Connecticut’s economic competitiveness is the greatest challenge for business leaders in the state, according to a recent survey by the Connecticut Business & Industry Association and BlumShapiro, an accounting, tax and consulting firm.
Business leaders showed cautious optimism toward economic growth and job creation, the survey found. About 35 percent of the respondents said their companies were growing and 54 percent reported their companies were “holding steady.” The annual survey highlights economic, fiscal and regulatory trends and issues in Connecticut. The respondents represented business leaders from 460 companies across 20 industries throughout the state.
The state’s economy was the biggest challenge for 34 percent of respondents this year, which was unchanged from last year’s survey results. Business leaders’ biggest concerns also included the national economy (18 percent), health care costs (16 percent), state and federal tax burdens (11 percent) and regulatory costs (10 percent).
The survey showed that more than one in five businesses are considering moving or shifting production to another state within the next five years. Meanwhile, 29 percent of the respondents said their company is looking to expand outside of Connecticut.
When asked about how lawmakers could improve the state’s economic competitiveness, 52 percent of business leaders said reducing taxes is the top priority. About 24 percent said additional regulatory reforms are the answer, while 11 percent recommended curbing government spending, 7 percent recommended increasing tax incentives and 6 percent recommended improving transportation infrastructure.
“We have tremendous assets and must continue to leverage them,” CBIA President and CEO John Rathgeber said. “At the same time, it’s critical we address those areas hampering economic growth, particularly the high cost of doing business, taxes, state budget deficits and long-term debt, red tape and our aging transportation infrastructure.”
Business leaders believe innovation is critical to growth and profitability, according to the survey. The survey found that 46 percent of businesses added new products or services in the past year and 29 percent invested in research and development. The biggest investment was in technology, followed by employee training and property and facilities.
Workforce demand is expected to be concentrated on mid-level employees in 2015, according to 33 percent of the survey respondents. About 29 percent said the demand would be focused on entry-level jobs, while  28 percent said companies will have a high demand for line workers. Only 8 percent said managers would be the most in-demand employees next year.
“Connecticut’s workforce is aging,” said Joseph Kask, office managing partner with BlumShapiro. “This, coupled with businesses struggling to find qualified workers, highlights the need for our state to continue investing in training and development programs while creating an environment that retains and attracts new talent.”
