The dollar in business
The Patriot Ledger
Keeping the lights on
Massachusetts has the highest commercial/industrial electric cost in the country, according to Andre Mayer, senior vice president of Associated Industries of Massachusetts. The state’s dependence on fossil fuels, particularly natural gas, has skyrocketed prices beyond other states. Many industries are having problems paying for power, he said, including western Massachusetts’ paper industry, which has seen three mills shut down due to energy costs.
Fewer employers hiring
The Conference Board, a national business group, tracks help-wanted advertising in 51 major newspaper and major online job sites. Its index of newspaper employment ads stood at 30 a year ago, and is now at 21. That's a drop of almost 33 percent in a year across the country. In the last three months, job advertising in New England was down at an annualized rate of 37 percent, while the West and North Central regions were down at a rate of about 5.5 percent a year.
Were things better online? Hardly. The board reported for March the first-ever decline in online jobs ads versus the same month a year ago.
Economic confidence falters
A survey of Massachusetts employers shows confidence in the economy has sunk to its lowest level in five years. Associated Industries of Massachusetts conducts monthly surveys to measure whether business executives statewide are upbeat or pessimistic about the economy.
The group’s March survey showed just 47 percent of employers were somewhat confident about economic prospects. That number has declined five straight months. The figure now stands at the lowest level since May 2003, when the state was struggling to emerge from the last recession.
Homebuilder reports loss
Lennar Corp. is one of the nation’s largest homebuilders and a key player in the redevelopment of the former Navy's former air station in South Weymouth. The Miami-based builder recently reported a loss of $88.2 million in the three months ended Feb. 29 compared with profit of $68.6 million in the same three months a year ago. Stuart Miller, Lennar's chief executive officer, said he believes the economy has slipped into recession.
Lennar, through its subsidiary, LNR Property Group, is the master developer in the plan to convert the Weymouth air base into SouthFields, a mixed-use project calling for 2,855 houses and condos was well an office, retain and other commercial space.
Travel cutbacks
Rising travel costs (up in February by 6 percent for economy and 12 percent for first-class) have led executives to think about new ways to meet that don’t drag down the bottom line. Conference calling and Webcam technology have answered that question for more technology-savvy businesses.
Health care
Providing health benefits to employees has always been a concern to business owners, but rising costs have prompted many states and the federal government to draw up legislation aiding small-business owners unable to pay for health care.
The National Federation of Independent Businesses push on this front has led to the Small Business Health Options Program. Recently introduced in the Senate, the program would help small-business owners get what supporters say will be affordable health insurance.