A Rare “Win-Win” For Small Businesses, State, and Vermonters

A Rare “Win-Win” For Small Businesses, State, and Vermonters

The Vermont Chamber continued its testimony in support of healthcare legislation that would keep the small group market separated from the individual market throughout 2025. S.54 would ensure small businesses benefit from not shouldering the added weight of subsidizing premiums for the individual market, the state wins by accessing more federal funds, and individuals benefit from additional subsidies. The bill was voted out of the House Health Care Committee and is expected to be on the House floor next week. While S.54 is considered a win-win, the Vermont Chamber reminded legislators that this bill does not address the root problem.

The problem of cost-shifting will remain in the years ahead and stakeholders will have to return to the table later to fully understand what re-merging the market would mean financially to small businesses that represent only 6% of the health insurance landscape. The Vermont Chamber will remain engaged to ensure policymakers work towards a plan that ensures small businesses do not get burdened with the full cost of holding the individual market harmless in 2025.

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House Commerce Bill Bolsters Workforce and Economic Development

House Commerce Bill Bolsters Workforce and Economic Development

H.484 would enhance workforce and economic development opportunities by investing $40 million in recruitment and retention strategies. The bill includes several initiatives to engage young professionals, adult workers, the climate workforce, the higher education system, and college graduates. The bill also makes economic development investments in the Vermont Training Program, a rural industry development fund, and brownfield remediation. In recent weeks, the Vermont Chamber worked to identify over $10 million of funds from the embattled FY23 COVID Worker Relief Program to be reallocated for workforce development programs in H.484.

The House Appropriations Committee is expected to take additional testimony on this bill next week and the Vermont Chamber will continue to advocate for solutions to workforce recruitment and retention challenges. A complete bill summary is available, here.

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Politics Upstages Good Policy, Housing Bill Falls Short

Politics Upstages Good Policy, Housing Bill Falls Short

Despite housing being the single most important issue this session for every constituency in the state, Senators have bypassed the opportunity to make legislation that is strong enough to make meaningful progress to solving the crisis. S.100 passed the Senate following a week of intense work by lobbyists to vote down an amendment offered by Senator Thomas Chittenden (D-Chittenden Southeast) that would call for more housing to be built. Despite a strong fight by several legislators, as stated by Senator Ann Cummings (D-Washington), legislators are left “living in a fantasy world if we think anything we are doing is going to solve the housing crisis.” Senator Randy Brock (R-Franklin) agreed with the sentiment, stating that legislators are saying “the house is on fire and we’re arguing about whether the fire truck should go 30 mph or 35 mph.”

Senator Chittenden’s amendment would have reinstated some of the important balance in reforms to state and local regulatory and zoning barriers that were crafted by the Senate Economic Development, Housing, and General Affairs Committee. Minor adjustments would make an important difference in the number of units of middle-income housing that developers can build to help alleviate Vermont’s housing crisis. Ultimately, the amendment was voted down on party lines.

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Vermont Chamber Celebrates Francophonie Month

Vermont Chamber Celebrates Francophonie Month

The Vermont Chamber joined key partners at the Vermont State House to celebrate Francophonie Month in Vermont and the shared French history and cultural and commercial ties that link communities together for business prosperity and security. 

Chris Carrigan, Vice President of Business Development for the Vermont Chamber was joined by Marie-Claude Francoeur, Quebec Delegate to New England, Susan Murray of U.S. Commercial Service, Mustafa Soykurt, Consul General of France in Boston, and Tim Tierney with the Vermont Agency of Commerce.

Governor Phil Scott proclaimed March as Francophonie Month, citing March 20th as the International Day of La Francophonie, celebrating the bond between francophone regions around the world and their shared values of democracy, human rights, cultural diversity, and solidarity.

For enhanced cross-border trade between Vermont and Canada, Vermont is participating in the 2023 Aeromart Montréal aerospace and defense trade show. This work will support the Vermont – Québec Aerospace Trade Corridor and expand on the Vermont Chamber’s record of work with Québec and Canada.   

