Business Council Members Optimistic Despite Frustration with Slow Recovery in New York

ALBANY, NY (09/20/2012)(readMedia)-- Despite continued frustration with state government and a difficult economic climate, employers who responded to a Business Council survey were optimistic about New York's economic future.

"Although they have dealt with a difficult recovery and a slowly improving business environment in New York, our members believe their businesses will grow and their bottom lines will improve over the next 18 months," said Heather Briccetti, president and CEO of The Business Council of New York State, Inc. "Employers still see many places where the government can reduce the cost of doing business, but agree they will see economic progress in 2013," she added.

The electronic survey conducted earlier this month asked Business Council members about the economic climate they have faced in the past six months, their outlook over the next six months and the next 12 to 18 months and how state government affected their business.

Revenue

In the past six months 40 percent said they saw an increase in revenue, while 30 percent saw a decline.

In the next 6 months 44 percent said they expected their revenues to increase, while 20 percent thought they would decrease.

In the next 12 to 18 months 59 percent said they expect their revenues to increase, while 17 percent thought they would decrease and 24 percent said it would stay the same.

Employment

In the past 6 months 48 percent said that they kept their workforce the same, while 29 percent said they reduced their workforce.

In the next 6 months 70 percent plan to keep their workforce the same, while 22 percent plan an increase.

In the next 12 to 18 months 55 percent plan to keep their workforce same, while 36 percent plan an increase.

State Government

Despite these optimistic findings the respondents had mixed reviews and continued frustration with state government.

When asked how satisfied they are with Governor Cuomo's performance in reducing the cost of doing business in New York in 2012, 65 percent where either very satisfied or somewhat satisfied.

When asked how satisfied they are with the New York State Senate's performance in reducing the cost of doing business in New York in 2012, 41 percent where either very satisfied or somewhat satisfied.

When asked how satisfied they are with New York State Assembly's performance in reducing the cost of doing business in New York in 2012, 26 percent where either very satisfied or somewhat satisfied.

When asked if they believe their own New York State Senator deserves re-election, 57 percent said yes.

When asked if they believe their own New York State Assembly member deserves re-election, 47 percent said yes.

When asked what government reforms would be the most important to their business, reduced taxes, fees and Workers' Comp and Unemployment Insurance costs placed first. It was followed closely by mandate relief and a state spending cap.

A troubling finding is that 81 percent said they have seen increase state regulatory activities costing their company more in fees, fines or penalties.

The Council surveyed nearly 3,000 members electronically. The respondents were broadly representative of the Council's membership in terms of size, type of business and location, and cross-tabulations found that the issue rankings were broadly consistent regardless of the size or type of company represented in responses.