"New Hampshire’s secret salesman luring Bay State firms across the line" July 08, 2011|By Jenn Abelson, Globe Staff
CONCORD, N.H. - New Hampshire pays Michael Bergeron to be a full-time thief, sending him across the border in an unmarked black sedan to poach Massachusetts companies.
Well, the Globe is certainly letting you know how they feel about it.
To help keep his missions undercover, the business recruiter even scraped the New Hampshire state seal off his Ford Fusion. Equal parts real estate agent, financial adviser, and deal fixer, Bergeron has lured dozens of Massachusetts companies to the Granite State over the past few years with promises of lower tax bills, cheaper office and industrial space, and fewer regulations.
John Hancock Financial and Liberty Mutual Group are among the high-profile firms that recently moved significant parts of their operations over the state line - partially because of Bergeron’s pitches. And an increasing number of small and midsize firms are considering migrating as a way to reduce costs in uncertain economic times.
“New Hampshire has become an easier place to do business as Massachusetts has become more difficult,’’ said Bergeron, who works as a business development manager for the New Hampshire Department of Resources and Economic Development. “It’s a lower cost to do business here and you still have the availability of the skilled workforce in Massachusetts.’’
His PowerPoint presentations highlight what New Hampshire officials say is Massachusetts’ bad-business reputation. They cite expensive real estate, drawn-out permitting processes, and higher taxes.
There are no official statistics from Massachusetts or New Hampshire on the number of companies that have moved north. But Bergeron estimates that at least 5,000 new jobs have been created over the past five years as a result of Massachusetts businesses moving to his state.
Massachusetts officials and business leaders deny that a mass exodus is underway, although they acknowledge that New Hampshire’s aggressive recruitment tactics can’t be ignored.
The constant assault on Commonwealth companies is more irritating than ominous, said Greg Bialecki, Massachusetts’ housing and economic development secretary.
“They haven’t done any serious damage,’’ he said of New Hampshire’s efforts. .
Yeah, forget the lost revenue and jobs. No harm no foul.
Nonetheless, Bialecki said, officials have tried to make the state more enticing to businesses. In recent years, for instance, Massachusetts has lowered its corporate tax rate, offered tax incentives and other funding, and streamlined the permitting process through its new permitting ombudsman and Permit Regulatory Office....
Related:
"Legislators also agreed last week to change legal language in the recently passed sales tax hike to assure credit agencies that $100 million earmarked for the Turnpike Authority would go toward paying off Big Dig debt"
Also see: Massachusetts' Lost Decade of Jobs
I just wanted you to see where your tax money came and went.
CCS Presentation Systems, which installs video-conferencing equipment and other electronic gear, initially hesitated about abandoning its Chelmsford headquarters because many of the company’s clients are based in Boston. But after Bergeron whisked CCS through his whirlwind pitch a year and a half ago, the company couldn’t say no....
Bergeron came in handy months later when CCS applied for a $40,000 annual tax credit. In February, he drove 60 miles through a snowstorm back and forth between Concord and Nashua to get the required signatures.
And when CCS needed to hire more employees, the firm tapped into a New Hampshire program aimed at getting unemployed workers back on payrolls. It allows companies to try out employees for six weeks while they keep receiving unemployment checks.
CCS still has some connections to Massachusetts - a small satellite sales office in Woburn, and the company’s old telephone number.
“We have to pay extra for that,’’ said Cheryl Gamst, CCS president. “The one thing we couldn’t get in New Hampshire - a good phone number.’’
When revenues slumped during the recession, many Massachusetts businesses eliminated jobs, shut stores, and did away with benefits. Now, as executives adjust to the slow-growth reality of the new economy, they are searching for ways to reap long-term savings. For some, that means New Hampshire.
Isn't it AMAZING when you see the TRUTH SLIP THROUGH in the newspaper?
One Massachusetts small business owner said he is considering the move for his company and family. The owner, who asked to remain anonymous because his 11 employees are not aware of the potential change, ticked off a long list of New Hampshire pluses: no capital gains tax, no inventory tax, no personal income tax, better rents, no sales tax, no Internet tax.
“We love Massachusetts,’’ he said. “But it’s hard to ignore New Hampshire.’’
Bergeron, a former Boston real estate broker, said he is excited by interest from companies of any size. In the spring, Fidelity Investments disclosed plans to close its Marlborough office and move workers to Merrimack, N.H., and Smithfield, R.I.....
Related: Ever Unfaithful
Despite the $20 million a year tax break?
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Also see: Slow Saturday Special: Nawth to New Hampshire
Might have something to do with this:
"Lynch remains popular, N.H. poll finds; 65% approve of governor’s work" July 12, 2011|Associated Press
CONCORD, N.H. - A new poll finds that Governor John Lynch enjoys continued popularity among both Republicans and Democrats.
The WMUR Granite State Poll found 65 percent of respondents approve of the way the Democrat is doing his job, 23 percent disapprove, and 12 percent are neutral or do not know.
Eighty-two percent of Democrats approve of the job he is doing, while 54 percent of independents and 52 percent of Republicans approved.
The poll also found the four-term governor has high favorability ratings....
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