Supporting high-paying, skilled jobs—and attracting new ones—is the bedrock of re-inventing Maine’s economy for a prosperous future.

The following editorial was published by the Portland Press-Herald on July 28, 2024. Read on Portland Press Herald.

It’s a fact: Maine’s economy is in trouble.

New data shows that Maine is among the least productive states in the nation. The state creates fewer jobs, attracts less investment, and starts fewer businesses than most other states. Within those jobs, worker wages are low and have not kept up with costs for food, energy, healthcare, and more. To the experts, Maine lacks many of the hallmarks of a competitive location for business.

However, none of these are forces beyond control. With a strategic plan that builds on current assets and strengths, Maine people can create a distinctive economy that will put us in healthy competition with other states and global partners. An important step is to focus on reviving and growing the bedrock of thriving communities: foundational jobs.

The importance of foundational jobs

Foundational jobs add value by producing goods or bringing in money from outside the state. Historically, Maine’s prosperity came from industries like farming, fishing, forestry, transportation, and manufacturing. For example, before refrigeration, the ice industry employed 90,000 people and would be valued at $660 million today.

Foundational jobs can still be found in those industries, as well as in energy, construction, and new technologies. These jobs drive business expansion, increase tax revenue, and support public services like education, infrastructure, and law enforcement. Without foundational jobs, sustained economic growth is unattainable.

Unfortunately, foundational jobs have steadily declined in Maine. Over the past 15 years, Maine has lost more than 20,000 of these jobs, shrinking from 44% to just 14% of the job market. Since the 2008 recession, Maine’s economy has been the slowest growing in the nation, with projected job growth of less than 1%, compared to the national average of 6%. Worse, these new jobs are mostly in lower-wage service sectors.

This decline has resulted in lower wages, reduced spending, and a shrinking tax base, leading to an economic downturn. Young workers are leaving, contributing to Maine having the highest percentage of people over 65 and, historically, the lowest percentage of people under 18 in the country.

Challenges and the need for a strategic plan

Despite this trend, Maine lacks a long term plan to protect and grow these industries. Foundational jobs have been outsourced or moved to lower-cost states, but Maine faces additional hurdles, including high costs for electricity, heating, healthcare, and taxes, coupled with generally lower wages.

Therefore, what should be a noncontroversial goal—growing good paying jobs that support families and communities—has become political. Issues like tax rates, public spending, education, business regulation, housing, energy and healthcare costs consistently become isolated, cyclical political debates, rather than viewed as pieces to solving Maine’s economic challenges.

Consensus is vital to creating comprehensive, long term solutions to these important challenges.

Opportunities for the future

Technological and industrial developments present new opportunities to expand into tech manufacturing, wireless infrastructure, and other emerging industries that can rejuvenate Maine’s economy. Encouraging small business growth and attracting highly skilled workers will improve tax revenue and drive economic revival.

Only by working together can residents and legislators create needed foundational jobs and deploy a long term economic plan that will secure a brighter future for all of Maine. Key aspects of this plan include:

• Reducing costs for Maine businesses, especially small and medium sized foundational enterprises, so they can take risks and expand

• Training and educating the workforce for skilled trades and foundational job sectors

• Identifying and attracting emerging foundational industries and associated jobs to Maine

• Organically increasing state revenue to support public services and infrastructure

• Reducing costs for resident families and businesses

• Evaluating the long term economic impact of new laws, especially as they pertain to foundational jobs and foundational job security

The state is measuring at the bottom of national economic indicators. Focusing on key industries will create job opportunities, stability, and long-term prosperity.

The following editorial was published by the Portland Press-Herald on July 28, 2024. Read on Portland Press Herald.

Maine is a beautiful state with a lot to offer residents and visitors alike: abundant natural resources, some of the best national parks and scenery in the country, and a welcoming population that prioritizes hard work and community.

However, it faces a significant hurdle in sustaining a good way of life. It has one of the smallest and slowest growing economies in the country. On top of that Maine’s workforce is getting smaller as people move out of state and the remaining population ages.

