YOUR BUSINESS AUTHORITY

Springfield, MO

Log in Subscribe

Business leaders express ‘cautious optimism’ in economic growth survey

Forums return to in-person format beginning July 14

Posted online

The majority of respondents in SBJ Publishing Inc.’s 2021 Economic Growth Survey are optimistic for a bounce back year for business sectors following the emergence of the coronavirus pandemic and its negative impact on the economy.

The survey, conducted in April by H2R Market Research, is the fourth since its 2019 debut. Due to the pandemic, two surveys were conducted last year – in February, just before local and statewide stay-at-home orders were enacted – and again in April.

Last April’s survey caught business leaders at a time when confidence in the local economy was low. That was reflected in the Springfield Business Confidence Index of 81.7 based on survey results computed by H2R Market Research.

The 2021 survey reveals a significantly different picture.

This year’s BCI is 147.3, an all-time high, surpassing the 146.1 in the survey’s inaugural year.

“I felt good about it being 120 or above, but I was surprised it was 147,” H2R CEO Jerry Henry said, noting the decreasing COVID-19 case numbers and increasing vaccination rates in the first quarter likely contributed to the sense of confidence from survey respondents. “Nationwide, we’re seeing cautious optimism. It’s surging, but Springfield is a little bit more confident than average.”

Ashley Garoutte, H2R’s consumer insights analyst, said waiting until the second quarter of the year to conduct the survey was intentional.

“We wanted to see how Q1 fared out before we started fielding,” she said.

Garoutte said the BCI factors in business leader responses such as level of confidence in the local economy, plans to increase employment and how their market sector will perform compared with the prior year.

Springfield Business Journal Publisher Jennifer Jackson said the optimism in the local BCI may be tempered by some pressing needs coming off a year when many businesses struggled financially.

“Optimism is measured by their desire or thoughts that they’ll need growth in the next year,” she said. “I wonder if they need growth because they can’t currently find the employees that they need.”

This year’s survey shows companies are in hiring mode, as 52% plan to add employees. In contrast, only 20% of respondents in the second survey last year looked to increase their workforce.

In addition to measuring business confidence, the annual Economic Growth Survey aims to collect business executives and managers’ insights into capital, office space, staffing and workforce trends. Survey results are then discussed at forums throughout the remainder of the year.

Garoutte said 80% of the survey’s 300-plus respondents are on the executive level, up 6% from last year. Nearly two-thirds indicated they are primary decision makers at their businesses.

Jennifer McClure, vice president of strategic communications with the Springfield Area Chamber of Commerce, said she was impressed so many in the C-suite responded. McClure is a member of this year’s 13-person Economic Growth Survey Public Advisory Committee that helped guide the survey questions.

“It really is the decision makers, so the indicators on confidence and other things have a lot of credibility to me. That is really significant,” she said, noting business actions will be made based on survey data. “Plus, the significance of being able to work out of multiple years of data locally, that’s not something we get to do very often.”

H2R Market Research presented the survey results June 8 to committee members, SBJ staff and Economic Growth Survey sponsors.

With the first forum scheduled July 14, Jackson said she’s anxious to get back to in-person discussions with the business community about operational adjustments made or under consideration amid the pandemic. All six forums are scheduled to be held at Alamo Drafthouse Cinema.

“In the last six weeks as people are getting back out again, they can’t get enough of the conversation that’s happening business to business and wanting to know how others are approaching the same challenges,” Jackson said.

 “That can be work from home and need for increased flexibility, need to reevaluate pay scales and need to add skilled workers. We’re seeking those answers from each other.”

One of the positives Garoutte said the data revealed was a resiliency among Springfield area businesses coming out of a rough 2020. Nearly six in 10 companies are able to operate indefinitely with cash on hand, meaning sales and operating income are at a breakeven or better level, according to the survey. Another 23% of respondents say they have cash on hand for six months or more.

“We’re really happy to see that most businesses in the Springfield area say with the cash they have right now in the current climate, they see themselves lasting quite a while,” she said.

While this year’s survey response total of 309 was at the lowest rate in its three years, H2R officials say they have strong confidence in the validity of the input. The April 2020 survey had an all-time high of roughly 670 participants.

For business-to-business surveys, Henry said any responses over 150 are considered strong, adding the Economic Growth Survey goal was 250 when the company began conducting them in 2019. This year’s survey margin of error is plus or minus 5.6% with a 95% confidence level.

Comments

No comments on this story |
Please log in to add your comment
Editors' Pick
Open for Business: The Kebab Shack

The Kebab Shack opened; Hitch Goods launched; and The War Zone Springfield moved.

Most Read
Update cookies preferences