Existing Industries

Economic development specialists have long recognized that efforts designed to assist local existing industries provide the most realistic opportunity for expansion of the employment and tax base. Consequently, focused activities on the part of the community directed to assist the existing manufacturing base, in contrast to attracting a company from outside the area, are more likely to result in tangible benefits. Furthermore, it is most likely that any prospective company would first contact the existing businesses and manufacturers to determine the level of community interest and support for business expansion. The New Hampshire Office of Business and Industrial Development (OBID) strongly embraces and supports retaining and expanding existing businesses.

In order to better understand the existing employers' product, market opportunities, constraints, company needs and actions that the State or local government need to take, the first step was to interview such businesses. The Greater Ossipee Area Chamber of Commerce (GOACC) undertook such an effort in 1993 through its active involvement in the Business Visitation Program (BVP). The OBID advises that such interviews be completed on a regular basis. These interviews provide a unique insight into the strengths and weaknesses of a community and provide guidance as to what actions need to be taken in order to strengthen the community's opportunity to expand its light industrial and manufacturing employment base. Selected telephone interviews with existing wood products companies, a light manufacturer, concrete companies, an aggregate operation, an educational facility and health care provider were conducted as part of this study. The following is a summary of the findings.

Chick Packaging Company, Silver Lake, NH, a manufacturer of wooden pallets and skids, was purchased by an out-of-state investor in 1994 and reports steady growth during the last two years. The company opened a new division in upstate New York and plans to expand at its Silver Lake, NH, location. For their particular product, transportation in and out of area is difficult. While the overall quality of the work force in the late 1980s, due to limited labor availability, was less than desirable, management currently reports that they can hire a sufficient number of trained and qualified employees who have a "positive work ethic." While training programs in New Hampshire have produced minimal results, the company reported that it was easier to work with job training programs in New York State through a local Chamber of Commerce. Chick is pleased that the local High School is aware of the company and refers appropriate candidates to them for employment.

International Paper Company, which is located on the Madison/Ossipee town line, reports a significant increase for its eastern white board pine due to the closure of lumber and sawmills in the Pacific Northwest. Employment at IP's Madison facility has increased from 36 to 62 employees during the last three years. The company sells its wood product throughout the U.S. and Canada and expects growth to be positive for the foreseeable future. Issues that impact potential growth include the new air quality regulations, identification of qualified employees and efficient transportation of its product.

Because IP plans to build a new dry kiln and thus generate additional air emissions, compliance with Title 5 of the Air Quality Act and the new State regulations is a concern. IP benefited from the services of the Conway office of the NH Department of Employment Security; a similar relationship needs to develop with the Laconia office since the Conway office closed. Because a significant amount of IP's business is west of the Mississippi, the company is considering rail transportation as an alternative. Overall, IP is satisfied with the quality and experience of the labor force and is positive about the business outlook.

RTB Logging and Land Clearing is a small logging operation employing 6 persons that provides wood fuel to two small wood to energy producers, sawmills, International Paper and the SD Warren wood yard. Almost half of the company's wood supply feeds two wood-to-energy facilities whose future is uncertain due to a decision of PSNH to reduce the amount of purchased electric power. While the level of communication and math skill is adequate for the type of work performed, the company reports that the "work ethic" is poor among younger persons entering the labor force. The company believes that the State should do more to recognize the importance of the wood forestry business to the State's economy and overall environment.

MacLean Precision Machine Company Inc. has experienced steady employment and sales growth for the last five years. They have expanded from 25 employees in 1991 to 35 in 1995 with a projected employment of 38 in 1996. MacLean, a machine tool operation, diversified its business base from defense activities to providing subcontract services to health care providers. Since the enactment of zoning in 1987 in Madison and thus the grandfathered status of the company's site a pre-existing non-conforming use, it has been difficult for the company to expand when required. Being in a tourist based community, the banking community was unfamiliar with financing procedures related to an industrial or manufacturing concern. Because of the small size of packages produced and the quality service provided by UPS and Federal Express, transportation issues are not a concern. The company is pleased with the talents of the labor force and designs its own in-house training program when required. The MacLean company notes that the Mt. Washington Valley has acquired a more positive attitude towards light industrial and manufacturing operations since 1992.