Guest Perspective: “The State of Trade”

Guest Perspective: "The State of Trade"

By Jake Holzscheiter, President & CEO, A.N. Deringer, Inc. 

As we consider the current state of trade, it’s worth a look back at early 2020 when international trade was running on all cylinders.  We experienced a Covid-cargo surge that outgrew the capacity in the market at that time.  This caused shipping rates to skyrocket to historically high levels.  Not only were U.S. importers paying higher rates, but they were also experiencing the worst service and extensive delays throughout the supply chain. 

Fast forward to today –cargo volumes as well as rate levels have dramatically declined since late 2022, and this downturn is continuing.  The positive news for importers is that rate levels are back to pre-pandemic levels (2019) and the ocean vessel reliability is tracking in the right direction with less cargo moving.  However, there are still challenges:

  • Ocean carriers are attempting to control capacity through ‘blank sailings.’ (A blank sailing is when carriers remove vessels from weekly service. This creates an influx of cargo for the next sailing, which in turn allows the vessels to fill up, and provides carriers an opportunity for increased revenue.)  Blank sailings result in delayed shipments for importers.
  • During the pandemic, ocean carriers experienced very high revenue.  Many ordered larger ships to keep up with demand.  These new, larger vessels are starting to hit the market now, and will continue to deploy into 2024.  This is happening just as global trade volume is on a downward trend, so we will need to monitor how larger vessels and softer market conditions will shake out for the remainder of this year.
  • During the pandemic, importers filled their U.S. warehouses with goods, backfilling inventory due to concerns with the supply chain. Many believe demand will pick up in Q2 and Q3 – as stocks run low, consumer needs for new goods renews, and the 2023 holiday season approaches.

Other positive news is the once-stretched supply chain is recovering due to less inbound cargo. This allows the terminals and rail yards to clear up congestion and get back to a normal operating environment. 

Specific to Vermont and Canada, the Canadian dollar remains weak and is expected to stay that way, or possibly weaken further through the remainder of the year.  While this is positive news for those looking to source goods from Canada, is not as good news for those exporting and sending materials to Canada. It is also not an ideal situation for the Canadian shopper looking for retail deals across the border here in Vermont. 

About the Author:  A Certified Customs Specialist and a Licensed Customs Broker, Jake has been with A.N. Deringer, Inc. for more than 30 years. His many roles have involved day-to-day operations management, training and innovation development, and high-level compliance and trade support for Deringer clients across the US and around the world. Jake Holzscheiter is a member, and former Chair, of the Vermont Chamber Board of Directors. 

 

About A.N. Deringer, Inc.A.N. Deringer, Inc.is the largest, privately-held Customs broker in the US, providing integrated supply chain solutions for customs brokerage, international transportation, warehousing and distribution, customs compliance consulting, and USDA meat inspection.

 

Tourism Day at the State House Centers the Visitor Economy and Destination Stewardship

Tourism Day at the State House Centers the Visitor Economy and Destination Stewardship

Following a pandemic hiatus, Tourism Day at the State House returned for the first time since 2020. Over 150 tourism and hospitality industry leaders were present throughout the day to engage with legislators and raise awareness of the collective contributions of these industries to the Vermont economy.

The day was centered on the Vermont visitor economy and destination stewardship and management. Business and policy leaders connected throughout the day during a coffee hour with Governor Scott, a joint hearing on the visitor economy with the House Commerce and Economic Development and the Senate Economic Development, Housing, and General Affairs Committee, and an evening reception.

Rep. Stephanie Jerome (Rutland-9), a stalwart supporter of the tourism industry, offered House Resolution, H.C.R.52. “The Vermont visitor economy is an incredible asset. It draws visitors to our towns, supports our local businesses, and is one of our largest employers. It generates tax revenues and creates jobs, it unlocks wide-ranging economic activity in both our rural and urban communities,” stated Rep. Jerome.

