefit business and quality of life for our employees and our families.

BRACE YOURSELVES FOR ANOTHER TAX INCREASE

The state’s Unemployment Insurance system is in very bad shape, which is very bad news for employers. This is one of the most critical issues that will continue to confront Massachusetts business owners, who fund the most generous unemployment benefits in the nation through a payroll tax that keeps growing and growing.

The UI issue is indeed complicated. But in its simplest form, know only this: the state pays out far more to the unemployed than it takes in from employer taxes. (Not a great formula for success.) And, the UI Trust Fund, as it’s called, is projected to run out of money by the end of 2027.

Business people might do the math and think: “Revenues don’t support the expense, so cut the expense.” Labor reps and most Democratic lawmakers, however, say the answer is more taxes on businesses to maintain and/or increase benefits of up to $1,051 a week, plus $25 per child, for 30 weeks of unemployment. (Florida, for example, pays up to $275 for 12 weeks.)

Governor Healey has put together another special commission, this one led by Secretary Lauren Jones, to make recommendations on how to fix the broken UI system. Business representatives include Jim Rooney from the Boston Chamber and Jon Hurst from the Retailer’s Association. There’s no word yet on a timetable, which will get pretty interesting as next year’s gubernatorial race heats up.

PAY RANGE LAW CHANGES

A big change is coming to job postings Oct. 29.

That’s when the second phase of the Massachusetts Wage Transparency Act goes into effect, requiring that all Massachusetts businesses with 25 or more employees disclose an estimated pay range in all job postings. That includes postings – even outdated ones – on third-party job boards such as Indeed and LinkedIn.

The new rule doesn’t just apply to potential new hires. The pay range needs to be posted for existing employees who are up for promotion or about to be transferred or assigned to a new position. And the law protects employees from retaliation for asking for the information.

The law defines “pay range” as “the annual salary range or hourly range that the employer reasonably and in good faith expects to pay for such a position at that time.”

The law, however, doesn’t define “good faith.” You can find more information on state Attorney General Andrea Campbell’s website.

ESSEX COUNTY A TOURISM OUTLIER

Tourists are still flocking to the Bay State.

A recent report from the state Office of Travel and Tourism revealed that spending by tourists grew by 2.3% last year, going from $23.6 billion in 2023 to $24.2 billion in 2024. Tourism-related businesses added roughly 1,500 jobs during that time.

It’s clear the industry remains a vital driver of the state economy, with across-the-board increases in visitor spending, job growth and tax revenues

Oddly, Essex County, home to some of the state’s most popular attractions (Halloween, anyone?) was the only county in the state where visitor spending actually dropped between 2023 and 2024. Tourists spent roughly $1.2 billion in these parts last year, down almost 1% from 2023.

Still that number is up almost 21% from 2019, the last full year before the COVID pandemic.

BOARD OF DIRECTORS NEWS

The Chamber’s Board of Directors will meet October 22 to select officers and directors for the coming year.

John Colucci, Managing Director of McLane Middleton, is set to become Board Chair, with Hannah Ginley stepping into the Chair-Elect position. Ginley is Windover’s Chief People Officer.

Joe Riley, EVP Retail Banking Services at Salem Five, has led the Board of Directors for the past four years as Chairman. Riley will remain on the Chamber’s Executive Committee of officers as Past Chair. Eastern Bank’s EVP Paul Kurker will continue another 1-year term as Treasurer, and Patti Beckwith, owner of Constitution Financial Partners, will continue as Clerk.

Per Chamber bylaws, the Governance Committee is currently reviewing nominations and meeting with various directors to discuss terms and commitments. The next step is a vote of the 15-member Managing Board on Oct. 15, and then a full Board vote on Oct. 22.

The new slate of officers and Directors takes effect at the Nov. 20 Annual Dinner at Danversport. Reserve your sponsorship and tickets here.

BON APPETIT

I leave you with a bit of news from Topsfield, where the town is inching closer to getting its first sit-down restaurant.

A proposal from Brig Leland, the owner of the Marble Ridge Winery in North Andover, and Topsfield resident Tim Collins, the retired CEO of EBSCO, would convert the abandoned, town-owned former highway garage on School Avenue into a full-service restaurant with retail, event and conference space.

The nearly 58,000-square-foot parcel used to be home to the town’s fire and public works departments. The former “main bay” of the garage would include restaurant seating and retail, with event and conference space in a full-story addition above.

But don’t look to make reservations just yet. The developers are still working through the approval process, and the grills aren’t expected to be fired up until the spring of 2028.

Tim Collins is a longtime Chamber member and great supporter of the Chamber’s annual Honor Scholars event, where for many years he delivered the keynote address. Tim recently returned to the Chamber a few months ago to give a leadership talk to our Emerging Leaders group.

Karen Andreas is the President and CEO of the North Shore Chamber of Commerce.

Contact her at karen.andreas@northshorechamber.org.