Addressing Vermont’s Growth Challenges

Governor Phil Scott has appointed David Soucy to the Vermont House of Representatives. The appointment comes as the state continues to grapple with systemic economic challenges and a pressing need for housing and workforce development.

Regarding the appointment, Soucy stated that he understands the serious challenges limiting Vermont’s growth and the impact they have on our residents and expressed his intention to work collaboratively with colleagues to address these issues.

Economic and Demographic Pressures

Soucy enters the House of Representatives at a time when Vermont is facing significant demographic and economic headwinds. The Vermont Chamber of Commerce has identified affordability pressures, demographic decline, and rising operating costs as converging factors that threaten the state’s economic growth.

According to the Vermont Futures Project’s Competitiveness Dashboard, Vermont ranks 49th in Economic Outlook. The state continues to struggle with high costs of doing business, slow economic growth, and a demographic profile that puts a strain on both public systems and employers.

Business owners in the state have identified several primary barriers to growth, including labor shortages, regulation, taxes, healthcare costs, and housing challenges.

The Housing and Workforce Crisis

Housing availability and affordability have become central concerns for state leadership and economic advocates. The Vermont Chamber has advocated for reforms aimed at reducing construction costs, expanding access, and improving infrastructure to mitigate workforce gaps.

These challenges are further detailed in the Vermont Economic Action Plan, launched by the Vermont Futures Project on January 29, 2025. The plan was developed through engagement with over 5,000 Vermonters across all 14 counties to create a data-informed roadmap for the state’s future.

Kevin Chu, the Executive Director of the Vermont Futures Project, has described the state’s situation as a severe housing shortage and a shrinking workforce. He noted that Vermont serves as a leading indicator for the rest of the country regarding the economic impacts of housing scarcity and demographic shifts.

Strategic Frameworks for Recovery

The Economic Action Plan utilizes a dual framework of People and Places. This strategy focuses on several key actionable goals:

• Recruiting and retaining working-age residents.
• Increasing overall labor market participation.
• Expanding housing and infrastructure.
• Aligning state policies with the evolving needs of communities.

The plan seeks to move Vermont away from a trajectory characterized by reduced services, higher taxes, and economic disparity. Instead, it proposes a shift toward a future of shared prosperity and sustainability.

The Vermont Chamber of Commerce has integrated this long-range strategy into its 2026 legislative priorities. The Chamber is emphasizing the connection between business growth and wage growth, urging collaborative efforts to ensure businesses have the necessary environment to thrive.

the Chamber has sought to bolster its advocacy regarding emerging technology challenges by hiring attorney Josh Diamond on retainer. Diamond, who previously served six years as Vermont’s Deputy Attorney General, is expected to provide legal expertise and representation for the business community.

Tourism and manufacturing remain critical economic pillars for the state, with each sector contributing approximately $3 billion annually and employing thousands of residents.