Despite workforce and housing shortages, the head of the Maine Development Foundation is optimistic about Maine’s economy in 2025.
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As president and CEO of the Maine Development Foundation, a nonprofit on a mission to build a better Maine, Yellow Light Breen has his finger on the pulse of the state’s economy. Whenever he goes, he spreads hope, and not just because he always carries a colorful electric “Hopeful” sign by artist Charlie Hewitt in his trunk ready to plug in at every city, town and village he visits.
Mainebiz: How hopeful are you about Maine’s economy in 2025 and why?
Yellow Light Breen: I am very hopeful about 2025 — and not just because I carry a five-foot Charlie Hewitt “Hopeful” sign in my trunk everywhere I go! I’m hopeful because Maine has outperformed the nation and rural America in our recovery from the pandemic the past few years. We have a larger (and growing) workforce than we predicted in 2019. We have more Mainers than ever with degrees and credentials and certificates after high school to increase earning potential; we have invested in R&D, broadband and roads. We have strong new business starts. We have one of the lowest crime rates and healthiest environments of any state. And we can be a global leader in sustainable, innovative products from our woods and oceans. Maine’s hard-working people and entrepreneurs will leverage these advantages in 2025 to create prosperity.
MB: What do you see as the biggest challenges and opportunities for Maine’s economy in the next 12 months and why?
YB: The challenges are workforce and housing shortages, mental health of Maine people (especially kids), and the need to invest smartly for success in pre-school and K-12 education. The biggest opportunities are the resurgence of manufacturing in Maine (and the U.S.); “work from anywhere” (here!) supported by the rapid improvements in Maine’s high-speed broadband network; new horizons for our historic forest, marine and food industries; and the diverse talent boomeranging back to our state or choosing to become new Mainers due to our quality of life.
MB: In the next 12 months, what can Maine realistically do to attract more working-age employees and/or entrepreneurs to the state? Anything in terms of policy?
YB: We must tackle the housing crisis first and foremost — and that is hard to impact in just 12 months. Some existing policies are beginning to show effects, but we need even more mutual collaboration between government and private developers to remove the barriers to reasonable development. And we need more focus on upgrading and repurposing existing buildings. We have a lot of amazing entrepreneurs already here — but we do need to be mindful to keeping our business climate competitive and attractive to the capital investment that fuels them.
MB: What sectors of Maine’s economy do you see as the strongest/weakest and why?
YB: Strongest will be manufacturing, construction, outdoor recreation, and business and professional services — all because of investments in talent, innovation and infrastructure. Weakest (or at least severely challenged) might be health care, hospitality and K-12 education — all because of the critical workforce shortages to make our hospitals, companies, and schools really hum. At risk will be trade dependent sectors with the potential for trade wars looming, such as lobsters and wood products.
MB: Same question about geographic areas of the state?
YB: Predicting the “rim counties” of rural Maine (those with a border to Canada) to struggle would usually be the expected and easy answer. But I actually think we will continue to see many areas of rural Maine on a gradual but long comeback path in 2025 boosted by the next generation of opportunities in forest bioproducts, marine, food, manufacturing — and the continued surge in the outdoor recreation economy. I think midcoast and Downeast Maine may struggle the most with the double whammy of an aging population and hyper-expensive housing. Greater Portland and York County will continue to be growth engines, although high-cost ones. Maine’s historic downtowns like Skowhegan, Biddeford, Belfast, Bath and Ellsworth will thrive as local brands, authentic experiences and walkability continue to be valued.