Boston’s Economy 2017...companies raised 80 billion dollars. •Biotech continues to lead the way, with Boston-based Intarcia and Cambridge-based Moderna both closing large deals

Boston’s Economy2017Matthew Resseger, Senior Economist, BPDA

1. Economic Growth and Employment

2. High Tech Sector

3. Health Care and Medical Research

4. The Creative Economy

5. Boston’s Building Boom

2

01.Economic Growth and Employment

The total number of jobs has grown consistently since the end of the most

recent recession.

4

Source: U.S. Bureau of Economic Analysis, Massachusetts Executive Office of Labor and Workforce Development (EOLWD), BPDA Research Division Analysis.

674,188 685,686 669,423

757,344

578,461 549,385

611,362

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Jobs in Boston

Total Jobs (Payroll and Non-Payroll) Payroll Jobs

Gross City Product

5

Source: U.S. Bureau of Economic Analysis, BPDA Research Division Analysis.

88.5 86.4

96.493.7

99.5

109.5

0

20

40

60

80

100

120

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Boston Gross City Product (billions of 2015 dollars)

6Source: Bureau of Economic Analysis(BEA), Massachusetts Executive Office of Labor and Workforce Development (DWD), BPDA Research Division Analysis

Boston’s output per worker has grown faster than that of the U.S. since 1980. Boston’s GCP per worker grew by 10.1% in the last decade

Boston workers produced on average $157,152 per year, $38,575 more than the national average

80,983

111,970

144,993

157,152

63,059 70,989

85,215

97,689

118,577

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

19

70

19

71

19

72

19

73

19

74

19

75

19

76

19

77

19

78

19

79

19

80

19

81

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82

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83

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84

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85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

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20

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13

20

13

Fix

ed

Do

llars

Boston and U.S. Labor Productivity (GDP per Worker), 1970-2013

Recessions Boston U.S.

Jobs by Industry

7


INDUSTRY 2015 %

Health Care and Social Assistance 139,911 18.5%

Professional and Technical Services 91,858 12.1%

Finance and Insurance 86,971 11.5%

Government 76,708 10.1%

Accommodation and Food Services 59,910 7.9%

Educational Services 57,534 7.6%

Administrative and Waste Services 37,274 4.9%

Real Estate and Rental and Leasing 34,591 4.6%

Retail Trade 34,142 4.5%

Other Services (except public administration) 32,762 4.3%

Transportation and Warehousing 26,037 3.4%

Construction 17,478 2.3%

Information 16,861 2.2%

Arts, Entertainment, and Recreation 16,805 2.2%

Wholesale Trade 9,862 1.3%

Management of Companies and Enterprises 8,390 1.1%

Manufacturing 7,969 1.1%

Utilities 1,894 0.3%

Natural Resources and Mining 387 0.1%

Total 757,344 100.0%

Industry Concentrations

8


Job Growth by Industry

9


(5,000) - 5,000 10,000 15,000 20,000 25,000

Government

Manufacturing

Utilities

Natural Resources and Mining

Wholesale Trade

Information

Management of Companies and Enterprises

Finance and Insurance

Arts, Entertainment, and Recreation

Other Services, Ex. Public Admin

Construction

Administrative and Waste Services

Retail Trade

Educational Services

Real Estate and Rental and Leasing

Transportation and Warehousing

Accommodation and Food Services

Health Care and Social Assistance

Professional and Technical Services

Employment Growth, 2010 - 2015

10

4.1

7.6

3.5

9.6

4.9

0

2

4

6

8

10

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Unemployment Rate (Annual Average)

Boston Massachusetts US

Boston’s unemployment rate for residents has been below the state and national averages since the recession, and continues to fall to levels not seen since the late 1990s.

Monthly unemployment in Boston in the last 3 months of 2016 averages 2.5%.

Source: U.S. Bureau Labor Statistics (BLS), Massachusetts Executive Office of Labor and Workforce Development (EOLWD), BPDA Research Division Analysis.

• Even as Boston’s economy thrives,

residents are lagging behind non-

residents in their representation in

the highest paying sectors.

• A goal of Imagine Boston 2030 is

to lay out strategies through which

Boston’s economic prosperity can

be shared more broadly.

02.High Tech Sector

Total High Tech Industry Employment

13

2115622080

31204

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Emp

loym

ent

Year

The Total Growth of High Tech Industry Sector Since 2004

Total Tech Employment

Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 2002 - 2014, BPDA Research Division Analysis.

