RI Biz Winners & Flops – Prov’s Economic Void, RI Rankings & WashTrust Growth
GoLocalProv Business Team
RI Biz Winners & Flops – Prov’s Economic Void, RI Rankings & WashTrust Growth
Providence is facing major economic decisions and challenges in 2015. The Capital city which continues to rank among the bottom of most every economic ranking for metropolitan areas still does not have an economic development director. Worse, the city does not employ a single experienced economic development professional among the 3,000 city employees.
The City of Providence’s Economic Development page lists no staff contact for prospective businesses. One of the City’s top four economic development announcements is a December, 2014 “Stroll Down Hope Street.”
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With a request for millions in tax breaks from the owners of the Pawtucket Red Sox, the City of Providence has no economic development staff to access the economic impact of providing the for profit baseball team (with less than thirty full-time employees) such an unprecedented request.
Governor Gina Raimondo seems to have kick started the I-195 Commission and is pushing forward with initiatives. Amazingly, six months after the election, Mayor Jorge Elorza has yet to name a single economic development professional to his administration. Nearly one-eigth of the Mayor's term is over.
Biz Winners
Pawtucket and Providence Development Gets a Boost:
Pawtucket Mayor Donald Grebien and Providence Mayor Jorge Elorza kicked off the the start of construction on Rhode Island’s newest LA Fitness facility. Located on the Providence /Pawtucket line, the new 45,000 square foot health club with parking to accommodate up to 300 vehicles is seen as spark to an area the has struggled for years.
“Today is a terrific day for both our cities,” said Donald R. Grebien, Mayor of Pawtucket. “Not only will this fantastic new gym help transform this neighborhood, but its arrival is a great example of how both Providence and Pawtucket can attract new businesses and work together to drive our economies forward.”
GoLocalProv has a strong editorial focus on worker safety issues and the efforts by Shawmut and unions was a step in the right direction to bring attention to the issue. Brown University’s Applied Mathematics Building is currently under construction by Shawmut and was the backdrop for the RI Safety Week event that featured a focus on worker safety and brought many of the players in construction together. The event was celebrated by Shawmut, RI Associated General Contractors, Dimeo Construction Gilbane Construction, OSHA, and the area trade unions.
Washington Trust Opened a new branch in East Providence:
RI’s largest state-chartered bank kicked off the opening of its 20th branch at 330 Newport Avenue in Rumford this week with all the bells and whistles. Washington Trust Company’s Chairman and CEO Joseph MarcAurele and President and COO Edward “Ned” Handy, East Providence Mayor Thomas Rose Jr. and State Senator Daniel DaPonte were there for the kickoff.
Certainly being ranked in the bottom half of the states is never good, but this might be the first time in years that RI’s ranking was not in the bottom 10 (or usually the bottom 3 - see below). “CEOs showed their pleasure with the state’s reduction in corporate income taxes by bumping it up three spots in the rankings. Business leaders are beginning to feel that the governor is on their side,” said CEO Magazine.
Rhode Island improved three spots to #37.
No one had a better week than BENRUS. Media around the country picked up that their spokesmodel is dating Patriots star Rob Gronkowski. The company's sponsorship of the $20 Million BENRUS Open captured attention and they unveiled both online and retail expansion.
Flops
Business Climate is Bad and Not Getting Better think Small Businesses:
ThumbTack in conjunction with the Kaufman Foundation reports that RI is at the bottom — tied for last — as ranked by small business owners. The Grade Rhode Island received was an F and the same as in 2013. “Small business owners gave California, Rhode Island and Illinois an "F," while Connecticut and New Jersey both earned a "D" grade. Sacramento, Providence and Buffalo were the survey's worst-performing cities as rated by their small business owners.”
The proposed ask by a group with a net worth in the billions continues to be an insult to business owners in RI. The idea of $120 million subsidy and 30 years without a tax bill maybe the most insulting overreach of all time. If we think Larry Lucchino of the Red Sox and investor in the PawSox is a business prophet -- take a look at the Boston Red Sox standings in the American League East - one of the highest spending and worst performing team in baseball.
RI Business Rankings in US
WalletHub
Rhode Island has 2015's eighth highest insurance premium penalties for high risk drivers, according to a WalletHub report.
Rhode Island ranks fifth overall in the category of speeding over 20 mph annual premium increase at $482. While ranking third overall in the category of 2 accidents annual premium increase at $2,721.
Rhode Island ranks ninth overall under the reckless driving annual premium increase at $749.
WalletHub
Rhode Island has been ranked as the 8th most eco-friendly state in the country, according to a recent study by WalletHub.
Rhode Island ranks third in environmental quality and 16th in Eco-Friendly Behaviors Ran landing them in 8th overall.
RI is behind Washington and New Hampshire who are in the six and seven spots respectively, and in front of Connecticut and Hawaii who come in at the nine and ten spot.
WalletHub
Rhode Island is 2015's 4th Worst State to be a taxpayer, according to a recent WalletHub report.
Rhode Island ranks 48th of 51 with an average state and local tax price of $7,159 which is good for a 27% difference from the national average.
The states that are directly behind Rhode Island are Wisconsin at $7,159, Nebraska at $7,298 and Illinois at $7,719 for a 37% difference from the national average.
WalletHub
Rhode Island has the highest vehicle property taxes in the country, paying an average of $1,133 according to a report from WalletHub.
Virginia and Kansas are the two states just ahead of Rhode Island in the 49 and 50 spots, paying $962 and $905 respectively.
