Industry Insight: Higher Education

As an organization we are driven to ensure success for businesses and those residing in Western Massachusetts. As your Western Mass EDC, we strive to create an inclusive economy that is open to evolution and focused on meaningful collaboration to continue to strengthen our region’s economic success.?

Our INDUSTRY INSIGHT series will continuously explore key sectors in the region, with healthcare, financial services, and tourism featured to date. This month we explore an industry sector that impacts many others – higher education.?

WHY HIGHER EDUCATION?

Western Massachusetts is not only notorious for its picturesque landscapes and cultural richness but also for its thriving higher education sector. Yvonne Hao, Massachusetts Secretary of Economic Development, has been known to refer to the state’s higher education as a “crown jewel” of the commonwealth.?

Our area, known by some as the Knowledge Corridor, boasts several esteemed higher education institutions which serve as pivotal economic engines, generating substantial economic activity through various channels such as:?

Employment: Offering diverse job opportunities such as faculty, administrative roles and support staff. As major employers they not only sustain local livelihoods but also attract talent from across the country.

Spending: Clearly many schools mean an influx of students who contribute to the local economy through housing, dining, entertainment, and retail. Plus, when loved ones visit additional revenue is generated in the hospitality and retail sectors.

Research and Innovation: Area universities conduct groundbreaking research in fields such as biotechnology, renewable energy, advanced manufacturing, and healthcare, not only does this advance knowledge but also leads to commercialization opportunities, new businesses and industries, and economic growth.

Cultural and Community Engagement: As hosts a wide array of cultural events, performances, and exhibitions; these institutions not only enhance the quality of life for residents, but also attract visitors, increasing tourism and boosting spending at local businesses.

THE ECONOMIC IMPACT OF HIGHER EDUCATION

The Association of Independent Colleges and Universities of Massachusetts (AICU Mass), which consists of 59 independent, nonprofit colleges and universities across the bay state, commissioned an independent national research firm to conduct the first comprehensive assessment of the impact of their private colleges and universities since forming nearly 50 years ago. The report, released in Spring 2023, quantified the economic impact higher education has on the Commonwealth as follows:

Findings across the state:??

Annual economic impact: $71.1 billion
Tax revenue generated: $2.4 billion?
Jobs supported: 320,000+?
Operational spending: $35 billion?
Alumni spending power: $28 billion

There are 11 AICU Mass institutions in western Massachusetts and their economic impact was noted as:

Annual economic impact: $3.3 billion?
Jobs supported: 19,400+?
Operational spending: $1.9 billion
Alumni spending power: $140 million

“Western Massachusetts is synonymous with some of the best private colleges and universities in the world they are a part of our culture, our way of life,” Rick Sullivan, president and CEO of the Western Massachusetts Economic Development Council stated in the report, “and, based on this study, clearly part of our economic well-being.”

Using an Innovative Approach to Workforce Development?

Did you know that approximately 40 out of every 100 Springfield residents who are of working age are not currently employed? For quite a while there has been an extreme disconnect between employers who need qualified workers and low-income residents seeking meaningful employment in the city. The good news is, in part, through the efforts of Springfield WORKS Springfield WORKS, an EDC Initiative Partner, this is beginning to improve.?

Springfield WORKS is committed to removing systemic and racial barriers to economic opportunity and well-being, aimed at building a resilient, inclusive, and equitable economy in the Greater Springfield Region. By taking an innovative approach, through meaningful collaboration with key stakeholders, they’ve set out to eliminate the silos and disconnected programs and services that make it difficult for low-income residents to find and keep a job and for employers to find qualified workers.?

The accomplishments of the organization in such a short time are numerous, a few examples include:

A collaboration with the Springfield Public Schools and Holyoke Community College’s ‘Career Readiness Program’ – Springfield WORKS assisted with workforce training in the popular para educator track at the college and Springfield schools got involved as an employer partner, providing internships to students in this career track. So far, eight cohorts have been completed since 2021.

Holyoke Community College (HCC) and its partners, including Springfield WORKS, have been awarded a historic grant totaling nearly $1.46 million, marking a significant milestone in the collective mission to enhance the regional workforce ecosystem—particularly for critical sectors like healthcare. This grant is designed to address the urgent demand for skilled nursing professionals in our area hospitals.

Springfield WORKS/EDC 413 Works, Inc. has been awarded the 2024 Community Empowerment and Reinvestment Grant (CERP), funded by the Massachusetts Executive Office of Economic Development. This renewed funding will build on the collaborative work with prior CERP funding to help reduce barriers to employment for individuals or families impacted by conviction histories, poverty, and social and economic inequity. In addition, it will be used to further engage employers to break down barriers to meaningful employment and implement more effective practices for Fair Chance hiring.?

Secured a $100,000 grant to address the workforce crisis in early education by investing in the early education workforce through outreach and recruitment of participants, training and coaching, stipends for teacher mentors, and more. This Urban Agenda grant was a partnership with HCS Head Start, Square One, Springfield Partners for Community Action, Springfield Jewish Community Center, and Holyoke Community College.

“Together, we are building a resilient, inclusive, and equitable economy in the Greater Springfield Region,” shares Anne Kandilis, Director, and Springfield resident.?

Knocking Down One Barrier To Higher Education Access

Are you, or someone you know, one of the almost two million Massachusetts residents over the age of 25 who do not have a college degree? The systematic barriers previously discussed have clearly created a devastating gap in employed and non-employed individuals throughout the area. In addition a major hurdle for many exploring higher education are financial constraints.?

