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Merrimack Valley
Report: Haverhill, Lawrence keys to state economic growth Old mill cities seen as alternative to Boston
Published: April 2, 2007
BOSTON - Historic mill cities such as Haverhill and Lawrence are the key to the state's future economic growth, according to a report released today by two prestigious think tanks.
"In a state dealing with a number of challenges, from sprawl, declining work force, housing, we think these communities are part of the answer," said John Schneider, interim president and CEO of MassINC.
Although those mill cities have lost jobs and population compared to Boston, they are in a position to be a driving force in the "new economy," according to the report by MassINC, a nonpartisan think tank, and The Brookings Institution.
The old mill cities - Brockton, Fall River, Fitchburg, Haverhill, Lawrence, Lowell, New Bedford, Pittsfield, Springfield and Worcester - thrived as manufacturing centers. But when the economy began to value advanced degrees over manual skills, those cities were left behind.
Greater Boston now accounts for 40 percent of the state's population and 50 percent of the state's private jobs, and generates 60 percent of the state's payroll, according to the report.
The 11 old mill towns, meantime, account for 15 percent of the state's population, 13 percent of the state's jobs and generate less than 10 percent of the state's payroll. And while Greater Boston has added 467,000 jobs since 1970, those 11 cities lost 11,000 jobs.
Greater Boston became the center of the state's economy by doing something the mill towns did not - transitioning from a manufacturing economy to the "new economy," driven by jobs in education, information technology, financial services, biotechnology and high technology.
"Boston has high-quality job growth," said Mark Muro, policy director at The Brookings Institution. "The mill cities have not transitioned to the new economy."
By contrast, only 20 percent of the jobs in those 11 cities are in education, information technology, financial services, biotechnology and high technology, Muro said. And the share of the state's technology companies located there fell from 8.1 percent to 6.3 percent.
But now Boston's new economy workers are being priced out of housing, and it's the mill cities' turn to take advantage of a trend.
Rising home prices are forcing young, educated professional people to flee Boston. In Haverhill, Lawrence and other mill cities, home prices are substantially lower than those in Greater Boston. The mill cities' median home value is $225,000, compared with $429,000 in Boston, according to the report.
"In a state dealing with a number of challenges, from sprawl, declining work force, housing, we think these communities are part of the answer," said John Schneider, interim president and CEO of MassINC.
Although those mill cities have lost jobs and population compared to Boston, they are in a position to be a driving force in the "new economy," according to the report by MassINC, a nonpartisan think tank, and The Brookings Institution.
The old mill cities - Brockton, Fall River, Fitchburg, Haverhill, Lawrence, Lowell, New Bedford, Pittsfield, Springfield and Worcester - thrived as manufacturing centers. But when the economy began to value advanced degrees over manual skills, those cities were left behind.
Greater Boston now accounts for 40 percent of the state's population and 50 percent of the state's private jobs, and generates 60 percent of the state's payroll, according to the report.
The 11 old mill towns, meantime, account for 15 percent of the state's population, 13 percent of the state's jobs and generate less than 10 percent of the state's payroll. And while Greater Boston has added 467,000 jobs since 1970, those 11 cities lost 11,000 jobs.
Greater Boston became the center of the state's economy by doing something the mill towns did not - transitioning from a manufacturing economy to the "new economy," driven by jobs in education, information technology, financial services, biotechnology and high technology.
"Boston has high-quality job growth," said Mark Muro, policy director at The Brookings Institution. "The mill cities have not transitioned to the new economy."
By contrast, only 20 percent of the jobs in those 11 cities are in education, information technology, financial services, biotechnology and high technology, Muro said. And the share of the state's technology companies located there fell from 8.1 percent to 6.3 percent.
But now Boston's new economy workers are being priced out of housing, and it's the mill cities' turn to take advantage of a trend.
Rising home prices are forcing young, educated professional people to flee Boston. In Haverhill, Lawrence and other mill cities, home prices are substantially lower than those in Greater Boston. The mill cities' median home value is $225,000, compared with $429,000 in Boston, according to the report.
Affordable housing isn't enough to attract those educated workers and high-tech jobs. The MassINC report recommended:
* Mill cities have to pay attention to what they can control, such as public safety and public services.
* The state needs to provide cities with a consistent flow of local aid. Local aid helps cities invest in education.
* Mill cities are home to large immigrant communities, the work force of tomorrow. The state needs to invest in boosting adult education and language skills necessary for "new economy" jobs.
* Meanwhile, cities have to connect with local higher education institutions to spur economic development.
For their part, local officials say their cities are headed in the right direction.
Haverhill Mayor James Fiorentini said his city has focused on encouraging downtown housing development near the commuter rail to Boston.
"That allows us to bring in skilled-knowledge workers that will allow us to bring in industry," Fiorentini said.
Indeed, MassINC's report found that while Haverhill has been losing jobs in recent years, it has managed to add technology firms, 10 since 1991. While good news, it didn't match Greater Boston, where 1,600 new technology companies were established.
Haverhill also has looked to beautification projects, such as planting 500 trees and buying up open land. But that takes money, and Haverhill needs state assistance to continue its work.
"Haverhill is going to try and do more of that," Fiorentini said, "but we need more money from the state."
Lawrence, according to MassINC, faces its own challenges. Only 10 percent of the city's 25-and-older population is college educated, compared with 42 percent for Boston. And only nine technology firms have located there since 1991.
But Lawrence is making strides. City planner Michael Sweeney pointed out that Northern Essex Community College is investing $20 million in a downtown health sciences facility - preparing students for the sort of high-skill, high-wage jobs important to Lawrence.
Also driving Lawrence's revitalization is the McGovern Transportation Center. With mill lofts being developed nearby, the rail link connecting Boston to Lawrence will attract young professionals priced out of Boston to see Lawrence as an affordable alternative.
But the real key is another transportation improvement - the Interstate 93 interchange. The Merrimack Valley Economic Development Council projected that transportation improvements in the area could trigger enough industrial development to create more than 11,000 new jobs - with some of those people deciding to live in Lawrence.
"Lawrence gathers more residents and in turn becomes a more attractive place to live," Sweeney said. "It's very important."
