Many chief executive officers at Westchester businesses think the state isn”™t doing enough to help businesses succeed and economic conditions are getting worse, according to the 14th Annual Upstate Business Leader Survey from the Siena College Research Institute sponsored by the Business Council of New York State Inc.
Westchester CEOs interviewed for the survey gave opinions to the pollsters that essentially parallel the results coming from CEOs throughout New York state.
The Siena survey was conducted from January through March of this year using mail and internet interviews with 1,036 business leaders from the Capital Region, Central/Mohawk Valley New York, the Finger Lakes region, the Mid-Hudson region, the Southern Tier region, Westchester and Western New York. Ninety-one Westchester CEOs participated. A breakout of Westchester results was provided by The Business Council of Westchester.
When looking ahead to what they think might be in store for their businesses, 43% of the CEOs said they anticipate growing revenues, 27% said revenues will stay the same and 29% said they expected revenues to decline.
Only 17% expressed the view that the general business climate in Westchester is improving while 56% said that it is remaining the same and 27% expressed the belief that it is worsening.
Just under half, 49%, of the CEOs said they expect economic conditions in New York to be better in 2021 while 42% said they expect economic conditions to grow worse this year.
The opinions held about the job being done by state government were largely negative with 23% saying that the state government is doing an excellent (2%) or good (21%) job of creating a climate to help businesses succeed.
Decreasing revenues were reported by 74% of the CEOs, decreasing profitability among 66%, and a decrease in demand for their products or services among 53%. Sixty-one percent reported that Covid-19 has increased their costs of doing business.
The use of office space has been reduced by 28% of the CEOs surveyed, with 55% not planning to cut back on office occupancy at least for now.
There was scattered optimism with 58% saying they expect to emerge from the pandemic as a stronger business that is well-positioned to be successful. Forty-three percent anticipate growing revenues, 27% said revenues will stay the same and 29% expected revenues to decline.
“In response to the pandemic, CEOs had to change many of the ways that they do business,” said Don Levy, director of the Siena College Research Institute. “CEOs across upstate have faced an incredibly difficult year for business. Economic conditions have been difficult for all, devastating for some.”
Statewide, 75% of CEOs have received federal funds to assist them in either keeping their business open or to adapting to Covid-19 requirements, according to the Siena survey. While 47% were satisfied with New York”™s management of the pandemic, only 40% were satisfied with the federal government”™s response.
“Many CEOs were hit hard by the pandemic”™s effects. Revenues, profits and demand were down and costs were up, including 62% saying that Covid-19 safety measures had a significant financial impact on their business,” Levy said. “Forty-percent think that state restrictions were too strict but more, 58% believe the state”™s restrictions were about right.”
Fifty-seven percent have increased the ability for their employees to work from home and 48% of those plan to keep this change indefinitely. Thirteen percent have reduced their office space and 42% have increased technology support for their employees and 47% have increased technical security measures.
Levy said that optimism among CEOs may grow as stimulus money permeates the economy, more people are vaccinated and pent-up consumer demand becomes real spending.
“While many express frustration with not only the pandemic”™s effects but also with what they see as a lack of business friendly policies coming from Albany, 61% predict that their company will be in business in New York 10 years from today,” Levy said.
