Tag: massachusetts business

Is It Legal for Hospitals to Ban Nicotine-Positive Employees in MA?

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In 2011, UMass Memorial Marlborough Hospital adopted a tobacco-free policy for its property. Recently, the same hospital announced that they would be establishing a nicotine-free hiring policy for all new employees as well. Nicotine will join amphetamines, benzodiazepines, cocaine, and others on the list of prohibited chemicals. Hospitals test for these drugs following the interviewing and application process; it is often the last step before an applicant becomes an employee.

umass-memorial-hospitalMarlborough Hospital Leads Nicotine-Free Hiring

According to Steve Roach, president and CEO of Marlborough Hospital, the decision to hire exclusively nicotine-free applicants is meant to encourage employees’ healthy decisions. He expects his employees to abide by the same health advice they give to their patients—to lead by example, essentially. All hospitals in the UMass system have smoke-free and tobacco-free campuses, but Marlborough is the first in the commonwealth to establish a nicotine-free hiring policy.

Is Banning Smokers Illegal?

There is no federal law that protects smokers from these regulations, as the Equal Employment Opportunity Commission does not recognize tobacco smokers as a protected class. However, individual states have their own approaches. Some states say that companies cannot refuse to hire someone simply because he or she is a smoker. Massachusetts is obviously not one of those states. Even some of the states that protect smokers tend to be more strict with the healthcare industry and nonprofit organizations.

Some experts say that this ban will unravel a mess of additional issues. They argue that discriminating against smokers is the same as discriminating against those with diabetes or high cholesterol. There is also the concern that a tremendously well-qualified applicant will be turned away for what some deem to be a trivial issue.

no-smoking-decalMassachusetts Aims to Set Healthy Example

A Swedish study found that smokers take an average of 7.67 more sick days every year than people who have never smoked. Additionally, even if the smoker does not have other medical conditions such as diabetes or obesity, they typically have higher medical costs than the average nonsmoker. If you’ve ever been around a smoker, you know how tightly the smell of smoke can cling to clothing and hair; this new rule will help prevent patients from being exposed to those fumes. Each year, smoking or exposure to smoke causes 443,000 premature deaths and costs over $170 million in healthcare costs and loss of productivity.

Most employees who receive the “quit smoking or quit your job” ultimatum choose to leave tobacco behind. While Marlborough Hospital’s ban doesn’t affect current employees, it will hopefully nudge future employees to kick the habit.

MA Welcomes Fall Festivals and Foliage, Expects Rush of Tourism

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pumpkin-patch-ma-businessFall in New England has always attracted crowds of hikers, bikers, zipliners, wine-drinkers, leaf-peepers, shopaholics, and anyone simply hoping to enjoy the crisp autumn air. However, over the past few years, seasonal sales have been better than ever. Some believe the region’s success can be linked to a growing interest in fall-themed festivals and the development of destinations like Salem, MA, nationally known for its Halloween-oriented history of witchcraft.

Massachusetts Businesses Benefit from Booming Tourist Industry

Many families and individuals vacation in the fall—traveling during the school year usually means fewer crowds, lines, competition for lodging, etc. This helps keep businesses profitable after the summer rush—hotels, restaurants, retail outlets, and others reap the benefits. Even athletics teams and associated companies (e.g., those responsible for ticketing, facilities maintenance, entertainment, food, etc.) have reported an uptick in “post-season” sales due to the longer tourist season.

History of Massachusetts Is Ideal for Autumn Holidays

Stories of the Salem witchcraft trials have long fascinated tourists traveling to Massachusetts. The town commemorates the trials every year with a fall festival known as Haunted Happenings, which kicks off with a parade on October 1. The event began in 1981 with a “Witches Weekend” and is now a month-long series of trolley tours, ghost tours, films, nighttime ghost stories, and walkthroughs of the House of the Seven Gables. The city is full of other attractions like museums and haunted houses designed to promote the “spooky” history of Salem while demonstrating top-of-the-line Massachusetts hospitality.

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A tour of Makepeace Farms in Wareham, MA, is a popular activity during the annual Cranberry Harvest Celebration.

