Boston 11th Best Town for Recent College Grads

Boston understands that attracting new talent is key to staying ahead of the curve. One way in which the city finds promising individuals is through the many colleges and universities in the area. With this in mind, it is encouraging to hear that Business Week recently named Boston number eleven on its list of the top 30 towns for recent college graduates. (Image courtesy: http://bit.ly/9E8e7X)

The report quoted the number of entry-level employers in Boston at 40 and the average annual starting salary at $55,620. While Boston nearly made the top ten this year, this was still a decrease in ranking from 2009 when the city ranked 8th out of thirty.

“With many universities in the area, including Harvard and Boston universities, many college graduates know the city well,” Business Week reported. “Although the city is ranked among the highest on the list for cost of living, its average annual pay, which is also among the highest, might make up for it.”

From a list of 3,580 municipalities, Houston, Texas was ranked number one on Business Week’s list. According to the report, the city was primarily awarded this ranking because of its large number of job openings and affordability. After Houston, in order of best rank to worst, the top five cities included Washington, Dallas, Atlanta, and Austin. It was interesting to see that four of the top ten best towns for recent college graduates were located in Texas. (Image courtesy: http://bit.ly/9E8e7X)

While Boston decreased in ranking this year, it still managed to hover around the top ten mark. Indianapolis and Chicago, on the other hand, dropped off Business Week’s list of the top 30 towns altogether, after holding first place and seventh place, respectively, last year. All things considered, Boston stacked up fairly well.

[Sources: http://bit.ly/9xUE3W, http://bit.ly/9E8e7X]

Adobe Purchases Day Software for $240 Million

Everyone has heard the old saying about not reinventing the wheel. Sometimes it simply makes sense to learn from the work of others, rather than wasting time and money independently replicating their work in hopes of recreating their success. This week, Adobe Systems Inc. announced that it will purchase Boston and Switzerland co-based web content management company Day Software for $240 million. (Image courtesy: http://bit.ly/aFebM9)

“Adobe’s acquisition of Day represents a key milestone in our efforts toward delivering best-in-class customer experience management solutions to enterprises and governments worldwide,” said Rob Tarkoff, senior vice president and general manager of Adobe’s Digital Enterprise Solutions Business Unit. “With the addition of Day to our enterprise portfolio, we will be able to enhance the value of our offering and deliver on our vision of the web as the hub of customer interaction.”

The per share cost of Days Software will be $131.45, which is an approximately 59% per share premium over the sixty day trading average. Upon the announcement of the acquisition, Adobe shares decreased 1.8%, while Day Software’s United States shares rose 31.5% in pink-sheet trading.

“Organizations around the globe have recognized the importance of the online and mobile channel and turned to Day as their enterprise standard for next generation Web Content Management,” said Erik Hansen, CEO of Day Software. “We are excited to join Adobe and combine our expertise in WCM with technologies that create and deliver rich online and offline experiences leveraging the ubiquity of Flash and PDF. We believe this is a winning combination for both Adobe and Day customers.” (Image courtesy: http://bit.ly/aFebM9)

Another executive at Day Software (who wished to remain anonymous) commented, “Day provides the infrastructure so that you can have your software served better across websites. It really is plumbing, but the thing this acquisition does is enable marketers to get their content across to their users much easier.”

Following the acquisition, Day Software will function as a product line within the Digital Enterprise Solutions Business Unit at Adobe.

Joining Adobe Systems will definitely provide some security for Day Software. With luck, this acquisition will also lead to an expansion of Day Software’s Boston location, bringing new jobs to the area. While Day Software does not need anyone to validate its success, just the same, it must be nice for the company to know it caught the attention of a giant like Adobe Systems.

