Tax hikes in the state budget remain a challenge for Connecticut’s economy, according to a recent Connecticut Business & Industry Association (CBIA) and BlumShapiro survey.
Forty-three percent of participants reported it was the largest challenge for today’s economy, up .09 percent from last year.
Tax burden (15 percent), health care costs (12 percent), national economic conditions (11 percent) and regulatory costs (8 percent) also were listed as major challenges.
When asked how lawmakers could enhance business competitiveness, 53 percent said reducing taxes should be the top priority. Other respondents cited reducing the size/spending of government (22 percent) and reducing regulations (21 percent).
The survey did reveal cautious optimism, with 32 percent of respondents saying their companies were growing, and 50 percent reporting they were “holding steady.”
Fewer than two-thirds of all businesses surveyed (63 percent) recorded a net profit last year. Just under a quarter (22 percent) broke even and 15 percent recorded a loss.
The survey found that, through 2016, workforce demand will be concentrated on mid-level employees, with 38 percent of companies saying that was their biggest need, followed by entry-level employees (27 percent), line workers (26 percent) and managers (6 percent).
One in three businesses surveyed reported being approached about moving or expanding their operations to another state. Of those, nearly one in four are planning on moving to that state, 29 percent are considering shifting significant production to another state within five years, and 31 percent are weighing expansion in another state within five years.
“Though this report gets at some of the state’s weaknesses – in addition to its many strengths – our purpose is to highlight for policymakers both the hopes and deep concerns businesspeople have about doing business here,” Joe Brennan, president and CEO of CBIA, said in a statement.
“The economy has gained some traction, but Connecticut still faces many challenges. For the state to reach its full economic potential, policymakers must make economic growth their top priority.”
