Every product, company, or community has a value proposition — a promise of what someone gets for what they give. Businesses use it to explain why customers should choose them over competitors. But the same idea applies far beyond marketing. States, cities, and even local governments have value propositions too. They make an implicit pitch to residents and employers: “Here’s what we offer in exchange for your investment, labor, and taxes.”

Vermont’s brand is easy to summarize. It’s picturesque, green, and independent-minded — a place that values community over chaos and open spaces over sprawl. The state’s story centers on quality of life, clean air and water, small-town character, and a regulatory structure meant to preserve them. But when measured against the hard numbers of cost, regulation, and opportunity, what exactly is Vermont’s value proposition to the people and businesses that might want to build, hire, or invest here?

The Core Idea: Understanding “Value Proposition”

In business, a value proposition explains three things:

1. What’s being offered.
2. Who it’s for.
3. Why it’s worth choosing.

It’s the balance between cost and benefit — between what you pay and what you gain. A clear value proposition is what helps consumers and companies make rational decisions. The same logic applies when a company decides where to open a new plant, or when a builder considers breaking ground in a particular state. They’re comparing different offers: tax structures, permitting hurdles, labor pools, infrastructure, and living costs.

Seen through that lens, a state’s policies, incentives, and regulations are the components of its own value proposition. Some states emphasize speed and simplicity: low taxes, minimal permitting, and a large labor force. Others, like Vermont, emphasize environmental stewardship, community engagement, and quality of life. The key question is always the same — does the value match the cost?

Vermont’s Stated Offer

On paper, Vermont’s economic offer looks appealing in several ways:

• Lifestyle and environment. The state consistently ranks high in measures of safety, education, and environmental quality. For workers who prioritize scenery and community over congestion, Vermont has enduring appeal.
• Targeted incentives. Programs like the Vermont Employment Growth Incentive (VEGI) and downtown or village-center tax credits aim to attract employers and developers. The state also uses federal Low-Income Housing Tax Credits and Tax Increment Financing districts to spur housing and downtown investment.
• Renewable alignment. Vermont’s strong push toward green energy and sustainability fits well with employers seeking an environmentally conscious brand identity.
• Workforce culture. Small but educated, Vermont’s workforce tends to be loyal and community-oriented — traits prized by smaller manufacturers and mission-driven organizations.

Add these together and the surface-level proposition is straightforward: a beautiful place to live, with civic stability, incentives for job creation, and a chance to be part of a sustainable, community-based economy.

The Unspoken Costs

But every offer has a price. For businesses and builders, Vermont’s costs are concrete and often immediate.

• Permitting complexity. Statewide review processes like Act 250, combined with local zoning boards and environmental standards, can make approvals lengthy and uncertain. Developers frequently cite months-long delays and additional legal costs just to move a project forward.
• High construction and energy costs. Updated Residential and Commercial Building Energy Standards raise upfront costs for compliance and testing. Labor costs, materials, and utility rates are all above the national average.
• Tax burden. Vermont’s overall tax load — including income, property, and business taxes — ranks among the higher tiers nationally. Incentives can offset this temporarily, but the long-term structure remains heavy.
• Small scale. With a population barely topping 650,000, Vermont’s local markets are thin. Many businesses must depend on customers or suppliers outside the state to achieve growth.
• Demographic pressure. A shrinking working-age population adds another layer of risk for employers planning to hire or expand.

Each of these elements eats into the value side of Vermont’s equation. What’s marketed as quality of life can translate into regulatory overhead and higher cost of entry for those trying to contribute to that same quality.

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Quality of Life or Cost of Opportunity?

For lifelong Vermonters, the balance often comes down to personal roots and community attachment — things not easily measured in spreadsheets. But for outside investors or younger families deciding where to start a business or buy a home, the decision is increasingly economic.

When incentives are offered to new employers, existing taxpayers effectively shoulder the difference until the promised jobs and revenue materialize. That means Vermont’s “offer” to new businesses may be subsidized by the same residents who already face some of the nation’s highest combined state and local taxes. Meanwhile, the regulations designed to protect Vermont’s landscape can also stifle the very development that could strengthen its economy.

In pure economic terms, Vermont’s value proposition may simply not balance for many would-be builders or employers. The incentives are real but limited. The costs are immediate and ongoing.

The Takeaway

Value propositions are about clarity. They spell out what you get, what it costs, and why it’s worth it. Vermont’s current proposition to employers and developers reads something like this: “We offer natural beauty, stability, and sustainability — in exchange for higher costs, slower approvals, and smaller markets.”

That trade may appeal to certain businesses and individuals who value the intangible benefits of life in Vermont. But as competition for investment and labor intensifies across the U.S., the state’s brand will only carry it so far. If the numbers stop making sense, the promise loses its pull.

Vermont’s challenge isn’t one of marketing — it’s one of math. Until the economic value proposition aligns with the ideals it promotes, the state will continue to attract admiration more easily than investment.

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Dave Soulia | FYIVT

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