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Last October, Mainebiz partnered with Maine Public Broadcasting Network and event sponsor Norton Lamb & Co. to host a symposium exploring pessimism in Maine's business community. Two panels of experts from all corners of Maine's economy — from business leaders to economic development specialists — discussed the issue during an engaging afternoon event in Lewiston. With this issue, we launch a three-part series following up on the most compelling subjects generated during the 2007 Mainebiz Symposium.
Part one: In this issue, Mainebiz looks at the myth and reality of the great Maine worker.
Part two: Is Maine taking the right steps to educate its workforce? We look at a unique intersection of education and the economy in the Feb. 25 issue.
Part three: In the March 10 issue, Mainebiz asks where the state's next crop of leaders will come from.
The snow might be driving down, the winds whipping up curlicues of silvery powder and streets icing over in sub-zero temperatures. But most Mainers will still show up for work.
"I believe it was April 4, the first day of operation, and we started with 20 people," recalls Jonathan McDevitt, the chief technology officer of Tennessee-based NotifyMD Inc., which opened a doctors' answering service in Farmington last spring. "The evening of the third it started snowing. When I woke up at 4 a.m. to drive in, there was over 20 inches of snow."
And yet only one employee called in to say she couldn't make it — at least not by the opening hour. "She had a 60-mile commute, and she called saying she would be a little late," McDevitt says, a hint of disbelief still in his voice almost a year later. "Everybody else was on time and ready to go."
The story of NotifyMD's opening day is at times brought up in economic development circles as testament to Maine's workers, who carry on through sleet, rain, mud and worse. "We have had to be incredibly resourceful because of our geography, climate and our perceived lack of opportunity. We've had to be survivalist," Brewer Economic Development Specialist Tanya Pereira decides.
Mainers, even while cold and chapped, are often lauded for their low absenteeism rates, quality craftsmanship and overall congenial nature. But before idealizing our innate goodness, experts point out that this much-touted work ethic is as much a symptom of a poor economy, where people desperate for work are ready to sacrifice to keep a job, any job, as it is about hardy constitutions. "Because of unemployment, people can be forced to take a job for which they are overqualified," Pereira points out.
Regardless of the origin of Maine's work ethic — whether it's economic hardship or the Yankee way — the results can impress company leaders. McDevitt says NotifyMD's experience in Maine has been transformative. "There is absolutely no question that the applicant we've had and hired is higher quality than in other places. It's really refreshing," he says.
NotifyMD owns five other call centers in cities in Florida, Missouri, Pennsylvania, New Jersey and New York. And in the future, when scouting locations for additional facilities, McDevitt says the company will now lean toward rural towns like the ones in Maine. "There is a lot to be said about being in a smaller place where you can be a more meaningful part of the community," he says.
Company managers in a range of industries — from banking to retail and manufacturing — churn out accolades for their Maine employees. After awhile, it's hard to remain skeptical. But a closer look at productivity data reveals Maine workers might actually be hovering around the national average. "In relation to the United States, we're comparable to the productivity gains that the United States has reported overall," says John Dorrer, director of Maine's Center for Workforce Research and Information. Those productivity gains have, however, risen dramatically across the country, partly due to technological advances. For instance, a Maine manufacturing worker produced $30,000 worth of gross product in 1980, Dorrer calculates. That doubled to $60,000 in 2000. Dorrer was unable to provide national figures for comparison. (These figures are adjusted for inflation.)
Dorrer maintains, however, that the Maine worker does stand out beyond the numbers. "That has been a longstanding claim, that the Maine workforce is more productive and hardworking," he says. "We've used that as part of our strategy to attract firms to come here."
A business that settles in Maine does not come for manageable taxes, affordable electricity bills or easy access to out-of-state markets. Rather, it moves in for the state's intangible essence, for the relatively inexpensive real estate and for the Maine worker.
And that last piece is the most critical, according to Matt Jacobson, president and CEO of the nonprofit firm Maine & Co., which provides recruitment services to companies locating to or growing in Maine. "High-energy users select themselves out, so workforce is number one in all of their minds," he says. "For every company, that is the lifeblood."
The anecdotal evidence, if it were to be collected in hardcopy, of the commitment, resilience and ingenuity of the Maine worker would quickly form a towering stack of loose-leaf paper. (To read Mainebiz readers' thoughts on the great Maine worker, see "Perspectives" on page 4.) Jacobson says in the past 12 years, Maine & Co. has lured a variety of businesses here that have collectively hired 6,000 people. "Not one company that Maine & Co. has recruited has failed," he says. "The first thing they talk about is their workforce. Mainers typically come to work every day. When you go to Florida, guys don't come to work every day. It's astonishing the difference. Overall we have an ethic that is different. It's unique."
Part of that ethic comes from the extent we identify with and take pride in our jobs. Shane Chamberlain, a 20-year-old press brake operator at Trans-Tech Industries Inc. in Brewer, says his work is more than just building tanks for oil trucks. "It's a demanding job. We're supplying people with their heating oil, supplying people with something that's important," he says, standing beside a large sheet of aluminum at the plant. "We're providing people with something they need to survive."
Ken Peters, owner and president of Trans-Tech, says this attitude, and the care taken by his welders, has boosted his 22-year-old company. "That is actually what is helping us expand south and west," he says. "Over 95% of what we make is shipped out of Maine. And [customers] end up paying a premium for a product. But we're recognized for our quality and features."
