Vermont continues to lead the nation in addressing complex issues, but we are also experiencing an aging population and a declining workforce. By elevating our achievements, Vermont can attract more workers to ensure a more secure economic future. To do this, we must utilize creative avenues to capitalize on our strengths and promote Vermont as a great place to live, work, and raise a family:
Establish ambassador programs to recruit workers in targeted industries
Build on the successful ThinkVT website and create a comprehensive online toolkit to assist in relocation to Vermont
Expand upon relocation testimonials to create promotional materials highlighting diverse Vermont voices
More information on a strategic approach to elevate Vermont’s achievements to address our declining demographics is available, HERE.
Declaration of Inclusion Initiative Reaches Milestone
The Declaration of Inclusion initiative is an ongoing effort to raise consciousness about the importance of diversity, equity, and justice and the positive effect that diversity can have on our economy. The Vermont Chamber of Commerce is a proud partner of the initiative, aiding in the grassroots efforts to engage community leaders to reinforce the message that Vermont is a safe and welcoming place for all.
As of November 17, 2022, 80 towns and cities have adopted a Declaration of Inclusion. The Vermont Declaration of Inclusion initiative has now met the milestone of over 50% of Vermont residents residing in a municipality that has pledged itself to welcome and treat all members of marginalized communities who visit, reside, or do business there, fairly and equitably.
With a top threat to the Vermont economy being the severe workforce shortage, this initiative is vital to creating an economically secure future for the state. By amplifying that Vermont welcomes all people, the state can attract workers with diverse skills and traditions to live, work, and raise families here.
In 2021, Governor Phil Scott issued a Proclamation of Inclusion, establishing the second week of May as Inclusion Week. Looking ahead, the goal is to have 100 towns and municipalities adopt a Declaration of Inclusion before Inclusion Week in 2023.
Additional information, resources, and a complete list of municipalities that have adopted the Declaration are available at vtdeclarationofinclusion.org/
The Vermont Chamber of Commerce welcomed three new Directors to the Board: Chris Karr of The Karr Restaurant Group, Killington, Steve Gagner of 14th Star Brewing, St. Albans, and Steve Boyer of Sonnax, Bellows Falls.
The Vermont Chamber of Commerce Board of Directors is dedicated to economic progress and the Vermont business community. Their collective expertise ensures that the work of the Vermont Chamber of Commerce is rooted in the diverse perspectives of those with lived business experience.
The Chair of the Vermont Chamber Board Peter McDougall, President of Paul, Frank + Collins P.C., said, “As a state-wide Chamber of Commerce, it is important that the Vermont Chamber’s leadership is made up of individuals who reflect our membership-at-large and the diversity of businesses and business leaders throughout Vermont. It is wonderful to add three outstanding Vermont business leaders from different parts of the state to the Vermont Chamber Board of Directors.”
The Vermont Chamber’s current Board of Directors consists of 40% women, 55% men, 5% gender nonbinary or gender nonconforming individuals, 15% BIPOC individuals, 20% immigrant, refugee, asylee, and/or foreign-born citizens, and 10% LGBTQIA+ individuals. Board members work in varied industries across 7 of Vermont’s 14 counties.
Chair of the Vermont Chamber’s Diversity, Equity, and Inclusion (DEI) Task Force Willie Docto, Co-Owner of Moose Meadow Lodge, said, “The DEI Task Force has worked to ensure that the recruitment of new Board Members is an inclusive process. We continue to increase diversity in the Board to represent a wide cross-section of business leaders from throughout Vermont.”
Vermont Chamber of Commerce President Betsy Bishop said, “At the Vermont Chamber of Commerce, our work to strengthen the Vermont economy depends on a diverse set of voices. We are grateful that our Board of Directors is invested in ongoing diversity, equity, and inclusion efforts as we are motivated to ensure all Vermont businesses are represented by our organization’s leadership.”
Tax Revenues Strong, But Can We Afford More Spending?
State revenues in the largest tax sources have recovered since FY19, creating a cushion for budget makers. The “Big Three” – personal income tax, property tax and sales taxes are up from three years ago 45%, 11% and 32% respectively. Each month, the Scott Administration messages caution that due to economic uncertainty, we shouldn’t be eager to spend at these new levels and yet, you can read about the call for more spending daily in the news cycle. Housing, childcare, health care, education, and more.
