Rutland: Economy
Major Industries and Commercial Activity
The thriving economy of the Rutland region is based on a balance of agriculture, tourist-related services, and small manufacturing businesses producing nontraditional durable goods. The region initially thrived on the basis of its high quality marble quarrying operations, and marble is still a key component to the local economy. In the early 2000s, however, local business leaders are seeking to further diversify the economic structure of Rutland by attracting firms in the high technology sector.
Rutland is the financial and commercial center of south central Vermont. General Electric Corporation maintains two plants in the region, and since the late 1960s a thriving electronics industry has developed.
Items and goods produced: food, wood, and marble products; scales; jet blades and vanes; stone-working machinery; home repair products
Incentive Programs—New and Existing Companies
Local programs
The Rutland Economic Development Corporation (REDC) offers a revolving loan fund to help new businesses relocating to the area or for the expansion of existing businesses. Loans of between $5,000 and $75,000 are available to qualifying firms. Housed at REDC, the Small Business Development Center (SBDC) provides free technical assistance to starting and growing small businesses. Operated through the Vermont State College System, SBDC links businesses with higher education, state and federal programs, as well as other businesses.
The Rutland Regional Chamber of Commerce informs business owners or prospective owners about tax incentives. They include payroll tax credits; credits for incremental payroll; Workforce Development Tax Credit for eligible employee training costs; Research and Development Tax Credit for eligible research and development costs; Investment Tax Credit for new capital equipment exceeding an annual threshold of $250,000; and an Export Sales Incentive.
State programs
The Vermont Economic Development Authority (VEDA) is a state-wide organization that provides low-interest loans, mortgage insurance, revenue bonds, and a loss reserve fund to encourage small business loans by participating banks. VEDA can make direct loans to manufacturing firms and other eligible loans under state statute for the acquisition of land, building and improvements, machinery and equipment, and working capital. VEDA also offers a training assistance program for new and existing businesses. These individually designed programs may include on-the-job, classroom, skill upgrade or other specialized training. The Vermont Manufacturing Extension Center (VMEC) provides assistance to Vermont's small and medium size manufacturers (under 500 employees).
Vermont's tax incentive program offers incentives based on quality jobs. These tax incentives are available based on whether or not the proposed economic development meets certain guidelines, and whether a cost/benefit model analysis points to a positive net fiscal effect on Vermont's tax revenue. The cost benefit model and other functions of the program are mainly coordinated by the Vermont Economic Progress Council. Vermont's Downtown Development Act is an incentive to help benefit Vermont's downtowns; incentives include assistance with rehabilitation of certified historic or older buildings, sprinkler system rebates, reallocation of sales tax on construction materials, downtown transportation, related capitol improvement fund, planning grant for qualifying for designation, and others.
Vermont's Act Relating to Education, Taxation, and Education Financing provides financial incentives to grow businesses that are the most comprehensive in the state's history.
Vermont's program incorporates a strategic framework that emphasizes quality jobs and symbolizes the state's core values with regard to meaningful employment opportunity. The statute creates an innovative approval process for awarding tax incentives to both businesses and municipalities for economic development activity, especially companies that already call Vermont home, with a special focus on small businesses. The state also offers sales tax exemptions on certain resources vital to industry, including electricity, building materials in excess of $1 million, industrial fuels, and heavy machinery and equipment.
Job training programs
The Community College of Vermont (with a branch in Rutland) and Green Mountain College (in nearby Poultney) offer two and four-year associates degrees in dozens of career-oriented concentrations. Stafford Technical Center, a public educational center primarily aimed at providing technical and career training to 11th and 12th graders from 10 regional high schools, also provides adult diploma programs and specialized training programs for business and industry. The Vermont Department of Employment and Training offers an apprenticeship training program to help employers upgrade the quality of their workforce. The department also offers on-the-job-training programs that reimburse the employer for a significant portion of employer-provided new hire training.
Development Projects
The Rutland Partnership, a public private partnership for the revitalization of downtown Rutland, has created a master plan for the commercial heart of the Rutland region. Continuing efforts include complete renovation of the downtown plaza, new streetscaping, increased office and commercial space, and a renewed emphasis on the nineteenth-century character of the main streets.
Efforts had begun as early as the early 1990s to restore the long-neglected Playhouse Theater of Rutland, built in 1912 and once considered among the finest smaller performing arts theaters in America. The successful restoration of the renamed Paramount Theatre was completed in February 2000 and an Opening Night Gala in March 2000 honored the artisans and contributors who made the historic project possible. The Paramount Theatre has again assumed its role as an arts, cultural, and educational leader, and as a significant and valuable community resource.
