25 bold predictions for Maine's economy in 2025
While we go into 2025 seeing some well-established trends, there’s a good deal of uncertainty ahead. Likewise, our “bold” predictions for 2025 range from some reliable standards to a couple that may end up taking longer than a year to play out.
1. Hotel development in Portland will slow down, partly because of a six-month moratorium. Developers will turn to Scarborough, Westbrook and other surrounding cities.
2. Restaurants will continue to see a shakeout.
3. Maine’s median home price will continue to hover around $400,000.
4. Maine companies will be acquisition targets.
5. Bigger companies will continue to readjust to the economy, which could result in layoffs and ending certain product lines.
6. Climate change will continue to affect coastal infrastructure.
7. Maine will struggle with the end of pandemic-related funding.
8. Higher tariffs could be a headache for companies that rely on imports and exports.
9. Tougher immigration policies could affect the labor pool, particularly during peak tourism and agricultural seasons.
10. Public money for social services could be harder to come by.
11. Craft brewing will see more consolidation and retail closings.
12. Portland and Rockland will see comparable cruise visitation to what they saw in 2024, while Eastport will see significant increases next year.
13. Maine will continue to promote the adoption of electrification, from home heat pumps to electric vehicle use.
14. Retailers will have to navigate the labor shortage and wage pressures.
15. Affordable housing will continue to be a priority, with more developers figuring out ways to get into it.
16. Maine’s paid-leave law, which went into effect on Jan. 1, will likely be modified.
17. With cruise ship traffic being limited in Bar Harbor, Eastport and smaller ports like Bath, Boothbay Harbor, Belfast, Bucksport and even Bangor could see more stops.
18. Downtown shopping areas like Portland’s Old Port could see an increase in the proportion of national brands.
19. Maine’s nascent space industry could see more manufacturers setting up shop here.
Predictions from Maine business leaders
20. “Unless the playing field is leveled between banks, credit unions and the largely unregulated financial technology industry, we can, unfortunately, expect more banks to look for economies of scale through combinations.”
— Jim Roche, Maine Bankers Association
21. “A commercial real estate transaction in Maine will be financed by cryptocurrency.”
— Justin Lamontagne, the Dunham Group
22. “We’ll see a surge of women stepping into leadership roles across business, government, and other sectors — and the organizations they lead will thrive because of it.”
— Dava Davin, Portside Real Estate Group
23. “We will widely recognize the urgency and seriously recommit ourselves to ensuring that Maine is the best K-12 education system in America, as we were 20 years ago.”
— Yellow Light Breen, Maine Development Foundation
24. “States and localities must take aggressive approaches to support affordable housing development, including subsidies for new housing development and rehab development, along with zoning and land use changes to enable development.“Communities and regions that do not take aggressive approaches will have a harder time supporting economic and commercial development.”
— Jim Damicis, Camoin Associates
25. “Unlike other sectors that experienced post-COVID declines, the life sciences industry has demonstrated resilience and is well-positioned not only to maintain its current momentum but also to expand significantly.”
— Agnieszka Carpenter, Bioscience Association of Maine
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