Why It Matters: With economic uncertainty on the horizon due to inflation, decreased consumer spending, and stock market chaos, higher levels of government spending will set a course for higher taxes on individuals and businesses at a time that everything else is on the rise.
Three Concerns, One Big Question:
Mortgages/rent and food are concerns for individuals while businesses continue to see constrained growth due to a tight labor market, increased wages, inflation, and a disrupted supply chain.
Over the last two years, the state implemented new programs and higher levels of spending for existing programs supported by one-time federal COVID relief. There will be a huge push to continue this level of spending.
If Governor Scott loses the ability to sustain a veto, the Democratic majority will need to manage their caucus’ desire to recalibrate state expenditures based on the ability to pay. Shifting childcare, education, and healthcare costs onto the income/payroll tax are all current discussions with price tags in the hundreds of millions.
Question: Can people and businesses really shoulder more taxes right now?
Since 2013, the Vermont Chamber of Commerce has convened manufacturing industry leaders at the annual Manufacturing Supply Chain Summit. In recent years, the pandemic prompted the event to go virtual, increasing accessibility for global buyers, suppliers, and partners to engage with Vermont and New England manufacturers and leaders. Due to the success of the virtual model, the event was once again held virtually this year, bringing together representatives from throughout the United States, Canada, and Europe. The 2022 event was themed “Rebuilding Supply Chains and Workforce through Content, Collaboration, and Contacts.”
85 suppliers and 25 OEMs, Primes, and Government Agencies held 300 meetings between buyers, suppliers, and partners, representing hundreds of new connections between participants. Many of the attendees were leaders in the aerospace, aviation, defense, and naval/marine industries.
The event also offered a rich two-day agenda of seminars and roundtable discussions focused on new and emerging trends in advanced manufacturing for the aerospace, aviation, defense, space, industrial, and naval/marine industries. Sessions were moderated by Vermont Chamber Vice President of Business Development, Christopher Carrigan.
“The Vermont Chamber is proud to continue our legacy of championing manufacturing by hosting an event that is a catalyst for collaboration and innovation. A testament to this is the 26 Canadian, 8 Connecticut, and 8 Ontario suppliers in attendance supporting the Vermont Chamber’s work to build the Vermont – Québec Aerospace Trade Corridor that now extends from Connecticut to Ontario,” stated Carrigan. “We’re already looking forward to celebrating a decade of Manufacturing Summits at next year’s event.“
Senator Patrick Leahy and Governor Phil Scott both delivered virtual remarks at the event, celebrating Vermont’s leadership in the manufacturing and aerospace industries, and addressing some of the top challenges facing businesses.
In response to severe workforce shortages, the event also featured the “Find Your Future Workforce” initiative, a workforce development effort facilitating employer interviews on the virtual platform with University of Vermont and Vermont Technical College students, as well as Vermont National Guard members, interested in careers in manufacturing for the semiconductor and aerospace industries.
The 2022 Manufacturing Summit was made possible by our sponsors:
To join us as a sponsor for the 2023 Manufacturing Summit, please contact Chris Carrigan: (802) 223-0904, ccarrigan@vtchamber.com.
Vermont Delegation Champions International Collaboration, Manufacturing, at Aerospace Innovation Forum
In partnership with the Vermont Agency of Commerce and U.S. Commercial Service, the Vermont Chamber hosted a delegation of Vermont aerospace companies at Aéro Montréal’s 2022 Aerospace Innovation Forum. This work was in support of the Vermont Chamber’s ongoing commitment to building the Vermont – Québec’s Aerospace Trade Corridor to connect Vermont’s combined $2 billion aerospace and aviation industry with an $18 billion Québec aerospace cluster.
Vermont had the most significant state presence, with the largest delegation to date, featuring Governor Phil Scott and several Vermont businesses; BETA Technologies, Dynapower, G.S. Precision, Kaman Composites, Liquid Measurement Systems, North Country Engineering, Stephens Precision, Ten Fold Engineering.