Fall Festivals Across the State

While popular, Salem is certainly not the only place in Massachusetts to partake in the autumn festivities. New Bedford offers the Working Waterfront Festival at the end of September, spotlighting one of America’s largest fishing ports. Visitors to Cheshire, MA, can view glass-blown pumpkins and other artisan crafts at the Fall Arts Festival. Families love the Cranberry Harvest Celebration in Wareham and, in Newburyport, the Great Pumpkin Lighting and Stroll is a must-attent event for anyone visiting in October. And, of course, visitors will still continue to pour in to the state to seek out the incredible turning of the leaves.

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Pumpkin Flavors Fuel Food and Beverage Industry

A visit to Massachusetts in autumn would hardly be complete without some food-and-drink indulgence. The commonwealth’s food and beverage industry boasted a “banner year” in 2014, and the industry predicts $13.8 billion in sales by the end of 2015. Massachusetts, which some consider to be the birthplace of craft beer, has at least ten different pumpkin beers available throughout the season. Visitors can add Mercury Brewing Company’s Stone Cat Pumpkin Ale, Samuel Adams’ Harvest Pumpkin Ale, Blue Hills Brewery’s Pumpkin Lager, to their list of annual autumn rituals. Those headed to Western MA can enjoy a break at Shelburne Falls Coffee Roasters in Shelburne and a taste of their Pumpkin Spice blend.

The sheer quantity and range of fall activities in MA (see more here), makes it a wonderful destination for just about anyone. What do you and your family like to do every fall? Send us recommendations in the comments section below and we’ll read them while sipping our pumpkin spice lattes!

How Legislation Is Fighting Airbnb in Massachusetts

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Airbnb is an online community that connects short-term renters to people with space to rent. The company began in 2008 as “Air Bed and Breakfast” and was imagined after its founders rented out airbeds in their home. Six years since its humble beginning, Airbnb has shortened its name and inflated its offerings to include small rooms for international travelers, villas for high-end business travelers, and just about everything in between. The company makes it easy to find both simple spaces and those with all the comforts of home. Hosts can post pictures and descriptions of the spaces they have available; travelers can then reserve those spaces on Airbnb’s secure website.

Airbnb Offers an “Authentic Experience” for Travelers

basic-hotel-room-doesnt-compare-to-aribnbairbnb photo

There are many benefits to using a service like Airbnb, including the opportunity to meet people from around the world without having to pay for an expensive hotel room. Airbnb hosts also tend to provide more personalized services (e.g., welcome baskets and access to cooking- and crafting supplies) that outclass those offered by most hotels. Airbnb is becoming a popular resource for small towns around the world that hope to attract tourists but have limited lodging options. Building a new hotel can cost between $300,000 and many millions of dollars, so smaller towns simply can’t afford lodging for the tourists they hope to attract. Airbnb and other short-term rental companies offer a less-expensive alternative to hotels.

Short-Term Rentals Prompt Legislative Concerns for MA

Despite the benefits of the service, some legislators are expressing concerns about Airbnb. In Massachusetts, state representatives Aaron Michlewitz and RoseLee Vincent have tried to introduce legislation that would be among the strictest in the country for short-term rentals. The measures would legalize the rental process but impose strict safety and registration requirements, as well as a 5% tax on rentals (to match the tax for hotel rooms). The taxes collected would support the tourism industry. The bill would also allow cities and towns to run inspections of short-term rentals to enforce safety codes. San Francisco, Portland, and the state of New York have begun to introduce similar regulations on short-term rentals, though many have found these rules to be ineffective.

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New Hospitality Regulations Increase Massachusetts Tax Revenue

In 2011, Massachusetts collected $562 million in hotel tax revenue; individual cities in the commonwealth collected an additional $358 million. In 2014, short-term rental sites in the city of Boston alone collected over $10 million in sales . . . and the industry shows no indication of slowing. In fact, as discovered by Rich Vetstein on The Massachusetts Real Estate Law Blog, “A recent Boston Globe article [found that] Airbnb’s website currently lists nearly 3,500 properties for rent in the Boston area—a 63% increase since July 2013.” That number continues to spike. Because traditional lodging such as hotels is so closely monitored, legislators feel that the short-term rental industry should see similar regulations.

