While local business leaders grapple with such challenges as inflation, supply chain issues, and employee recruitment and retention, many still plan to increase the size of their workforces this year.
That’s a key finding of “The Long Island Economic Survey 2023,” a new survey of more than 200 Long Island executives. It was commissioned by HIA-LI and conducted by Adelphi University and the Citrin Cooperman accounting firm.
Survey results were discussed by a panel of leading regional executives on February 15 before more than 250 attendees at HIA-LI’s 29th Annual Business Summit held at the Hamlet Golf & Country Club in Commack. We were pleased to have Michael Sabatini, a Partner with Citrin Cooperman, moderate the panel.
Executives were asked to identify up to three of “the most important issues facing Long Island today.” Inflation and taxes were each cited by 22 percent of respondents. One-third identified workforce-related challenges as a top issue.
Yet despite their concerns over hiring and retention, virtually half of respondents (49 percent) expect to increase their employee rolls in 2023. Thirty-one percent of all respondents expects to augment their Long Island-based workforce, four percent will do more hiring outside of Long Island, and 14 percent plan to expand their workforce both on and outside Long Island. Forty-three percent anticipate no increase in staff size. Eight percent were unsure.
Some four out of ten were optimistic about their projected revenue and net profits next year, while half expected level growth. Ten percent expect a decline in revenues this year.
Similarly, more than a third (38 percent) of participants expected to expand their Long Island-based businesses in 2023.
How concerned were local executives about the effects of inflation on their business? Most (62 percent) were “very concerned.” Thirty-one percent were “somewhat concerned,” and seven percent were “slightly concerned.”
Sixty-five percent of respondents said they were affected by disruptions to the global supply chain. Most respondents expect supply chain issues to persist for another six months to two years.
Who took part in the survey?
A large majority of respondents represented businesses generating less than $100 million in revenue. More than three-quarters had been in operation 20 years or more. While respondents came from many industries, those with the largest representation were professional services (21 percent) and manufacturing, distribution and retail (17 percent). Most respondents (52 percent) were based in Suffolk County. Ten percent were situated in Nassau County, and 32 percent were based in both counties.
We were grateful for the participation of our panelists at the 29th Annual Business Summit: Kevin O’Connor, CEO of Dime Community Bank; Renee Daniel Flager, Executive Director of Girls Inc. of Long Island; former HIA-LI Chair Rich Humann, President and CEO of H2M architects + engineers; MaryAnne Hyland, Dean of the Robert B. Willumstad School of Business at Adelphi University; and Dr. Patrick O’Shaughnessy, President and CEO of Catholic Health Services.
Newly elected Rep. Nick LaLota was also present to greet attendees.
How closely does your point of view match up with those reflected in our survey?
I urge you to see for yourself.
“The Long Island Economic Survey 2023” can be found here.