Funding provided in part by the Vermont State Trade Expansion Program grant allowed these companies to participate in the conference and meet with large Canadian buyers, such as Bombardier, CAE, and Héroux-Devtek, as well as suppliers for new international business opportunities. This work is crucial to reconnect and rebuild supply chains following the pandemic.
In reciprocation, Aéro Montréal and a Québec delegation of suppliers will participate in the Vermont Chamber’s upcoming virtual 2022 Manufacturing Supply Chain Summit.
Chris Carrigan, Vice President of Business Development, discussed the success of the visit and the upcoming Summit in an interview with former Governor Jim Douglas. Listen here to learn more:
Vermont Chamber Hosts “The Wellspring Forum”
Featuring Becca Balint and Mike Pieciak
Kenneth McAvey, VP and GM, Fab 9, GlobalFoundries poses a question to Becca Balint.
On September 7th, the Vermont Chamber of Commerce hosted a new event, entitled The Wellspring Forum, to capitalize on the historic election cycle and further our commitment to growing the business community and the Vermont economy.
The event title was inspired by Governor James H. Douglas’ quote; “I am often reminded that the wellspring of Vermont liberty flows from Main Street, not State Street.”
US House Candidate Becca Balint and State Treasurer Candidate Mike Pieciak spoke directly to the Vermont Chamber Board of Directors and other leaders of the Vermont business community in a series of bilateral conversations moderated by Vermont Chamber President, Betsy Bishop.
“The Vermont Chamber is proud to facilitate a forum that allows Vermont business leaders the opportunity to hear directly from future decision makers on the issues impacting them the most,” stated Bishop. “While the economy is the top issue for Vermonters, we rarely see Vermont candidates speak directly on business and economic issues while on the campaign trail, and we’re grateful that both Becca Balint and Mike Pieciak took the time to engage with the business community in this way.”
Becca Balint and Vermont Chamber President Betsy Bishop.Mike Pieciak connects with Kevin Chu, Executive Director of the Vermont Futures Project.Mike Pieciak and Vermont Chamber President Betsy Bishop.
The candidates spoke about several economic issues of top concerns for the business community, including workforce recruitment, housing, immigration, inflation, and diversity initiatives.
“When it comes to the Vermont economy, it’s clear that the lack of housing and childcare are holding back our state’s full fiscal potential. Increasing access to housing in downtown and village centers goes hand in hand with measures to strengthen our climate resiliency and physical infrastructure,” stated Mike Pieciak. “We also need to ensure revenue is flowing into Vermont, and acknowledge that other New England states market their strategic advantages. When it comes to workforce recruitment, our strategic advantage is quality of life. We need to make sure all people feel welcome here and are encouraged to call Vermont home.”
“I look forward to the opportunity at the federal level to work with colleagues to address the intersection of so many issues such as workforce development, housing, climate, and childcare,” shared Becca Balint. “This is a moment where people are reimagining work, and I believe we have an opportunity, and an obligation, to bring more manufacturing back to Vermont. When you have people building things in your community, it’s an economic benefit and it also fosters pride of place.”
Fifty business leaders from several industries and sectors, including tourism, manufacturing, health care, retail, and technology, were in attendance. The event was hosted at the office of OnLogic in South Burlington.
Mike Pieciak meets with members of the OnLogic team.Becca Balint tours OnLogic with Executive Chair Roland Groeneveld.
This Wellspring Forum was made possible by the support of the following sponsors:
During the 2022 legislative session, the Vermont Chamber focused on the workforce crisis currently impacting Vermont’s businesses. While there is no easy fix, there are a variety of new or expanded tools for relocation, training, housing, and child care that are available for employers to use as workforce recruitment and retention tools.
Recruitment
Worker Relocation Grant: Promote this relocation incentive as a way for recruiting out-of-state workers to recoup a portion of their moving expenses.
Military Retiree Pension Tax Exemption: Recruit retired military veterans with Vermont’s new partial exemption of retired military pensions which will exempt the first $10,000 of military retirement pay from state personal income tax.
