Worcester Business Journal

6 Worcester Business Journal | December 23, 2024 | wbjournal.com ECONOMIC FORECAST 2025 WBJ reader survey C entral Massachusetts business leaders generally feel good about the economy, although they don't feel great about it. e doom and gloom of the post-2020 economic outlook finally gave way last year when WBJ's readership had strong feelings of optimism about the region's economy. ey still have those optimistic feelings this year, just not quite as strong. In WBJ's annual Economic Forecast survey of its readership, this year 57% of respondents felt the region's economy would improve significantly or slightly next year. at's not quite as high as last year's survey results (64%), but it is the second highest in the four years since 2020. Additionally, more than half of WBJ readers this year (52%) said the economy is in a better place than it was a year ago, which is the third-highest level in the last five years. One noticeable spike in business leaders' pessimism was over the high cost of oper- ating in Massachusetts, which 41% said is the biggest impediment to business growth in the state. Looking ahead to next year, 49% said President-elect Donald Trump's proposed tariffs would have a net negative impact on their business, versus 16% who felt the tariffs would be a net positive. Still, 55% of respondents said they plan to hire additional staff next year, which is only the fourth time since 2013 a majority of readers said they plan to do so. Con- cerns over the quality of the workforce appear to be dissipating, too, as 36% said they were very concerned about their ability to find workers with the right skills for job openings, which is the lowest that number has been since 2020. With such a complex economy full of businesses of varying size and quality, no one business leader feels exactly the same as another. However, the collective feeling among the Central Massachusetts business community is the outlook is good, mostly. – Brad Kane, editor Less enthusiastic 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: • Lack of access to capital • High labor costs • Maura Healey's oppressive taxes, immigrant sheltering, costly rules and regulations 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 2024 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% 2024 52% 42% 6% 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% 41% 21% 15% 11% 7% 5% 2023 2024

• Cover