Boston’s Economic Outlook: Leaders Highlight Strength and Future Growth

Welcome to Invest: Digest, our weekly newsletter on LinkedIn, featuring articles selected by our editors that capture some of the transformative developments and trends reshaping U.S. metro areas.

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• Atlanta continues to strengthen its position as one of the nation's most dynamic cities, driven by economic diversity and collaborative leadership, as highlighted during the Focus: Atlanta 2024-2025 Launch Conference. Over 250 regional leaders gathered at the High Museum of Art to discuss the impact of transportation, education, and the financial sector on the city's growth. Key topics included the role of MARTA in supporting transit-oriented developments, the evolving role of higher education in shaping the workforce, and the banking sector’s efforts to support small businesses amid inflationary pressures. Capital Analytics CEO Abby Lindenberg noted Atlanta's continued growth, citing its strong business environment, diverse population, and quality of life as reasons for its economic success. The conference panels featured insights from leaders across industries, emphasizing the importance of equitable development, financial education, and adaptability in education to meet future workforce needs.
• Boston's dynamic business landscape will take center stage at the Invest: Boston 2024 Launch Conference on Friday, Nov. 15, from 8:00 a.m. to 11:00 a.m. at the UMass Club. The event marks the second release of Capital Analytics’ comprehensive report on Greater Boston and Massachusetts' key industries. Bringing together top industry and community leaders, the conference will provide insights into Boston’s unique advantages, such as its skilled workforce and culture of innovation, while also addressing the challenges of rapid growth and technological disruption. Key panels will cover the role of life sciences and education in shaping Boston’s future, the evolution of urban spaces with a focus on sustainability and affordability, and the impact of technology on the financial services industry. Attendees will gain valuable knowledge from industry leaders and have the opportunity to network with hundreds of high-level guests.
• Due to the impact of Hurricane Milton, Capital Analytics has rescheduled the Invest: Greater Orlando launch conference to Thursday, Nov. 7, allowing the community time to recover. The event will run from 8 a.m. to 11 a.m. at the Inter&Co Stadium’s West Club. The conference aims to showcase the resilience of the Greater Orlando region as it continues to thrive despite challenges, with a focus on innovation in sectors such as tech, manufacturing, and aerospace. Key panels will cover topics like harnessing technology for growth, building sustainable communities, and aligning education with the region's economic needs. Attendees will include nearly 200 executives and officials from Central Florida, with opportunities for networking and discussions on the forces shaping the region's future.

Quote of the week

We have the opportunity to provide mobility at a level far greater than anyone has ever imagined. - Nat Ford , CEO, Jacksonville Transportation Authority

Boston leaders express growing optimism on strength of the economy

Writer: Andrea Terán

2 min read October 2024 — Boston’s business leaders are expressing optimism about the local economy as the city continues to expand and attract investment across multiple sectors.

Boston’s economy continues to show improvement, with public and private sector leaders ranking the region’s economic strength at 3.86 out of 5 in the latest Capital Analytics Business Sentiment Survey (CABS). This marks a significant rise from the previous quarter's score of 3.70, reflecting growing confidence in the city's economic health.

As one of the nation’s key innovation hubs, Boston remains a leader in industries such as education, healthcare, life sciences, and real estate. The city's life sciences sector continues to drive growth. The Healey-Driscoll administration recently announced $21.4 million in tax incentives for 19 life sciences companies, which is expected to create over 1,100 jobs. This follows a long-standing commitment to expanding Massachusetts' life sciences footprint, with the sector already having generated over 18,000 jobs since the Massachusetts Life Sciences Center’s (MLSC) inception.

This renewed confidence aligns with key economic indicators highlighted in a recent report by the Boston Planning and Development Agency (BPDA). The report shows that Boston’s employment, consumer spending, and tourism have either rebounded or exceeded pre-pandemic levels. However, challenges remain, particularly in housing affordability and empty office spaces.

Boston’s economy has made significant strides. The report found that Boston gained 10,000 jobs in 2023, returning employment levels to where they were in 2019. Sectors such as healthcare and social assistance saw notable gains, adding over 7,700 jobs above pre-pandemic levels. Consumer spending also recovered, reaching 96% of 2019 levels, with some neighborhoods exceeding pre-pandemic spending activity. Boston’s business leaders recently shared their insights with Invest: on the city’s strengths.

Kate Dineen, Executive Vice President & Chief Operating Officer, A Better City

Boston has so many competitive advantages, from our accessibility via Logan Airport and Amtrak to our renowned cultural institutions. Our talent here in Boston is second to none, especially when it comes to our education, professional services, healthcare, and life sciences sectors. We are certainly recognized as a global leader in these fields and there is also a real opportunity to become a global leader in climate tech by fostering the technologies needed to achieve our very aggressive emissions reduction targets and ensure that we are adapting to the effects of climate change, like sea level rise and extreme temperature.

Darryl Fess, President & CEO, Brookline Bank 

Boston is an incredible market to be in. Banking is highly competitive, as there are still well over 100 banks operating in Massachusetts. In some other parts of the country you don’t have that level of choice, but we don’t mind competing. Boston has an awful lot going for it across multiple industries. We have some of the best schools in the world, which attract new jobs. Our city’s economy is diverse, with strength being cultivated through education, biotech and finance. Boston’s walkability and intellectual environment make it an attractive place to live and do business. There are myriad legs to our economy, so if one sector is suffering, it doesn’t necessarily cause a major problem for us in terms of the overall economy. It’s a great place to do business, especially if you need a well-educated workforce to help you grow.

Stephen Johnston, General Manager, Boston Harbor Hotel

Boston is a unique city because of the history we have here. It is one of the oldest cities in the United States and it is the closest major North American city to Europe, as evidenced by our architecture and city design which is influenced by European design. We have a very diverse culture and there are many industries that have a strong foothold here that make it an interesting region, with many leading educational institutions. Biotech and tech are growing here as well, but from a tourism point of view, we have a lot going for us. We are right on the ocean, close to the mountains in Maine and Vermont and are close to New York City making us a strong secondary city. We are safe and walkable, and it is a city that has become more functional and beautiful over the time I've lived here at least. Now that story is being told globally thanks to Meet Boston. The motto they came up with is “Boston never gets old” to combat the perception of Boston being older and boring by showcasing our culinary scene, nightlife, diverse neighborhoods, and so on.

Michelle Landers, Executive Director, ULI Boston/New England

Greater Boston truly has it all. Despite its aging subway system, it remains the envy of many cities, providing good connectivity. The city's traffic, though frustrating, indicates a daily influx of people, reflecting its vibrancy. Boston leverages its world-class education and medical sectors, attracting some of the brightest minds globally. Many stay due to our thriving life sciences economy and academic opportunities, making it a hub of innovation where dining hall ideas can evolve into world-changing products. 

Boston continues to show strong demand for all property types, making it a great place to invest in, own property, and, if fortunate enough, develop. Making your mark in a city with such a rich history and world-class status is an incredible opportunity.

Lisa Murray, Massachusetts President, Citizens

Greater Boston’s economy is doing better than most, but there is always room for improvement. The Massachusetts business community is resilient, and we have come through the last few years well-positioned for continued success. We have a strong life sciences industry. We plan to start leaning more into areas where we can compete on a national and global level. Cleantech is one of them since we are in a good position to take leadership in that area. Nevertheless, there is competition from other parts of the country that want to own that space. We already have a lead, so we will lean into that and make sure that we stay ahead.

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