As a seafaring port dating back to the days of Herman Melville, New Bedford has a long history of sending its people to the four corners of the world in search of gainful employment. Nowadays, however, local officials are trying the opposite approach.
With the fishing industry devastated and Southeastern Massachusetts suffering from a prolonged downturn, New Bedford and surrounding communities are doing their best to attract companies into the region. That initiative is exemplified by the New Bedford Business Park, which has retained Insignia/ESG to market the 1,300-acre complex to businesses worldwide.
“We really want to lure in [companies] from outside Southeastern Massachusetts,” the park’s executive director, Thomas G. Davis, explained last week. “And if you want to do that, especially if you are looking internationally, you need to hire a top 10 brokerage firm.”
New Bedford Business Park was already aware of Insignia/ESG’s global reach prior to signing the master marketing agreement, with broker Rick Borden having previously brought a German steel manufacturer division, Zapp USA, into the park. The firm ultimately opened a $40 million steel fabrication plant there, and has just acquired another 13 acres to double its production capacity.
Borden, who is heading up the marketing effort, said the park has taken significant steps in the past two years to make it more attractive to companies. Along with a refurbished entrance and extensive landscaping, the nonprofit Greater New Bedford Industrial Foundation is repaving all roadways and spending $250,000 on landscaping. It also changed the park’s zoning to allow more than just manufacturing uses, and is adding a variety of amenities, including a bank, child care center and exercise facility. Davis said the foundation also would like to bring in a hotel, is pursuing an upscale restaurant, and hopes to convince CSX Railroad to open a freight distribution center in the park.
The results appear evident: in the last 18 months alone, the park has seen 10 major land purchases and five expansions of existing companies.
“They’ve done a lot of deals down there, which is great to see,” agreed Scott R. Hughes, president of Hughes Properties Corp. of Framingham. “The park is getting a lot of attention.”
Along with a bevy of marine-related manufacturers, New Bedford Business Park features such companies as Polaroid, Johnson & Johnson Medical Products and Titleist. The latter firm has one existing golf ball plant, and is nearing completion of a second such facility of 140,000 square feet. Including a new research plant, the company has an estimated 350,000 square feet in the park. Other recent deals include Ahead Headgear, which acquired 10 acres for a 100,000-square-foot building. Natco Food Distributors opened a 75,000-square-foot headquarters and plant earlier this year, while Aerovox this month will bring a 137,000-square-foot operation on line.
“The list goes on and on,” said Davis.
‘Hot’ Ideas
Now nearing its 40th year, the complex had been suffering for years from the region’s economic woes, as well as a lack of investment and marketing. The foundation brought Davis in two years ago to head up the revitalization effort, one which began by his visiting other industrial parks in the state to garner fresh ideas.
“If you want to have a hot park, you’ve got to run around and see what the other hot parks are doing,” said Davis. That led to the addition of the amenities, as well as the upgraded infrastructure.
Whatever the approach, New Bedford Business Park appears to be doing something right. At present, Davis said, “We don’t have one square foot left to rent.” The park does have land sites available for sale, however, and is taking steps to prepare an additional 300 acres for commercial use. Meanwhile, the park is courting developers to acquire land for multi-tenanted buildings that could accommodate small- and medium-sized companies which do not have the ability to construct their own properties.
Beyond physical improvements to the park, Davis said he believes the region is also benefiting from the tight labor market seen elsewhere in Massachusetts. Even with the recent surge of companies, Southeastern Massachusetts still has an unemployment rate in the 7 percent range, more than double the statewide average. The cost of labor is 10 percent to 25 percent below that of Boston, Davis said, noting that housing and living expenses run at a discount as well.
CB Richard Ellis/Whittier Partners broker Christopher P. Tosti said he also has noticed a surge of activity in the New Bedford market. CB/Whittier recently brokered a 500,000-square-foot deal at the Fall River Industrial Park on behalf of the A.J. Wright Co. According to Tosti, “the main reason they went down there was for labor.” Other pluses, he said, include a good highway system and various economic incentive programs.
Along with TIF, there is also a 5 percent investment tax credit which companies can receive for up to 10 years. The credit can be used on both buildings and equipment. There is also a job training program run by the city of New Bedford and the state which has piqued the interest of companies, said Davis, who credits the state for crafting such initiatives to entice companies into the region.
“It definitely helps when you are competing against other states that have similar programs,” said Davis, noting that Zapp USA relocated its operation from South Carolina.