In 2003 large-scale development, and some attendant controversy, came to Rutland with the opening of a Home Depot store on the site of the old Rutland Mall, which was demolished due the popularity of the newer Diamond Run Mall. Fears were calmed, however, as initial studies of the economic impact of the large discount hardware chain showed negative effects on existing smaller and family-owned businesses of a similar nature were minimal.
In 2005 the Rutland Amateur Hockey Association was more than halfway to its goal of raising $3.3 million toward the construction of a new Rutland Regional Fieldhouse. Aside from hosting local youth and adult hockey leagues, the multi-use facility would be available for regional Vermont and New England hockey tournaments, bringing additional tourist dollars to the city. The proposed Fieldhouse will also attract additional meetings and exhibitions and other indoor sporting events.
Economic Development Information: Rutland Economic Development Corporation, 256 N. Main St., Rutland, VT 05701; telephone (802)773-9147. Rutland Region Chamber of Commerce, 256 North Main Street, Rutland, Vermont 05701; telephone (802)773-2747; fax (802)773-2772
Commercial Shipping
Strategically located between the markets of Boston, New York, and Montreal, Canada, Rutland County is on the shipping routes of major trucking firms, and more than 20 trucking firms are located in the area. The city is situated at the intersection of U.S. highways 4 and 7, providing east-west and north-south access and linking the region with interstates 89, 91 and 87. Railroad freight service is available throughout the area and a number of trucking companies offer services. The city is within easy reach of several major seaports and the Foreign Trade Zone at Burlington International Airport. All of the major national and international package delivery services operate in the city.
Labor Force and Employment Outlook
A small, progressive community with the cultural and recreational attractions of a much larger city, Rutland is the kind of city many of today's younger professional and high-technology workers seem drawn to. For that reason the city's economic picture remains bright. The Rutland region's work-force is viewed as among the most stable, mature, and educated in the Northeast. Once dominated by agriculture, today's working population is comprised of occupations from banker and lawyer to engineer and advertising agency and nearly everything in between. The local workforce is, in relative terms, middle-aged, most often married couples with children; own single family homes; have moderate to high incomes; are employed in professional, managerial or other white-collar occupations; with 79.4 percent as high school graduates (the national average is 75.2 percent). In a survey of Rutland area manufacturers, the high productivity and strong work ethic of employees was cited as the area's greatest business advantage. Stability and loyalty were also mentioned as characteristic of Rutland workers. It is projected that the 20- to 49-year-old age group will continue to grow.
The continued presence of General Electric Corporation is expected to provide the strength to maintain employment growth in the area. Analysts predict that most new jobs will be in non-manufacturing sectors, especially services and trade (nearly 30 percent of the local workforce in 2005).
The following is a summary of data regarding the Burlington and South Burlington, Vermont metropolitan area labor force, 2004 annual averages.
Size of nonagricultural labor force: 113,300
Number of workers employed in . . .
construction and mining: 6,100
manufacturing: 15,300
trade, transportation and utilities: 22,000
information: 3,200
financial activities: 5,400
professional and business services: 10,000
educational and health services: 18,100
leisure and hospitality: 10,700
other services: 3,700
government: 19,100
Average hourly earnings of production workers employed in manufacturing: $13.65 (statewide average)
Unemployment rate: 3.3% (April 2005)
| Largest employers (Rutland County, 2005) | Number of employees |
| Killington Ltd. | 1,950 |
| Casella Waste Systems | 1,325 |
| General Electric Corporation-Aircraft Engines | 1,100 |
| Rutland Region Medical Center | 1,100 |
| Carris Community of Companies | 500-999 |
| Central Vermont Public Service Corp. | 542 |
| Vermont Country Store | 400 |
Cost of Living
The following is a summary of data regarding several key cost of living factors in the Rutland area.
2004 ACCRA Cost of Living Index: Not reported
2004 ACCRA Average House Price: Not reported
State income tax rate: 24% of federal tax liability (2005)
State sales tax rate: 6.0%
Local income tax rate: None
Local sales tax rate: None
Property tax rate: Averages $2.73 per $100 of assessed value (2005)
Economic Information: Director of Community Development, City of Rutland, PO Box 609, Rutland, VT 05702; telephone (802)773-1800. Vermont Department of Employment and Training, PO Box 488, Montpelier, VT 05601-0488; telephone (802)828-4000