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Bob Montgomery-Rice, Bangor Savings
February 4, 2025
How Maine businesses can prepare for potential economic shifts in 2025
By Bob Montgomery-Rice, Bangor Savings Bank
We see 2025 as a year of opportunities and change for northern New England.
While federal interest rates are expected to decline, inflation, housing imbalances and workforce availability remain critical. For Maine and northern New England’s tourism-driven economy, immigration, tax and tariff policies may also shape the economic landscape.
Amid these dynamics, businesses, nonprofits and consumers can adapt, with community banks playing a pivotal role. Here are concrete actions stakeholders can take.
Navigate housing and workforce opportunities
Support sustainable housing development. Partner with community banks for tailored loan programs that support construction and renovation, easing workforce growth challenges caused by housing shortages.
Partner in workforce development. Upskilling employees is key to addressing labor demand. Bank and region-supported programs can help workers gain skills for current and emerging roles.
Cultivate workforce resilience. Partner with regional workforce organizations and educational institutions to address labor shortages through talent development, training and apprenticeships. Community banks can support by fostering partnerships for skills training, worker retention and building talent pipelines.
Strengthen small businesses and nonprofits
Explore alternative funding options. Businesses of all sizes and nonprofits can seek funding sources to help meet their specific needs, working in partnership with local agencies and appropriate programs. This is a great time to familiarize yourself with local funding options. Banks can assist in identifying and possibly securing funding support.
Leverage local and regional resources. Community banks can support underserved areas through tailored lending, such as Community Reinvestment Act-compliant loans, and help nonprofits bridge funding gaps via strategic partnerships.
Diversify revenue streams. To maximize resources and impact, nonprofits can engage private donors and corporate sponsors while collaborating with similar organizations.
Embrace technology thoughtfully
Strengthen customer connections through data and AI. Community banks prioritize data literacy and responsible AI use to enhance employee and customer experiences — leveraging tools like recommendation engines and call center technologies — while maintaining the human element.
Invest in employee training. Workforce constraints remain an opportunity in northern New England. Training employees to integrate AI into daily workflows boosts efficiency and helps banks better support local businesses and nonprofits.
Enhance operational efficiency with care. Small language models — AI tools designed to understand and generate human language on a smaller scale — and similar technologies can streamline customer inquiries while preserving the personal touch, enabling employees to deliver timely, informed solutions.
Financial literacy education
Expand financial education efforts. Financial well-being begins with building habits early. Focusing on budgeting and credit education for younger generations lays the foundation for long-term success. Empowering youth with tailored advice and accessible resources fosters smart financial practices and strengthens local economies.
Introduce technology-driven tools. Tools like real-time alerts for overdraft risks and personalized budgeting applications help customers make smarter decisions and demonstrate community banks’ commitment to innovation and financial well-being.
Empower nonprofits and businesses. Financial literacy extends beyond consumers. Nonprofits and businesses may also benefit from education on budgeting and navigating funding opportunities.
Build strong banking relationships
Provide tailored advice. Community banks excel in offering customized guidance, whether for starting a business, managing a nonprofit, or navigating personal finances.
Encourage early engagement. Entrepreneurs can consult with their local banker early in the process of starting or expanding a business. This proactive approach ensures they have the right resources and support, setting them up for success.
Focus on local knowledge. Community banks understand the strengths and challenges facing Northern New England, making them the right-fit relationship during times of need.
Northern New England's businesses and communities are positioned to embrace the year ahead with the support of community banks, whose insights and tailored solutions can pave the way for sustainable growth. By fostering collaboration and focusing on long-term strategies, the region can weather uncertainties and emerge stronger and more connected.
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