L.L.Bean, too, which was recently ranked first in the country by the National Retail Federation for customer service, cites its workforce as one reason for its 95-year success. "We continue to grow and expand and part of that is the quality of our workers," says L.L.Bean spokeswoman Carolyn Beem.
And Bean employees tend to stick around, another characteristic often attributed to Maine workers. The average tenure of a current L.L.Bean staffer is 10.2 years, according to Human Resources Director Wendy Estabrook. (About 4,500 of the company's 5,300 year-round employees live in Maine.) "We see employees who want to create a positive work place," she says. "They're dedicated to the company and each other."
Brewer Automotive Components' plant manager, Andy Fitzpatrick, sees camaraderie among employees as well. "There is a natural concern for their co-workers and the products they produce, and that's the key ingredient for a successful manufacturing company," he observes about the plant, which is owned by the international companies ZF Lemforder Corp. and Somic Ishikawa.
After working in Virginia, Rhode Island, Illinois, North Carolina and Alabama, Fitzpatrick says he's also struck by Mainers' knack for innovation. "They have some sort of self-sufficiency built into their lifestyle," he says. But the readiness by which Mainers point out company deficiencies and possible improvements should not be misconstrued as impudence. "I haven't seen that willingness to challenge up the authority chain that we see in Maine. I didn't necessarily encounter that willingness to bring innovation to the job," he observes.
And all this has made it worthwhile for his company to stay put. "The overall employee morale, work ethic [and] high product quality offset the expensive costs of doing business in Maine," he says.
Plus, the work prowess found here might actually rub off on outsiders. Judy Coye, a human resources officer at TD Banknorth, says she notices corporate-level staff from away also displaying that Maine je ne sais quoi. "Once they're here, they're dedicated to making it work. They want to better the community, they want the company to be successful and the state to be successful," she says.
How Maine stacks up
But is the Maine worker really more dedicated than, say, workers in similarly rural states like Minnesota, Vermont, Arkansas or New Hampshire? Those states say no.
"We would also agree that Minnesota has a superior workforce," says Kirsten Morell, communications director for the Minnesota Department of Employment and Economic Development. She argues that Minnesota has the second highest worker participation rate in the nation — 76.9% — after Nebraska, according to 2006 U.S. Census Bureau data. Maine, on the other hand, is ranked 16th, with 72% of 16- to 64-year-olds participating in the state labor force, not including the armed forces.
Morell also points to a U.S. Census statistic called "value added," which can be roughly used as one measure for worker productivity. Value added refers to how much worth is added to a good as it moves through the steps of production. In Minnesota, the value added per production hour in manufacturing was $105.80 in 2006. In Maine, it was $95.79. (For more on these statistics, see "Value proposition," this page.)
Vermonters, too, appear to be industrious. "We stress the quality of our workforce and its commitment to providing top quality products and services," says David Mace, spokesman for Vermont's Agency of Commerce and Community Development. And Vermont can brag that 74.9% of its 16- to 64-year-old population is employed, according to 2006 census figures. Moreover, the state's value-added figure is an impressive $112.58 per manufacturing production hour.
In Arkansas, people "look forward to getting up in the morning and look forward to a hard day's work," says Scott Hardin, spokesman for the Arkansas Economic Development Commission. Instead of pointing, obviously, to harsh winters behind an adaptable workforce, Hardin says family tends to be the primary motivator for Arkansas residents. "We think that obviously Arkansas is a state full of people committed to providing for their families," he says.
After flaunting the admirable character of their workers, various state spokespeople also bragged about education levels, or at least state-funded opportunities for training. "It's a well-educated workforce," Morell says about Minnesota. According to the U.S. Census Bureau's 2006 American Community Survey, Minnesota ranked 12th in the nation for the number of people over 25 with a bachelor's degree, at 30.4%. Maine ranks 25th in this category, with 25.8% of its population holding a bachelor's degree, which puts it behind the U.S. average of 27%. Both Vermont and New Hampshire scored in the top 10.
And New Hampshire took its smart-worker spiel a step further. "It is a state that is highly adaptable to innovative technologies," says Michael Power, executive director of the Workforce Opportunity Council in New Hampshire. He says New Hampshire has one of the highest percentages of workers in high tech, which is partly explained by the state's proximity to Boston. The state has benefitted from IT companies drifting away from the metropolitan area to seek cheaper land and business costs, bringing their knowledgeable workers with them.
But Power is generous with his praise for all of New England. "I don't think [work ethic is] defined by borders, it's defined by region. Northern New England shares a lot of traits because of their rich heritage of manufacturing," he says. "Out of that culture grew a workforce that is pretty dependable and pretty dedicated that exists today."
Jacobson agrees. "We got famous for manufacturing very high-quality things, and even with globalization putting pressure on the manufacturing sector, we do very high quality work, and we have a lot of pride around it," he says.
And despite the shifting economy that's losing its manufacturing foundation, Jacobson says he believes the values he sees in Mainers will persist as Maine gains strength in technology or service-based industries. "I don't see that changing, it is just who we are. Folks are used to scraping and working hard and they teach their kids that," he says.
Don Clark, a press brake laborer and welder at Trans-Tech in Brewer, says his parents, for one, passed on a no-nonsense version of life. And they're from Ohio. "I learned their values," he says. "If you don't work, you're not going to eat. If you want something, you have to earn it."
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