“The Vermont Chamber was proud to once again convene industry leaders for Tourism Day at the State House,” said Amy Spear, Vice President of Tourism for the Vermont Chamber of Commerce. “The Vermont visitor economy is an incredible economic asset for Vermont. 13 million annual visitors contribute $3.2 billion in spending and support over 30,000 jobs, 10% of Vermont’s total workforce.”

Business leaders reflected on the ongoing economic impacts of the pandemic and reinforced that collaboration is integral to the success of their businesses, and communities.

“We continue to find new ways to operate against the constant stresses of high labor and high food costs, a scarcity of applicants, continuing supply chain issues, and low margins. Even with these setbacks, many of us are optimistic,” stated Leslie McCrorey Wells of Pizzeria Veritas and Sotto Enoteca. “Like many of my restaurant peers, I feel a deep sense of commitment to the communities that surround and support our businesses, and I see the impact that our organizations and businesses have on the quality of life in Vermont.”

“Every part of our state was represented today because tourism is a vital economic driver that crosses many sectors,” stated Anna Rubin of Fairbanks Museum & Planetarium. “The Fairbanks Museum remains strong because of its connections with the community and recognizes that investments in our business have a wider impact on not only visitors but of the Northeast Kingdom at large.”

“The sense of community in Killington has become one of a kind. The resort and local businesses work together to speak with a unified voice and market the region together as a team,” stated Amy Laramie of Killington Resort and Pico Mountain. “I am grateful for the community in this industry and to be able to call a region where many people vacation, my home.”

Additional business leaders that testified in the joint hearing were Nick Bennette of Vermont Mountain Bike Association, Mimi Buttenheim of Mad River Distillers, Karen Nevin of Revitalizing Waterbury, and Kim Prins of Seesaws Lodge.

Industry leaders also testified in the House Agriculture Committee, including Tara Pereira of Vermont Fresh Network, David Keck of Stella Wines, Clara Ayer of Fairmont Farms, and Nick Managan of Cabot Creamery. Senate Education Committee received testimony from Molly Mahar of the Vermont Ski Areas Association and Jen Roberts of Onion River Outdoors.

The event was produced in partnership with several advocacy organizations, including Ski Vermont and the Lake Champlain Chamber of Commerce.

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Vermont Chamber Convenes Economic Roundtable with Federal Reserve Bank of Boston

Vermont Chamber Convenes Economic Roundtable with Federal Reserve Bank of Boston
© 2023 Federal Reserve Bank of Boston

Vermont business leaders met with the President of the Federal Reserve Bank of Boston, Susan Collins at King Arthur Baking Company in White River Junction as part of her ongoing visits around New England to gauge economic conditions. The meeting, convened by the Vermont Chamber of Commerce, provided an opportunity for Vermont business leaders to discuss the state’s economic challenges and opportunities.

President Collins expressed the importance of hearing directly from business owners, to ensure the Boston Federal Reserve has a well-rounded analysis of the state of the economy.

“Reaching out to and interacting with a range of stakeholders has been a priority for me since joining the Boston Fed last year,” stated President Collins. “In addition to hard numbers and surveys, information gathered on the ground about how businesses and workers are faring greatly informs my assessment of economic conditions. The views my team and I hear from around the New England region provide an important window into how well the economy is functioning for everyone.”

“The Vermont Chamber was proud to welcome President Collins to Vermont and connect her with a diverse group of leaders that represent the breadth of business in our state,” said Betsy Bishop, President of the Vermont Chamber of Commerce. “Across industry, county, and size, every business shared how they’ve had to adapt in today’s unpredictable economy. The theme throughout the conversation was the severe impacts of ongoing inflationary pressure.”

Business leaders reflected on the impact of inflation on wage growth and the move toward automation amid the inability to hire workers, as well as the lingering impacts of the pandemic on the economy.

“Revenue is up this year, however, expenses are also up. We have consistently increased our base wages between 20% and 30% each year for the past two or three years,” stated Lindsay DesLauriers of Bolton Valley. “Our operating expenses have also gone up significantly with inflation, so that we are actually behind last year right now on the bottom line. Furthermore, despite the increases we’ve made to wages and efforts we’ve made to add additional benefits, we continue to struggle to find enough staff to hire. While there is much to be proud of and optimistic about, obviously we can’t keep on this inflationary trendline indefinitely.”