Total High Tech Industry Employment

14


• Definition of “High Tech” industries: Computer and Electronics Manufacturing, Pharmaceutical & Medicine Manufacturing, Aerospace Product and Parts Manufacturing, Software Publishers, Data Processing, Hosting, and Related Services, Other Information Services (including Internet Publishing and Broadcasting and Web Search), Architectural, Engineering and Related Services, Computer Systems Design and Related Services, and Scientific Research and Development Services.

• These industries have at least 25% of their workers in a STEM (Science, Technology, Engineering and Mathematics) occupation.

15

High Tech Job Growth

-9.0%

-7.1%-6.5%

0.4%

3.9%

-0.8%

3.9%

-3.9%

0.9%

8.2%

10.7%

9.4%

7.9%

-10%

-5%

0%

5%

10%

15%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Gro

wth

Ra

te

Year

Boston Tech Sector Job Growth Rate Boston Total Job Growth Rate National High Tech Sector Job Growth Rate


16

From 2004 to 2014, Boston’s employment continued to be more than twice as concentrated in Scientific Research and Development as the US average.

Over that same time period, Boston’s location quotient in Computer Systems Design went from under 1 to roughly 1.5, and Software Publishing rose from 1 to 1.8.

Venture Capital Funding

17

Source: PwC and CB Insights MoneyTree Report Q4 and Full-Year 2016; CB Insights, “The 2014 U.S. Venture Capital Year in Review,” January 2015

• Over the last 20 years, Massachusetts companies had the second most venture capital funding of any state, trailing only California. Over that time period, Massachusetts companies raised 80 billion dollars.

• Biotech continues to lead the way, with Boston-based Intarcia and Cambridge-based Moderna both closing large deals in the latter half of 2016.

• Boston and Cambridge account for over half of deals, a change from an earlier era when Route 128 dominated.

Patents Issued to Boston Residents

18

Source: USPTO Patent Full-Text and Image Database, 1980 - 2014, BPDA Research Division Analysis.

68

1408

0

200

400

600

800

1000

1200

1400

1600

19

80

19

81

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82

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83

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84

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20

10

20

11

20

12

20

13

20

14

20

15

Number of Patents with at Least One Boston Resident Inventor

03.Health Care and Medical Research

Boston’s Health Care Sector

• Health Care and Social Assistance is Boston’s largest sector, employing

139,911 people.

• Five of Boston’s 10 largest employers are hospitals (Massachusetts General,

Brigham and Women’s, Children’s Hospital, Beth Israel Deaconess Medical

Center, and Boston Medical Center)

• This large base of hospitals, along with the region’s world class universities,

have helped Boston become a world leader in biomedical research, both

with their own research, and for-profit companies drawn to the area by

their presence.

20

Cities Receiving Largest Amount of NIH Funding

21

Source: National Institutes of Health, “NIH Awards by Location and Organization,” FY1992-FY2016, BPDA Research Division Analysis.

$1.85

$1.63

$0.89 $0.86 $0.86

Boston New York Seattle Philadelphia Baltimore

Top Five U.S. Cities in NIH Funding FY2016

(in billions of dollars)

Boston’s NIH Funding over the Years

22

Source: National Institutes of Health, “NIH Awards by Location and Organization,” FY1992-FY2016, BPDA Research Division Analysis

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

$1.8

$2.0

$2.2

$2.4

* Including ARRA funding

Boston NIH Awards: 1992-2016

(In Billions)

04.The Creative Economy

The BPDA list includes industries that are part of the production chain for

goods and services in the following areas:

24

Creative Industries

Written Media

Film

Broadcasting

Crafts

Performing Arts

Visual Arts

Architecture

Photography

Design

Advertising

Sound Recording & Music Publishing

Museums & Art Galleries

Libraries & Archives

Culture Education

Software and Internet Publishing

The following four slides list all 6-digit NAICS codes included in this updated

report.

• Creative employment in 2014 totaled 29,762 jobs in business

establishments. This was 5.4% of Boston’s total private sector payroll

employment.

• An additional 6,483 people were self-employed in the creative industries.

Including self-employment, Boston’s Creative Economy totals 36,254

workers.

• The 29,762 workers on payrolls took home over 2.4 billion dollars

combined, averaging $81,179 in annual wages.

25

Measuring Boston’s Creative Economy

Boston’s Creative Economy: Applied Arts

Detailed Industry Employment (2014)

Industry Snapshot (2014) Change in Employment (2002-2014)

Industry Trends

26

Employment 4,034

Recent Growth (2011-2014) 13.4%

Number of Establishments 363

Average Wage $87,370

Location Quotient 3.00

The Location Quotient (LQ) measures how the share of Boston’s employment in an industry compares to the US average. An LQ over 1 means that an industry has a higher than average concentration in Boston.

