The Siena College Research Institute provided the Business Journal with the results of its 2019 Upstate New York Business Leaders Survey, which for the first time contained results for Westchester and the Mid-Hudson region.
The Albany-based Business Council of New York State was the partner/sponsor for the survey. It counts approximately 2,400 companies, local chambers of commerce and professional and trade associations as members.
Heather Briccetti, president and CEO of the council, said the top issues that concerned CEOs who participated in the survey included the cost of health care, regulations and tax levels. She said there also was concern about mandated increases in the minimum wage, requirements for paid family leave and aggressive carbon reduction mandates.
“Two-thirds say New York is doing a poor job of managing the state”™s business climate, and while business leaders are expressing a far higher level of confidence in Washington”™s impact on business, that confidence has fallen somewhat as well,” Briccetti said.
A total of 667 CEOs took part in the survey, 92 of them from Westchester-based companies. When asked which industry sectors will have a positive impact on their economic vitality in their geographic area over the next 3 to 5 years, the medical sector came out as the top sector in Westchester and the Mid-Hudson. Technology was first in the upstate Capital Region and Mohawk Valley while education was No. 1 in the Finger Lakes, Southern Tier and Central and Western New York, and tourism was on top in the state”™s northernmost section.
When asked whether they expect their revenues to grow or decrease, 63% of the Westchester CEOs said they anticipated increases while 18% expected declining revenues. In the Mid-Hudson, the respective numbers were 51% and 23%. Overall in the state, 41% expected revenues to grow while 25% expected decreasing revenues.
When it comes to profitability, 34% of the CEOs responded that they expected it to increase while 32% said they expected it to decrease. Westchester CEOs were more optimistic than CEOs were statewide, with 52% expecting increased profits and 22% expecting declines.
Westchester was the lowest in the state when it comes to expecting to invest in fixed assets during 2020. Only 39% of the Westchester CEOs said they had such plans compared with 64% in the Capital Region.
In Westchester, 44% of the CEOs said they plan to increase the size of their workforce. For the Mid-Hudson area it was 34%.
The CEOs were asked about the challenges their businesses face that most concern them. In Westchester, the results were: 26%, U.S. competition; 53%, government regulation; 40%, taxation; 1%, foreign competition; 23%, energy costs; 16%, risk management; 43%, adverse economic conditions; 43%, health care costs; 9%, global political instability; 28%, rising supplier costs; 34%, human resources; 36%, cash flow; 11%, ability to obtain suitable financing; 8%, U.S. trade agreements: and 5%, none of the above.
When asked what they would like to see the governor and state Legislature focus on, the Westchester CEOs answered in about the way CEOs did from around the state. Personal income tax reform resonated with 53% of them and business tax reform was picked by 46%. Other selections were: estate tax reform, 16%; sales tax reform, 23%; infrastructure development, including roads, bridges and sewers, 52%; energy infrastructure, 38%; business development incentives, 52%; ethics reform, 23%; spending cuts, 37%; other, 18%; don”™t know, 3%.
In Westchester, 39% of the CEOs said they supported legalizing the recreational use of marijuana while 46% were opposed and 15% said they didn”™t know. Statewide, the numbers were 33% in favor, 55% against and 12% with no opinion.
