Worcester Business Journal

4 Worcester Business Journal | December 25, 2023 | wbjournal.com ECONOMIC FORECAST 2024 WBJ reader survey C entral Massachusetts business leaders have not been optimistic about the region's economic outlook over the last couple of years. With the exception of 2020 – when it felt like there was no place to go but up – the plurality were predicting either middling growth or a full-on recession. Yet, looking into 2024, it appears more of them are feeling positive about the economy than they have in the recent past. In WBJ's annual Economic Forecast survey conducted in late November and December, more readers felt the region's economy would improve significantly (18%) than they had since at least 2016, with the exception of those survey takers at the end of 2022 (26%) Moreover, the portion of survey takers who said the economy would improve significantly or slightly (64%) is at its highest level since 2017. is comes on top of 70% of readers saying the economy is better than at this time last year. WBJ readers' collective outlook, though, isn't all roses and sunshine: 39% expect to have to make cuts as a result of a slowdown in their operations in 2024, and another 79% say their businesses are still being impacted by high interest rates. Workforce issues remain top of mind, as 65% expect to hire additional staff next year, but 51% are concerned they won't be able to find people with the right skills for the job. More than a fih of the survey takers said the biggest impediment to business growth is lack of available workforce (22%), ranking third behind high operating costs (27%) and lack of affordable housing (25%). Still, aer more than a year of concerns about an impending recession, it's nice to see the collective opinion is the Central Massachusetts economy is in a better place and will continue to improve. – Brad Kane, editor Finally, some optimism What's the biggest impediment to business growth in Massachusetts? How will the economy fare next year, as compared to this year? Do you think the Central Massachusetts economy is in better or worse condition than when it was at this time last year? Other answers: • High utility costs & high interest rates (access to capital) • Globalization • Irresponsible leadership for the past 10-12 years • Uncertainty, leading to cautious investment 0 10% 20% 30% 40% 50% 60% 2023 2022 2021 2020 2019 2018 2017 2016 Improve significantly Improve slightly Remain the same Decline slightly Decline significantly 2023 2022 2021 2020 Better Worse Not sure 0 20% 40% 60% 80% 100% 70% 19% 11% 46% 42% 12% 76% 19% 5% 6% 89% 5% High cost of operating in the state Lack of affordable housing Lack of available workforce High taxes Other Overly aggressive or slow regulation 27% 25% 22% 18% 5% 3%

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