“The inability to recruit and retain talent means we can’t fully staff a second shift, let alone add a third shift,” stated Alberto Aguilar of Carris Reels. “Instead, to meet demand we’re exploring how to invest in automation which is becoming crucial to the ability for us to sustain our manufacturing operations here in Vermont.”

“As young business owners, this ‘new normal’ is our reality our challenge” stated Travis Samuels of Zion Growers. “My generation’s attitudes toward work culture, consumerism, and the global supply chain have all changed and we as business owners are having to constantly adapt and pivot. Still, the reality is that there remains a great deal of uncertainty in the economy for newer businesses and it can be difficult to overcome the post-pandemic, financial, and local economic challenges.”

Additional business leaders in attendance; Karen Colberg (King Arthur Baking Company), Mark Foley (Foley Services), Jay Benson (Simon Pearce), Leslie McCrorey Wells (Pizzeria Verità, Trattoria Delia, and Sotto Enoteca), Alberto Aguilar (Carris Reels), Neale Lunderville (VGS), Melvin and Demaris Hall (Global Village), Dr. Sunil “Sunny” Eappen (UVM Medical Center), and Renee Bourget-Place (KPMG – Vermont).

© 2023 Federal Reserve Bank of Boston

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The Wellspring Forum Features Sen. Ann Cummings, Chair of the Senate Finance Committee, and Rep. Emily Long, House Majority Leader

The Wellspring Forum Features Sen. Ann Cummings, Chair of the Senate Finance Committee, and Rep. Emily Long, House Majority Leader

The successful Wellspring Forum series continues to bring together top Vermont businesses and policy leaders for robust economic discussions. Each event takes place at a unique Vermont business and features new speakers.

The third event in the series featured the chair of the Senate Finance Committee, Sen. Ann Cummings (D-Washington), and House Majority Leader Rep. Emily Long (D-Windham-5). The legislative leaders addressed the Vermont Chamber Board of Directors and other Vermont business leaders via a moderated conversation with Vermont Chamber President, Betsy Bishop.

In addition to ongoing workforce and housing concerns, the top issue discussed by businesses was the cumulative impact of anticipated tax increases to fund the multiple major proposals in discussion this legislative session. Businesses urged legislative leaders to consider the ability of Vermonters to meet an increased tax demand and the potential for unintended consequences if businesses are unable to do so.

“During a time of great uncertainty, we need to value economic stewardship,” stated Bishop. “As goes the success of small businesses, so often goes the success of our communities. While legislative committees are working on multiple major investments that require new revenue streams, the Vermont Chamber is advocating for pragmatic decision-making, so the Vermont economy is not overwhelmed.”

 

Sen. Cummings and Rep. Long spoke on several policy issues of interest to Vermont businesses, such as maintaining the small group and individual healthcare markets, solutions to address the ongoing workforce shortage, middle-income housing investments, and the future of the Vermont Employment Growth Incentive program.

“The key to moving policy forward is always balance, and businesses, just like people, sometimes need a lift,” stated Sen. Cummings. “The economy needs to thrive, and the ability to grow business is the difference between Vermont being a place to live and becoming a theme park, only an attraction to visit.”

“Hearing from Vermonters and advocacy groups is critical to the success of what we do,” stated Rep. Long. “I look forward to continuing our collaboration to achieve shared goals. We want to pass a balanced budget that supports Vermonters and businesses in all 14 counties.”

The event was hosted by National Life Group and took place at their Montpelier office.

“National Life has been part of the fabric of this state for 175 years,” National Life Group Chairman, CEO, and President Mehran Assadi said. “The biggest challenge for us is the labor force. We currently have more than 120 open positions to fill.”

The event title is inspired by Governor James H. Douglas’ quote; “I am often reminded that the wellspring of Vermont liberty flows from Main Street, not State Street.”

