LEWISTON – Vigorous manufacturing, expanding logistics centers and a growing health-care industry vaulted Lewiston-Auburn into the top spot for economic growth among three Maine urban areas analyzed in a new federal study.
“I think one of the things that jumps out at me is how diversified our economy here has become,” said Paul Badeau, marketing director with the Lewiston-Auburn Economic Growth Council. “I think that’s been our salvation, quite frankly.”
Badeau was reacting to new federal statistics released Wednesday that measure gross domestic product – all the goods and services produced here. The analysis, which studied GDP from 2001 to 2005 by metropolitan area, shows a national average of 11 percent gain; L-A’s was 10.7. The Portland area scored a 9.3 percent gain and Bangor area, 5.4 percent.
This is the first analysis released by the U.S. Bureau of Economic Analysis that compares GDP by metropolitan areas. The study looks at 363 metropolitan areas across the country during the same four-year span. The L-A metropolitan area includes all of Androscoggin County.
Some of L-A’s economic sectors showed striking gains. Manufacturing rose from $376 million in 2001 to $499 million in 2005. Real estate went from $233 million to $351 million. Health care and social assistance spiked from $325 million to $454 million. Warehousing and storage almost doubled from $7 million in 2001 to $13 million in 2005.
The gains were more than enough to offset the few categories that showed drops: professional and technical services, from $146 million to $144 million; truck transportation, from $42 million to $39 million; securities and commodities, from $7 million to $5 million.
“We used to be a mill/shoe/textile mecca, which hurt us pretty badly when the jobs went south and the mills started to close,” said Badeau. “It did, however, force us to diversify. We set out to build up other industries and it took a long time, but we’ve been successful.”
Gerard Dennison, director of regional workforce analysis for the state Department of Labor, isn’t surprised by the federal study. It supports the findings of his department and coincides with three indicators that have all shown L-A’s burgeoning prosperity: job growth, population gains and unemployment trends.
Unemployment was lower than the national average over the course of the BEA study, while population gains averaged 3.9 percent, slightly more than the national average, said Dennison. L-A gained about 1,800 jobs, with the greatest increase in health care and education.
Dennison doesn’t see that changing anytime soon. Andover College, Bates College, Central Maine Community College, L-A College and others are planning expansions or upgrades.
And the growth of health services, including more nursing home and rehabilitation facilities, will match the graying public. Currently, there are about 8,000 jobs in the health care sector.
“Because of the aging population and because we’re a regional health center, it’ll continue to be the No. 1 growth category,” he said. “Right now one in every six jobs is in health care; I expect by 2020 it will be one in five.”
Under manufacturing, the nondurable goods category showed impressive gains in food product manufacturing. In 2002, it contributed $58 million to the GDP; in 2005, it was $105 million.
“I think what you’re seeing there are expansions of businesses like World Harbors, Country Kitchens and White Rock Distillery,” said Badeau. “They have all been ramping up for the last five years.”
Even some of the area’s most threatened industries posted gains. Paper manufacturing went from $57 million to $79 million during the four-year period.
Badeau said he’ll be interested in seeing next year’s analysis, which will incorporate 2006 numbers. He anticipates those will reflect the bustle of ongoing local retail development and the growth of warehouse and distribution facilities.
“I think we’re looking at a pretty promising future,” he said. “I can only imagine what next year will be.”
Selected categories of BEA’s Gross Domestic Product for Lewiston-Auburn (in millions)
Category 2001 2002 2003 2004 2005
Total $2,634 $2849 $2,982 $3,138 $3,243
Manufacturing $376 $386 $402 $448 $499
Nondurable goods $247 $252 $265 $296 $341
Retail trade $289 $305 $306 $315 $298
Real estate, leasing $233 $299 $321 $349 $351
Health care, social assistance $325 $344 $377 $435 $454
Accommodation, food service $57 $61 $64 $70 $72
To see the complete Bureau of Economic Analysis, go to www.bea.gov/regional
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