Worcester GDP Growth Leads New England
The Worcester metropolitan area had the largest upturn in gross domestic product for any region in New England between 2009 and 2010, according to the Bureau of Economic Analysis.
Worcester's GDP grew from -4.9 percent in 2009 to 4.3 percent in 2010, representing a shift of 9.2 percentage points. The BEA, which is part of the U.S. Commerce Department, noted strong growth in durable goods manufacturing as a driver for the region.
GDP ranged from -0.9 percent to 4.8 percent across the 15 areas studied by the BEA. GDP increased in 13 of the 15 areas. The New England region's largest metropolitan area, Boston-Cambridge-Quincy, experienced the fastest GDP growth.
Justin Svec, an economics professor at the College of the Holy Cross in Worcester, called the data "very good news" for the area economy, particularly because local manufacturers of durable goods are expecting a high demand for their products, especially from abroad. ""When exports rise, that's good news for Worcester," Svec said. "I believe Worcester is the largest exporter of durable goods in Massachusetts." What's also helped, he added, is a favorable exchange rate, meaning that U.S.-made goods are cheaper abroad.
The numbers were also not a surprise to Bradley Johnson, vice president and general manager of North American Abrasives for Saint-Gobain, which has a large presence in Worcester, as well as a research and development facility in Northborough. Johnson said the output of some of the key industries the division serves experienced growth of at least 25% in 2010 over 2009, and sales growth followed that trend or was even better due to new product introductions. Johnson expects continued double-digit growth for key products made in Worcester through the first half of 2011.
He added that demand for the abrasives products made in Worcester came primarily out of the domestic automotive, aerospace and steel industries.
New England's GDP grew 3.4 percent in 2010, compared to 2.6 percent for the nation.
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