Recent College Graduate Forgivable Loans: Entice students at Vermont higher education institutions to become employees through forgivable loans available to students committing to work in Vermont for two years after graduation. The program will be administered by the UVM Office of Engagement, and more information is coming soon.
New Americans: Offer access to support services available through a program aimed at in retention of recent arrivals. More information on the program, administered by the Agency of Human Services, is coming soon.
Training
Professionals in Health Care: Offer training opportunities to fill health care positions with incentives including grants, forgivable loans, loan repayment, and tuition assistance.
Vermont Trades Scholarship Program: Get the high-demand trade sector employees needed by promoting the Vermont Trades Scholarship Program which provides initial licensing fees, exam fees, and tuition payments for certification and degree programs to applicants and employees.
Housing Costs
First-Generation Homebuyer Tax Credit: Retain employees struggling with buying a home by sharing the new first-generation homebuyer tax credit program with them. This program will be administered by the Vermont Housing Finance Agency. More details are coming soon.
Home Heating Incentives: Help employees receive financial assistance to switch to lower cost, energy efficient residential heating sources. Some products and services are free to income qualified households.
Child Care Costs
Child Care Financial Assistance Program: Promote Vermont’s expanded child care subsidies available to a wide range of income levels as a way to reduce out-of-pocket childcare costs.
Child Tax Credit: Vermont’s new child tax credit for individuals and families with children under five will reduce the financial burden of child care costs for employees through a refundable tax credit. This new State benefit is a great way to recruit out of state employees with child care needs.
Redistricting prompted a shakeup in the Chittenden County Senate Races this year. In the Chittenden North district, Democrat Irene Wrenner, a former Essex Town Selectboard member, will face off against Republican Leland Morgan, a former House member, for a Senate seat. However, in the Chittenden Southeast and Central districts, primary winners are likely to cruise through the general election to a seat in the Senate. In the Chittenden Southeast district, all three incumbents, Senators Ginny Lyons, Kesha Ram Hinsdale, and Thomas Chittenden, secured primary wins. In the new Chittenden Central district, incumbent Phil Baruth and current Rep. Tanya Vyhovsky easily secured two of three seats, but only two votes separated the next two vote-getters for the third and final seat, with Erhard Mahnke requesting a recount to challenge Martine Larocque Gulick.
In Washington county, incumbents Ann Cummings and Andrew Perchlik secured two of the three Democratic nominations, but it was Anne Watson who secured the most votes, a significant result for the current mayor of Montpelier. In Windham County, former Rep. Nader Hashim and Wendy Harrison won the Democratic nominations for Senate and will face off against Republicans Mark Coester (who is not being backed by the Republican party after he displayed alt-right and fascist imagery at a 4th of July parade) and Richard Kenyon, in the general election. Mark Coester has since announced his decision to run in this race as an Independent, and the party nominated third-place finisher Richard Morton to replace him on the ballot. In Windsor County, Rep. Rebecca White and incumbents Alison Clarkson and Richard McCormack won the Democratic nominations for Senate. Like Watson, White also secured the most votes in her primary race, another significant result for a first-time Senate candidate.
Notable House races included Chittenden-5, where Democrat Chea Waters Evans challenged incumbent Michael Yantachka over his vote on Prop 5, and won. Two incumbents, Republican Vicki Strong and Democrat Katherine Sims, will face off for the only seat in the new Orleans-4 district. In Washington-4, Kate McCann and Conor Casey, who ran as an informal ticket, secured the two Democratic nominations to represent Montpelier.
This session, some legislators went above and beyond to champion policies that support the business community. If they made a difference for your business, please join us in reaching out to express your gratitude.
Senator Ann Cummings was instrumental in the passage of the manufacturing tax exemption as well as securing $17 million in savings for health insurance costs for small businesses and employees. Senators Alison Clarkson and Kesha Ram-Hinsdale went to bat for small businesses in the design of the VEDA forgivable loan program.
Commissioner Joan Goldstein was also an invaluable resource in the Legislature’s economic development work, providing expertise that led to the success of the VEDA forgivable loan program and the Community Recovery and Revitalization Program.
Our work on behalf of the business community to champion the long-term health of the Vermont economy would not be possible without our strong partnerships in the State House.
