City Beat Recession, Report Says

By Riley Yates, Union Leader Staff, July 9, 2004
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Manchester is one of six communities that have beat the recession, a top financial rating agency says, thanks to a diverse economy and a strong management team.

As a hub for northern New England that has more than 3,200 firms that provide 57,000 jobs, Manchester has avoided high unemployment while keeping strong reserves and a good bond rating, a report by the Wall Street bond-rating firm Standard and Poor's said.

"All the experts in the country are pointing to Manchester," Mayor Robert Baines said yesterday. "The story speaks for itself."

The report highlights long-term planning by city management and a growing tax base. Low debt is also credited in keeping Manchester on track despite a national economy that's been sluggish since its peak in March 2001.

The other cities named in the report were: Jacksonville, Fla.; Sugarland, Texas; Reno, Nev.; Phoenix, Ariz., and Naperville, Ill.

The report praised Manchester's "diverse mix of health care, financial services, transportation and light manufacturing."

Baines said Manchester has avoided big cuts to city services, while investing to fix schools and develop the riverfront and bring baseball to the city. By contrast: "Other communities have had to lay off teachers and firefighters."

Alderman Bill Shea of Ward 7, the chairman of the board, credited the airport as a key to bringing growth and business opportunity to the city, especially the south end.

"We've been able to get an excellent bond-rating, we've been able to keep municipal services at a high level, and we've been able to get investors investing," said Shea. "I would say it's looking good for people in government"

It's also looking good for Bhola Panzey, who moved from Boston to Manchester two months ago to open Cafe Momo, a Nepalese restaurant on Hanover Street.

"Manchester is diversifying and it is growing," said Panzey. "In a small city there aren't a lot of choices (for dining). I thought I'd really get the market.

"People are coming. They are coming back again and again," Panzey said. "We are doing really great."

Joseph Reilly, the president and CEO of Centrix Bank of Bedford, said he's not convinced economic conditions are as good as they may look on paper.

While 2002 was worse for small and medium-sized businesses than last year was or this year is expected to be, Reilly said the city's economy does not yet appear poised to take off. The exceptions are the real estate and construction markets, which are definitely growing, he said.

"The economy is certainly improving here, but it's not quite as vibrant as we would be led to believe," Reilly said. "It doesn't quite feel right yet. It doesn't feel the way it is portrayed."

Reilly said the problems can be traced to a lack of available skilled labor, rising health care costs and growing competition.