Here is news from The Arno Group and others on issues of importance to us, our clients, our community and our friends:

• May 12, 2010 — Here is the press release regarding the Vermont Business Magazine pulse poll of Vermont Businesses.

For immediate release

May 12.2010

What drives businesses to Vermont and what drives them away?

Quality of life is biggest benefit; taxes are greatest hindrance

South Burlington, Vermont. May 17, 2010 – The cover story for the May issue of Vermont Business Magazine (www.vermontbiz.com) features the results of a survey of over 3,000 Vermont businesses conducted by The Arno Group, LLC and Vermont Business Magazine. The survey, which also can be found at www.vermontbiz.com, asked businesses about factors driving them to be in Vermont, and, more critically, what factors could push them away?

By and large companies are here because of founder or management preference – they like the communities and state they live and work in –not because of any deep competitive advantage created by being here but more simply by the quality of life. The survey also asked about particular factor costs, such as labor, energy costs, housing and taxes. Again, by and large, factor costs are not an incentive for businesses to be in Vermont (in other words energy costs might attract businesses to Tennessee but they do not attract them to Vermont). Although many factor costs are a disincentive and cause businesses significant “pain,” only one factor cost showed it could drive businesses away: taxes.

“It was interesting to see so many businesses respond and focus on the subjective values associated with being in Vermont – even at the expense of their bottom line. We asked how much pain certain factor costs cause and, other than taxes, businesses seem willing to endure significant ‘pain’ to be able to be in our state. Taxes, on the other hand, could well drive businesses away. It is not the approach the state takes to governing that businesses seem to be criticizing; it is the disconnect between spending policy and not having the economic base to support the vision causing people concern,” said David Rocchio, a director at The Arno Group.

An article about the survey by Kevin Kelley in the current issue of Vermont Business Magazine reports on these findings. He interviews successful businesspeople on what entices and frustrates them about doing business in Vermont. The lengthy survey was sent to businesses in Vermont. More than 250 Vermont businesspeople responded.

“While this is not a scientific survey, we believe the detailed responses are important for policy makers,” VBM Editor Timothy McQuiston said. “On the political spectrum, some may scoff at the notion of ‘quality of life’ being an important factor, or dismiss ‘taxes’ as having a profound effect on decision makers. But these things are real. And how our leaders deal with them, I believe, will have a profound effect on the economy.”

Taxes are seen as the factor most likely to drive a business out of Vermont. Meanwhile, labor and energy costs, for instance, appear to have much less influence.

The state’s premiere business resource, Vermont Business Magazine is Vermont’s only statewide news publication. The Arno Group is a management consulting firm focused on fresh solutions to complex business problems.

Contact for Arno Group: Dan Smith: 802.373.6225

Contact for Vermont Business Magazine: Timothy McQuiston: 802.863.8038

• March 8, 2010:  Arno Group associate Dan Smith will speak on March 16, 2010 to the Lake Champlain Regional Chamber of Commerce’s new young professionals network.  The talk will be held at 7:30 p.m. at 156 Bistro, St. Paul Street, Burlington, Vermont.  Dan’s talk will center on the importance of community involvement as young professionals begin to expand and enhance their careers.  The Chamber’s Young Professionals Group is designed to create a platform for participants to build relationships, develop professionally, become meaningfully engaged with their community.  Dan Smith formerly was General Counsel and responsible for Business Development at GBIC and ran for mayor of Burlington, Vermont.  He is also a member of the Mobius Board.  Dan can be reached at dsmith@thearnogroup.com or (802) 373-6225.
• March 5, 2010:  The Arno Group is proud to see our client, Manufacturing Solutions Inc., and its CEO, Garret Hirchak, being named Lamoille County’s “Community Business Leader of the Year.”  Garret and his team are a dynamic and important contribution to Vermont’s economy, working with them is rewarding and we are proud of MSI’s and Garret’s achievements.  You can read about the honor here.  Hirchak and MSI Business Leaders.
• February 8, 2010:  This Month’s Vermont Business Magazine features articles about our home county and the exciting growing businesses in the county.  Main Article About County Businesses. It also profiles two dynamic Arno Group clients.  MSI Meets Clients Manufacturing Needs. URMC Growing Fast.
• September 12, 2009:  Dan Smith wrote a terrific commentary for the Burlington Free Press on Vermont’s economy.  He argues among other things Vermont needs to take an unbiased, hard look at what industries can thrive and have a long term competitive advantage in this state.  He argues further to do that will take an objective review outside of the existing business development structures.
• June 28, 2009:  Arno Group announces Dan Smith joins firm.
• April 17, 2009:  Global Challenge wins MacArthur Award.
• Here is the Global Challenge’s release regarding the MacArthur Award.