Monday, July 11, 2011

New Hampshire’s secret salesman luring Bay State firms across the line

By Jenn Abelson, Globe Staff

CONCORD, N.H. - New Hampshire pays Michael Bergeron to be a full-time thief, sending him across the border in an unmarked black sedan to poach Massachusetts companies.

To help keep his missions undercover, the business recruiter even scraped the New Hampshire state seal off his Ford Fusion. Equal parts real estate agent, financial adviser, and deal fixer, Bergeron has lured dozens of Massachusetts companies to the Granite State over the past few years with promises of lower tax bills, cheaper office and industrial space, and fewer regulations.

John Hancock Financial and Liberty Mutual Group are among the high-profile firms that recently moved significant parts of their operations over the state line - partially because of Bergeron’s pitches. And an increasing number of small and midsize firms are considering migrating as a way to reduce costs in uncertain economic times.

“New Hampshire has become an easier place to do business as Massachusetts has become more difficult,’’ said Bergeron, who works as a business development manager for the New Hampshire Department of Resources and Eco nomic Development. “It’s a lower cost to do business here and you still have the availability of the skilled workforce in Massachusetts.’’

His PowerPoint presentations highlight what New Hampshire officials say is Massachusetts’ bad-business reputation. They cite expensive real estate, drawn-out permitting processes, and higher taxes.

There are no official statistics from Massachusetts or New Hampshire on the number of companies that have moved north. But Bergeron estimates that at least 5,000 new jobs have been created over the past five years as a result of Massachusetts businesses moving to his state.

Massachusetts officials and business leaders deny that a mass exodus is underway, although they acknowledge that New Hampshire’s aggressive recruitment tactics can’t be ignored.

The constant assault on Commonwealth companies is more irritating than ominous, said Greg Bialecki, Massachusetts’ housing and economic development secretary.

“They haven’t done any serious damage,’’ he said of New Hampshire’s efforts.

Nonetheless, Bialecki said, officials have tried to make the state more enticing to businesses. In recent years, for instance, Massachusetts has lowered its corporate tax rate, offered tax incentives and other funding, and streamlined the permitting process through its new permitting ombudsman and Permit Regulatory Office.

Massachusetts has historically had to fend off New Hampshire’s business recruitment campaigns, said Paul Guzzi, president of the Greater Boston Chamber of Commerce.

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