[Sources: http://bit.ly/9RQxpb, http://bit.ly/b2BIse, http://bit.ly/b6zEtZ]

Venture Capital Investments Return to Pre-recession Levels

Without the steady flow of money from investors to companies, and then back again, markets would stagnate and innovation would come to a standstill. While venture capitalists never ceased investing, during the recent recession, the number of deals in which they participated, and the dollar value of these deals, decreased noticeably. Thankfully, as of the quarter two (Q2) of 2010, venture capital investing has returned to pre-recession levels nationally, according to Dow Jones’ VentureSource. (Image courtesy: http://bit.ly/c3e8gY)

In Massachusetts, venture capitalists invested $792.2 million across 81 deals in Q2 of 2010. During the same quarter last year, just $508.2 million was invested over 68 deals. New England’s largest investment deal of Q2 came from the information technology sector. Summit Partners, invested $96.5 million in Andover, Massachusetts-based network equipment designer, Casa Systems Inc. California saw the most investment activity in Q2 of 2010, with $3.96 billion invested over 296 deals.

Nationally, venture capitalists invested $7.7 billion across 744 deals in Q2 of 2010, which was a 26% increase in dollars and a 13% increase in number of deals, as compared to the same quarter last year. Furthermore, for the first time since 2008, the average deal value surpassed $10 million. Venturesource went on to report that, despite the very active Q2, because investing during quarter one was so limited, they only project a total of $20 billion to $25 billion in deals for 2010 nationally. (Image courtesy: http://bit.ly/ada1zX)

Now that venture capitalists are investing as they did before the recession, it is time to start setting new records. Recovering from the recession is clearly important, but it is also important to return to a period of steady growth. I will be hoping that the reports for Q3 and Q4 will prove even more optimistic.

[Sources: http://bit.ly/aa0psW, http://bit.ly/c3e8gY]

Yodle Calls Out from the Moutains: Hiring 80 in Boston

Companies are expanding all of the time in the Boston-area, hiring one employee this month, and maybe two more a few months later. This sort of slow and steady increase in a company’s workforce is easy to overlook. When a company announces a substantial hiring, on the other hand, people take notice. This week, New York-based online advertising company Yodle announced plans to hire 80 new people at its Boston location in the next six to twelve months. (Image courtesy: http://www.yodle.com)

Yodle’s pending Boston expansion became evident when sources reported the company leasing a 10,000 square foot space in the historic building at 179 Lincoln Street. According to the landlord’s representative, Anthony Pangaro of Millennium Partners, Yodle was looking for a building with access to a pool of innovative employees and with easy access to public transportation. Located just blocks from South Station in downtown Boston, 179 Lincoln Street met Yodel’s requirements.

Yodel invites anyone interested in filling one of its open positions to attend a job fair on July 22nd at the company’s new Boston location. Open positions include interactive marketing specialists, interactive marketing assistants, account representatives, and client service managers. By the end of this year, Yodel hopes to take the Boston headcount from 20 to 100. This local effort is part of a company-wide goal to increase Yodel’s total headcount from 350 to 500 by 2011. (Image courtesy: http://bit.ly/b6EMZ5)

Just five years old, Yodle already has a presence in 25 major cities, including Philadelphia, Pennsylvania, Charlotte, North Corolina, and Scottsdale, Arizona. Earlier this year, the company took in $10 million in Series D funding.

Given how unique it is for a company to be able to hire at such volume right now, Yodle’s job fair should certainly stand out among the clutter. Hopefully their recruiting efforts will yield the large number of high caliber talent that they need. Although there are a lot of people looking for work, as a Recruiting Professional, I am intimately aware that finding “just the right hire” is still as hard, if not harder than ever to before. Nonetheless, as a strong member of a thriving industry, Yodle will surely be a welcome asset to the city.

