Hartford Business Journal

4 HARTFORDBUSINESS.COM | SEPTEMBER 16, 2024 What's Trending More execs say CT's biz climate is declining By David Krechevsky davidk@hartfordbusiness.com A lmost nine in 10 business execu- tives surveyed by the Connecticut Business & Industry Association say the cost of doing business in the state is rising, while just 8% say the state's busi- ness climate is improving. CBIA's 2024 Survey of Connecticut Businesses was conducted by accounting and consulting firm Marcum LLP, which contacted more than 2,800 top executives statewide from June 11 to July 18, with a response rate of 14%, or 392 leaders. The survey has a margin of error of 2%. Nearly 90% of respondents said costs are rising, citing the cost of labor, goods and supplies and state taxes. Only 8% of respondents believe the state's business climate is improving, while 39% say it's declining. A year earlier, only 33% of executives thought the business climate was declining. The lack of skilled job applicants, cited by 33% of respondents, and the high cost of living, cited by 21%, were the main factors executives cited as hampering growth. A majority of respondents, 78%, also reported difficulty finding and retaining workers, while 46% listed employee recruitment and retention as their top investment priority. Other key findings include: • Just 28% of respondents say they expect to grow their workforce in the next six months, while 8% expect to reduce staff. • 60% said the availability of affordable, quality child care is important for recruiting and retaining workers. • 73% of respondents reported profits in 2023, down three percentage points from 2022, with 13% breaking even and 14% posting losses. According to the survey, 24% of respon- dents expect the state's economy to expand, roughly the same as in the previous survey, while 18% forecast a contraction, down three percentage points from a year earlier. "While workforce remains a priority issue for businesses throughout the state," the survey notes, "respondents make it clear that costs continue to increase — in what already is one of the most expensive states in the country — and state govern- ment mandates and regulations remain significant hurdles." The survey adds that business leaders "expressed confidence in the administra- tion's fiscal responsibility track and emphasis on state spending limits, but feel the state legislature is largely 'anti-business' and lacks focus on the needs of small businesses, the heartbeat of the state's economy." Of the nearly 400 respondents, 41% were manufacturers, while 10% were in construc- tion and 10% were in professional services. WHAT'S THE MAIN FACTOR HAMPERING BUSINESS GROWTH? Lack of skilled job applicants 33% Cost of living 21% High business taxes 12% Workplace mandates 9% Uncertainty & unpredictability of legislative decision-making 8% Increasing regulatory compliance costs 8% Other 7% Transportation infrastructure 2% Credit availability 1% WHAT ACTIONS ARE YOU TAKING TO ATTRACT/RETAIN WORKERS? Flexible paid time off policies 18% Apprenticeships/internships 18% Employee engagement and recognition programs 14% Changed job requirements from education-focused to skill-based 10% Option to fully or partially work remotely 9% Tuition reimbursement 8% Sign on/stay on bonuses 7% Student loan assistance 2% Childcare reimbursement 1% Source: CBIA 2024 Survey Of Connecticut Businesses 24_007722_Hartford_Business_Journal_SEP Mod: August 21, 2024 12:24 PM Print: 08/27/24 page 1 v2.5 π ORDER BY 6 PM FOR SAME DAY SHIPPING 1-800-295-5510 uline.com FIRST-CLASS SELECTION OF MAILERS

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