Business, education and government leaders took part in a roundtable discussion hosted by UNH on the state’s business climate today [yesterday]. NHPR’s Dan Gorenstein reports that by and large, participants say New Hampshire’s economic future is bright.
Business, education and government leaders took part in a roundtable discussion hosted by UNH on the state’s business climate today [yesterday]. NHPR’s Dan Gorenstein reports that by and large, participants say New Hampshire’s economic future is bright.
Track 2
:32 the genesis of this event lay in the gathering one month ago, with people from business community, to talk about the climate in NH, and in particular to address, that the signals, and what we read are very mixed.
Dr. Stephen Reno, chancellor of the University System of New Hampshire and moderator of the roundtable says media coverage of the economy’s downturn has been varied and confusing. Imminent slowdown. Imminent recovery. He says what’s been missing in the coverage is a thorough economic assessment of the state.
To that end, University of New Hampshire Economics professor Ross Gittell was invited to give a presentation of national and state trends.
Track 29
3:03 the second quarter of 2000 we were at double-digit growth, and then we had a deceleration of growth, now we are into negative growth. And it feels like a depression but it really, we are the same level of the national rate, we have fone from a much stronger economy than nationally, to a national rate which is in recession.
Gittell says NH is well poised for a recovery when the nation recovers. He points to the state’s strong entrepunerial tradition and its high tech sector, the second largest in the nation. But high tech growth hasn’t come easily.
James McKim is a high tech industry consultant and a member of the software association of New Hampshire. He says the association has to spend a lot of time, teaching the banking community what software companies are all about.
Track 8
5:38 B/c there are no tangible assests to a soft ware company, it is all knowledge. Banks didn’t quite understand, and they rejected a lot of applications from software companies, b/c there is no collaterall.
According to McKim, because bankers are beginning to attend meetings with techies, new relationships are being formed. He says high tech is transforming the state’s economy. On the other hand, according to Business and Industry Association President John Crosier, the state is losing some of its traditional industries.
Track 22
1:00 Automotive manufacturing will not return. Telecommunications is being consolidated. Those will have an impact. We are going to see a shrinkage of some of the core business we have relied on in the past.
Unemployment is up. The high tech sector is not doing great. Doom and gloom abound in the mass media. But Brian Johnson, former head of the New Hampshire Lodging and Restaurant Association says for the hospitality industry, it’s more of a ying yang thing.
Track 25
When things are bad, for some of the people around this panel, it is very good for us. The hospitality industry is constantly looking for good people. When unemployment raises, it makes it easy for us to get good people into the hospitality industry…
Many panel members say they want to get out a message- hey, we’ve got venture capitol, we’ve got a workforce, and things just aren’t that bad; whether that is the retail, hospitality, or high tech sector in New Hampshire.
UNH economics professor Ross Gittell agrees. He anticipates New Hampshire will be the first state in New England to leave the recession sometime in the middle of 2002. But he cautions, as the state continues to morph from a industrial age labor economy to a high tech one, the private sector can reduce displaced workers by investing in training and education.
5:56 And look at human capitol as a long term investment. Don’t respond to the immediate market situation with cutbacks and decline in investment. Treat them as long-term investment.
Unemployment in New Hampshire stands at 3. %. An increase of % from For NHPR, I’m DG
