Time to review the top stories of 2003 – business, or otherwise.
No ranking them this time, as I have done in the past. I got to thinking that what may be the biggest story of the year for one person, may be of little or no concern to another.
For example, the announced layoffs at A.T. Cross and ON Semiconductor are a big business story. They speak to the continuing struggle for manufacturers to resist moving jobs overseas where they can be done cheaper.
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But if you were not among those hundreds of workers who got a pink slip before the holidays, then it would not necessarily strike you as a big deal.
On the whole, 2003 was, well … a somber year. The bad news seemed to outweigh the good.
The local economy – while showing some signs of recovery in recent weeks – was largely stagnant. And few industries enjoyed real growth. Instead, rising health insurance premiums only exacerbated an already tenuous situation.
And one cannot discuss news – business, or any other kind – in 2003, without first acknowledging the darkness cast over the entire state as a result of the fire at The Station nightclub in West Warwick on the evening of Thursday, Feb. 20. The blaze claimed 100 lives and injured another 200.
Public safety workers, doctors and nurses at all of our hospitals were of course the first to confront the tragedy – and they did so in nothing short of heroic fashion. In the days following the fire, businesses and social-service agencies stepped forward – donating food, money, space and services.
The Cowesett Inn was first a triage center for victims, and later, a gathering place for firefighters and rescue workers to keep warm, drink coffee and get a rest from their gruesome work.
The Crowne Plaza hotel made available its ballroom and other rooms as a base of operation for emergency workers and counselors and a support center for family members of victims.
Countless other businesses and individuals also helped – and continue to do so.
The aftermath of the fire has really just begun, as 2003 comes to a close.
Strict new fire safety regulations have been adopted – many of them will take
effect Feb. 20, 2004. Some will cost small businesses – like restaurants – lots
of money to comply. Sprinkler systems are being ordered for buildings all over
the state.
GTECH opts to stay home
The Rhode Island business community received a shot in the arm this spring when GTECH decided to move its headquarters to Providence – rather than to Norton, Mass. That decision represents a huge victory for both the state and the capital city.
GTECH forged an intricate deal with Gov. Don Carcieri, legislative leaders and representatives of the city – one that will keep the lottery systems giant in Rhode Island for at least the next 20 years. GTECH promises to build a $65 million, 265,000-square-foot global headquarters on “Parcel 9” at the northeast corner of Francis Street and Memorial Boulevard, across from Providence Place. The company will maintain a manufacturing facility in West Greenwich. GTECH also plans to partner on a parking garage and hotel in the capital city.
Under the agreement with the state, the company – in return for a string of lucrative tax breaks – will commit, beginning in 2008, to maintain at least 1,000 full-time jobs.
GTECH will also invest $140 million to upgrade the state’s video lottery hardware and software.
The news of GTECH’s decision sent a wave of optimism for elected officials and business executives.
“This is the beginning of a new start for our whole state, economically,” said Carcieri.
Carcieri, Cicilline take office
The election of Carcieri, a retired business executive, and that of lawyer David N. Cicilline, as mayor of Providence, certainly rates as a significant story in 2003.
Carcieri has revamped the Rhode Island Economic Development Corporation and has promised to create 20,000 good new jobs in his first term. It is indeed a bold promise, but the new governor earned accolades during his first year in office, not only for his leadership during the aftermath of The Station fire, but also in his role in brokering the GTECH deal and his willingness to personally get involved in economic-development efforts.
Cicilline also made much headway in 2003 – delivering the sobering message
to city residents that the city’s budget was a mess and fixing it was going
to hurt a bit. But the new mayor has also seen development efforts in the city
– particularly in the form of old buildings downtown being rehabbed for condos,
lofts and retail space.
Bank of America to buy Fleet
At the end of October, what had long been rumored – the sale of FleetBoston – became a reality.
North Carolina-based Bank of America put up $47 billion. When the deal is complete, Bank of America will rank as the second-largest bank in the United States, based on assets. At the time of the deal, Bank of America officials have said that the employee base here in Rhode Island would be largely unchanged. But analysts have suggested that many of the bank’s back-office operations, in which several hundred Rhode Islanders are employed, could be consolidated.
