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For Immediate Release FAIRFIELD AND WESTCHESTER COUNTIES AMONG THE STRONGEST AND MOST INTERCONNECTED ECONOMIC AREAS IN THE NATION Cost of doing business, transportation, affordable housing and health care costs among biggest issues for businesses in both counties
The Fairfield/Westchester region is among the strongest and most interconnected economic areas in the nation, boasting high levels of personal wealth, thriving businesses and one of the greatest rates of in-migration in the U.S. Fairfield County accounts for the majority of economic growth and recovery in Connecticut. Business is good for most companies in both counties, and executives expect the rally to continue in 2007. But they are less optimistic about the economic outlook for the overall region. While positive about the future, businesses in both counties are facing similar barriers to growth, including workforce issues, the high cost of doing business, transportation infrastructure issues, housing concerns, high health care benefit costs and the availability of qualified workers. These are some of the findings of the Connecticut Business & Industry Association (CBIA) 2006 Fairfield/Westchester County Business Survey, sponsored by Blum Shapiro, People’s Bank and Pullman & Comley LLC. This survey, the first of its kind, identifies and compares business issues facing both Fairfield and Westchester counties, from the perspective of the area’s top business leaders. "There was an unprecedented level of cross-state cooperation for this survey, and we appreciate all the companies and business associations that participated in this survey. The results help us understand the concerns and the issues that are of particular importance to the business communities in these two counties,” said Peter Gioia, CBIA vice president and economist.” The survey was conducted in collaboration with the Fairfield and Westchester County Business Journals, the Bridgeport Regional Business Council; the Connecticut Minority Supplier Development Council; the Connecticut Society of Certified Public Accountants; the Business Council of Fairfield County; the Westchester Business Council; the Westchester County Association; and the Fairfield, Greater Danbury, Greater Norwalk, Greenwich, Darien and Stamford chambers of commerce. "Although competing from two different states, Fairfield and Westchester County businesses share very similar advantages and concerns and are significant contributors to their respective state economies,” said John R. Rathgeber, CBIA president and CEO. “Therefore it’s important that, whenever appropriate, policy-makers recognize the interconnectedness of the two counties and implement regional solutions that will benefit both counties and the entire area.” Benefits and Challenges The region’s quality of life is considered the greatest benefit of doing business in the Fairfield/Westchester area by 37 percent of business respondents. Other advantages include a good economy (16 percent), profitability/growth potential (16 percent) and proximity to markets (11 percent). On the other hand, executives said the greatest challenges to doing business in the region include the high cost of doing business (36 percent), transportation/infrastructure issues (29 percent), lack of affordable housing (27 percent), health care benefit costs (25 percent), availability of qualified workers (24 percent) and taxes (21 percent). Respondents expect that these same issues will continue to be major challenges for their businesses for at least the next five years. Health care costs The cost of health care has been a significant issue for businesses throughout the state and country for many years. An overwhelming majority of Fairfield and Westchester County executives (91 percent) said they are concerned about rising health-care costs. In addition, a quarter (25 percent) said health care benefit costs are the greatest challenge to operating a business in the Fairfield/Westchester County region, although fewer than 15 percent expect it to be a major problem in five years. Litigation and malpractice insurance were cited by 73 percent of respondents as the primary factor driving up health care costs. Other key factors included health care insurers (58 percent), government laws and regulations (44 percent), the aging population (44 percent), new medical procedures and technology (35 percent), and health care practitioner prices (32 percent). Transportation Businesspeople recognize the wealth of transportation resources in both counties, but they acknowledge that significant improvements must be made to the transportation infrastructure in both states. An overwhelming majority (91 percent) of respondents said a first-class transportation infrastructure is critical to the region’s overall economic growth. Almost half (45 percent) said traffic and congestion is the most pressing transportation issue, followed by a lack of public transportation/mass transit options (15 percent) and the condition of highways (14 percent). "Both Connecticut’s and New York’s elected officials must maximize efforts to unlock the area’s transportation needs, move products and people, and prevent logjams at the borders which would further hurt both counties,” said Gioia. More than a quarter (28 percent) of respondents said the state can improve transportation issues by expanding highway capacity, expanding mass transit (25 percent), improving highways (17 percent), expanding rail systems (10 percent), and providing tax incentives for car-pooling and telecommuting (8 percent). In order to pay for these improvements, more than half (56 percent) of business respondents support fast-lane-type tolls (such as EZ Pass) on major highways and an increase in commuter rail and bus fees (37 percent). Workforce Issues The aging of the region’s workforce and increasing problems finding and hiring qualified workers are becoming significant challenges for businesses in Fairfield and Westchester counties. Ninety percent of executives said they expect up to 5 percent of their workforce to retire within the next year, and 27 percent expect more than 10 percent to retire within five years. Sixty-one percent of respondents said it was difficult, while 9 percent said it was almost impossible, to hire qualified workers in the region. The key reasons given for the lack of qualified workers in the region were the high cost of living (42 percent), high housing costs (24 percent), a general lack of qualified applicants (20 percent) and the long commute for workers (8 percent). "Fairfield and Westchester County businesses have remained competitive in the global marketplace, but as the baby boomers begin to retire, they are recognizing the challenge of maintaining and recruiting a skilled workforce,” said Gioia. “In a region where the housing market is among the most expensive in the nation, businesses are facing tough challenges that could affect their future competitiveness.” Almost all respondents (95 percent) said the availability of affordable housing is somewhat to extremely important to the ability of companies in Fairfield and Westchester counties to attract and retain workers. "Despite continued growth in both Fairfield and Westchester counties, businesses are facing a variety of economic challenges that are directly impacting their operations. It’s clear that broadening education and workforce skills are a necessity if the area is to continue growing and participate in the global marketplace,” said Rathgeber. Methodology The survey was conducted by mail and e-mail in September 2006. CBIA received 871 completed responses. The survey has a margin of error of plus or minus 3.3 percent. CBIA is the state’s largest business organization, with 10,000 members. ### Editor’s note: For a copy of the survey, visit www.cbia.com/newsroom/survey. Survey results will be discussed in detail at the Fairfield County Regional Economic and Policy Summit on Friday, Dec. 1, at the Sheraton Hotel in Stamford. To attend the event, please contact Nancy Andrews, CBIA media relations manager, at 860-244-1957. 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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