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Press Release: May 11, 2004

Congressman John W. Olver
1027 Longworth House Office Building
Washington, DC 20515-2101

Tel: 202-225-5335
Fax: 202-226-1224

FOR IMMEDIATE RELEASE

CONGRESSMAN OLVER HIGHLIGHTS PROGRESS ON ECONOMIC PLAN FOR NORTHERN TIER

WASHINGTON - Today, Congressman John W. Olver (D-1st District) announced that local officials and economic consultants have been working under a federal grant to create a strategic plan to rebuild the economy of the Northern Tier region of Massachusetts.

Olver said the strategic plan being developed holds great promise for retaining existing trade and industry while broadening the region's economic engines.

"The strategic plan will chart a course for improving the economy and quality of life in the Northern Tier, which makes up a large part of the first congressional district," Olver said. "The group of consultants and local stakeholders has been working diligently on this plan. They are dedicated to finding concrete ways to cultivate the economy of a region that has been challenged by the loss of its manufacturing base."

Olver praised the progress made by the working group. He added, "They aren't just looking at why things are the way they are - they are creating the first action plan to change the economy for the better over the long term."

Mt. Auburn Associates of Northampton, a consulting firm specializing in economic development issues, has been working since October 2003 with a steering committee of regional planners, economic development and housing officials, and political and business leaders in the region to develop the plan.

A $150,000 grant Olver secured in the FY2003 federal budget made the work possible.

The Northern Tier region is in northwest Massachusetts, running from the New York border east to Gardner. The decision to concentrate on the Northern Tier grew out of a previous analysis of the state showing that 32 of the poorest 50 communities in Massachusetts are in the first congressional district and that the communities along Route 2 create a solid block of the poorest communities in the state.

Armed with these statistics, Olver secured the funding for the Franklin Regional Council of Goverments (FRCOG). Last fall, FRCOG contracted with Mt. Auburn Associates, and a steering committee was formed. The strategic plan will be complete in September 2004.

To date, Mt. Auburn and the steering committee have analyzed the region and chosen seven key areas on which to focus. During the next phase - between now and June - the group will conduct more in-depth research around these areas. In June, the team will invite the public to weigh in on the strategic plan as it begins its final phase.

The working group has identified five key areas tied to the goal of expanding the region's traded economic base. They are manufacturing, alternative and renewable energy, creative economy, eco-tourism and recreation, and entrepreneurial development. In addition, the group targeted two areas - health care and manufacturing - that could provide job opportunities and avenues for career advancement for low-income and low-skilled workers.

The team considered how each target area would respond to growing market opportunities, capitalize on assets - such as the region's educational institutions, scenic beauty and natural resources - and enhance the image of the region to attract and retain investments, firms and workers. The group also considered how infrastructure, the region's capacity for economic development and the education of the population will affect these target areas.

The Northern Tier faces unique economic challenges that stem from the loss of its historic manufacturing base. This economic engine generated good-paying jobs for a large force of blue-collar workers and supported the vitality of communities. As manufacturing began to decline, though, it was not replaced by a comparable industry. As a result, households in the Northern Tier have earnings well below the state average and experience higher rates of unemployment and poverty.

Michael Kane of Mt. Auburn Associates said, "To date, there has not been the kind of analysis that looks at the structural weaknesses of this region. This will be the first strategic plan that considers how to rebuild the region's economic base that has been so weakened by the loss of manufacturing."

Kane added, "However, manufacturing still remains an important source of good paying jobs. Therefore, the goal is to retain existing manufacturing jobs and expand the region's economic base."

One important step toward improving the economy of the region is to identify new economic engines, especially in traded industries that can supply and sustain good-paying jobs, consultants say. But, this alone will not reduce concentrated poverty and increase incomes for local workers, as workers from surrounding regions could fill jobs created in new and expanding industries. Another goal of the strategic plan is to match residents, especially lower income workers and workers with less formal education, with career opportunities.

Work on the strategic plan has involved research and interviews. The working group has been studying economic and demographic data collected from federal and state sources, including the census, and reviewing existing local and regional economic reports. The team has also interviewed about 60 people including business people, local and state elected officials, directors of chambers of commerce, heads of arts organizations, hospital administrators, community college presidents, heads of community development organizations, directors of social and human service organizations and directors of regional employment boards.

The Northern Tier region includes all towns in Franklin County, the Berkshire County towns of Adams, Cheshire, Clarksburg, Florida, New Ashford, North Adams, Savoy and Williamstown, and the Worcester County towns of Ashburnham, Athol, Gardner, Hubbardston, Petersham, Phillipston, Royalston, Templeton, Westminster and Winchendon. Route 2 and Interstate 91 are the main transportation routes in the region.

The steering committee includes Linda Dunlavy, Executive Director of the Franklin Regional Council of Governments (FRCOG), Nat Karns, Executive Director of the Berkshire Regional Planning Commission, Robert Hubbard, Director of the City of Gardner's Department of Community Development & Planning, Paul Douglas, Executive Director of the Franklin County Regional Housing and Redevelopment Authority, Laila Michaud, Montachusett Regional Planning Commission, Peggy Sloan, Director of Planning for FRCOG, Jim Canavan of North Adams and Congressman Olver.

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