Economic Activity Report
October 2008
I'll begin my report with the data given me by NH Employment Security in Concord. Keep in mind that this data is almost two months old by the time you read it in this report and in this case, these are the September numbers. Locally the unemployment rate is down to 4.7% from 4.9% in August. The County is at 4.9% from 5.1% The State unemployment rate is at 3.9% while New England is at 5.5% Both Maine and Vermont are at 4.9% and the US is at 6% Be prepared for these numbers to change significantly over the next few months as the recessions deepens and winter curbs construction jobs.
There's a significant level of concern among local businesses that the recession and the Wall Street meltdown will have a negative impact on their business. Of immediate concern is the severe impact they have seen to the company sponsored 401K plans. Due to a variety of factors, employees are reporting that their 401K retirement plans have lost from 10% to as much as 50% in value during the month of October. This negative impact is most concerning to those employees who were about to retire or are scheduled to retire within the next 5 years. Younger workers will likely have time to rebuild their savings and the value of their present investments should also rise as markets improve. The advice given by financial advisors has been to continue investing at the same rate since the drop in share
prices make their present value a good deal for the future.
Clean Power Development continues to move forward on their biomass project for Berlin. On November 6, Clean Power came before the Planning Board with an update to their project and answered a variety of questions from board members. I believe that BIDPA should not only track the progress of this project scheduled to go online in 2010, but should continue to investigate possible opportunities to secure land near or adjacent to the plant as well as opportunities related to the vast quantity of hot water the plant will produce.
Laidlaw Energy had announced that they anticipated to close on the mill property by October 22, 2008 but there's been no announcement by the company that the deal has been closed. This is another project that needs your attention.
This will be my last report written from Berlin as I leave for my winter residence on the Seminole Indian Reservation in Florida on Thanksgiving day. I will continue to work with our commercial and industrial clients as usual and as in previous years. You may email me at anytime using the usual email address and I'll also be available by phone seven days a week. I'm not sure what my telephone number will be while in Florida, but Pat, Pam and Dick will have my number as soon as it's installed. I'm always available during a meeting through speaker phone and will be more than happy to participate in any discussion.
Norman Charest
Economic Development Director
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