Business prospects on hold in Lee County

Business prospects on hold in Lee County

SURVEY by Jean Gruss | Editor/Lee-Collier

Business prospects in Lee County are dim, but there are some hopeful signs, according to a quarterly survey of more than 200 companies conducted for the Horizon Council, a business group in Fort Myers.

Although more business executives say their prospects are likely to decline rather than improve in the next 90 days, their expectations for next year are much better. Looking back, however, a majority of companies reported that revenues had declined compared with last year, with 43% reporting that revenues were down more than 10%.

High gasoline prices apparently haven't forced many companies to make major changes in their business operations. Instead, tighter credit appears to have impacted a majority of businesses and their customers.

Since last year, 38% of companies surveyed reported employment has decreased. But employers anticipate having to cut fewer jobs between now and next year, reflecting some optimism of a rebound.

To be sure, finding help is no longer the challenge it was a few years ago when the labor market tightened.

And this little tidbit: Half of the businesses surveyed are willing to accept higher sales taxes in exchange for lower property taxes.

Business prospects

Business prospects Business prospects

Frequencies for next 90 days for next 12 months

Improving 17.4% 38.9%

Holding steady 53.7% 38.9%

Declining 28.9% 22.1%

Impact of high gas prices

Impact % of respondents

Impacts employees only 29.5%

Forced minor changes in business operations 38.9%

Forced major changes in business operations 15.8%

Other 15.8%

Credit crunch

Tight credit affects:

My business 10.9%

My customers 22.8%

Both 66.3%

Company revenue comparisons

Revenue compared Revenue compared

Frequencies to last year to last month

Down more than 10% 42.6% 24.2%

Down 10% 14.7% 10%

Down 5% 9.5% 11.6%

Even 14.7% 33.2%

Up 5% 7.4% 8.9%

Up 10% 3.7% 6.3%

Up more than 10% 7.4% 5.8%

Change in employment levels compared to 2007

Employee change % of respondents

Has increased 14.2%

About the same 47.4%

Has decreased 38.4%

Projected change in employment by 2009

Employee change % of respondents

Will increase 26.3%

Will remain the same 56.3%

Will decrease 17.4%

Difficulty filling job openings

No problem 60.5%

Some problems 35.8%

Serious problem 3.7%

Higher sales tax in exchange for lower property tax

Yes 49.5%

Uncertain 26.3%

No 24.2%