MassBio CEO, Gov. Healey Discuss ‘Major Statewide Threats’ And How To Solve Them

While macroeconomic issues continue to strain the life sciences market, local problems have also begun to impact Massachusetts' biotech sector, worrying state leaders about the future of its workforce. 

Gov. Maura Healey and MassBio CEO Kendalle Burlin O'Connell said Tuesday morning that issues of housing affordability and narrow access to job opportunities have put pressure on the state's biotech workforce. They said Massachusetts' competitiveness might be on the line, but they have ideas on how to address the issues.

"Closer to home, we have major statewide threats to our economic viability," Burlin O'Connell said at the organization's State of Possible Conference Tuesday. "The high cost of living and doing business here, the crisis of both housing availability and affordability, and same with childcare.”

An issue across the state, housing affordability has become a major focus of public policy in cities with the largest life sciences clusters, like Boston and Cambridge. Boston has introduced numerous policies like Inclusionary Development and Linkage Fees to bring more housing into the city. 

In October, Cambridge city councilors abolished requirements for parking at new developments in an effort to get more units into the city and create more affordable rent.

Burlin O'Connell said issues like housing affordability and availability have strained the market's ability to attract workers since housing these new recruits can be challenging and some don't even want to deal with the hassle. 

“What do these big issues impact the most? Recruitment, hiring, retention,” Burlin O'Connell said. “To compound a talent pipeline that is already stretched to its limits and stubborn skills gaps.” 

In the wake of Silicon Valley Bank's collapse last month, concerns about payroll and overall access to accounts caused panic in the industry, especially in Boston, which had a unique connection to the institution. But now the industry is focused on long-term concerns about who will fill the investment hole it left.

“With significantly less revenue coming in to establish pharma companies and the specter of Medicare negotiation on the horizon, M&A and partnering will shrink, no doubt impacting these companies, their science and ultimately the patients," Burlin O'Connell said.

Biotech and other venture capital firms weren't the only ones to be significantly impacted by the collapse, Healey said at the event. Prior to the crisis, SVB had acquired a local bank, Boston Private Bank & Trust, which had a large affordable housing portfolio. 

“We also learned that it wasn’t just about those who had deposits related to, say, life sciences or other related venture opportunities, but we had, because SVB acquired a Boston institution, a lot of housing developers, there were nonprofits, a lot of people affected by this," Healey said. 

A major part of Healey's campaign and proposed budget is to make Massachusetts a more affordable state to live in, especially to maintain its competitive edge as a leader in the biotech market, she said. 

“One of the reasons we are so focused on housing is because we are not looking for excuses for people to leave," Healey said. "I don’t want people not coming here. Again, there’s so much to commend Massachusetts, but if you can’t afford it, the calculus just does not work.”

As part of her $5.5B budget, Healey proposed $1B toward creating the Executive Office of Housing and Livable Communities, an office that would prioritize housing creation throughout the state.

Healey said that affordable housing isn't the only way to stay at the forefront of the market. Being able to provide access to job opportunities to a wider net of residents will also help keep the state competitive.

Investment opportunities in gateway cities like Worcester and Lowell that have begun to slowly grow their own life sciences clusters and training programs like the MassBio Training Center in Beacon Capital Partners' 750K SF Southline project in Dorchester are helping to bridge a gap in skills for underserved communities.

“It’s also about appreciating that this is something that can be statewide,” Healey said. “Stuff is happening in gateway cities, and part of our job is to make sure we are working with you, whether it's opening up training facilities, R&D, manufacturing. Let’s seize that opportunity across the state.”