Category

Strengths (S)

Weaknesses (W)

Opportunities (O)

Threats (T)

Ease of Doing Business

Targeted Business Environment: Ranked #8 in "Business Environment" (U.S. News & World Report, 2025) due to administrative focus on economic growth (Economy rank jumped from #28 to #16 since 2021).

High Cost/Poor Climate: Ranked as the worst state to start a business (WalletHub, 2025) and fifth-worst state for business overall (CNBC, 2025). Tax Burden/Regulation: High corporate and property taxes, with an over-regulated labor market (e.g., high minimum wage, lack of right-to-work laws).

Leverage "Blue" Quality of Life: Can market its highly-rated quality of life and natural environment to attract businesses prioritizing talent retention and lifestyle.

Outflow of Businesses: Persistently poor rankings on cost and friendliness may drive small businesses and entrepreneurs to relocate to states with more competitive tax and regulatory structures.

Domestic Manufacturing

Niche/High-Value Sectors: Strong presence in specialized, high-value manufacturing like defense/shipbuilding (Quonset Point) and certain life sciences/biotech segments. Support Programs: Active government support, such as the Manufacturing Equipment Grant Program for small manufacturers.

Small Scale/Slow Growth: Manufacturing employment change is marginal (approx. 1.3% annual change in 2025), and the sector is a smaller contributor to the national total compared to larger industrial states.

"Blue Economy" Focus: Leveraging its coastal assets to develop next-generation ocean technologies, marine manufacturing, and the emerging ocean tech sector (e.g., Regent Craft).

Regional Economic Slowdown: The broader New England economy is cooling (Real GDP growth easing to 1.5% in 2025), which constrains regional demand and labor force growth for local manufacturers.

Sustainability Initiatives

Aggressive Climate Goals: State is mandated to reach Net-Zero emissions by 2050 under the "Act on Climate," driving a comprehensive 2025 Climate Action Strategy. Offshore Wind Hub: Clear focus on greening the energy supply through renewable electricity (e.g., 100% renewable electricity by 2030 goal).

Fossil Fuel Transition: Transportation remains the largest source of Greenhouse Gas (GHG) emissions (nearly 40%), indicating a long and costly transition is required to meet the 2050 mandate.

Green Economy Workforce: Intentional focus on a "Just Transition," creating opportunities for new workforce development, green jobs, and climate resilience planning (e.g., Act on Coasts for working waterfronts).

High Implementation Costs: The massive investment required for building and transportation decarbonization, and port adaptation to rising seas, could place significant financial strain on municipal budgets and consumer utility costs.

Balance of Trade

SME Export Base: 88% of the state's 2,020 exporting companies are small- and medium-sized enterprises (SMEs), which indicates a diverse and resilient base of global engagement. Foreign Investment: Foreign-controlled companies employ a significant share of the workforce (7.6% of private-industry employment).

Relatively Small Export Volume: Goods exports in 2024 were $3.1 billion, a small global contribution compared to larger states, making it less influential on national trade policy discussions.

Deepen Core Relationships: Further developing trade with top partners (Canada, Italy, Mexico) in specialized, high-demand goods.

Global Protectionism: An increasingly uncertain global trade environment, driven by potential tariffs and policy changes, poses a risk to its export volumes and supply chains.