CBIA/Blum Shapiro survey:

Business leaders name top advantages, challenges in Connecticut

(Sept. 7, 2007) Despite the numerous economic hurdles of doing business in Connecticut, executives are convinced of the many advantages the state offers and are developing ways to help their companies grow and prosper here.

Executives responding to the 2007 CBIA/Blum Shapiro Survey of Connecticut Businesses said the advantages include Connecticut’s high quality of life, its location between New York and Boston, and the state’s close proximity to markets and suppliers. They also named their own personal satisfaction in living and working here.

On the other hand, the top challenges of doing business in Connecticut include:

• The high cost of doing business
• Rising health care and energy costs
• Workforce issues such as the retirement of the baby boomer generation and the lack of qualified workers to replace them.

Growing

Most companies reported developing new products or services within the last year, and even more plan to invest in product development in the next year. Almost a third of survey participants indicated that their businesses are increasing spending on research and development; nearly two-thirds said they would be purchasing new equipment.

Hopes

Sixty-five percent of respondents said they would like to see the state do more to encourage economic growth by reducing the cost of doing business in Connecticut, reducing taxes and offering tax credits, improving transportation and infrastructure, improving the state’s regulatory climate and encouraging business investment.

Workforce issues
Over the last 12 months, three-quarters of businesses reported hiring new workers, and almost as many expect to do the same in the coming year. But two-thirds of respondents said they were having a difficult time finding qualified workers and expect the problem to get worse.

They cited a shortage of qualified applicants, the high cost of living in the area, high housing costs, a lack of job-readiness and a long commute for their employees as reasons for the difficulty.

Efforts being made by Connecticut companies to attract and retain qualified workers include recruiting at local colleges, at job fairs, and online, as well as continuing to offer competitive benefits, including paid vacation, retirement plans, training and bonuses.

Reducing energy use
Connecticut businesses are actively seeking ways to reduce energy costs. Three-quarters of respondents said they had taken steps to reduce energy use, up from 50 percent just two years ago. Many reported replacing light fixtures, adjusting or updating HVAC systems, conducting energy audits and installing non-lighting energy-efficient equipment in their companies as ways to conserve energy.

For more information, contact CBIA’s Peter Gioia at 860-244-1945 or gioiap@cbia.com.