Column: CPA assesses economy’s strengths, weaknesses

BY JOHN A. ZINNO JR.

Looking ahead at 2015, Fairfield County businesses have a reason to continue to be cautiously optimistic. There are concrete signs that the progress made in 2014 seems poised to continue. This is borne out by the results of a statewide business survey late last year as well as information we have received from clients. More businesses are growing, fewer are contracting, investments are being made in technology and hiring is on the rise.

John A. Zinno Jr.

That said, there is plenty of work to be done. Companies still widely view the state as less friendly to businesses than it should be. Taxes remain high, as is the general cost of doing business in both Fairfield County and throughout Connecticut. An aging workforce continues to create concerns for our long-term success as well.

Forecasting the business climate for 2015, here is what we expect:

Ӣ Continued improvement. One of the most encouraging signs is the continued improvement of our economy from the dark recession days of five years ago. The burden placed on businesses during those difficult years seems to be easing and the results are tangible. Automobile dealers are closing in on record sales. Hiring is up across the board, as are investments in research and development. Businesses are making investments in technology and are much more likely to expand than contract. These are all good signs.

Ӣ ConnecticutӪs workforce. A large segment of ConnecticutӪs workforce is approaching retirement age, which creates questions concerning the next generation of workers.

A recent survey showed that at least 25 percent of Connecticut”™s businesses face substantial workforce retirements in the next five to 10 years. Businesses will need to plan accordingly for these impending changes. With an aging workforce, there is a need for our state to continue to invest in training, educational and development programs to create an environment that retains and attracts new talent in Connecticut.

Ӣ Transportation takes center stage. It is refreshing that the state is making Fairfield County transportation a priority in 2015, including the idea of widening Interstate 95 and improving and expanding existing rail systems. This is a critically important investment that can enhance Fairfield CountyӪs business climate. There are few issues as essential here as transportation, namely our congested highways, aging infrastructure and bridges badly in need of repair.

Business owners are watching closely to see just what kind of relief may be ahead.

Ӣ A place to do business. ConnecticutӪs business landscape represents a unique paradox for those who currently work here as well as those considering doing business here.

We are told of the great quality-of-life benefits that are prevalent in Fairfield County. Excellent schools, a highly educated workforce, our close proximity to both Boston and New York, some of the country”™s finest colleges and universities, and pleasant, livable communities continue to make this an attractive destination.

Despite these assets, Fairfield County, like the rest of Connecticut, continually struggles to attract new business. While this is one of the top regions in education, it ranks poorly in terms of job growth and the cost of doing business.

We repeatedly hear this high cost is hampering economic growth, exacerbated by high taxes, budget deficits, high energy costs, aging transportation infrastructure and a highly regulated business environment. This must be addressed this year.

In 2015 we need to be mindful of both our strengths and our challenges. We have made strides in recent years, emerging from the recession and moving forward. We need to continue with that momentum. Economic competitiveness is not just about business; it impacts everyone who works and lives in our state.

John A. Zinno Jr. is a partner with BlumShapiro, a firm that offers auditing, accounting, tax and business advisory services as well as specialized consulting services. He heads the firm”™s Fairfield County office in Shelton. Contact Zinno at 203-944-8647 or jzinno@blumshapiro.com.