The result? Many jobs are shifting from production-focused, foundational jobs to service jobs, making many of the jobs here among the lowest-paying in the nation. Economic experts believe the state will see less than 1% job growth over the next several years.

Why has Maine’s economy struggled while the economies of other states have flourished? Don’t try to point fingers at anyone. Maine lacks a forward-thinking, non-partisan, strategic plan to place itself at the forefront of one or more economic industries.

Why Maine needs a strategic vision now

For generations now, Maine officials and voters have been enacting legislation and public policies that address issues in isolation without an overall plan, accompanying research into long-range effects, or data about current trends. Over time these actions have piled atop each other with unexamined cumulative effects, until now.

New data show that Maine ranks in the bottom ten of major economic indicators more often than any other state, sometimes by a wide margin. We also know that dozens of quality Maine companies have been sold to out of state owners in recent years, just part of a decades long trend. The state attracts less investment and creates fewer jobs than most other states. Within those jobs, worker wages are low and must keep up with higher living expenses. To the experts, Maine simply lacks the hallmarks of a competitive location for business.

However, none of these are forces outside of people’s control and change has been made before (see sidebar). With a strategic plan that builds on current assets and strengths, Maine people can create a distinctive economy that will put them in healthy competition with other states and global partners.

A Strategic Plan for Maine’s Economy

1. Strengthen Maine’s Workforce with Foundational Jobs

Maine’s economic revival starts with a focus on foundational jobs—those in industries like forestry, fishing, construction, manufacturing, and transportation. These industries provide stable, well-paying careers that attract and retain young workers, ensuring long-term economic growth. By leveraging Maine’s natural resources and fostering emerging industries, workforces can be rebuilt, and families will be encouraged to put down roots, and revitalize local communities.

2. Enhance Maine’s Business Competitiveness

To become a more attractive destination for businesses and entrepreneurs, the state must reduce regulatory barriers, lower operational costs, and create a pro-growth economic environment. Small and medium-sized businesses, especially those that provide foundational jobs, should receive targeted support to expand, innovate and compete with neighboring states. A strong state economic brand, highlighting Maine’s strengths—its workforce, resources, and quality of life—will further attract investment.

3. Legislative and Regulatory Reform

Maine’s economic policies should work cohesively, rather than in isolation. A comprehensive, data-driven approach to lawmaking will ensure policies are evaluated for their long-term impact on job creation, investment, and economic stability. This includes assessing how new laws affect foundational industries, the tax base, housing affordability, and workforce retention.

4. Lower Costs for Businesses and Families

High taxes, energy costs and living expenses drive both businesses and residents away. Reducing these burdens through common-sense policies will make Maine a more affordable place to live, work, and invest. Cost reductions will allow businesses to expand and take risks while making home ownership and family life more attainable for Maine’s workforce.

5. Increase Revenue Through Growth, Not Higher Taxes

Rather than raising taxes, Maine should focus on expanding its economy by supporting industries that bring in revenue from outside the state, such as tourism, exports and online commerce. A thriving business sector will naturally increase tax revenues, funding essential public services and infrastructure without placing additional financial strain on residents.

How to build consensus in a divisive time

Certainly, one of the top challenges with creating, maintaining, and enacting a successful strategic plan lies in aligning different interests. People are often self-interested and may not initially support what is best for the state’s economy as a whole.

But there are ways to align people toward the greater good of the state. When foundational jobs take up a major part of the economy, Maine sees serious economic growth and other major advantages. A solid strategic plan should also provide a vision and incentives to stimulate economic growth across the board. It should enable faster alignment on key issues, like government policies or tax incentives, when job and business growth benefit more of the population.

By prioritizing foundational jobs, fostering a pro-business environment, reforming regulations, reducing costs, and growing revenue through economic expansion, Maine can build a sustainable and competitive economy to secure a brighter future for all of its residents.