50 in 50: Massachusetts

50 states in 50 weeks: U.S. states economic and infrastructure highlights.

Key Economic Indicators

GDP: $530.5 billion

GDP 5-year compounded annual growth rate (CAGR) (2017-2021): 2.3% (U.S.: 1.6%)

GDP per capita: $77,789 (U.S.: $58,154)

Population: 7.0 million

Population 5-year CAGR (2017-2021): 0.4% (U.S.: 0.5%)

Unemployment: 3.6% (U.S.: 3.9%)

Economic outlook ranking: #28 out of 50

Fiscal health ranking: #47 out of 50

Overall tax climate ranking: #34 out of 50

Key Sectors and Metro Areas

Top five industry sectors by 2021 GDP:

Sector
GDP ($ billions)
% of total GDP
Professional, scientific, and technical services
84.7
16.0%
Real estate and rental and leasing
64.8
12.2%
Manufacturing
55.6
10.5%
Health care and social assistance
47.1
8.9%
Finance and insurance
46.0
8.7%

Top three industry sectors by GDP 5-year CAGR (2017-2021):

Sector
GDP 5-year CAGR
Information
9.3%
Professional, scientific, and technical services
6.8%
Management of companies and enterprises
5.1%

Top three metro areas by GDP:

  • Boston-Cambridge-Newton
  • Worcester
  • Springfield

Top three metro areas by population percentage increase in 2021 vs. 2020:

  • Barnstable Town
  • Worcester
  • Pittsfield

Infrastructure Highlights

Infrastructure:

A major capital funding bill recently passed in Massachusetts will help the state improve transportation and other major infrastructure. The legislation authorizes more than $11 billion to be spent on several areas of passenger transportation. Massachusetts is also investing in clean energy legislation, making headway in offshore wind development as well as implementing bans for fossil fuels use in many municipalities. Meanwhile, there are concerns of a widening funding gap towards the state’s aging natural gas lines, which need immediate attention. Additionally, funds for 26 projects were announced as part of the Dam and Seawall Program and is headed to 23 different cities across the state. Massachusetts’s BIL funds will address the following categories of projects (additional funds may be deployed as federal grants get awarded to states):

Funds
Improvement Area
$4.2 billion
Roads and highways
$2.5 billion
Public transportation
$1.1 billion
Water infrastructure
$1.1 billion
Bridges replacement and repair
$244 million
Airports
$100 million
Broadband (minimum allocation)
$63 million
Electric vehicle (EV) charging network
$15.7 million
Cyberattacks protection
$5.8 million
Wildfires protection

Construction spending (Value of Construction Put in Place – CPiP):

  • Private Nonresidential 2021 CPiP: $12.7 billion; 3.6% 5-year CAGR (2017-2021), above overall U.S. CAGR of 1.4%
  • State & Local 2021 CPiP: $7.4 billion; 5.8% 5-year CAGR (2017-2021), above overall U.S. CAGR of 4.0%

AE Industry

ENR 500 firm headquarters (2022): 18

M&A activity since 2018:

  • 67 deals with buyers from Massachusetts
  • 55 deals with sellers from Massachusetts

For customized market research, contact Rafael Barbosa at rbarbosa@morrisseygoodale.com or 972.266.4955. Connect with him on LinkedIn.

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