[Sources: http://bit.ly/bjw19C, http://bit.ly/byJ5gM, http://bit.ly/b6EMZ5]

Massachusetts Ranked 5th Best State to Conduct Business In

Government reports about unemployment and the business environment of Massachusetts are important, but sometimes independent reports can carry more sway. In a CNBC study of the best states to conduct business in, Massachusetts ranked fifth in the nation. Since the creation of the study four years ago, this is the first time Massachusetts, or any Northeast state, has made the top five. (Image courtesy: http://bit.ly/bUXi8D)

“CNBC’s rankings today further confirm what we have already been seeing all across this commonwealth--that Massachusetts is indeed on the mend and on the move, and that we are coming out of this recession faster and stronger than other states,” Governor Deval Patrick expressed.

Massachusetts only made the top ten once, in 2009, and before that had only ranked as high as 15th in 2008. While the study rates states based on 10 independent factors, ranging from access to capital to quality of life, Massachusetts made the top five primarily because of its strong education system, according to CNBC. Massachusetts was one of only two states to rank among the top ten on five different factors. The study found Texas as the overall best state to conduct business in. (Image courtesy: http://bit.ly/8YRPdo)

Of course, CNBC went on to say that Massachusetts is also an expensive state to run a business in relation to many other states. Wages, rent, and utilities are all relatively high in Massachusetts. Moreover, there is a 5.3% long-term capital gains tax and a 12% short-term capital gains tax that companies must account for.

The findings from this study are inspiring in that they not only show that Massachusetts is a great state to conduct business in, but that the state’s business environment is improving rapidly. If Massachusetts can jump from 15th to 10th, in one year, and then 10th to 5th in the next, it may have a solid chance of closing in on first place within a few years.

[Sources: http://bit.ly/byZmvl, http://bit.ly/dm8Bid, http://bit.ly/bUXi8D]

Massachusetts' Unemployment Rate Falls to 9%

From the moment the Census Bureau began hiring temporary workers, many sources warned that this activity would make unemployment figures appear more optimistic than they really were. Now that most of these temp workers have been let go, can Massachusetts continue to show decreasing unemployment rates month after month? According to a report by the Associated Press, so far, yes. In June, the unemployment rate in Massachusetts decreased from 9.2% to 9%. (Image courtesy: http://bit.ly/bkMuZO)

Another uplifting fact was released by the Executive Office of Labor and Workforce Development: in June, Massachusetts had a net gain of 500 jobs. This is the sixth consecutive month the state has gained jobs.

“With six straight months of private sector job growth, Massachusetts continues to lead the nation out of this recession,’’ Governor Deval Patrick said. “Still, I know that there are too many people looking for work. For them and for our future, we will keep pushing forward.’’

A Labor Department press release detailed that, in Massachusetts, “year-to-date, 27% of the jobs lost during the recent economic downturn (March 2008 through December 2009) have been regained.” Clearly, the state still has a long way to go before recovering fully.

Although Massachusetts in continuing to add jobs, many sources point out that the state added over 15,000 jobs in May, or roughly 30 times the number it added in June. Joanne Goldstein, the Secretary of Labor, shed light on this situation by explaining that, while 3,400 jobs were added across seven sectors in June, the loss of 2,900 temporary census jobs resulted in the low net job gain.

“It's certainly lower this month, but what I take away is the 3,400 jobs we created in the private sector,” Goldstein said. “The Census jobs were never going to be permanent.”

Governor Patrick, shared Goldstein’s optimism, saying, “Today’s jobs numbers are another clear indication that Massachusetts is on the road to recovery.” (Image courtesy: http://bit.ly/aBdikp)

The national unemployment rate was 9.5% in June, down from 9.7% in May. However, many economists have warned that this is due in part to the large number of discouraged workers who stopped seeking employment, and are therefore no longer counted in the figure. In line with these concerns, is news that, as of its June meeting, the Fed is now anticipating a slower national recovery.

Alan Clayton-Matthews, professor of economics at Northeastern University, expressed, “The decline in the labor force is something to watch, but I’m not worried about it yet. In this stage of the recovery, 3,400 private sector jobs is still good, and our [Massachusetts’] recovery is still stronger than the nation’s.’’

