By Ramona du Houx
More than 50 leading figures in Maine’s business, academic and political circles have become committed to ending the state’s economic stagnation. Their group, FocusMaine, aims to work with three promising industries in a concerted effort to grow 20,000 to 30,000 jobs over the next 10 years across the state.
After FocusMaine concluded it’s first project, a $100,000 survey of Maine’s economic landscape by global research firm McKinsey & Co., the consortium announced the group’s objectives to the press.
“We thought, ‘If we’re going to do this, let’s let the data drive the process and be the decision maker,’” said Mike Dubyak, chairman of the board of directors for WEX and its former president and CEO.
“FocusMaine made it a core principle to identify three industries that offer the greatest potential to grow traded jobs in the state,” wrote Karen G. Mills is a senior advisor at the Harvard Business School, former administrator of the U.S. Small Business Administration and part of the leadership team of FocusMaine in an Op-ed in MaineBiz with Dubyak.
The survey identified three key sectors where jobs would grow exponentially, raising incomes and the quality of life for all of Maine.
Salmon in a DownEast hatchery. Photo by Ramona du Houx
“Agriculture, aquaculture and biopharmaceuticals were chosen because Maine's inherent strengths in these sectors allow to us to compete nationally and even internationally in those growing markets,” wrote Mills in the MaineBiz Op-ed with Dubyak.
In aquaculture U.S. fish consumption has risen by 23 percent since 1990, and we import almost 90 percent of select fish products, most of which are farm raised. Maine has many small aquaculture operations; some who don’t want to get any bigger, while others do but they’ll need to build connections with businesses, gain advice and even get to know potential investors. FocusMaine could become the bridge that would connect Maine’s entrepreneurs with the expertise and people they need to know.
The same could be said for the agriculture sector that has had an influx of young organic famers, but lack connections that could help their operations flourish. The number of farmers aged 34 and younger grew by nearly 40 percent from 2007 to 2012, during the same time there was an increase in 1,326 agricultural jobs—during the recession, while other jobs declined.
There has been 10 percent annual growth in pharmaceutical contract research and manufacturing from 2005 to 2011 in Maine. As a strong biopharmaceutical cluster in Massachusetts continues to expand and their Boston based will need more affordable locations for manufacturing, and Maine fits the bill.
Dubyak has been avidly working with Pierce Atwood partner Andrea Cianchette-Maker, co-chairwoman of the FocusMaine leadership team with Dubyak to develop Focus Maine, which has dozens of banks, policy-people, business and education leaders on board with the objective to grow Maine’s economy. FocusMaine’s mission is to be a catalyst to accelerate growth, helping insure that companies large and small in these three industries have the resources to grow, compete and create jobs.
“We have to develop the high priority strategies and which of those would require or benefit from government support,” said Cianchette-Maker.
Hence there are teams focused on political, academic and research aspects of developing the 10-year plan. Its government advisory group includes former Gov. John Baldacci and former Gov. John McKernan.
“I'm very proud to be part of this first class team of job creators. The focus isn't trying to be everything to everybody. We’ll take a few key sectors and become the world's best in those fields — agriculture, aquaculture and the life sciences manufacturing. I believe with more jobs in these sectors it will create a picture that ties all Maine together,” said Former Governor John E. Baldacci.
The principle leaders of FocusMaine have built smaller organizations into larger ones. Hence they are turning their skills to smaller businesses with the potential to expand. The list of over 50 leading Maine figures on FocuMaine’s website speaks volumes about the seriousness of the group.
“What it will take is a sustained, collaborative effort, which we know is possible. It will require business leaders, government, educators, labor, foundations, entrepreneurs and many others in our community to all come to the table and work together. The result will be more good-paying jobs and greater opportunities for people all across our state,” wrote Mills in the MaineBiz Op-ed with Dubyak.
Before Mills worked for the Obama administration she was put in charge of Baldacci’s efforts to boost Maine’s economy by working with lawmakers, stakeholders and researchers focusing on growing cluster areas identified as having potential. She successful helped kick start the Maine Technology Institute (MTI) grant program—Cluster Initiative Program (CIP) for collaborative projects that boost Maine’s high-potential technology-intensive clusters. FocusME received a CIP grant with the Gulf of Maine Research Institute.
FocusMaine intends to concentrate on aquaculture first, funded in part through that $100,000 MTI grant. FocusMaine, has already raised about $700,000 in grants and contributions from at least 20 Maine companies and nonprofits.
There are key reasons why FocusMaine has trade sector jobs in their sights—
Traded sector jobs on average pay an average $50,400 annually, nearly double the average job in the state. In the trade sector, employees tend to stay longer in the company, then workers in lower paying jobs do. Good paying jobs will help keep young educated Maine workers in the state, too often they leave because of lack of employment opportunities.
The ripple effect from a worker who spends his earnings in his community helps to support 1.6 additional local jobs.
“We believe that with a focused effort in these three sectors, over the next 10 years we can create an additional 8,000 to 10,000 traded jobs across the state, along with an additional 12,000 to 20,000 local jobs. That's a total of 20,000 to 30,000 jobs,” wrote Mills in the MaineBiz Op-ed with Dubyak.
In 1980, traded sector jobs in Maine represented 40 percent of the state's total jobs. Today, traded sector jobs account for only 27 percent of Maine's total workforce, a decline that has bought the state well below the national average of 32 percent.
“This loss of traded sector jobs has had the duel effects of out-migration of young people seeking better jobs and declining overall income as we become more and more dependent on lower-paying local jobs. Had Maine maintained a traded sector workforce equal to the national average of 32 percent, we would have 35,000 more traded sector jobs and, because of the multiplier effects, 55,000 additional local jobs,” MaineBiz Op-ed with Dubyak.
Some major well known FocusMaine leaders:
- Michael Dubyak, former WEX Inc. president and CEO (co-chair)
- Andrea Cianchette Maker, partner at Pierce Atwood (co-chair)
- Eleanor Baker, Baker Newman Noyes co-founder and principal
- William Caron Jr., president of MaineHealth
- John Fitzsimmons, former Maine Community College System president
- Karen Mills, former U.S. Small Business Administration administrator
- Robert Moore, president and CEO of Dead River Co.
- William Ryan, former chairman and CEO of TD Banknorth
- David Shaw, founder and former CEO of Idexx Laboratories Inc.