Is Maine Losing Its Corporate Backbone?

What happens when ownership of Maine businesses is sold out of state? A lot.

Local jobs and salaries that become duplicative with the new ownership are eliminated, as are the taxes they generate. These are often senior management positions that pay relatively high wages.

Maine companies often purchase goods and services from other Maine companies, whether that is suppliers, mechanics, accountants or attorneys. When ownership is sold out of state (or out of country) these purchases can get replaced, as new ownership looks for efficiencies in their operations. Headquarters and key operations may be moved out of Maine altogether.

There’s other impacts on the community, too. As Derek Volk of Volk Packaging says, “This year will be our 49th year sponsoring Little League. If I sold to International Paper, for example, do you think they’re sponsoring five Little League teams? Probably not.”

There’s a lot of reasons a business owners may sell. But one of the reasons Maine ownership is selling is because Maine’s high costs and regulatory burdens make it hard to compete.

We encourage you to watch this report by WGME Channel 13: “Maine Business exodus: Is the state losing its corporate backbone?”