FRANKFORT, Ky. — Two out of three business leaders think Kentucky is a good place to succeed, and most businesses think consumers prefer living in the commonwealth. Almost half expect revenue to increase this year.
To survey Kentucky business and nonprofit leaders to understand their views on key economic, workforce, and public policy issues, the Kentucky Chamber of Commerce once again collaborated with local chambers, the National Chamber of State (NASC) and the Siena Collegiate Research Institute (SCRI). ).
The survey asked about issues such as employers’ views on current and future economic conditions, their attitudes toward state and federal policymakers, and their top challenges and concerns about public policy, including child care.
“Understanding how business leaders view the economy and key public policy issues is important to the Kentucky Chamber of Commerce,” said Ashli Watts, president and CEO of the Kentucky Chamber of Commerce. It is a top priority for us.” “The data collected through this partnership will provide leaders across Kentucky with an opportunity to understand how employers are navigating a changing world and what their biggest concerns are. Masu.”
“Two-thirds of Kentucky CEOs say the region is a place where businesses can succeed, and a similar number, 63%, say Kentucky is a place where consumers want to live.” said Dr. Don Levy, SCRI Director. “Forty-three percent, more than twice as many as last year, expect revenue to increase this year, and between 24% and 36% expect profits to increase this year.
“Fewer people are considering hiring this year, at 31%, down from 40% last year. However, 78% say Kentucky doesn’t have an adequate supply of qualified talent and are looking to hire. Development continues to be the CEO’s biggest request from the state government.
View of the economy
Kentucky business leaders remained optimistic about economic conditions. 39% of respondents expected the economic situation to improve next year, while 38% expected it to be the same as this year. 23% of respondents expected the economic situation to worsen next year. Unemployment rates have increased in Kentucky and across the nation this year, but job growth remains on a positive trend, according to an analysis by the Kentucky Chamber Policy Research Center.
Kentucky businesses also shared the challenges they are most concerned about.
Government regulations (58%), healthcare costs (58%), threat of recession (55%) and rising supplier costs (50%) were the top challenges. The top three challenges for small businesses were healthcare costs (62%), economic downturn (56%), and government regulations (54%).
Cybersecurity also brings new risks, with 37% of businesses expressing concern. Supply chain concerns decreased significantly in 2024 compared to last year (31% to 19%).
labor force
Workforce remains a pressing issue for Kentucky businesses, with 78% of leaders surveyed saying they don’t have enough workers to fill open jobs. However, 58% of companies say they are struggling to hire to fill open positions, a notable decrease from last year’s 70% of respondents who shared this challenge. Finding skilled and semi-skilled workers to fill open positions was the most difficult (66% and 59%, respectively), while only 38% reported difficulty recruiting unskilled workers.
The survey showed that employers are beginning to take steps to recruit and retain employees through compensation and benefits. Of the employers surveyed, 60% reported increasing wages and 32% offering bonuses to recruit new employees, while 79% of companies reported increasing wages to recruit new employees, while 79% of companies reported increasing wages to recruit new employees. increased wages, and 55% offered bonuses.
According to the U.S. Census, as of October 2023, an estimated 62,733 unemployed adults in Kentucky cited “caring for children who are not in school or day care” as the primary reason for not working. As child care is relevant to the workforce and Kentucky’s current business environment, 58 percent of employers say affordable, high-quality child care positively impacts employee retention; 63 percent say affordable, high-quality child care has a positive impact on employee satisfaction, and 62 percent say child care has a positive impact. Availability had a positive impact on general business operations.
There are many ways to support employees’ childcare needs, with 55% of companies saying they offer flexible schedules to help employees manage their childcare needs as part of their benefits package. Only 6% said they offered subsidized child care financial assistance or subsidized child care. 27% reported offering no additional benefits related to childcare.
However, 53% of business leaders surveyed said they would provide new or expanded child care benefits if state or local governments matched their contributions. , which is similar to the Employee Childcare Support Partnership passed by the General Assembly. Congress in 2022.
public policy
Kentucky employers have a more positive opinion of the state government than the federal government’s role in creating a strong business environment, with 53% saying the state government is doing a good job or They believe they do more than that, with 33% saying their jobs are fair and 14% saying their jobs are good. poor job. 58% of businesses are confident that state governments will improve the business environment over the next 12 months. 48% of businesses believed the federal government was not doing a good job of creating a strong business environment, and 82% did not trust the federal government to do so.
Businesses want the governor and state legislature to focus on issues of workforce development (66%), personal income tax reform (52%), corporate income tax reform (45%), and infrastructure and business development (42%) He said there was. Regarding workforce development responsibilities, 78% of business leaders said they are likely to develop partnership programs with local educational institutions and local and state governments.
transfer
The survey also indicated changes in employer location, whether the employer remains in Kentucky or potentially relocates to another state. 83% expect to remain in Kentucky over the next 10 years, an increase of 4 points from the 2023 survey results. 79% of business leaders say they would start a business in Kentucky rather than another state if given the chance to do it all over again, an increase of 2 points from last year. Eight percent said they would choose another state, and 13% said they were unsure whether they would open a business in Kentucky again.
About the survey
SCRI conducted the survey from May to July 2024 and worked with the Kentucky Chamber of Commerce and local chambers of commerce to disseminate the survey for business and nonprofit leaders to respond digitally. Although the 218 leaders who responded to the survey were not a representative sample of CEOs statewide, the sample nonetheless provided unique insight into the views and attitudes of Kentucky business leaders.
Of the organizations surveyed, 62% were for-profit organizations and 38% were nonprofit organizations. Industries include construction, natural resources and mining, finance, manufacturing, retail, leisure and hospitality, professional services, transportation and logistics, education and health services, information and technology, and more. Small businesses with fewer than 100 employees accounted for 61% of survey respondents. Medium-sized companies with 100 to 1,500 employees accounted for 32%. Six percent of respondents were from companies with 1,500 or more employees.
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