These recent reports show again that Massachusetts’ economy, and the economy of the nation as a whole, are strengthening, but not by leaps and bounds. Considering there is progress, some efforts must be working correctly, but you cannot help but wonder if more could be done to accelerate the recovery. In all of this, though, it is nice to see Massachusetts’s more than holding its own in comparison to the national average.

[Sources: http://bit.ly/cEoGWW, http://bit.ly/9abpOT, http://bit.ly/cRBSPX]

Boston IT Workers See Lower Wages and Lower Costs of Living

Several recent articles have discussed surveys comparing Boston’s technology industry and Silicon Valley’s technology industry. Naturally, these articles tend to highlight the positives of the hometown of the author’s demographic, while downplaying the negatives. It is very rare, though, for any survey to actually be entirely one-sided. (Image courtesy: http://bit.ly/9U5fqN)

A recent survey of 1,600 workers conducted by Glassdoor Inc. has shown that there is a $17,000 pay gap between first-year, information technology (IT) workers in Boston as compared to their counterparts in Silicon Valley. Dice Holdings Inc. supported Glassdoor’s claims, releasing that the average salary of first-year, tech-industry workers in Boston was $85,121 last year, or fifth in the nation, behind Seattle, New York, Washington D.C., and the national average. Silicon Valley first-year, tech-workers were the highest paid, receiving an average salary of $96,299 last year.

“Specifically, what we’re seeing in Baltimore/Washington is the impact of government conditions,” Tom Silver, Dice’s senior vice president for North America, said. “The IT workers that do work for the government--particularly those that may have some security clearance--the demand for those positions has just not stopped.” (Image courtesy: http://www.dice.com)

Silicon Valley’s outlook may not be as promising, though. Rebecca Loveland, a research manager at the UMass Donahue Institute, believes the area has exhausted its local talent pool as well as physical space for companies to grow. For these reasons, Silicon Valley companies are currently “looking to other regions of the country to expand,” Donahue explained.

In their surveys, Glassdoor and Dice do not consider the cost of living. Portland, Oregon’s “Sperling’s BestPlaces” named Boston one of the cheapest “top-tech towns” to live in. When taking this fact into consideration, it begins to make more sense that the city pays its first-year, IT workers less than other locations. (Image courtesy: http://bit.ly/acuuS1)

Moreover, studies of MIT graduates have revealed that the main factors former students used to find their first jobs were “subject matter,” “creativity,” and “challenge,” not salary. MIT’s surveys also showed that the majority of the school’s graduates ultimately filled local job openings.

It seems that Silicon Valley does pay more for first-year, IT workers than Boston, but it’s also more expensive to live there and the ability to expand in the region is decreasing. So, again, there are two sides to every survey. Either way, if future workers are not choosing jobs based on salaries anyways, perhaps a more relevant survey would examine how jobs in various regions rank in regards to desired subject matter, level of creativity, and challenge.

[Sources: http://bit.ly/dvnzpw, http://bit.ly/aNZfMY]

Sanofit-aventis Brings $65M and 300 Jobs to Cambridge

Clearly, Boston has demonstrated that it is home to world-class talent and resources. It is hardly a surprise any more when a multinational company chooses the city as the location of a new branch. Even still, it is great to hear about businesses bringing fresh jobs into the state.

This week, Sanofi-aventis SA, a French pharmaceuticals company, announced that it will be creating 300 new positions in Cambridge, Massachusetts. This hiring spree comes as part of a $65 million dollar expansion in the city. (Image courtesy: http://bit.ly/b91nLH)

“As home to world-renowned research institutions and a thriving life sciences industry, Cambridge has an extraordinary wealth of talent and expertise. It’s a natural choice and we’re excited to expand our presence here,” said Jack Cox, Sanofi-aventis’s spokesperson.

