The Economy in Profile summarizes key trends and factors influencing economic conditions in Southwest NH. To map out a strategic response to these different trends and factors, it can be helpful to organize them into several categories. Are they strengths that can be leveraged to increase regional economic prosperity and resilience? Or are they challenges the region needs to overcome? What follows is an economic “temperature check” that aims to distill these regional strengths and weaknesses. They are informed by discussions with SWRPC’s Economic Development Advisory Committee (EDAC) as well as information included in the Economic in Profile and the Data page. Both the strengths (“What’s Working”) and challenges (“What’s not Working”) consider trends and factors internal to the Monadnock Region as well as broader macroeconomic conditions across the national and global economy. The “What’s Next?” section summarizes ongoing and potential actions to take in response to identified strengths and weaknesses.

What’s working? In other words, what are the strengths and assets that the region should build on to enhance future prosperity?

1. Anchor economic development institutions. The Monadnock Region is fortunate to have several robust, innovative economic development organizations fostering economic prosperity in distinct but interrelated ways. Monadnock Economic Development Corporation (MEDC) continues to serve as the region’s preeminent non-profit lender and real estate development organization, while also increasing its activity on key economic issues such as childcare and housing. The Hannah Grimes Center for Entrepreneurship is a regional and national leader in small business support. The organization offers free coaching services to current and prospective small business owners, runs cohort-based business labs, hosts Radically Rural, and is constantly evolving its portfolio of programs to meet the needs of entrepreneurs in the region. The Greater Monadnock Collaborative—the regional chamber of commerce—runs the region’s destination marketing initiative, Magnify Monadnock. It also serves to better network the region’s business community through a variety of programs and organizes Leadership Monadnock, which connects upcoming leaders in the region with one another as well as institutions operating across the economic and civic arena.
2. Institutions of higher education. The region hosts a number of higher education institutions, including Keene State College, Antioch University, Franklin Pierce University, and River Valley Community College. These institutions represent a vital conduit for young people and workers entering the region. They are also major employers in their own right. Although most of them face significant challenges related to enrollment and funding—discussed further below—the region’s higher educational sector continues to serve as a central engine for economic prosperity.
3. Collaboration at the local level. There was a general consensus among EDAC members that many key economic and community development initiatives have moved forward because of strong collaboration among the region’s municipalities and organizations. For example, broadband expansion (discussed below)likely would not have advanced as quickly as it did were it not for local volunteers sharing information across town lines. Chesterfield, NH was the first town in the state to build out a fiber optic network in partnership with an internet service provider (ISP) through the issuance of broadband infrastructure bonds. The volunteers that pioneered the model then shared what they had learned with neighboring communities, many of which paid that generosity forward by assisting yet more towns in the region. Other examples of similar peer-to-peer information sharing and mutual aid abound regionwide.
4. Key economic sectors such as precision manufacturing and health care. The Monadnock Region boasts economic specializations of national and international significance, representing key competitive advantages to protect and grow. Precision manufacturing, particularly in optics and machinery manufacturing, is an especially notable cluster. As the Economy in Profile describes, Cheshire County ranks 39th out of approximately 2,900 counties nationwide for its concentration of employment in machinery manufacturing, including the production of optical components. The region also contains two rural hospitals, Cheshire Medical Center and Monadnock Community Hospital, which are both major employers and essential for preserving the health and wellbeing of the region’s residents.
5. Strong relationship with federal delegation. Strong channels of communication with higher levels of government are important for ensuring that state and federal policy is responsive to the needs and priorities of regional stakeholders. Many EDAC stakeholders agreed that, over the years, our region has had a productive relationship with our federal delegation, which has resulted in critical programs and projects receiving financial support from Washington. In addition, it has resulted in important policy changes that have benefited our region, such as the addition of Cheshire County to service area of the Northern Border Regional Commission in the 2018 Farm Bill.
6. A vibrant arts community. The Monadnock Region is fortunate to host a variety of performing arts organizations, festivals, independent artists, craft shows, galleries, maker spaces, and other arts-related businesses and practitioners. The arts generate substantial amount of direct economic activity in the region, over $25 million annually according to the 6^th edition of the Arts and Economic Prosperity Study, published in 2023 by Monadnock Arts Alive. In addition, patrons of arts-related events and businesses spent nearly $7 million in surrounding restaurants, hotels, and other businesses. Of equal and greater significance is the fact that artistic and cultural enterprises are often a pivotal reason why residents choose to move or remain in the region. The arts have the power to inspire, heal, connect, and expand—all of which exert a gravitational pull on the people who live here as well as those who may choose to do so in the future.
7. Local food and farming. Similar to the arts, farms and other food-related businesses generate important economic activity in their own right. For example, the 415 farms in Cheshire County sold over $22 million in agricultural products in 2022. Also like the arts, the economic impact of these businesses extends far beyond direct transactions with their customers. Fresh, high-quality food at farm stands, farmers markets, and other retail establishments is something that many residents prize. Farms and local food also constitute an important driver of tourism, with many visitors coming to our region for farm weddings, farm-to-table cuisine, U-pick fruit, maple season, and more.
8. Expanded broadband connectivity. Just five years ago, broadband connectivity would have ranked high on the list of the region’s economic challenges. Since then, much progress has been made, with wireline broadband available to the vast majority of addresses in the region and townwide fiber optic service available in many communities. This high-speed connectivity is essential for residents to operate at-home businesses, telecommute, access online educational opportunities, take advantage of telehealth services, and more.
9. Outdoor recreation. The Monadnock Region’s trails, lakes, rivers, and other natural amenities are a vital driver of the tourism economy. They are also a major reason why residents, including members of the workforce, choose to move and remain here. So, in addition to recognizing the inherent beauty and value of our region’s natural landscape, it’s important to recognizing that protecting and promoting these assets are key strategy for addressing the region’s workforce challenges.

