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May 26, 2014

North Central chamber's task: Replacing a 'legend'

David McKeehan, outgoing president of the North Central Massachusetts Chamber of Commerce, is credited with giving it a high profile during less prosperous times.

There have been two leadership changes at Central Massachusetts chambers of commerce within the last year, and there’s another one coming when David McKeehan, president and CEO of the North Central Massachusetts chamber, retires at the end of the year.

McKeehan, who has served for 30 years, is an honorary “local” in a region that prefers its own in matters of business and politics. The Michigan native left a job as vice president of the Detroit Chamber of Commerce three decades ago to lead a much smaller chamber.

McKeehan said he was on a five-year plan when he took the job, and didn’t imagine he would stay 30 years. But he said the continuous support of the business community made it a job worth keeping. A resident of Westminster, McKeehan said he’ll stay in the area and will be available to advise his successor if his help is needed.

A search committee comprised of members of the chamber’s board of directors has been established to find McKeehan’s successor, and Doug Petersen, president of Fitchburg-based Workers’ Credit Union, is helping lead the committee.

Petersen, vice chairman of the chamber’s board, said he’s focusing on the positives in the pending leadership change.

“With a new leader coming in, that will give us the opportunity to hear some new fresh ideas from somebody else and help the chamber in other ways that will bring … future growth,” Petersen said.

One of the most important skills the next chamber leader needs to have, and one McKeehan possesses, is the ability to work effectively with local and state governments on behalf of members, according to Petersen. And while the search committee will interview candidates from across the country, Petersen said it would be advantageous to hire someone with knowledge of the region.

McKeehan: Region becoming less remote

The job of promoting the economy in North Central Massachusetts is not without challenges. Businesses view Massachusetts as an expensive place to do business in general, due to the business tax code and relatively high cost of power. And some North Central Massachusetts communities have even higher utility costs, particularly those served by New Hampshire-based Unitil Corp.

Meanwhile, the region has struggled after many manufacturing operations closed or downsized over the last 30 years. Unemployment numbers have historically been higher than the statewide average, though they’ve peaked and are now trending downward following the Great Recession.

“I think that part of that is simply that the region is remote, and has been remote. (But) I think it’s less remote than it was 30 years ago,” McKeehan said, when asked about the relatively high unemployment rate in North Central Massachusetts cities and towns.

McKeehan said there has been significant progress in economic development during his tenure, particularly in infrastructure improvements that make the region more accessible, and shorten commuting times to Boston. For example, ongoing projects will make the trip from Fitchburg to Cambridge take just over an hour.

While there are fewer manufacturing jobs today, McKeehan said output in Massachusetts has actually increased with the advent of new technology, and the region has also benefited from a new identity with the chamber’s campaign to rebrand the region “North Central Massachusetts.”

That moniker did not exist before McKeehan’s arrival, and was part of the strategy when the chamber was established through a merger of two smaller, regional chambers. “Historically, people referred to the region as “North County,” and some still do, McKeehan noted.

 

Skill development a priority

The job will likely prove attractive to a large pool of candidates, according to Susan Mailman, chairwoman of the Worcester Regional Chamber of Commerce’s board of directors and president of Worcester-based Coghlin Electrical Contractors & Coghlin Network Services.

Her prediction is based on the number of candidates who expressed interest in the CEO position at the Worcester chamber when former CEO Richard Kennedy announced his retirement last year. The board only had eyes for Timothy Murray, who, armed with an extensive rolodex, stepped down as lieutenant governor to take the job. And while the North Central chamber isn’t likely to find a new CEO who is as connected as Murray, Mailman said it’s still an opportunity for a fresh take on North Central Massachusetts, particularly in the area of workforce development.

‘Big shoes to fill’

Karen Chapman, who this month will move up to president and CEO of the Corridor Nine Area Chamber of Commerce in Westborough after serving as vice president since 2003, agreed that McKeehan’s retirement provides an opportunity for a fresh take. But he’ll be a tough act to follow.

Chapman recalled the strength of the chamber in the 1980s, an era when chambers thrived as the economy was strong. At that time, the biggest incentive to join was the opportunity to buy cheap health insurance, said Chapman, then an employee of the Worcester Regional chamber. In those days, the North Central Mass. chamber was considered a “giant,” with about 1,500 members, a large number for the relatively small region, according to Chapman. Today, that number is closer to 1,000.

She said the North Central chamber has maintained a high profile through less prosperous times, and that’s due to McKeehan’s political acumen in advocating for business interests to state officials.

“He’s a legend,” Chapman said. “Those are big shoes to fill.”  

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