Currently, Sanofi-aventis employs 15,000 nation-wide, with 400 of those workers based in Massachusetts. While sales representatives account for the bulk of the company’s Massachusetts workforce, a 60-person research team works out of Cambridge and 100 employees work out of Canton at a vaccine manufacturing plant.

Sanofi-aventis has already sub-let 30,000 square feet of space in sites throughout Cambridge and is in the process of leasing a 112,000 square foot location in an MIT-owned building. Once the lease is finalized, along with Vitry, France, the new location will serve as the co-headquarters of Sanofi-aventis’s new Global Oncology Division.

“We believe that Cambridge is really the heart of oncology today,’’ Hanspeter Spek, president of Sanofi-Aventis’s global operations, said. “We intend to benefit from this environment as a neighbor.’’

Sanofi-aventis’s oncology chief, Debasish Roychowdhury, went on to describe Cambridge as, “one of the world’s most important centers for biotech research and talented oncology minds.” (Image courtesy: http://bit.ly/agaomb)

Earlier this week, Sanofi-aventis began posting some of its new jobs to its website, including openings in laboratory research, clinical trials, and marketing. Considering the average salary of the 300 new positions the company is creating will be $100,000, the firm is poised to pay out around $30 million annually to Bay State workers.

“We are continuing to see investment growth here even in places where they might be shrinking in other parts of the world,’’ commented Susan Windham-Bannister, President & CEO of the Massachusetts Life Sciences Center, in regards to Sanofi-aventis’ Cambridge investment. (Image courtesy: http://bit.ly/aWlE0w)

To help cover the costs of its expansion, Sanofi-aventis has applied for a tax credit of nearly $9 million from the state. While nothing has been settled yet, most sources predict the credit will be granted.

It is great to see a company bringing quality, relatively high paying jobs into Massachusetts. Perhaps Sanofi-aventis will serve as a testament to the resources available in the Boston-area and lure some of its competitors to open similar facilities in the region. Either way, expansion is a mark of a healthy city, and Boston appears to be very healthy.

[Sources: http://bit.ly/cMfSlN, http://bit.ly/9t8tNO, http://bit.ly/ag4DPZ]

LoJack Cuts 46 from Westwood Headquarters

With all the stories about economic recovery recently, it might be easy to overlook the not so uplifting accounts that are still entering the news. Although the outlook is bright overall, many people, whether out of necessity or simply by choice, are still spending less. Naturally, this decrease in spending is hurting some consumer-driven industries. Just this week, LoJack, leading vehicle security provider, decided to cut 46 jobs at its Westwood, Massachusetts headquarters. (Image courtesy: http://bit.ly/9Zp5fD)

“We regret the hardship that this restructuring will have on affected employees, but believe these actions position us well to meet the changing dynamics of the automobile marketplace,” Richard T. Riley, LoJack’s Chairman and CEO said. “We remain focused on our core domestic auto and international licensee businesses, while continuing to build our Italian subsidiary and the LoJack SafetyNet business, which serves those with autism and Alzheimer's.”

LoJack’s layoff is expected to save the company $3.5 million this fiscal year and $6.8 million annually from 2011 on. For the past two years, LoJack has reported financial losses. Shortly after the announcement of the layoff, the company’s share price rose 5.4%, or 20 cents, to $3.92.

“The stabilization in the global auto market over the last few months has been encouraging. We continue to expect a moderate year over year increase in revenue, modest profit, positive operating cash flow and healthy margins for 2010,” Riley explained. “Our revenue growth will be gradual and will be concentrated in the second half of the year.”

It is not surprising that a business like LoJack, which is complimentary to the automotive industry, is struggling right now. It seems that this is one of those cases when laying off people is the lesser of two evils, as it will help decrease the company’s costs, ultimately increasing its odds of profiting and staying in business. Hopefully, this layoff, while unfortunate, will allow for a substantial hiring in the future when things begin to turn around for the company.

[Sources: http://huff.to/9m8K9C, http://bit.ly/9wXWdq]