What are challenges that the region needs to overcome in order to enhance economic prosperity and resilience?

1. Workforce recruitment and retention. As discussed in the Economy in Profile, the size of the region’s workforce has declined significantly since its previous peak in 2012. A sustained downward trend was accelerated by the coronavirus pandemic. It has remained flat since then and represents one of the key constraints preventing employers in the region from maintaining or expanding operations. The shrinking labor force for a variety of reasons, with the region’s aging demographics perhaps the chief contributing factor.
2. A lack of housing options, especially for essential workers, young families, and retirees. One of the main barriers preventing the recruitment and retention of workers is a housing shortage, especially for units in high demand among lower and middle-income households. These include affordable rental units, condominiums, and starter homes. At the same time, many retirees are looking for similarly sized accommodations, with a particular interest in single-floor living and accessibility. Even as the housing market softens in other parts of the country, home prices in the Monadnock Region have seen less of a dip and rental vacancies remain low. There is at this point widespread recognition—although certainly not universal—that an increased housing supply would benefit not only individual families struggling to find affordable housing but also employers, their customers, and clients.
3. Limited childcare availability. Perhaps second only to the housing shortage, the lack of high-quality, affordable childcare is one of the most significant headwinds preventing growth in the regional labor force. If working parents can’t find reliable, affordable care, they must remain at home with their children, even if they prefer or need to earn income to support their families’ needs.
4. Aging or undersized water and sewer infrastructure. A community’s ability to facilitate much-needed residential development, especially units at a more affordable price point, depends significantly on the availability and capacity of public drinking water and wastewater utilities. Public water and sewer is also often a must-have for many types of commercial or industrial development. While some communities in the region have excess capacity in their systems, others have needed to deny or delay new connections to the absence of any system slack. In other cases, public utilities are simply not present or their service area doesn’t reach key areas targeted for future development. There are instances where water or sewer mains are undersized to accommodate the load necessary to accommodate additional or different types of development. Most or all public utility systems across the region have aging assets due for replacement. So, while typically less of a headline-grabbing issue than, for example, housing, water and sewer infrastructure is an issue foundational to many of the region’s other economic ambitions.
5. Few transportation options. If you don’t have a car or are unable to drive, getting from Point A to Point B in the Monadnock Region can be difficult to impossible. The lack of mobility options is an economic development challenge because it locks out many would-be workers from entering the labor market. This includes a good number of young people, low-income individuals, individuals with disabilities, and others. In addition to limiting the economic prospects of particular individuals and having a damping effect on regional labor market, a lack of transportation options can create a roadblock for people who want to visit the region and are flying into surrounding airports.
6. Lack of protection for prime agricultural land in the region. As discussed above, farms are an important driver of economic activity, both through direct sales as well as related tourism. However, only a small portion of farmland in the region is protected from future development. As many agricultural producers retire in the upcoming decade, this farmland will be especially vulnerable to being permanently lost as not only an asset for the region’s long-term food security, but also a distinctive feature of its rural identity and way of life.
7. A lack of volunteer capacity in local government. Municipalities in the Monadnock Region, especially the smallest and most rural, are able to function thanks to countless hours contributed by volunteers, from those serving with the local fire department to those serving as an elected official. As the region’s population grows older, many longtime volunteers are looking to pass the reins to the next generation of local leaders. However, with many families focused on meeting their immediate household needs, the late nights or unpredictable hours required to meet the obligations of service, and a widespread d
8. Increasing frequency of severe weather events. Heavy rainfall events are becoming more intense and are happening more often. For example, in Keene, the number of events with greater than four inches of precipitation in a 48-hour period was higher in the decade from 2011 through 2020 than any of the three preceding decades. According to modeling by the University of New Hampshire, this trend is expected to continue into the 21^st Severe rainstorms have led to substantial flooding and damage to road infrastructure, dams, and private property. While severe rainfall and flooding have perhaps the most dramatic and visible impact on the region, other climate change-induced shifts in weather patterns are also becoming more of a concern. These changes include heat waves and seasonal droughts, as well as diminished snowfall, which has consequences for wintertime outdoor tourism and recreation.
9. Limited state education funding. There is a longstanding debate over public education in New Hampshire—who should pay for it, what is an “adequate” education under the NH State Constitution, and to what extent public dollars should fund alternative education. Currently, public education is supported primarily by local property taxes, which can pose a real hardship for the rural communities of Southwest NH, particularly those that are predominately working and middle class and have a limited property tax base. In addition, the heavy reliance on property taxes contributes the region’s housing affordability challenges. In the realm of higher education, state budget cuts to the University of New Hampshire system threatens the ability of Keene State College to retain faculty, sustain important classes and departments, and offer cost-competitive tuition, as compared with similar institutions in neighboring states.
10. Keeping pace with vehicle electrification. Despite the sunsetting of electric vehicle federal tax subsidies in 2025, the annual market share for EVs in New England remained over 10% of new vehicle purchased that year. This represents a significant jump from 2020, when the annual market share was only 2.6%. EV adoption is notably higher in neighboring states than in NH, underscoring the need for EV charging infrastructure to attract tourists driving from these areas. Currently, Southwest NH hosts only 4 DC fast charging stations, 2 in Keene and 2 in Peterborough. The lack of charging stations may create a source of “range anxiety” for would-be tourists who drive EVs.
11. Digital literacy and equity. Now that the region’s broadband infrastructure has been vastly improved over five-to-ten years ago, a key question becomes how to best position the region’s residents, businesses and organizations to leverage this new connectivity for enhanced economic prosperity while also mitigating the potential downsides, such as cybersecurity risks and the addictive qualities of social media. Also, while fiber and cable internet has been strung across most of our region, the monthly costs of service can still pose a barrier for some low-income households.
12. Tariff policy. Elevated and unpredictable tariffs are disrupting supply chains for businesses in the region, major employers and small firms alike.

