Government Regulations Are No longer the Top Concern for Executives
Business leaders are down on Obamacare, concerned about consumer spending, and they don't want New Jersey to host another Super Bowl, according to the latest ParenteBeard-New Jersey Chamber of Commerce Business climate survey.
Despite these concerns, business leaders expressed optimism regarding the direction of the state economy, with three quarters of those surveyed saying they expect their companies' revenue to stay even or increase over the next 12 months. In another positive sign, business leaders no longer consider the state's notorious layers of regulations their top concern, as they did in last year's survey, indicating the state's efforts to cut back the regulatory weeds is making progress.
More than half of the survey respondents were negative on Obamacare. Nearly one in three respondents (32 percent) said the Affordable Health Care Act has already hindered their business, and 20 percent said it will hinder their business in the long run.
Only 8 percent of respondents say the federal health care legislation has helped or will help their company, while the remaining 39 percent of those surveyed said the federal law has had no impact on their business.
"It's no secret that business does not operate well in a climate of uncertainty, and the roll out of Obamacare has been as uncertain as it gets, with roll-out delays, spotty implementation and confusion over language," said Thomas A. Bracken, president and CEO of the New Jersey Chamber of Commerce.
The survey of business executives in New Jersey took place between March 24 and April 10, just as the new health care reform program's initial enrollment period ended.
Business Leaders' Most Frequently Cited Concern
One in three respondents chose "consumer spending" as their greatest concern when it comes to operating their businesses. This is a change from last year when respondents cited the state's thicket of "regulatory requirements" as their greatest concern in the ParenteBeard - N.J. Chamber survey.
"We applaud the state's Red Tape Review Commission for the progress our members indicate the bi-partisan panel has made," Bracken said.
In this spring's survey, "regulatory requirements" was the second most chosen concern at 26 percent - down from 33 percent last year. "Implications of health care reform" came in third at 15 percent.
The Economy
Overall, business executives in New Jersey are optimistic about the future.
A large majority of respondents - 86 percent - said they expect their companies will either maintain or increase their staffing levels over the next 12 months. And three quarters of the respondents said they expect their companies' revenue to stay even or increase.
"New Jersey employers have been through a national recession, a slow recovery and major storms in recent years, yet a large majority remain optimistic," said Walter Brasch, managing partner for ParenteBeard's New Jersey Metro Region. "That bodes well for our continuing recovery."
Thirty-five percent of the respondents expect the state economy to be better next winter, compared to 26 percent who said they expect it to worsen.
Super Bowl's Impact
A majority of business leaders in the survey said they did not want to see the Super Bowl back in the Garden State with 55 percent saying the state should not pursue hosting it again. There was no consensus on the Super Bowl's impact on New Jersey's reputation, with 37 percent saying the game in East Rutherford had a positive effect on the state's reputation, and 20 percent saying it was negative.
Survey Details
The biannual New Jersey Chamber of Commerce-Parente Beard Business Climate Survey is designed to measure the outlook of the state's business leaders, ranging from single entrepreneurs to CEOs of Fortune 500 companies in a wide array of fields. A total of 101 business leaders participated in the survey between March 24 to April 10. Most said they are presidents and CEOs, or senior level executives.
Complete results can be found here.