Climate Change

Climate Change

ECONOMY by Jean Gruss | Editor/Lee-Collier

Southwest Florida's real-estate boom is long over, but don't count businesses out.

In an executive business-climate survey conducted recently by the Regional Economic Research Institute at Florida Gulf Coast University, a majority of executives remained optimistic about the outlook for their industries over the next 12 months. The Chamber of Southwest Florida commissioned the survey, which polled businesses in Lee, Collier, Charlotte, Hendry and Glades counties.

Among the findings of the survey is that respondents are once again able to find qualified employees, something that was hard to do during the boom times. "The slowdown is easing labor shortages," says Gary Jackson, director of the institute.

Still, one-third of the 79 executives who responded to the survey say they expect to reduce staff in the next 12 months. "We don't know whether it's seasonal," cautions Jackson. The survey was conducted this summer.

When executives were asked about the economy outside their businesses, the answers were more pessimistic. About 60% of the respondents are less optimistic about the regional economy over the next 12 months and most don't expect the housing market will recover until 2009 or later.

BY THE NUMBERS

ECONOMIC OUTLOOK

Overall regional economic outlook in the next 12 months compared to the previous 12 months:

Less optimistic...60%

Unchanged...25%

More optimistic...15%

Respondent-specific business outlook in the next 12 months compared to previous 12 months:

Less optimistic...46%

More optimistic...28%

Unchanged...26%

Has the housing slowdown hurt your business-activity level?

Yes...67%

No...33%

When will the housing market recover?

2007...1%

2008...20%

2009...59%

2010...20%

Will the new limits on local property tax increases help or hurt the local economy?

No significant impact...43%

Help the local economy...40%

Hurt the local economy...17%

What changes do you see in the regional customer base?

Change in buying habits...75%

Change in demand...46%

Other change...17%

What changes do you see in your customer base?

Change in buying habits...48%

Change in demand...35%

Other change...26%

Do you see the regional economy as more or less stable in the upcoming 12 months?

Less stable...62%

Unchanged...23%

More stable...15%

Do you see your business as more or less stable in the upcoming 12 months?

Unchanged...36%

Less stable...35%

More stable...29%

What hiring trends do you see for your business in the upcoming 12 months?

Flat or unchanged...43%

Reducing employment...33%

Increasing employment...24%

What trend do you anticipate in employee turnover in your business in the upcoming 12 months?

Remain the same...61%

Decreased with employees staying...32%

Increased, with employees leaving...7%

In my business, I expect to find enough qualified workers in the local economy in the upcoming 12 months.

Agree...76%

Disagree...24%

Do you plan to increase investment in your business during the next 12 months?

Unchanged...43%

Increase moderately...22%

Increase significantly...20%

Decrease...14%

Average annual sales to seasonal residents, vacationers and international visitors:

Seasonal residents...22%

Vacationers...10%

International visitors...4%

Do you see the need for physical travel declining due to increased telecommunications capabilities?

Yes...52%

No...48%

Energy costs account for what percent of total costs?

Less than 5%...45%

5% to 10%...29%

10% to 20%...14%

More than 20%...12%