| |
Tech Executives Cool on Mass. Economy High Housing Costs, Health Insurance Seen as Drags (Lowell Sun)
BURLINGTON — The chief executives of high-tech companies are increasingly pessimistic about the Massachusetts economy, according to a survey released yesterday by the Massachusetts High Technology Council.
Of more than 100 executives polled, 70 percent rated the state's “technology climate” as outstanding or good, down from 84 percent last year and in 2004, but still higher than 2003's 64 percent.
But only 20 percent of CEOs see their prospects improving, down from 38 percent in 2005 and 45 percent in 2004. Twenty-one percent said the business climate is worsening, up from just 4 percent last year.
Gov. Mitt Romney was at the MHTC's annual meeting, held yesterday at the Burlington Marriott hotel, to address the challenges facing Bay State companies. Romney agreed with the council's assessment that the high costs of housing, health insurance, and unemployment insurance are fueling discontent in the business community and dissuading companies from setting up shop here.
The governor fingered the cost of buying a home in Massachusetts as the top impediment for businesses. A high cost of living makes it extremely difficult for companies to attract top-notch employees, Romney said.
The problem is compounded by the United States' increasing inability to produce quality “knowledge workers” in science- and math-related fields, Romney said. He pointed out that Asian countries such as China are handing out doctorate degrees at a much faster clip, giving those nations a larger supply of workers for companies to choose from.
Romney also emphasized the need for more and better math and science teachers.
“Unless we change things in this country we could end up being the France of the 21st century,” he said, referring to the potential for the U.S.' superpower status to wane. “We need to invest a lot more money in technology.”
Massachusetts is at a disadvantage even within this country, according to Paul Gudonis, outgoing chairman of the MHTC.
“We don't have the resources to compete with other states,” he said.
Gudonis' replacement, John Bertucci of Wilmington-based MKS Instruments, said his company has offices in Colorado and Texas — states with a much more favorable business climate, especially when it comes to insurance. Economically, it makes more sense for MKS to add employees in its western locations, Bertucci said.
“Health insurance and unemployment insurance are burdens on our operations that don't exist in other states or other countries,” Bertucci said. “We have a Legislature that doesn't understand the competitive world we deal with.”
While the MHTC generally sees eye to eye with Romney, the organization has been frustrated by a perceived lack of response on Beacon Hill to businesses' concerns.
With that in mind, the council plans to introduce an online tool to track legislators' decisions that affect the business community. Tops on that list right now is an initiative to provide universal health insurance, in part by taxing businesses who spend less than a specified amount on health care for employees.
The MHTC opposes that plan.
Bertucci said the council will also focus on educating 2006 gubernatorial candidates on key issues facing high-tech companies. m/b.
|
