While Long Island employers are concerned by such problems as inflation, supply chain issues, and employee recruitment and retention, a new survey of more than 200 executives found that half still expected to increase the size of their workforces this year.
“The Long Island Economic Survey 2023” was conducted by Adelphi University and the Citrin Cooperman accounting firm. It was hosted by HIA-LI, one of the region’s largest business advocacy organizations.
Survey results were discussed by a panel of leading regional executives at the recent HIA-LI’s 29th Annual Business Summit held at the Hamlet Golf & Country Club in Commack.
Asked to identify up to three of “the most important issues facing Long Island today,” inflation and taxes were each cited by 22 percent of the respondents. A third of the executives identified workforce challenges as a top issue: 17 percent cited retention of young professionals and young families, and an equal 17 percent cited the availability of workers with necessary skills.
Yet despite their workforce-related concerns, virtually half of respondents (49 percent) expect to increase their overall number of their employees in 2023. Thirty-one percent of the total respondent pool expects to augment their Long Island-based workforce, four percent will do more hiring outside on Long Island, and 14 percent plan to expand their workforce both on and outside Long Island. Forty-three percent anticipate no increase in staff size. Eight percent were unsure.
Respondents were fairly optimistic about their projected revenue and net profits for 2023. Thirty-nine percent anticipated revenue growth this year, while 50 percent expected level growth. Ten percent expect a decline in revenues this year.
More than a third (38 percent) of participants expect to expand their Long Island-based businesses in 2023. Leaders in this category were healthcare, followed by restaurants and hospitality.
When asked how concerned they were about inflation and its effect on their business, most participants (62 percent) were “very concerned.” Thirty-one percent were “somewhat concerned,” and seven percent were “slightly concerned.”
Sixty-five percent of respondents said they were affected by disruptions to the global supply chain. Most respondents expect supply chain issues to persist for another six months to two years.
In her opening comments, Terri Alessi-Miceli, President and CEO of HIA-LI, highlighted the region’s need to retain young professionals.
“From the HIA-LI standpoint, 2022 was a year of rebuilding for many of us,” she said. “Our members tell me that they’re cautiously optimistic about the future, yet they still struggle with the availability of skilled workers.”
Greeting the attendees was newly-elected Rep. Nick LaLota, who pledged to the audience that he would work on behalf of the Long Island business community.
“I know that government doesn’t always make it easy on you folks to make your payrolls and to ensure that you have a successful business,” said Rep. LaLota, “but I can tell you that we’re here to make it work for you.”
“Inflation is a major concern for most businesses,” said Michael Sabatini, who is a partner with Citrin Cooperman and who moderated the panel. “More than half of those surveyed said they’ve taken some action against inflation, taking such steps as raising prices, increasing labor costs, and looking at automation.”
Panelist Kevin O’Connor, CEO of Dime Community Bank, said he had attended a speaking engagement the day before featuring John Williams, chairman of the New York Federal Reserve.
“Some people are predicting that the Fed will be done with its rate increases or even start to let rates drop in the second half of this year,” said Mr. O’Connor. “But I don’t think anybody leaving that room yesterday was thinking that that’s really what’s going to happen.”
Panelist Renee Daniel Flager, Executive Director of Girls Inc. of Long Island, said that inflation and economic uncertainty has had an effect on fundraising efforts of the non-profit sector.
“Unfortunately, we are seeing less discretionary income and less funding from the business community, which is our biggest supporter, coming into the non-profit world,” said Ms. Flager. “They’re more cautious about giving.”
“One big challenge has been the attraction and retention of young professionals,” said panelist Rich Humann, President and CEO of H2M architects + engineers. “To address this, we’ve been implementing strong flexibility programs, and trying to accommodate the needs of our staff and understand what they’re looking for in their career.”
MaryAnne Hyland, Dean of the Robert B. Willumstad School of Business at Adelphi University, addressed the need for higher education to help build sound career paths for students.
“Many of our students are local residents and they want to remain here,” said Dean Hyland. “So we have to look at the regional industries that are growing, such as healthcare. We’re developing degrees and programs in both the clinical and non-clinical spheres of that sector.”
“We’re very much focused on attracting members of the community into the healthcare space,” said panelist Dr. Patrick O’Shaughnessy, President and CEO of Catholic Health Services. “So, over the last two years, we’ve invested more than $30 million into paying our staff fair and competitive wages. We also recognize that people want a career and not just a job, so we’re building careers for our employees.”
Nearly half (46 percent) of the survey respondents identified themselves as either presidents or chief executive officers. The others were high-ranking personnel within their organizations. The survey was conducted during November and December of last year.
A large majority of the respondents generate less than $100 million in revenue. More than three-quarters of the participants have been in operation 20 years or more. While respondents came from many industries, those with the largest representation were professional services (21 percent) and manufacturing, distribution and retail (17 percent). Most respondents (52 percent) were based in Suffolk County. Ten percent were situated in Nassau County, and 32 percent were based in both counties.
“The Long Island Economic Survey 2023” can be found at: http://tiny.cc/HIA-LI-Survey.
ABOUT HIA-LI
Now in its 45th year, HIA-LI is one of Long Island’s largest business advocacy organizations. It also represents the Long Island Innovation Park at Hauppauge, the largest industrial park in the Northeast. The park supports 55,000 jobs, produces $13 billion in goods and services each year, and accounts for eight percent of Long Island’s gross domestic product. For more information, go to www.HIA-LI.org.
