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For Immediate Release
FAIRFIELD COUNTY EXECUTIVES BULLISH ABOUT THEIR COMPANIES’ FUTURES But they’re less optimistic about the state and national economies
Most Fairfield County business executives are bullish about the condition of their companies and prospects for 2006. But they are less optimistic about the economic outlooks for Connecticut and the U.S. These business leaders are pursuing ways to continue growing their companies, but are concerned about several key issues, including the region’s transportation systems, housing costs, supply of skilled workers, and energy and health care costs. These are some of the key findings of the CBIA 2005 Fairfield County Business Survey, sponsored by Blum Shapiro, People’s Bank and Pullman & Comley LLC. The survey represents the first collaboration of the Fairfield County Business Journal; Bridgeport Regional Business Council; and the Fairfield, Greater Danbury, Greater Norwalk, Greenwich and Stamford Chambers of Commerce. The survey examines business trends in Fairfield County, the strongest economic region in the state, and government-controlled issues that need to be addressed in order to stimulate the continued economic development of the region. “Fairfield County is the most vital part of our state,” said Robert Morris, managing partner, Pullman & Comley LLC. “The survey accurately reflects differences and similarities between the county and the state as a whole.” Looking ahead to 2006, 54 percent of respondents expect their own firm’s economic condition to improve. Only 13 percent expect conditions to worsen. Thirty-three percent expect improvements in Fairfield County’s economy, while 22 percent anticipate weaker conditions. Regarding Connecticut’s economy, 19 percent expect improvement, but 40 percent expect the state economy to worsen. Twenty-one percent expect the U.S. economy to improve next year, but nearly half (46 percent) expect it to worsen. Respondents said transportation is both an advantage as well as a disadvantage to doing business in Fairfield County. Twenty-six percent identified transportation as a benefit, but business executives also identified it as their most significant problem. “Executives categorized transportation as both a negative and a positive, highlighting the fact that while Fairfield County has many transportation resources, the area is in need of significant improvements,” said Peter Gioia, CBIA economist. Other benefits noted were a good economy (20 percent), high quality of life (19 percent), and close proximity to markets and suppliers (10 percent). Other challenges include health benefits costs (18 percent), the overall high cost of doing business (18 percent), as well as a shortage of qualified workers (14 percent). “The optimism reflected in many of the results is tempered by concerns about key infrastructure issues such as electrical service and transportation,” said David B. Rosenthal, Blum Shapiro chairman. “More work must begin to solve these problems to assure the future vitality of our business community.” Nearly half (43 percent) of executives also identified transportation as the most daunting challenge facing the Fairfield County businesses in the next five years. Other issues impeding future growth include the availability of qualified labor (11 percent), the cost of doing business (11 percent), housing (8 percent), taxes (7 percent) and health care costs (7 percent). Fairfield County business executives want a first-class transportation system. Most respondents (62 percent) said I-95 is the single most pressing transportation issue facing the county. Ninety-two percent said a top-notch transportation system is extremely or somewhat important to Connecticut’s overall economic growth. These findings are in line with those of the state’s Transportation Strategy Board. The board, which was formed by the legislature to identify broad strategies for the state to use as guideposts in developing and implementing transportation priorities, has identified southwest Connecticut as the highest-priority area for immediate transportation funding. In order to pay for highway improvements, 62 percent of respondents support the implementation of electronic toll systems, 41 percent suggest increasing commuter-rail or bus fees, and 39 percent suggest raising funds through higher fuel taxes. Only 28 percent want other state taxes increased to finance transportation improvements. Nearly half (48 percent) oppose the idea of increasing other taxes. “Connecticut remains at risk of becoming an economic cul-de-sac because of our failure to adopt and implement a comprehensive transportation strategy,” said John A. Klein, president and CEO of People’s Bank. “Creating a dedicated funding source, together with an appropriate sense of urgency to implement the Transportation Strategy Board’s recommendations, are critically important to the continued strength of Fairfield County and the state of Connecticut.” Fairfield County business executives are also concerned with another type of traffic problem, electricity congestion. More than half of the respondents (54 percent) said that energy costs are extremely important to them, followed by the quality (35 percent) and availability of power with no shutdowns (25 percent). The area has the worst electricity transmission system in Connecticut, and more than half (61 percent) of executives believe that new power sources should be built in the county in order to meet future energy needs. Fifty-five percent said the region needs to import more energy from other areas. American’s graying workforce looms as a significant challenge in Fairfield County. Forty-one percent of executives said they expect 10 percent to more than 25 percent of their employees to retire within the next five years. Finding and hiring qualified workers is another looming problem for the county. Key reasons include the high cost of living in Fairfield County (32 percent), a shortage of qualified applicants (29 percent) and high housing costs (24 percent). “It’s evident that transportation, energy and housing are interconnected with jobs and economic growth in the future of this region,” said Kenneth O. Decko, CBIA president and CEO. “How effectively these issues are addressed will determine how many jobs are created as well as the future levels of economic growth in the county.” The survey was conducted via mail and e-mail in September 2005. There were 498 surveys returned. The percentages relate to the number of respondents answering each question; thus the sample size for each question varies. The survey has a margin of error of plus or minus 4.38 percent. CBIA is the state’s largest business organization, with 10,000 members.
### For a copy of the survey, please visit www.cbia.com/newsroom/surveys. For more information contact Nancy Andrews, CBIA media relations manager, at 860-244-1957 or andrewsn@cbia.com. 350 Church
Street · Hartford, CT 06103-1126 · cbia.com/newsroom
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