RI also ranks 42nd in average real estate tax, paying an average of $2,779, according to the WalletHub report.
WalletHub
WalletHub has ranked Rhode Island as the 7th worst state to be rich in in a recent in depth analysis of 2015's Best States to be Rich or Poor From a Tax Perspective.
On a scale with 1 being the best, and 25 being average, Rhode Island ranks 37th in low income earners, 42 in middle income earners and 45th in high income earners.
To see the full report, click here.
Gallup
Providence-metro ranks at the bottom for job creation in 2014
Rhode Island has been ranked amongst the worst in job creation, according to a recent survey done by Gallup.
Gallup gives the Prov-metro area an index score of 23, the lowest score is the New York- New Jersey area with 20.
Salt Lake City, Utah and Austin-round Rock, Texas rank the highest with a score of 37.
See the rest of the rankings here.
Forbes
The 2014 state rankings by Forbes has just been released and Rhode Island moved up two spots from #48 in 2013 to #46 in 2014.
What does Forbes say about RI's business environment"
After Michigan and Illinois, Rhode Island has experienced the third worst net migration out of its state in the country over the past five years. With a recent unemployment rate of 7.6%—lower than only Georgia and Mississippi—residents are leaving the state in search of jobs. Rhode Island has been stuck in the bottom five overall for six straight years. One plus: labor costs are 5% below the national average, which stands out in the expensive Northeast.
Tax Foundation
Findings from The State Business Tax Climate Index were released this morning by Tax Foundation which found Rhode Island to have the 45th best tax climate for businesses for 2015. The state's rank has not changed since last year after The Index analyzed 100 different tax variables in multiple categories.
Read more about the report here
WalletHub
After conducting an online suvery consisting of 1,050 individuals from both parties across the nation, WalletHub ranked Rhode Island as having America's 33rd fairest tax system.
Click here to view the poll's entire findings
Thumbtack/Kauffman
Providence is the second worst city in America for small business, according to a new survey conducted by Thumbtack.com and the Kauffman Foundation.
More than 12,000 small businesses in 82 cities across the country participate in the survey. Providence received an overall "F" grade for small business friendliness.
The Economist
Small Business Friendliness Grade: F
The Economist grades states on an A+ to F grading scale for its small business climate. Rhode Island is one of just 6 states to earn an "F" grade.
Overbearing bureaucracy and excessive licensing is stifling small business in America.
Read More About The Economist Grade Here
CNBC
CNBC ranks each state in cost of doing business, economy, technology and innovation.
Rhode Island's unemployment rate as of May 2014 was 8.2 percent. This is RI's lowest unemployment rate since August 2008.
Read More About CNBC Ranking Here
Forbes
Forbes ranks each state in business costs, economic climate, and growth prospects. RI is third worst in 2013.
The most damning in the commentary:
After Michigan, Rhode Island has experienced the second worst net migration in the country over the past five years.
Read More About Forbes Ranking Here
ChiefExecutive.net
#39 ChiefExecutive.net
ChiefExecutive.net ranks each state in taxations and regulations, workforce quality, and living environment.
The most damning in the commentary:
Sky-high unemployment rate bespeaks continuing terrible business climate.
Read More About ChiefExecutive.net Ranking Here
Tax Foundation
#46 Tax Foundation
Tax Foundation ranks each state in corporate tax rank, sales tax rank, and unemployment insurance tax rank.
Rhode Island and the other states in the bottom ten suffer from the same afflictions: complex, non-neutral taxes with comparatively high rates.
Read More About Tax Foundation Ranking Here
Wallet Hub
#24 Wallet Hub
Wallet Hub ranks each state in ROI rank, state tax rank, and overall government services.
Rhode Island ranked #50 for worst roads and bridges, but ranked #4 in safety.
Read More About Wallet Hub Ranking Here
ALEC
#47 ALEC
ALEC ranks each state in economic performance and outlook.
Although Rhode Island ranked low in economic performance, a forward-looking forecast is based on the state’s standing in 15 important state policy variables. Some of these variables include top marginal personal income tax rate and sales tax burden.
Read More About ALEC Ranking Here
Kauffman Foundation
#50 Kauffman Foundation
Kauffman Foundation ranks each state in entrepreneurship.
Entrepreneurial activity generally is highest in Western and Southern states
and lowest in Midwestern and Northeastern states.
Read More About Kauffman Ranking Here
Free Enterprise
#47 Free Enterprise
Free Enterprise ranks each state in performance, exports, innovation + entrepreneurship, business climate, talent pipeline, infrastructure.
Rhode Island has continued to feel the direct impact and ripples from the recent recession—it ranks 47th overall in economic performance. However, positive rankings of 15th in talent pipeline and 16th in innovation and entrepreneurship suggest the existence of a foundation on which to build the future.
Read More About Free Enterprise Ranking Here
The Pew Charitable Trusts
#40 The Pew Charitable Trusts
The Pew Charitable Trusts ranks each state in job growth and job creation.
Rhode Island added 6,223 jobs in 2014.
Read More About The Pew Charitable Trusts Ranking Here
Gallup
10th Worst in Gallup's Annual Ranking of State Job Markets 2014
Rhode Island has been ranked 10th worst for job creation in Gallup's annual ranking of state job markets in 2014 with a job creation index number of 21
Rhode Island is one of two (Connecticut) states to rank in the bottom ten each year since 2008.
The 2014 State level findings have were drawn from 201,254 interviews with employed adults across the nation.
See the full list of rankings here.
