The Merrimack Valley: Challenges, Assets, and Potential for GrowthResearch QuestionProduct CycleThe Merrimack Valley RegionHistory of the RegionLawrence: The Immigrant CitySocio-economic IndicatorsPopulationPopulationEmploymentEmploymentIncome and PovertySummary of Data FindingsLiabilities and ChallengesAssets and OpportunitiesBack to the Product Cycle…AssumptionsRecommendationsMA Life Sciences InitiativeTransportation ReauthorizationSupport Small Business Incubation in Targeted AreasExpanded References for MVPC and MassINC ReportsMIT OpenCourseWarehttp://ocw.mit.edu 11.481J / 1.284J / ESD.192J Analyzing and Accounting for Regional Economic Growth Spring 2009 For information about citing these materials or our Terms of Use, visit: http://ocw.mit.edu/terms.The Merrimack Valley:Challenges, Assets, and Potential for Growth11.481 Final Report1Research Question2Given the Commonwealth’s limitedresources, and the unique challengesfaced by Lawrence, what arepriorities for economic revitalizationin the Merrimack Valley?Courtesy of Debmalya Guha. Used with permission.Product Cycle• Clustering beneficial in early stages of productdevelopment, typically around large urban areas• Mature product less dependent on cluster, moredependent on economies of scale• Standardized production enables relocation to lowercost locations3Sources: Dawkins, C. J. (2003). Regional Development Theory: Conceptual Foundations, Classic Works, and Recent Developments. Journal of PlanningLiterature, Vol. 18, No. 2 (November), pp. 131‐153.The Merrimack Valley Region• A cluster of cities and towns aroundthe Merrimack River, defined by theMerrimack Valley PlanningCommission (MVPC) as:• Amesbury, Andover, Boxford,Georgetown, Groveland, Haverhill,Lawrence, Merrimac, Methuen,Newburyport, North Andover,Rowley, Salisbury, West Newbury•Assumptions:• Jurisdictional differences betweenMA and NH• MVPC boundaries are an agreed‐upon grouping of places tiedtogether by spatial proximity andcommon interests/activities/issues.4NewburyNewburyportSalisburyAmesburyMerrimacHaverhillGeorgetownRowleyGrovelandBoxfordNorth AndoverAndoverLawrenceMethuenMerrimack RiverMerrimack Valley RegionTownsEssex Country0 2.5 5 10 Miles0 25 50 100 MilesNWest NewburyFigure by MIT OpenCourseWare.History of the Region5• Cities were built around theriver to take advantage ofwater power• Economic growth of theregion coincided with 19thcentury’s growth in the textileindustry• Decline of the region inducedby lower cost locations andcapital disinvestment, whichcontinued through the 1970sPhotograph of Lawrence removed due to copyright restrictions.Between the 1980s and 1990s cities and towns in the region followed asimilar and improving development trajectory; Lawrence was theexception.6Courtesy of Debmalya Guha. Used with permission.Lawrence: The Immigrant City• Founded in 1847 ‐‐ First planned industrial city in the nation.• Created by Essex Company as a company town to serve the manufacturing industry• Similar to the rest of the region, the City’s economy was built on the textile mills thatsurround the Merrimack River• “Fueling the Factories”:• Huge influx of Irish in the mid‐19thcentury, of Germans and French‐Canadians in1860s, of southern, eastern Eur opean, and Middle‐Easterners in 1890s to early 20thcentury• Waves of Latino immigration begins in 1950s (Puerto Rican, Cuban, Dominican)• South East Asian and Central American immigrants begin arriving in 1970s7Socio‐economicIndicatorsThe Region and Lawrence8Population• As of 2000, population was about 320,000• 5% of Massachusetts population• Largest city is Lawrence (23% of region population)9United StatesMerrimackValley CitiesEssex CountyMassachusetts0%10%20%30%40%1980 1990 2000 2007Sources: Authors’ calculations using data from the U.S. Census Bureau, 1980‐2000Censuses, 2005‐2007 American Community Survey• Region hasexperienced slowerpopulation growth(1980‐2007)• Latinos are the largestminority ethnic group– 4% in region, 60% inLawrencePercent Change in Population Since 1980PopulationIn Lawrence, as of 2007:• 35% of residents were foreign born (Massachusetts: 14%)• 22% of residents were not U.S. citizens (Massachusetts: 8%)• 29% of households were linguistically isolated (Massachusetts: 6%)• Most of these spoke Spanish• 37% of adults (aged 25+) lacked a high school education(Massachusetts: 12%)Source: 2005‐2007 American Community Survey10Employment• Consistently higher unemployment in LawrenceSource: Authors’ calculations using data from the Bureau of Labor Statistics Local Area Unemployment Survey, accessed through Massachusetts Department ofLabor and Workforce DevelopmentUnemployment Rates, 1990‐March 2009110%2%4%6%8%10%12%14%16%18%1990199119921993199419951996199719981999200020012002200320042005200620072008March 2009Merrimack Vall ey Essex CountyMassachusetts LawrenceEmploymentSource: Authors’ calculations using data from the Mas achusetts Executive Office of Labor and Workforce Development and the Bureau of Labor Statistics QuarterlyCensus of Employment and Wages12Manufactur ingRetail TradePr ofessional ServicesHealth CareAccommoda ti on‐0.250.000.250.500.751.001.251.501.752.002.25‐50% ‐40% ‐30% ‐20% ‐10% 0% 10% 20% 30%Differential Shift (2001 ‐ 2007)Location Quotient (2001‐2007)ConstructionManufacturingWholesale TradeRetail TradeTransportation and WarehousingInformationFinance and InsuranceReal Estat e and Rental and LeasingProfessional and Technical ServicesManagement of Companies and EnterprisesAdministrative and Waste ServicesEducational ServicesHealth Care and Social AssistanceArts, Ent ertainment, and RecreationAccommodation and Food ServicesOther Services, except Public AdminRelative Growth and Concentration of Merrimack Valley Industries, 2001‐2007DecliningEmergingHigh Growth/ High ConcentrationLess SignificantsIncome and Poverty• 2007 median household income for region is comparable toMassachusetts0%10%20%30%1980 1990 2000 2007Percent of Individuals Living Below Poverty LineAndoverHaverhillLawrenceMethue nNorth AndoverMassachuse ttsSource: Authors’ calculations using data from the U.S. Census Bureau, 1980‐2000 Censuses, 2005‐2007 American Community SurveyPoverty Rates in Merrimack Valley Cities, 1980‐2007– Range: $31,718in Lawrence to$102,762 inAndover.• Generallylower povertyrates thanMassachusetts13Summary of Data Findings• Cities in the region, other