Hartford, CT – The Connecticut Business & Industry Association (CBIA) released the results of the organization’s 2023 Survey of Connecticut Businesses, produced in collaboration with Marcum LLP, at its “The Connecticut Economy” conference on Sept. 14.
Key findings of the report include:
- Finding and/or retaining employees is difficult for 81% of surveyed businesses – essentially unchanged from last year.
- The percentage of top executives who say the lack of skilled job applicants is the greatest obstacle to growth increased seven points over last year to 46%.
- 76% of companies reported profits in 2022, up from 68% the previous year and the highest since 2019.
- Two-thirds (66%) expect a profitable 2023, with just 7% projecting losses.
- One-quarter of business leaders believe Connecticut’s economy will expand over the next 12 months, with 29% forecasting national growth.
- 91% say the cost of doing business in Connecticut is increasing, with rising labor costs (25%) and state taxes (16%) the primary drivers.
- Inflation remains a challenge for 83% of businesses.
- Only 10% of executives feel the state’s business climate is improving, while 41% say it’s static and 33% believe it’s declining.
- 60% expect their employment levels to remain stable over the next six months, with 30% projecting increases.
- 92% of employers offer employees health insurance benefits and 86% report coverage costs increased in the latest renewal period.
CBIA president and CEO, Chris DiPentima, said the survey highlights the impact the growing labor shortage crisis is having on Connecticut businesses, but that it also shows their resilience, with 76% of companies reporting profits last year.
“This survey highlights the need for aggressively pursuing solutions to the main challenges undermining our economy: the labor shortage, the state’s high cost of living, and the high cost of doing business,” said DiPentima.
The featured speaker for the CBIA conference was Mashantucket Pequot Tribal Nation chair, Rodney Butler, who discussed the impact that Foxwoods Resorts Casino has on Connecticut’s economy and plans to expand the resort as a world-class entertainment destination. The conference also featured a panel of business leaders who examined the findings of the CBIA survey, highlighting the challenges and opportunities companies face in an evolving economic landscape.
In response to the release of the Connecticut Department of Labor’s August 2023 employment report, DiPentima commented, “Employers are doing their part – it’s time for policymakers to do theirs and help build an economy that provides opportunities for everyone in Connecticut,” adding that, “The August report also shows construction employment is at its highest level in years, but the volume of work needs to match that. And that can only be accomplished through public-private partnerships that increase DOT capacity to get design projects completed and into the hands of those who can transform our roads, bridges, buildings, and overall infrastructure.”
O&G Industries vice president, Christina Oneglia Rossi, said, ‘There is tremendous opportunity for large infrastructure projects that aren’t happening right now. The money is there, so we’re hopeful that some of these projects come to bear because investing in infrastructure has the highest return on investment in terms of job growth and in terms of improving the state economy.”
