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National Economic Slowdown Won't Dampen Madison's Development Efforts

Business costs may be rising due to circumstances beyond the control of many business owners, but Madison has attributes that will actually reduce your operating costs, including low electricity rates and affordable labor and attractive real estate prices. Record-high fuel prices, a weak U.S. dollar and the trouble in the housing and financial markets have filled the news but have not altered the town's robust economic development efforts.

Madison, Maine's downtown Main Street

There are several projects in progress, including a planning grant application to examine development opportunities in the downtown area and ongoing, targeted outreach to business prospects that might have expansion or relocation plans.

"In light of economic uncertainty within our economy, businesses always need to look at locations that will benefit their bottom line," noted Brian Hamel, a business consultant that works with the town. "Available and skilled labor, affordable electricity, low land costs and tax incentives are all items that companies look for in good times and bad - and we have these attributes, and more, in Madison."

Previously, Hamel served as President & CEO of the Loring Development Authority of Maine and led efforts to redevelop the former Loring Air Force Base after it closed and devastated the regional economy. The subsequent local drive for development was the catalyst to the rebound of the northern Maine economy.

While not national in scope, the Loring story provides some evidence that local development efforts can indeed have big payoffs. John Blair, an economics professor at Wright State University, has argued that local development efforts can improve competitiveness in the larger economy. In a 2004 article in Competitiveness Review, Blair highlights how through various benefits local areas offer - labor, energy and incentives - companies can maximize their profits and efficiency. Businesses will locate where they can gain a competitive advantage and then prosper. When localities compete for businesses, business benefits and boosts production and profits.

While the actuality of an economic slowdown in Maine is uncertain, local economist, Charles Lawton at Planning Decisions, Inc., addresses this uncertainty on his organization's Web site, but argues that we should "redouble our efforts to build on our strengths...highly skilled and highly-motivated people and wonderful places to live." He notes that recessions come and go, but Maine should focus on long-term assets that will be of benefit to any business.

Madison town manager, Norman Dean, agrees, "Regardless of the state of the national economy, we can provide companies with a solid labor force, real estate that has not seen the bubble-inflation like other parts of the county, low-cost electricity and a number of tax incentives that can help businesses thrive in any economic climate." He continued, "Madison is ready to do business today, tomorrow or eight months from now. The attributes that draw businesses like Backyard Farms to us are not going away and we're ready to welcome new companies and show them how we can contribute to their success."

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