Airbnb offers a valuable service to travelers, but it is critical that the service be safe and reliable for all who use it. By implementing laws that increase the safety of short-term rental units and require Airbnb to improve the state’s economy through tax revenue, Massachusetts is taking a step to regulate an industry that, to date, has seen little regulation in the United States.

What Do You Think?

Have you used Airbnb, or are you somehow involved in the hospitality industry? Do you think these regulations are necessary? 

Worcester Named Most Business-Friendly City in Massachusetts

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Massachusetts Small Businesses Make a Remarkable Turnaround in Just a Year

Business confidence in Massachusetts cities continues to grow . . . and you may not believe which city is at the top of the list. A recent survey of small business owners in New England ranked Worcester, Massachusetts, as the most business-friendly city in the state. When pinned against all cities in New England, Worcester was second only to Manchester, New Hampshire.

Worcester’s rise above regional hubs such as Boston and Providence caps a remarkable turnaround for the city. Business leaders agree that Worcester’s business climate is much-improved—the city received an overall grade of “B-” this year despite a lowly grade of “F” last year.

Worcester Official Sign Massachusetts

Worcester, MA Is Positioned to Expand Across All Business Sectors

Worcester and other mid-sized cities serve as a complement to Boston’s hub of finance, education, government, and professional services. They provide a hospitable climate for smaller businesses and manufacturers that may not be able to afford or be recognized in a larger city. Steve Rothschild, considered a small-business mogul in Worcester for his work with Applied Interactive, Bulbs.com, and Furniture.com, says that “Worcester is a great place to run a business because there is a well-educated workforce, an easy commute for employees, and low-cost commercial real estate.”

Worcester is particularly well-positioned because it has the history and infrastructure of a manufacturing hub but also a large service economy. The city boasts nine institutions of higher education and five major hospitals. Unlike many mid-sized cities that have struggled with population decline, Worcester has had steady population growth for the past three decades. Per capita income and education levels are on par with the state average. The combination of a well-rounded economy and an educated and skilled workforce allows Worcester to expand in many different sectors.

Downtown Worcester Ranked Business Friendliness MA

Improvement in Business Confidence “Grade” in Worcester, MA, Mirrors Massachusetts State Performance

The jump in Worcester’s business climate is consistent with the state’s improving economic indicators. The unemployment rate of 4.7% is significantly lower than the national average of 5.3%. For ten straight months, Massachusetts has increased its number of available jobs; 46,200 were added in 2015 so far—7,200 of which were added in July alone. Although most new jobs were in the education and health sectors, the state also added 1,400 manufacturing jobs in July. The Massachusetts Manufacturing Extension Partnership, based in Worcester, noted that much of the new manufacturing jobs came from small businesses with less than 50 employees. A number of jobs have also come from the booming craft beer industry in Massachusetts.

Business owners can be fickle when it comes to expressing approval of any business climate. The latest survey results, however, show that Worcester is headed in the right direction. If its trajectory continues, it will benefit not only the local economy, but the state economy as well.

Have you started a business in Massachusetts? Do you agree with the Worcester’s new grade of B-?

MA Craft Beer Industry Pours Money Into the Massachusetts Economy

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According to a report compiled by John Dunham & Associates, more than 25,900 new jobs in the commonwealth could be directly attributed to the the growing MA craft beer industry. Not only has craft brewing brought a rush of jobs into Massachusetts, it has generated over $2.5 billion in sales and taxes for the commonwealth.

MA Craft Breweries: Profit by the Barrel

Craft beer is a growing industry throughout the country—it has grown by 32% over the past few years. Simultaneously, though, large companies like Anheuser-Busch have seen their market shares decrease by as much as 7%. American beer palates seem to be evolving—or have at least begun to align more closely with the flavors of smaller craft breweries. In 1980, the Brewers Association reported that there were just 50 craft breweries in the country. As of June 2015, that number has risen to 3,739.