The greater Ossipee area is home to two foundation concrete construction companies whose business is tied directly to the overall economic conditions of the region. Baybutt Foundation, a concrete construction company, works throughout Northern New England and employs 30 persons during the summer construction season and reduces employment to 13 during the late fall and winter. The primary business of Bickford Lumber for the last ten years has been installing foundations for both residential and commercial uses. Because of federal safety standards that require preparation of a Safety Plan for companies with over 10 employees, Bickford intends to maintain the employment level at 9. Both companies experience difficulty in hiring unskilled labor with a positive attitude willing to perform foundation construction.

Ossipee Aggregates Corporation, which is wholly owned by Boston Sand and Gravel, provides much of the aggregate material for the improvements to I-93 in downtown Boston, the depressed artery and the third Boston harbor tunnel. The company's wholly owned subsidiary, New Hampshire Northcoast Railroad, transports 90% of the company's material to connection with the Guilford Transportation network in Rollinsford. Ossipee Aggregates employs 8 full time year-round persons and NH Northcoast employs 10 to 15 persons throughout the year. Business appears to be steady for the next ten years. The company reports concern with the new State regulations developed in response to the Clean Air Act. NH Northcoast has discussed the possibility of providing rail service to potential users in the Ossipee Valley by using the docking facility at the former East Coast Lumber site or the NH Rt. 28 site adjacent to Ossipee Oil. The track is in poor condition for the twenty mile stretch north of Rt. 28 to the Conway Scenic Rail Line.

Pine Tree Power, a small wood to energy power producer owned by the CRSS Group in Houston, Texas, is currently exploring for new customers of its thermal energy which could include steam users and building heating. The employment level has declined from a peak of 30 in 1991 to 20 in 1996. The company is concerned with the compliance requirements of Title 5 of the Clean Air Act. State government has been very supportive of the company while the vicissitudes associated with retirement and vacation home community tend to discourage any planned expansion of such a facility. Many of the employees possess military mechanical experience which has benefited the plant. Pleased with the quality of the labor force, the company has developed its own in-house training programs to meet hazardous materials and safety requirements and has encourages employees to attend training provided by the NH Technical College and the College for Lifelong Learning (CLL). By providing a stable market for low grade wood products, Pine Tree Power is promoting proper forest management practices while also providing income for the forestry and logging companies.

Two other specialty employers in the Ossipee area deserve recognition: Solo, Inc., a wilderness and emergency medicine educational facility in Madison and Lakeview Neurorehabilitation Center in Effingham Falls. Over a 20 year period, Solo Inc. has grown from a one room school to a campus like environment with 16 full time and 20 part time staff with over 30 full time students. Students attend classes from throughout the U.S. and internationally. Solo Inc. provides instruction for CLL, University of New England and other institutions and has trained over 5,000 students.

Lakeview provides neurological services to individuals, primarily the Northeast U.S., who are recovering from a head injury or who are developmentally impaired. The Center employs 230 persons at its main facility and five satellite locations in Carroll County. Concerns consist of the reliability of the electrical and telephone service. PSNH expects to upgrade the area to three phase electrical power. Lack of educational opportunities due to its distance from an academic center is also a concern. Both facilities are examples of unique institutions that located in the greater Ossipee area because of the preference of the owner or founder.

A local entrepreneur who has worked in the telecommunications field in bar coding, telemarketing, and telephone surveys believes that the greater Ossipee area is well suited for that type of activity. Start up software and telecommunications companies utilizing low cost incubator space, the flexible work force coupled with the quality UPS, Federal Express and telephone service and the emerging Internet capabilities, would find the area attractive from a business perspective. New Hampshire state government needs to be more aware and sensitive to infrastructure needs for telecommunications and technology based companies.