Eastern Connecticut future economy will be powered by the technology sector, not the old standbys of tourism and defense, according to a survey of owners of business conducted by the Connecticut area and the association of the sector.
The biennial survey is a snapshot of the local economy, a window that offers work as usual in eastern Connecticut, where the owners think the economy is headed. It was produced in collaboration with the Chamber of Commerce and the Greater Mystic Chamber of Commerce of Eastern Connecticut, e-mail with the responses of 703 entrepreneurs in eastern Connecticut.
Eighty percent of respondents were from New London County, representing various types of businesses including professional service firms, insurance and finance, manufacturing, retail, social services, hospitality and tourism, technology, construction , medicine, art and entertainment, transportation and wholesale distribution.
The 2010 survey was conducted in October 2009.
While the technology has received 23 percent of the vote and the hospitality and tourism accounted for 19 percent when asked who will stimulate the economy of the future, 83 percent said that tourism plays an important role at least the local economy. More than two thirds of respondents stated that tourism is important for its activity. The owners of businesses put most of the tourism and casinos, the beach communities, followed by the golden triangle of mysticism – the harbor, aquarium and shopping village.
Many employers have responded by making changes to the economy, according to the survey. The employees were fired in 45 percent of enterprises and 42 percent have reduced wages or benefits.
The owners of the companies are reluctant to the idea that the economy will soon improve. Five percent expect the economy will shrink significantly lower, while five percent expected a big improvement. In the middle, 38 percent predict a slight improvement, 30 percent expected no improvement, and 20 percent expect some reduction.
The majority, 75 percent expected the economy of eastern Connecticut to recover between 2011 and 2013. However, 50 percent predict that their business grow in 2010.
“The survey results clearly show what we already knew: we continue to face difficult times next year,” said Tricia Cunningham, president of the Mystic Chamber said in a statement the investigation. “This is not as usual, and we must remember that there are opportunities all over the world. We must be open to change, open to collaboration and open to new ideas.”
The cost of doing business in this area was cited as a problem for 72 percent of companies surveyed. Two-thirds said that premiums for health care was the biggest problem, less than half of local property taxes and energy costs, and just over one quarter said that the labor cost was the biggest problem .
When asked what’s so good to do business in eastern Connecticut, 58 percent said the quality of life. Growth potential of the region recorded 17 percent of the vote and 10 percent voted for skilled labor.
Despite high unemployment, 31 percent of respondents reported difficulties in attracting skilled workers, while 46 percent said they have hired new employees over the past 12 months. Another 44 percent expected to make some assumptions in the next 12 months.
Respondents were more negative when asked for information on the state ‘s General Assembly. The legislature had poor and 46 percent fair or by another 47 percent. Sixty-four percent of respondents said the state government has had a negative impact on their ability to make a profit. Over three quarters said they believe the problems of the state budget on their activities this year.
Respondents were also some suggestions on how the state can help the tourism in eastern Connecticut – reduce the cost of doing business (58 percent), improvements in transport infrastructure (49 percent), more than marketing in other states (47 percent), which provides tax incentives and loans (26 percent) and contribute to the development of local attractions (21 percent).
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