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Craft Brewing’s Early Days in Massachusetts

There is disagreement about the official “beginning” of the craft beer business, but it has early roots in Massachusetts. In the mid-1980s, Jim Koch went door-to-door in Boston selling his family’s home brew to local bars. He then founded the Boston Beer Company, following the huge success of his flagship beer, Samuel Adams. The company, which recorded a gross 2014 profit of over $465 million, is still dedicated to the growth of the MA craft beer industry. Early in 2015, the Boston Beer Company partnered with Accion to offer microloans of between $500 and $25,000 to small breweries. They also sponsor a hops-sharing program that helps smaller breweries obtain the hops necessary to brew India Pale Ales (IPA), one of the most popular styles of beer.

MA Craft Beer Taps Into Other Industries

Craft beer sales have significantly improved the Massachusetts economy in a number of ways. Twenty-nine cents of every dollar spent on craft beer in Massachusetts go toward personal and business taxes paid by brewers—that’s $766 million in additional tax revenue. Craft brewing has had a ripple effect on other industries as well. The agricultural industry, for example, benefits from brewers’ incorporation of fruits, vegetables, spices, and other seasonings into their beers. This experimentation has catalyzed a flux of new brews that were previously unavailable. Construction companies and contractors have been hired to renovate old warehouses and abandoned buildings into breweries, like Abandoned Building Brewery in Easthampton, MA. The manufacturing industry has benefitted from craft brewing’s bottling, canning, and labeling processes. In Massachusetts alone, brewing has created over 7,000 supplier jobs.

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Guests enjoy food and brew at Mayflower Brewery Company in Plymouth, Massachusetts.

Craft Brewing Expected to Grow Lager and Lager

As a growing industry, craft brewing has created a nationwide economic swell, with microbreweries cropping up in towns and cities across the United States. Not sure where to start? Visit a local Massachusetts craft brewery today. Recommend your favorite beers in the comments below!

Craft brewing has shaped up to be a hugely profitable and flourishing industry. We don’t know about you, but we’ll toast to that. Cheers!

cheers_to_micro_breweries_boosting_economy

Massachusetts Startup Creates Database to Connect Manufacturers

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While experts have regularly acknowledged the decline of the manufacturing industry in America, they have done very little to reverse it. An innovative, new-business incubator in Somerville, MA is starting to take steps in a better direction.

Greentown Labs—A Manufacturing and Technology Incubator

Greentown Labs assists other startups in the technology and manufacturing fields. Like many business incubators, it incorporates a cooperative working space for startups. However, unlike the others, Greentown also offers prototype-manufacturing space, shared machinery and shop tools, and a large event space. In total, the lab offers 33,000 total square feet of creative space for their companies. Manufacturing startups at Greentown are provided with the necessary infrastructure to move their company from conceptual stages to actual production- and revenue-making stages.

Greentown Labs currently hosts 40 companies and supporting organizations that employ over 300 people. Not surprisingly, many of Greentown’s companies specialize in clean technology and the energy industry. The lab also boasts an impressive list of energy-conscious alumni that have “graduated” into their own spaces.

Connect Green Startups Boston Massachusetts

Not only do Greentown companies have a versatile physical space to use, they also utilize the services of “sponsor companies” to assist their operations. For example, members are granted access to sponsor-supplied software at little to no cost to their company. Additionally, members have access to marketing, human resources, graphic design, insurance, and other services. Companies working in the incubator also have the all-important opportunity to network and collaborate with other startups.

Bringing Manufacturing Innovation Back to the Bay State

Incubators such as Greentown Labs make it easier for startups to bring manufacturing job opportunities back to Massachusetts. Over the past several years, Boston has quickly emerged as one of the country’s leading technological hubs. While major research universities such as MIT and Harvard play a role, a business incubator devoted to manufacturing provides a unique, invaluable advantage to the Boston area.

Massachusetts Business Incubator Is Popular Among Politicians

The incubator philosophy has not gone unnoticed by local business and government leaders. During a recent visit to the Greentown Labs, Massachusetts Senator Elizabeth Warren said they were “the best of what America has to offer.” She said that it is crucial to “level the playing field” between startup initiatives and technology giants; this will help prevent the behemoths from dominating the industry. As Greentown Labs continues to nurture these successful startups, we look forward to their growth and the positive impact they will have on our economy.

