A June 1 guest column in the Gazette noted that rising costs are creating challenges for families, as well as for the city. Since costs are not likely to go down in the future, a potential solution for families and the city is to develop a plan to grow the city’s economy and thereby generate increased and new sources of revenue.

A strategic economic development plan for Northampton has several benefits.

  • Currently, there is little data or research-driven analysis that delineates Northampton’s competitive assets, challenges, and opportunities. An economic plan would provide us with significantly more information on how our economy works and what is required to put it on a path toward sustainable growth.
  • Our city economy, like many others, hasn’t fully recovered from the pandemic and needs a strategic focus and an emphasis on new markets and business opportunities.
  • Our local economy is being impacted by the rising cost of materials, federal funding cutbacks, tariffs, and a global economy in turmoil. It is imperative to understand how these conditions are affecting our economy and how to mitigate their negative impacts.
  • Northampton is one of the pillars of the Hampshire County economy. If the city’s economy is strengthened and becomes more competitive, it will certainly help the city and it will also have an overall positive impact on the health and competitiveness of the regional economy.
  • A vibrant local economy will lead to an increase in tax revenue for the city.

A strategic economic development planning process would have several key components.

1. An analysis of the city’s economic base.

This would help us understand our principal economic sectors: e.g., construction, finance, small manufacturing, retail, hospitality, healthcare, education, and arts and the creative economy. It would also help us assess what sectors have grown and which have declined over the last 5 to 10 years, and show what sectors need special attention. Finally, it would measure job growth or decline in certain sectors and determine what the underlying causes are.

2. An evaluation of the factors that influence growth.

  • Infrastructure: report on our current infrastructure (water, sewer, utilities, and broadband) and assess how sustainable and responsive it is to the city’s economic needs.
  • Workforce: identify the strengths and challenges of our region’s workforce, as well as the current education and training system’s ability to prepare people for a dynamic job market.
  • Childcare: evaluate what is needed to ensure there is an adequate supply of affordable and quality childcare in the region.
  • Housing: explore ways to ensure the region has available, affordable, and quality housing to attract and retain a qualified workforce.
  • Business dynamics: analyze how artificial intelligence (AI), teleworking, flexible scheduling, supply chains, and industry clusters are impacting the city and regional economy.
  • New business models: explore the potential to create new businesses, such as worker cooperatives.

3. An identification of key economic resources for the city.

This would include resources that are available from the state — for example, Mass Development and its many financing and investment programs. It would also include resources that are available through the Five/Four College Consortium, especially in technology, engineering, innovation, and entrepreneurial development. Further, it would include capital that could be available from area banks and financial institutions.

If Northampton undertakes an economic development plan, it will find itself in good company. Cities throughout Massachusetts and New England have recognized the benefits of a plan and are using the plans to chart a path to economic strength and resilience. Bangor, Maine, a city of roughly 30,000 people, is one of many examples.

The structure, components, and overall thrust of Bangor’s plan could serve as a model for Northampton (https://bettercity.us/wp-content/uploads/2023/04/BangorStrategicPlan2022.pdf).

An outside consultant should be retained to conduct the research and to create the plan. The cost of an economic development strategic plan is estimated to be $50,000-$60,000. The consultant would work under the direction of an Economic Development Advisory Committee made up of a cross section of stakeholders — city staff, City Council members, business and building owners, educators from the Five/Four Colleges, entrepreneurs, the Chamber of Commerce, the Downtown Northampton Association, the Valley CDC, and economic development organizations like the Western MA Economic Development Council. The Advisory Council would help oversee the development and the implementation of the plan.

An economic development plan will provide the direction for strengthening Northampton’s economy and municipal finances for years to come. Now is the opportune time to undertake the plan.

Michael Kane worked for 30 years in the field of economic development as a practitioner and strategic planner. He worked on projects in New England and in other states and regions throughout the country.