SU business survey reveals optimism

SALISBURY — Eastern Shore business owners and managers are more optimistic of the economic future than they were six months ago.

These trends are among the findings of the latest Eastern Shore Business Sentiment Survey conducted through a partnership with Salisbury University’s Business Economic and Community Outreach Network (BEACON), SU’s Eastern Shore Regional GIS Cooperative (ESRGC), and many of the region’s economic and workforce development professionals.

The July 2024 results represent the seventh report released by BEACON. The first survey in the series was conducted in June 2021, with subsequent six-month follow-ups, and the most recent report in December 2023.

The survey included more than 50 questions, asking business leaders to weigh in on a range of topics, from general business concerns to conditions in their own industries. Respondents evaluated business conditions locally, regionally, in the state and nationwide for the coming year. They also shared views related to their specific industries and on issues from labor supply to regulations.

Results include:

• The 12-month outlook for business conditions in participants’ respective counties is significantly better than in June 2023. When asked to predict the business conditions in their counties and the Eastern Shore, 66% responded that they believe economic conditions will improve, compared to 35% in June 2023. On a state and national level, 57% of participants believe economic conditions will improve, compared to 31% in June 2023.
• Reflecting on their individual industry sectors, there is an even distribution for business leaders’ expectations in July 2024. 36% of respondents believe business conditions in their sector will “Improve A Lot/ Improve Slightly” over the next three months, compared to 18% in December 2023. Business leaders are also optimistic about the long-term conditions, with 51% believing business conditions in their sector will “Improve A Lot/Improve Slightly” over the next 12 months, compared to 26 % in December 2023.
• Respondents assessed inflation as the most significant barrier to expanding a business in their sector, followed by finances and funding then labor force issues. The same issues were equally ranked as the top barriers to starting a new business in their specific sectors.
• Although many firms feel optimistic towards the next 12 months, 41% of respondents believed conditions in their sector were “Deteriorating A Lot/Deteriorating Slightly” over the last 12 months and 38% believed conditions in their sector were “Improving A Lot/Improving Slightly”
• When asked which cost increase in the previous six months had the greatest impact on the respondents’ businesses, they reported insurance had the highest impact, followed by rent and real estate then payroll and benefits.
• Although respondents reported payroll and benefit costs as one of the most significant barriers to expanding and starting a business in their sector, they are increasingly optimistic towards this concern.
• The majority of respondents (70%) have remote workers and 92% of those respondents say it has helped them with employee retention and recruitment. Of the firms with remote workers, the majority of the workers were in the county in which the business is located.
• Some 41% believe household income for the average American has fallen behind the cost of living, 39% believe it has kept up, and 20% believe household incomes have surpassed the cost of living.
• Respondents are increasingly optimistic in their expectations of the standard of living in the next five years on the Eastern Shore, with 39% believing it will rise and only 13% believing it will fall.

Participants had more positive views on the current state of America’s economy than in December 2023. 64% believe the economy is “Growing Rapidly/Growing Slowly” and only 16% believing it is “In a Recession/Depression.”

Most responses came from company leadership, with business owners, presidents, CEOs and managing partners making up 72% of the participants. A total of 75% were from firms with fewer than 50 employees. Responses came from a wide variety of industries reflecting the economy of the region, with many respondents active in more than one industry.

Counties on the Eastern Shore will continue to conduct surveys every six months, with the data used to identify challenges facing the region, to assist in long-term planning and to guide the development of public policy.

The Eastern Shore Regional GIS Cooperative (ESRGC) summarized the findings in infographics that can be found on the Eastern Shore Economic Recovery Project website, but economic developers also have access to an internal dashboard that enables them to mine the data for insight on specific issues.

Designed to gauge the opinions of the region’s business leaders, this survey is one of the tools that has grown out of the Eastern Shore Economic Recovery Project, a venture made possible by grants totaling $507,000 from the U.S. Economic Development Agency (EDA). The Mid-Shore Regional Council and the Tri-County Council of the Lower Eastern Shore are recognized as Economic Development Districts by the EDA.

The data tools used in the project have been recognized with regional and national accolades including the Maryland Economic Development Association’s 2022 Economic Development Program Award, the 2022 International Economic Development Council Silver Award and the 2022 National Association of Development Organizations (NADO) Aliceann Wohlbruck Impact Award.

In addition to the regional councils, partners in the project include ESRGC, BEACON, the Lower Shore Workforce Alliance, the Upper Shore Workforce Investment Board, and the Caroline, Cecil, Dorchester, Kent, Queen Anne’s, Talbot, Somerset, Wicomico and Worcester county economic development offices.

To access Eastern Shore Economic Recovery Project data, visit https://recovery.delmarvaindex.org . The complete Delmarva Index can be found at https://delmarvaindex.org .

For more information visit the BEACON webpage at www.salisbury.edu/beacon and the ESRGC website at www.esrgc.org .

Learn more about SU and opportunities to Make Tomorrow Yours at www.salisbury.edu .