Greentown-Labs-Connects-Manufacturers

The Push for a Graduated Income Tax in Massachusetts

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Raise Up Massachusetts, a coalition representing religious leaders, liberal community organizers, and unions, is advocating a constitutional amendment to raise income taxes on the state’s wealthiest residents. The proposal, which would affect those earning more than $1 million annually, would reportedly bring in additional revenue of up to $1.4 billion per year.

The Massachusetts Communities Action Network, one of the coalition’s co-chairs, has indicated that the additional revenue would be earmarked for education and transportation, two areas where a number of needs have gone unmet over the past decade.

Taxes

Raise Up Massachusetts has previously lobbied the state legislature to raise the minimum wage and was successful with a ballot initiative that required employers to provide earned sick time to their workers. The constitutional amendment process, however, will take three years and will most likely face fierce opposition for anti-tax groups.

All Massachusetts residents currently pay a flat 5.15% income tax that will reportedly decrease to 5%. The “Fair Share Amendment,” as it’s called by its proponents, would raise taxes to 9% for those earning more than $1 million annually. The 9% rate would only apply on income over $1 million. Approximately 14,000 tax payers would be affected by the proposal, which comes at a time when legislators are renewing efforts to require those with higher income to take a greater responsibility in the taxation process. The “Fair Share” moniker comes from the fact that low and middle income taxpayers contribute more of their disposable income under a flat-rate system than the most affluent taxpayers.

kid writingProponents say the increased taxes could fund road and bridge reconstruction, investment in the MBTA and other regional transit bodies, and education funding— particularly for early intervention and post-high-school initiatives. Since 2002, state funding for education has failed to keep up with inflation, resulting in cutbacks in many school districts.

Opponents say that the proposal, if passed, would drive wealthy individuals away from Massachusetts. Voters have previously rejected ballot initiatives to move from a flat tax to a graduated income tax rate. A 1994 vote defeated a graduated tax rate with a 9.8 top rate, while a ballot question to establish a graduated income tax in 1972 was also defeated.

Want to contribute to Mass Business Blog? We are now accepting guest blog submissions! Have a lead on a story you want to see us report? Contact us at editor@MassBusinessBlog.com.

Massachusetts Tanning Ban Has Teens Seeing Red

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Massachusetts legislators have initiated a push to make it illegal for teens under the age of 18 to use or operate tanning beds. A bill requiring tanning salon employees and patrons to be 18 or older, An Act Further Regulating Tanning Facilities, was passed without contest in the Massachusetts House last week. Ten states in the US have similar laws already in place, but the current campaign in Massachusetts has been met with some heated debate.

Tanning: A Well-Known Risk

There is no argument against the fact that sunless tanning under high-intensity UV bulbs has been proven to increase the likelihood of certain skin cancers. The risk for melanoma, the deadliest form of skin cancer, increases by 74% when individuals use indoor tanning beds. Studies show that nearly 30% of white female high school students use tanning beds, and 17% use them regularly. According to Senator James Timilty, co-chairman of the public safety committee, much of the UV exposure that leads to skin cancer is incurred in the childhood and teenage years. Diagnoses of melanoma have gone up 200% since 1973.
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Requirements of the Tanning Ban

If successful, the Massachusetts tanning ban would require teens between the ages of 16 and 17 to be accompanied by a parent or guardian. Young adults under the age of 16 will need a “written prescription from a physician” in order to tan—a script not many doctors are likely to ever hand out. The contention surrounding the tanning booth debate centers on what many consider to be an overreach by the “nanny state.”

Under the current state law, teenagers between the ages of 14–17 must present a written copy of parental consent before they are allowed to tan. Adherence to this regulation is predictably inconsistent. Not only can teenagers forge a note from Mom or Dad, but many establishments may not even bother asking for one. If the proposed bill is passed into law, teenagers will need to bring their parents along with them if they want to sun themselves indoors.

