Market Update: A Transformative Year for Andover’s Economy: Business in 2025 – Full Analysis

ANDOVER, MA — Andover’s business climate was in motion throughout 2025, shaped by corporate investment, redevelopment milestones, workforce shifts and regional projects with local implications. While economic indicators showed continued strength, a closer look revealed a year defined as much by transition as by growth.

From multinational manufacturers to neighborhood restaurants, the year’s biggest business stories reflected how Andover continues to evolve as a hub for technology, education, manufacturing and housing — while grappling with the pressures that accompany that change.

Merrimack College Expands Its Footprint Into Andover

Merrimack College announced plans to expand into Andover by redeveloping several properties along North Main Street, marking the college’s first major physical presence in town. The project includes student housing, administrative space and a wellness center, following a series of property acquisitions by the North Andover–based institution.

The expansion raised questions about traffic, parking and public safety while also signaling a long-term investment in Andover. Nearby businesses and town officials began preparing for increased activity along the corridor as the project moved through early planning stages.

Bandoleros Brings New Life to Former Tavern on 28 Space

Andover’s restaurant scene saw a notable addition with the opening of Bandoleros in the former Tavern on 28 location. The Tex-Mex restaurant opened to strong early crowds, filling a space that had seen multiple tenants in recent years.

The opening offered a positive counterpoint to other restaurant closures in town and highlighted continued demand for locally owned dining options, particularly along the Route 28 commercial corridor.

TransMedics Weighs a Move Out of Andover

TransMedics, a medical technology firm long based in Andover, announced it was considering relocating its headquarters to Somerville. The potential move would shift hundreds of jobs out of town and raised concerns about Andover’s ability to retain fast-growing biotech companies.

Town officials acknowledged the challenge of competing with urban innovation hubs offering transit access and dense research ecosystems, underscoring broader regional competition for high-growth employers.

Old Town Yard Redevelopment Moves Toward 2026 Construction Start

The long-anticipated redevelopment of the Old Town Yard site continued to advance, with project leaders confirming construction remains on track for a 2026 start. The mixed-use project is expected to add housing, commercial space and public amenities near downtown.

Throughout 2025, developers worked through design refinements and permitting milestones, keeping one of Andover’s most closely watched redevelopment efforts on schedule.

Cross-Border Battery Project Raises Local Concern

A proposed battery energy storage project in neighboring Tewksbury drew protests and heightened concern in Andover due to its proximity to the town line. Residents and officials closely monitored the project, citing questions about safety, emergency response and environmental impact.

The debate illustrated how major infrastructure projects can affect communities beyond municipal borders and how Andover increasingly must respond to regional development decisions.

Economic Data Shows Strength — and Subtle Shifts

A midyear analysis showed Andover’s economy remained strong, with steady job growth and a healthy business base. At the same time, the data revealed a shift toward smaller manufacturing firms, suggesting changes in the town’s industrial profile.

The findings highlighted Andover’s transition away from reliance on large-scale manufacturers toward a more diversified mix of biotech, logistics and professional services.

Record $8.5 Million Home Sale Draws Widespread Attention

A luxury estate sold for $8.5 million, setting a new residential record in Andover and capturing widespread attention. The sale reinforced the town’s appeal at the high end of the housing market.

At the same time, the transaction sparked renewed discussion about affordability and the widening gap between luxury properties and the broader housing stock.

Robotics Firm Cuts 400 Jobs at Andover Facility

One of the year’s most difficult business developments came when a robotics company announced 400 layoffs at its Andover facility. The cuts were part of a broader corporate restructuring and represented one of the largest workforce reductions in town in recent years.

The layoffs highlighted the volatility of the technology and manufacturing sectors, even as other firms in Andover expanded.

Gillette Breaks Ground on Major Andover Expansion

Gillette broke ground on a major expansion of its Andover manufacturing facility, reinforcing its long-term commitment to the town. The project includes facility upgrades and new equipment aimed at modernizing production.

The expansion was widely viewed as a vote of confidence in Andover’s manufacturing base at a time when some companies were downsizing or relocating.