This Wellspring Forum was made possible by the support of the following sponsors: 

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Vermont Chamber Announces New Hires in Business Development and Events Positions

Vermont Chamber Announces New Hires in Business Development and Events Positions
Doug Corman (Left), Ellie Schabel (Right)

Montpelier, VT (February 7, 2023) –

The Vermont Chamber of Commerce has hired Doug Corman as Business Development Manager and Ellie Schabel as Director of Events and Business Education. Both positions will play a key role in elevating the Vermont Chamber’s work of advancing the Vermont economy.

Vermont Chamber President Betsy Bishop said, “Both Doug and Ellie understand what it takes to help businesses grow and thrive in Vermont and their expertise will be vital to our work of being stewards of the Vermont economy. With Doug and Ellie on board, we look forward to elevating our work to ensure a viable future for our state by supporting the businesses that make living, working, and thriving in Vermont possible.”

Before joining the Vermont Chamber team, Doug Corman spent over 30 years in the insurance business, holding positions in sales, sales management, executive level positions, and had an ownership stake in a large independent insurance agency. Following a brief stint with retirement, Corman returned to the professional space to reengage his passion for business.

Ellie Schabel previously held positions with the Vermont Attorney General’s Office and Halyard Brewing Company, supplying her with a well-rounded perspective of business in Vermont. A graduate of the University of Vermont Grossman School of Business, Schabel is also a personal care assistant for children with varying abilities throughout Vermont.

2023 Vermont Economic Conference Provides Outlook for the Year Ahead

2023 Vermont Economic Conference Provides Outlook for the Year Ahead

The Vermont Chamber of Commerce’s annual Vermont Economic Conference made its in-person return with over 200 business and policy leaders gathering at the University of Vermont Dudley H. Davis Center for an in-depth look at national, global, and state perspectives on the economy as well as the latest economic indicators for business growth.

“The Vermont Chamber understands what it takes to help businesses grow and thrive to build strong, vibrant, communities, and our members have trusted us with this work to be stewards of the Vermont economy. Events like the Vermont Economic Conference help ensure a viable future for our state and achieve our mission of advancing Vermont’s economy,” said Vermont Chamber President Betsy Bishop. “This event is one of many we hope to bring back in-person so that stakeholders from all industries, across every corner of the state, can continue to come together to learn from each other, support each other, create solutions, and work together.”

Senator Peter Welch delivered remarks and reaffirmed his commitment to being a champion for Vermont businesses, stating, “My goal in Washington is to help make it possible for Vermont families to do their work, live good lives, and uphold the traditions that make us proud to be Vermonters. I’ll continue to champion the affordability issues I’ve led in the House, while serving as an advocate for our farms on the Agriculture committee and working to protect our democracy as a member of the Judiciary and Rules committees. I’ll do everything I can to help Vermonters thrive and support the state we love.”

Two keynote speakers headlined the conference, Gus Faucher, Senior Vice President, and Chief Economist for PNC Financial Services Group, and Eva McKend, National Political Reporter for CNN. Faucher is a returning favorite at the Vermont Economic Conference, he provided his signature address, entitled, “National Economic Trends: Balancing Inflation, Consumer Spending, and Employment.” McKend, who previously reported for WCAX returned to Vermont to reflect on her time covering the recent midterm elections and the Washington, DC discourse on economic issues such as inflation and immigration in her keynote entitled, “Balance of Power: A Post-Election Economic Outlook.”

The event also provided an international economic outlook from Ken Kim, Senior Economist for KPMG, a presentation on Vermont demographics, population, and workforce data from Mat Barewicz, Economic & Labor Market Information Chief for the Vermont Department of Labor, and a breakdown of the state budget from Commissioners Adam Greshin and Craig Bolio.

The agenda closed with the presentation of the 2022 Outstanding Business of the Year Award to Hickok & Boardman Insurance Group. The award was presented by the Vermont Chamber of Commerce and VermontBiz and accepted by Scott Boardman, CEO, and Paul Plunkett, President & COO, on behalf of the business.

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