Business Profile

Since the downturn of the early 1990s, Boston's economy has struggled a bit. As of August 2003, Boston's unemployment rate was 5.2%, but it is still lower than the national average of 6.1%. Other economic indicators reinforce a picture of developing economic strength and quality of life - including record low crime figures and things like an office vacancy rate below 2%. There is a strong trend of overall sales in real estate with general prices being stable. Hotels have been continuing to report high occupancy rates over this period, with the 79% average significantly above the national average of 73%.

In addition, there has been over US$1.3 billion invested in private development and construction projects, alongside several major public infrastructure investment projects, notably the 'Big Dig', which is refurbishing and rebuilding tunnels and major routes through the city. Another massive project indicative of the city's confidence is the Seaport Public Realm Plan, which has developed the new Boston Convention and Exhibition Center on 400 hectares (1,000 acres) of seafront land.

Boston is the capital of the Commonwealth of Massachusetts and the finance, professional, business, higher education, government, transportation, cultural and tourism hub of New England. Of these economic areas, high technology, financial services and tourism, in particular, are showing strong growth and expansion. This expansion is also helped by the fact that Boston attracts high numbers of young professionals from its prestigious educational institutions, notably Harvard and MIT (Massachusetts Institute of Technology).

A glance shows an impressive mix of old and new economies flourishing: Affiliated Managers (asset management), Analog Devices (technology), Brooktrout Inc (computer hardware and software), Biogen Inc (biotechnology), EMC (software), Eaton Vance Corp (mutual funds), Gillette (consumer products), Millipore Corp (pharmaceuticals), Novartis (pharmaceuticals), RSA Security Inc (technology), Staples (retail sales) and State Street Corp (financial services).

An additional shot in the arm to the city's economy will be the hosting of the Democratic National Convention beginning in late July, 2004.

Business Etiquette
Americans can be less formal than Europeans, both in dress and manners, but normal business courtesies should still be observed. The degree of formality often reflects the nature of the business - banking and legal professions will be more formal than computer and media companies, who are in turn more formal than in the Southwest or California. Although both men and women may be dressed in business attire (suits), they will be quick to address each by first names. Short-sleeved shirts are acceptable in summer. As a visitor, there is nothing wrong in being as formal as, say, in Europe, and then relaxing once the attitudes of the host have been established. Business cards are commonly exchanged at meetings and e-mail is a favorite means of communication.

Punctuality for business meetings is expected - and time should always be allowed for traffic delays. Business hours are from 0800/0830 to 1700. Working late, well into the night or even at the weekend is, however, common. Working lunches are more common than working breakfasts and may be anything from a copious sandwich and coffee to a more serious, although not prolonged, restaurant meal. Socially, Americans are individualistic, but meeting for drinks or dinner after work on a Friday is a popular end to the working week. As a guest, not over-indulging in alcohol is always a good idea. Evening dinner invitations can equally be to the home or to a restaurant. Visitors should bring a bottle of wine to the home or offer to share part of the restaurant bill.