Some economic trends are too uncertain or newly emergent to assess to what extent they represent promising opportunities, stark challenges, or a mix of both. Although their specific trajectory is difficult to forecast, we can with a significant level of confidence say that they are important trends to watch.

1. Artificial intelligence. The advent of large language models, in particular the launch of ChatGPT in late 2022, sparked intense competition among tech companies to advance generative A.I. and gain market leadership. Businesses across a wide range of industries have similarly raced to incorporate A.I.-based tools into their products, services, and operations. Yet it is still quite unclear how much of the buzz generated by A.I. is hype versus an epochal shift in the economy and the nature of work. Companies, particularly in the technology sector, are already changing their hiring strategies and restructuring their workforce in anticipation of efficiencies gained through adoption of A.I. tools. Unemployment levels are up among newly graduated software engineers. However, it is still an open question which types of jobs A.I. will render obsolete, which jobs will change, which will remain unaffected, and which might be newly created. What is clear is that investment in A.I.—through data center development, chip production, and other related activities—is already one of the biggest drivers of economic growth across the country. Whether we’re amidst an A.I. bubble or an acceleration into a new economic paradigm is hard to predict, along with how exactly how A.I. will change economic activity in Monadnock Region specifically.
2. Migration patterns due to climate change. As recently as ten years ago, climate-induced migration was a concern on the fringe of climate-related discussions and policy debate. Today, there is anecdotal evidence that some people moving to the Monadnock Region are motivated by climate-related reasons, such as excessive heat, drought, or wildfires in their previous places of residence. The extent of this trend is difficult to quantify. Its future trajectory is difficult to predict.
3. Immigration and visa worker policy. Immigration and visa policy could have a significant impact on the region’s ability to recruit workers in high-demand and difficult to fill occupations, including in the healthcare and construction sectors.