• Applied Arts (LQ of 3.00) is one of the Creative Industries most heavily concentrated in Boston. This is driven particularly by Architectural Services (LQ of 4.37)

• Interior Design and Graphic Design also have strong presences in Boston.

Architectural Services

Interior Design Services

Graphic Design Services

Landscape Architectural Services

Industrial Design Services

Other Specialized Design Services

Drafting Services

0

1,000

2,000

3,000

4,000

5,000

6,000

2002 2005 2008 2011 2014

Tota

l Em

plo

ymen

t

Boston’s Creative Economy: Heritage



Industry Trends

27

Employment 2,414

Recent Growth (2011-2014) 10.0%





• Boston’s share of employment in Heritage institutions is 3.7 times the national level.

• Museums and Historical Sites are at the heart of Boston’s tourism economy, and employment has grown in both industries.

Museums

Zoos and Botanical Gardens

Historical Sites

Nature Parks and Other SimilarInstitutions

0

500

1,000

1,500

2,000

2,500

3,000

2002 2005 2008 2011 2014

Tota

l Em

plo

ymen

t

Boston’s Creative Economy: Performing Arts



Industry Trends

28

Employment 3,329

Recent Growth (2011-2014) 7.3%





• Boston’s Performing Arts attractions are headlined by Theater Companies, Musical Groups, and Dance Companies.

• Promoters also make up a large share of employment in the sector, and most are associated with specific facilities, a change from a decade ago.

Promoters of Performing Arts, Sports, and SimilarEvents with Facilities

Theater Companies and Dinner Theaters

Musical Groups and Artists

Dance Companies

Promoters of Performing Arts, Sports, and SimilarEvents without Facilities

Musical Instrument and Supplies Stores

Agents and Managers for Artists, Athletes,Entertainers, and Other Public Figures

Musical Instrument Manufacturing

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2002 2005 2008 2011 2014

Tota

l Em

plo

ymen

t

05.Boston’s Building Boom

30

BPDA Board Approved Projects

Source: Boston Planning and Development Agency Project Pipeline, BPDA Research Division Analysis.

8.5

16.3

11.9

8.1

14.7

0

2

4

6

8

10

12

14

16

18

2012 2013 2014 2015 2016

Mill

ion

s o

f SF

31

BPDA Board Approved Projects by Neighborhood

Source: Boston Planning and Development Agency Project Pipeline, BPDA Research Division Analysis.

3,971,902

681,878

119,000

1,905,897

265,048

2,461,235

3,042,835

2,540,093

2,296,560

497,874

1,163,686

53,000

617,214

145,000

39,563

1,418,746

3,000,335

7,376,444

1,547,039

1,148,780

538,822

- 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000

Allston/Brighton

Back Bay

Beacon Hill

Charlestown

Chinatown

Dorchester

Downtown

East Boston

Fenway

Hyde Park

Jamaica Plain

Mattapan

Mission Hill

North End

Roslindale

Roxbury

South Boston

South Boston Waterfront

South End

West End

West Roxbury

Total SF of Development, 2014 - 2016

32

Building Permit Revenue

Source: City of Boston Bond Issue 2017, BPDA Research Division Analysis.

$31.3 $32.3$34.6

$30.2

$16.3

$25.1

$34.1

$30.2

$40.7

$52.4 $52.3

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

$0

$10

$20

$30

$40

$50

$60

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Mill

ion

s o

f 2

01

6 D

olla

rs

Fiscal Years

Building Permit Revenue

33

New Property Tax Levy Growth

Source: City of Boston Assessing Department, “Property Tax Facts and Figures: Fiscal Years 2009 to 2017”

$33.0

$29.6

$37.8 $36.5

$28.7

$53.1

$44.5$47.6

$74.7

$0

$10

$20

$30

$40

$50

$60

$70

$80

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

34

City of Boston Revenues

Source: City of Boston, Comprehensive Annual Financial Reports, 2000 - 2016, BPDA Research Division Analysis.

54.4%56.8%

66.8%

27.2%23.9%

14.6%

2.2% 2.4%3.1%

16.1%

17.0%

15.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Fiscal Years

City of Boston Revenue, 2003 - 2016

Net Real and Personal Property Taxes State Aid Payments in lieu of taxes Other Revenue

Documents

Boston’s Economy 2017...companies raised 80 billion dollars. •Biotech continues to lead the way, with Boston-based Intarcia and Cambridge-based Moderna both closing large deals