Survey shows most expect employment to stay stable
In the Capital District, 89.7 percent of the businesses see a bright future ahead for the area’s economy, according to a study released by SUNY Albany School of Business and Marvin and Company, an accounting and consulting firm.
According to the study, almost 90 percent of local businesses either expect to increase or keep the same number of workers in the coming year.
The Annual Business Climate Survey, now in its 24 year, was developed to respond to local business chambers and clients looking to see an overall assessment of the regional business marketplace and how it will affect their expansion.
Local chambers, including the Bethlehem Chamber of Commerce, the Chamber of Schenectady County, the Guilderland Chamber of Commerce, the Chamber of Southern Saratoga County, the Saratoga County Chamber, Colonie Chamber of Commerce and the Albany-Colonie Chamber of Commerce members responded to a questionnaire asking business owners their feelings about the economic climate in a multiple choice survey. Questions included the estimation of gross sales in 2010, ranking major concerns in order of importance, the optimism of the economy since the 2009 holiday season and characterizing the Capital District’s economy overall.
The news that area businesses hope to see stability in employment is a welcome sign of optimism during a period stagnant movement in the economy, said Peter Aust, of the Southern Saratoga Chamber.
He said his chamber members are confident that employment will stay stable in the coming year.
It’s a good sign that there is some optimism in our region, said Aust.
Aust also said that companies in the construction and service industry have already seen an impact from the construction and work on the future GlobalFoundaries site in Malta.
`We feel very confident that our unemployment will decrease as the year progresses and we go into 2011,` said Aust.
The study also showed that the major concerns for area businesses for 2010 include health-care costs, the national economy and taxes. For the 14th time in 15 years, the cost of health care was the most important issue facing businesses in the region. Last year, the national economy topped the list of issues that businesses ranked in importance going into 2009, with 73.6 percent of firms citing the decrease in the stock market as having a negative effect on business. This year, 44.2 percent of firms have indicated the stock market changes as having a significant impact on their business going into 2010.
Schenectady County Chamber of Commerce President Chuck Steiner thanked SUNY Albany and Marvin and Company for the survey and talked about the major concerns for businesses in Schenectady County, including taxes, the state of the national economy and health-care costs.
`If we can lower the taxes, improve our business climate in New York state, encourage the entrepreneur to take the risk and see opportunity and, honestly, get government out of the pockets of business and allow them to do what they do best, which is expand their particular business,` said Steiner.
Dean of the SUNY Albany School of Business Donald Siegel said in a release that the positive outlook in the survey is a sign that the area is ready for recovery.
`The Capital Region appears to be poised for recovery. Our bright employment outlook is likely to improve, as companies such as Global Foundries and M.W. Zander expand in the region. This will stimulate more opportunities for local entrepreneurs,` said Siegel. `Our results also strongly suggest that the business climate in the Capital Region is much better than in other parts of the state and county.`
The survery included work by Professor Jakov Crnkovic and graduate student Zhi Ying Lu.
Lu said that the work done with Crnkovic and Marvin and company has allowed her real-life experience with cases and companies in her first year of graduate school.
Gina Bulman, head of membership development of the Bethlehem Chamber of Commerce, said that the organization was happy to see the small gains and positive business attitude presented in the survey. More than 75 percent of businesses believed that the Capital District’s economy would either experience little growth or prosper in the coming years, according to the results of the survey.
`We were happy to see the small gains and positive business attitude reflected in the survey,` said Bulman. We’re feeling optimistic and happy with the results in Bethlehem.`
According to the survey, a majority of businesses that replied across the region characterize the Capital District’s economy as either stagnant or recovering after 2009, with most businesses across the board expecting estimated gross sales under $1 million dollars, with 45.7 businesses expecting an increase in business over the next year.
“
