The Business and Industry Association (BIA) the statewide chamber of commerce and state manufacturing council, worked with more than 400 members and other key stakeholders to develop a data-driven assessment of the competitiveness of NH’s business climate. The report, Blueprint NH 2030, which we unveiled this spring, lays out a long-range vision for the state’s economy and creates a path forward for addressing the state’s top challenges.
The key step toward achieving this vision is a frank assessment of NH’s competitive advantages, and disadvantages, compared to other states. New Hampshire’s strengths include business leaders dedicated to success, low and stable
taxation, a responsive and accessible government, a strong educational system, and plentiful natural resources.
Challenges
Top among NH’s challenges are housing costs, child care costs and energy costs. New Hampshire’s housing prices are up 59% over the past four years, the fourth highest in the country, contributing to the state’s worker shortage. The fact that 27% of NH’s workforce is age 55 or older—among the oldest in the county—makes it clear that policies are needed now to balance our housing market because many young professionals cannot find suitable places to live. The number of residents aged 45 to 49 plummeted between 2013 and 2023 and all age brackets under 24 declined as well.
In analyzing average annual household expenses, a family with an infant and a 4-year-old in a childcare center paid an average of $28,340 annually for care in 2023. The high (and rising) costs are driven by a shortage of care options.
While previous trends did not demand that economic development leaders focus on factors like housing and childcare, they are now impediments to business growth and competitive disadvantages for NH. Addressing these shortages is a policy priority.
It’s no secret that energy costs are high in NH and New England, but state comparisons place them among the greatest competitive disadvantages for businesses and should prompt additional action. BIA’s Blueprint shows NH’s overall electricity prices have risen 61% in the last 10 years, dwarfing the U.S. increase of 26%. Lowering electricity costs is vital to keeping advanced manufacturing and life sciences companies in NH and attracting new ones.
An Action Plan
Deploying new approaches to support manufacturing, leveraging tech industry growth and expanding the state’s innovation ecosystem in partnership with education will benefit businesses and residents alike. The BIA has identified more the 30 action steps and recommendations as part of its Blueprint NH 2030 report. Here are few key examples:
- Workforce System Redesign: There are an array of worker training, career pathways, and workforce development programs in place across the state. While many of these efforts are having an impact, NH needs a unified approach that aligns all of these efforts under one statewide workforce strategy and positions NH to compete nationally.
- Regulatory Review Taskforce: New Hampshire’s position as a low cost, regulatory–friendly state is under pressure as new federal and state rules, and regulations, have accumulated significantly over the past decade. New Hampshire can bring stability and certainty to its regulatory climate with a comprehensive taskforce to review agency regulations and rules, and establish goals for streamlining processes and reducing outdated, unnecessary, or poorly defined regulations that stifle economic growth.
- Strengthen NH’s Innovation Ecosystem: Over the past five years, NH has seen strong growth in the advanced industry sector and technology jobs, and it ranks as a leading state for innovation nationally. This is a powerful narrative and strength of NH’s economy that is overlooked and still relatively unknown. Through enhanced collaboration, marketing, and convening of key partners, NH must develop and implement new policies to support the growth of the innovation ecosystem.
The traditional NH Advantage of no income or sales taxes and limited, efficient government is tried and true. But that’s simply no longer enough to be a top state for business. As challenges and associated public policies become more complex, it’s more important than ever that NH be vigilant in monitoring competitive measures.
Michael Skelton is president and CEO of the Business & Industry Association. Visit BIAofNH.com.