That is why we were thrilled to learn that the Department of Higher Education, in partnership with our public community colleges, created a new program – MassReconnect. This program, aimed at making education more affordable and accessible to adult students, allows those who qualify the opportunity to earn a degree or certificate for FREE, helping put them one step closer to embarking on their dream career.

All three Western Mass community colleges: Greenfield Community College (GCC), Holyoke Community College (HCC), and Springfield Technical Community College (STCC) are eligible institutions for the MassReconnect program. For details on who is eligible, how to enroll, and more – click here.?

More Collaboration Equals Greater Success

Valley Venture Mentors (VVM) supports transformational development for high-growth and high-scalable startups that change the face of the economy in our region. This area is critical to economic growth in our region, which is why in early 2022 the EDC and Valley Venture Mentors joined forces.?

VVM strives to provide unique and collaborative programs, and in doing such they act as a catalyst for community and economic growth through entrepreneurship-led economic development and ecosystem building. Serving as the regional entrepreneurial convener, hub, trainer, and network facilitator for entrepreneurs in Western Massachusetts, they help propel ideas forward to becoming sustainable businesses through mentorship, meaningful connections, and entrepreneurial education.?

One example of education AND collaboration is the relationship between VVM and The Berthiaume Center for Entrepreneurship at UMass Amherst. ( UMass Amherst | Berthiaume Center for Entrepreneurship ) This partnership has resulted in the successful creation of the Collegiate Summer Venture Program (CSVP) – a two-month intense training curriculum offering support, lessons from subject matter experts, investor connections, all in a highly engaging and collaborative setting.

LOOKING AHEAD?

Although evolving, the future of higher education in Western Massachusetts is promising. With ongoing efforts to strengthen partnerships between academia, industry, and government, as well as initiatives focusing on workforce development, entrepreneurship, and innovation, we are poised to further boost the region's economy.?According to EDC Board Chair, Christina Royal, Ph.D., founder of Infinite Unlearning, LLC, and retired Holyoke Community College president, a focus on education is imperative:

“We need to create an immediate and longer-term view of the changing nature of workforce development. What it means to ready people for jobs, the partnership with education, and the changing dynamics of the future of work, especially as businesses are disrupting and being disrupted by advances in technology, such as AI.”

This workforce evolution is part of the intended focus not only with our EDC Education Subcommittee, but also with others such as New Industry Sectors, Strategic Planning, and Diversity, Equity, Inclusion, & Belonging (DEIB). Last year the Education Subcommittee, led by Sandra J. Doran, J.D., President, Bay Path University, heightened the importance of both secondary education and higher education in relation to the growing and ever-changing workforce across the commonwealth and in Western Mass.?

Leveraging Western Massachusetts strength in higher education to support regional workforce needs remains high on the EDC’s long list of priorities. This year the subcommittee will identify strategies that effectively pipeline talent from secondary and higher education, which will certainly impact the growth of the region.?

It is important to evaluate the current workforce needs in our region, while also understanding how we can create opportunities for the future. In our 2023 Annual Report, Rick shared that one sector he forecasts future change is in higher education. “We’re starting to see big umbrella change, and we’re assessing what it’s going to look like in the future,” he says. “We may not see as many jobs that require a four- year degree. We’re working closely with all of our partners to develop that emerging workforce.” One benefit to the predicted shift is the region’s ability to partner with higher ed to offer focused trainings on skill-based competencies and credentialing for certificates, in addition to the traditional offerings of doctoral, master’s, bachelor’s or associate degrees.

These changes, and future endeavors, are part of the goal of the EDC’s New Industry Sectors Subcommittee, led by John Cook, PhD, President, Springfield Technical Community College. They are tasked with examining areas of growth such as Clean Technology, Cyber Security, Food Science, Artificial Intelligence (AI), and Quantum Tech. As well as exploring the technology-driven changes in legacy industry sectors in our region such as Healthcare, Education and Advanced Manufacturing.

One example is the development of the clean tech and green jobs workforce, an area that Western Mass has been slower to explore than other parts of the Commonwealth. The EDC’s excitement in economic development in this sector with the ultimate goal of growing the area’s economy as a whole is not just theory and rather concretely supported in the recently released Prospectus for Transformative Economic Investment report by MassINC and Cambridge Econometrics. The report, which can be read in full here, calls for ‘Transformative Investments’ in these, and a few other, key sectors in Western Mass. and clearly states the region is primed for transformative economic investment and that it is time to seize the opportunity to foster innovation and drive growth in Western Massachusetts!

As Western Mass continues to evolve, its higher education institutions will remain crucial pillars of economic growth, innovation, and community development. By nurturing the existing and incoming workforce, retaining talent, conducting cutting-edge research, and fostering a culture of creativity and collaboration, these institutions ensure that our region will remain competitive and prosper.??

CONCLUSION

The economic impact of higher education institutions in Western Massachusetts is profound and multifaceted. They not only educate the next generation of leaders and professionals but also drive innovation, support local businesses, and enrich the community. We are proud to partner with so many of these stewards of economic progress and cultural enrichment, all of whom play a pivotal role in shaping the future of our region.

A special thank you to these Western Mass EDC Board Members and Member organizations in the higher education sector:

Infinite Unlearning, LLC – Dr. Christina Royal, President and CEO & Former Holyoke Community College President / EDC Executive Committee - Chair
American International College (AIC) – Nicolle Cestero, MBA, Interim President
Bay Path University – Sandra Doran, JD, President
Elms College – Dr. Harry Dumay, President