Is the Massachusetts Tanning Ban Unfair?

There are those who feel the ban would be an overreach by the state, interfering with a parent’s right to determine what is best for their child. Proprietors of tanning salons have pointed to a potential loss in business as a reason not to pass the new restrictions.

Proponents of the ban claim that banning teens from using tanning beds is a necessary step for ensuring teen health. Is it essential for teens to have access to a luxury service that radically alters their appearance and introduces them to the cosmetic trends of adults? Supporters of the ban believe that setting stricter limits on teen access to tanning is the only responsible option.

Your Turn!

What do you think? Do you allow your teenager to use tanning beds? Why or why not? Comment below.

 

Massachusetts Manufacturers Continue to Reshore Operations

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The reshoring trend continues as Massachusetts manufacturers bring their operations back home. Companies, such as Energid Technologies Corp., are making the leap back to US soil to avoid external costs from unpredictable tariffs, foreign bureaucracy, and additional shipping charges. It seems the emerging economies of countries such as China and India have finally made outsourcing the less profitable option.

Energid is in good company among more than 350 US businesses that have chosen to reshore their operations. The influx has brought nearly 40,000 manufacturing jobs back to the United States over the course of the last five years. 3,000 of those jobs have returned to the Northeast, with 600 to Massachusetts, according to the Reshoring Initiative. While these new positions still represent a very small portion of the available manufacturing jobs in the US, expert economists say they are a very positive sign of the industry’s post-recession rebound.

Competitive production, automation and the complexity of today’s products have created a need for increased collaboration between designers, engineers, and production lines. Massachusetts remains a prime location for most manufacturing industries due to access to highly trained engineers and innovators from places like MIT. Despite this, there is still an observable labor shortage in the manufacturing industry as skilled workers are retiring with fewer young people coming in to take their place.

Manufacturing resources like MassMEP are exploring initiatives to increase the number of motivated and highly trained workers coming into the manufacturing industry. MassMEP is currently teaming up with UMass Lowell to deliver the Advanced Computer Numerical Control Training Program in Massachusetts, which would value and merit to the industry while encouraging young individuals to get their certification and consider a career in manufacturing.

Other resources are helping businesses overcome the initial expenses of re-locating their operations back to the US. MassDevelopment, a quasi-public industrial development agency, has helped several companies reshore operations with loans of up to, and in some cases exceeding, $1.5 million.

Massachusetts Economic Growth Is an Encouraging Sign for Businesses

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At the recent Economic Summit breakfast, hosted by Randolph Savings Bank, economic expert Dr. Elliott Eisenberg confidently declared that the state of Massachusetts is not in a recession. Corroborating data shows that since the beginning of 2015, Massachusetts economic growth is moving at a steady pace that exceeds the national average.

According to Eisenberg, the chances of a recession in the next six to twelve months is less than 5%. Although the change has not been a drastically positive one, the economy is still moving steadily forward. The trend in growth is a positive sign for growing businesses in the area, despite some factors that remain a point of concern. The number of experienced baby-boomers retiring from the work force, deteriorating fiscal conditions, income inequality, and the negative after-effects of a brutal winter could be troublesome if not resolved carefully.

However, the rising trend in financial growth sheds a positive light on the future. There has been a significant increase in job opportunities thanks to thriving industries such as technology and software development. Many experienced workers are re-entering the workforce and a population boom has provided additional able bodies to fill available positions.

For business owners, this is the perfect time to lay the foundations for growth. The Federal Reserve Bank of Boston has been kept under pressure to maintain current interest rates in order to nurture financial growth in the state. Experts anticipate that any raise in rates would be gradually implemented as inflation requires, as opposed to previous hikes that were made in an attempt to quell a boiling economy.

The current financial atmosphere smacks of opportunity. Businesses considering expansion, either by hiring more personnel, constructing new venues, or investing in new equipment are being encouraged to act now. For those who are not quite ready to push forward, experts advise securing capital for growth objectives before interest rates increase. Massachusetts is now leading the US economy in terms of growth, and Massachusetts businesses stand to gain significant financial ground if they take advantage of the opportunity.