August 30, 2011
Well, another six months have come and gone, leaving the latest iteration of The Chamber’s Regional Business Survey bobbing in their wake. As always, the results make for interesting reading, assuming you’re someone willing to devote at least a small chunk of your free time to digging into the percentages.
Two trends stand out in the latest report. First is improvement in current business activity reported by survey participants. This growth hasn’t exactly been explosive over the grand total of five surveys since we kicked off the program back in the summer of 2009. It has, however, been quite encouraging. Two years ago, 40.3% of participating businesses characterized their business activity as “Strong” or “Very Strong.” In the most recent survey, over 57% chose one of these two categories, and these combined totals have increased survey over survey for two years now. Clearly, at least for some Kansas City companies, things are looking up.
At the same time, uncertainty hangs over the survey like fog over the Golden Gate Bridge. When asked whether economic growth in the region was heading in the right or wrong direction, a narrow plurality this time around chose Option Three – “Not Sure” – to the tune of 46.1%. The most popular choice among six alternatives for those asked to name the “Most Immediate Problem for Business” was “Unpredictability of Business Conditions.” And nowhere did business uncertainty show up more clearly than in hiring expectations. Just over 25% of those surveyed expect to have more employees in six months than they have now. This is a meaty drop from the 42% expecting more crowded assembly lines or cube farms just one year ago.
What can we make of this contradiction? That’s a tough call. Kansas City businesses haven’t exactly been standing still since things got weird back in 2008. 28.5% percent have indeed cut staff, and nearly 66% have cut spending. At the same time, 41% have expanded products or services, nearly 55% have increased their marketing efforts and nearly three-quarters have spent more time than ever building up relationships and beefing up their networking.
But with jitterbugging stock markets, political food fights filling the cable channels, and plenty of businesses in a tight fight with a short stick for that next customer, it may be that that inherent Midwestern conservatism for which we’re not too-unjustly famed is inspiring companies to wait and see just a little bit longer.
If you’d like to dig into the whole shebang, just click here and have at it!