Hartford Business Journal

15 HARTFORDBUSINESS.COM | AUGUST 23, 2021 By John Gambardella A s we move into the second half of 2021, midsize business leaders throughout Connecticut and the nation as a whole are widely positive about what the rest of the year has in store. In JPMorgan Chase's Business Leaders Outlook (BLO) Pulse survey, which we released last month, 88% of business leaders expressed optimism about their company's performance for the next six months, the highest percentage we've seen in more than a decade, even as they noted some concerns over supply chain disruptions and the challenge of fi nding labor, among other challenges. Business leaders' rising confi dence also extends closer to home, as 76% of respondents are optimistic about their local economy. This echoes what I've heard in recent conversations with Connecticut-based clients and businesses, many of which are experiencing returns to pre-pandemic volumes, ramping up long-term strategic expansion plans and looking to leverage changes made during the pandemic to fuel their growth. Utilizing Pandemic-Driven Business Changes Throughout the last 18 months, business leaders have adapted quickly and shifted their business models – with many of them saying that pivots made will remain long-term. The BLO Pulse survey results showed that 61% of businesses nationwide have expanded their product offerings and service lines. Business leaders have also become increasingly digital-focused, with 39% expanding their e-commerce capabilities and 38% digitizing their accounts payables and receivables processes. Businesses have rapidly accelerated their shift from manual to digital banking processes, largely out of necessity, but many are fi nding that the strategic benefi ts and more dynamic connections fostered by digitalization outweigh time and costs incurred by its implementation. Combatting Top Challenges While business leaders have much reason for optimism, their outlook is slightly tempered by caution over ongoing supply chain issues – which 62% of them cited as a challenge in the BLO Pulse survey – and diffi culties fi nding new employees, training them and ensuring they're deployed effi ciently. These challenges are forcing local business leaders to make tough strategic decisions in terms of what products to prioritize and whether to expand into multiple product categories. They are also challenged to fi gure out ways to creatively use technology to supplement production in areas where they might not be fully staffed. As business leaders in Connecticut and elsewhere look toward the rest of the year, they'll have to consider how to adjust their product capacity and also think through how to stay agile and nimble amid price pressures, the pandemic and other factors in the ever-changing business environment. While each business will have to fi nd a working model that works best for the long-term, any and all considerations should focus on employee well-being, especially incorporating their feedback and suggestions for preserving company culture. How Midsize Business Leaders Are Feeling and What They Should Expect For the Rest of 2021 At the end of the day, it is truly the employees who help businesses stay agile, navigate turbulent times and provide the optimism that business leaders are seeing in this survey. For more information on the 2021 BLO Midyear Pulse survey, please visit jpmorgan. com/2021midyearoutlook. John Gambardella is the Connecticut Region Manager for Middle Market Banking & Specialized Industries at JPMorgan Chase Commercial Banking. John Gambardella SPONSORED CONTENT Growth, Sustainability and Agility Pivots

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