A “Business Climate Study” conducted by The Business Council of Westchester of its members during the third quarter of 2007 projected confident business growth for 2008.
The study, comprised of nearly 300 small, medium and large companies located in Westchester County, sought information on key indicators to build a picture of local economic health.
The survey was conducted by Westchester-based DataKey Consulting L.L.C.
The study was the first such one conducted by the council, and it will be done periodically in the future to chart the business community”™s attitude on the economy, said Marhsa Gordon, council president and CEO.
“I think that what stood out (in the survey) is that there is confidence in business growth and that 96 percent of Westchester companies project growth in 2008,” she said.
When asked how the third-quarter data might be reflected in the current climate, Gordon expressed confidence that the businesses surveyed would still have the same outlook for growth.
“I think (the businesses surveyed) understand it is an asset to be in Westchester,” she said. “It has a good location, quality of life, and access to a highly skilled workforce.”
The companies predicting the highest revenue growth were 66 percent more likely to rate themselves as “very innovative.” For these companies, proximity to New York City was key, said Gordon.
Another trend in the survey was the strong correlation between the fastest-growing companies and the amount of outsourcing of services, she said. Eighty percent of the fastest-growing outfits in Westchester outsource to one or more companies.
“There”™s a strong correlation between the fastest-growing companies and the outsourcing of services,” Gordon said. “This allows these companies to stick to their core competencies.”
The biggest challenge facing many companies, according to the survey, is planning and achieving growth, said Paul Vitale, vice-president for government and community relations for The Business Council.
“The cost of doing business is very high in the state, and energy and health care costs are also a concern” he said.
In fact, the two most pressing legislative issues facing companies who were surveyed are health care and the cost of doing business ”“ including concerns about taxes and work force housing, said Vitale.
“Both mid-sized and large companies list (work force housing) as an important factor,” he said.
About 63 percent of the businesses surveyed offer some form of health insurance, according to the study.
“The Business Council of Westchester is constantly working, on behalf of its members, to advocate legislation that will promote business growth, attract and retain a rich variety of successful businesses and develop a skilled workforce,” said Gordon
Gordon said three-quarters of the company”™s surveyed work with nonprofit organizations, signaling a strong sense of community involvement, said Gordon.
“Westchester County”™s local economy is unique ”“ its transportation network, skilled work force and quality of life make it a nexus for business productivity,” said Gordon. “This increases its attractiveness to companies of all sizes.”
