2024 Forecast: Maine businesses face mixed indicators, challenges and chances to grow

File Photo / Jim Neuger Norm O’Reilly, dean of the University of Maine Graduate School of Business, says Maine needs to change perceptions nationally to create an awareness of the business community here.

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By William Hall

When the dean of the University of Maine Graduate School of Business, Norm O’Reilly, looks at the state’s economic prospects in 2024, he sees good and not-so-good.

Macro trends will, of course, affect Maine. He notes two worrisome examples.

“The combination of high interest and inflation rates is something we cannot ignore. Although these rates are not historically high, they are much higher than the consistently low rates we’ve become accustomed to over the past two decades.

“Relative to recent times, the costs of borrowing are higher, new ventures are riskier, and time is an essential consideration of any borrowing that Maine businesses entertain.”

But Maine also faces a challenge — and perhaps an opportunity — unlike those of other states.

O’Reilly says, “People outside our state do not see us as a place of business, commerce and opportunity, which it is. They see us only as a place to visit as a tourist.”

At the same time, however, the state’s commerce commands a premium. For example, consumers will pay 22% more for products and services when they come from Maine, according to a recent study by the Graduate School of Business and the Catherine Cutler Institute at the University of Southern Maine.

“We have an incredible opportunity in 2024 if we can shift perceptions across the country about our industry value, which in turn, could help attract talent, drive growth, and provide enhanced returns for our business owners.”

Another challenge in 2024 will be a perennial one for Maine: building and retaining a well-educated workforce.

Here, O’Reilly is optimistic, especially about the contribution of the state’s public university system.

He points to the MaineMBA program, created by the merger of advanced business degree offerings at UMaine and USM in 2019. Since then, the program has expanded to a current enrollment of more than 400 students, based at a new location on Fore Street in Portland.

“With our students located across the country and around the world, and with more than half based in Maine, we are both showcasing Maine and developing talent in the state,” O’Reilly says.