Business owners demonstrate more optimism about the U.S. economy than Vermont’s economy
VERMONT SMALL BUSINESS ECONOMIC OUTLOOK SURVEY RELEASED
Williston, Vt., March 18, 2024 – Nearly 100 Vermont businesses from various industries completed the 2024 annual economic survey assessing the outlook of Vermont’s small- to medium-sized businesses. The survey, presented by Davis and Hodgdon CPAs and the Vermont Chamber of Commerce, demonstrated that business owners are more optimistic about the U.S. economy than they are about the Vermont economy. This is the opposite of attitudes displayed in survey results from the same timeframe in 2023.
When asked to identify and rank the top issues facing their business in 2024, owners ranked “finding qualified employees” as their biggest issue (37%) and property taxes second (17%). The biggest factors for those that identified staffing as a challenge for their business, included the lack of candidates, lack of housing within the state, and their inability to offer competitive wages due to limited profitability.
Respondents also identified and ranked changes made to their business model to adjust to post-pandemic circumstances. While most identified the adoption of more digital solutions for operations and sales (25%) as the biggest change, many (24%) said that identifying new avenues of revenue was their biggest adjustment. Also noteworthy is that the need to downsize by reducing staffing and/or hours was ranked first by 18% of respondents as their most significant post-pandemic adjustment.
More than half (54%) expect their sales to increase in 2024, while 39% expect to increase spending, and 30% plan to hire additional staff within the next six months. 7% of respondents said that they plan to decrease staffing while most (60%) are not planning to make any changes.
The following graphs demonstrate that those surveyed appear to have more optimism for the U.S. economy than they have for the Vermont economy in 2024. Only 24% feel that the Vermont economy is improving while 37% think that the U.S. economy is improving. Additionally, 43% think that the Vermont economy is in decline versus the 29% who think that the U.S. economy is in decline. This contrasts with the 2023 survey that found more than half (55%) of respondents feel that the U.S. economy is in decline in contrast to the 36% who feel the same way about the Vermont economy.
Each year respondents are asked to identify one key business economic issue that they want to see addressed by the state legislature in the current year. Affordable housing was overwhelmingly identified as the issue that business owners want to see addressed in 2024. “The lack of affordable housing is crushing our economy,” noted one respondent. Other top issues were taxation and overregulation, as well as healthcare and insurance issues.
“Business owners continue to struggle in their search for qualified staff which is directly related to the lack of affordable housing and general cost of living in Vermont,” said Bret Hodgdon, managing partner of Davis & Hodgdon Associates. “This combined with frustration that the current legislature has done so little to address the issue is very evident within this year’s survey results.”
“Business vitality is crucial to the well-being of all Vermonters,” stated Betsy Bishop, President of the Vermont Chamber of Commerce. “This data reflects what we hear from businesses every day, which is that workforce recruitment and retention, and the interconnected issues of housing and taxation, need immediate strategic action to ensure a viable future for our state.”
About the Survey
The non-scientific survey, customized by Davis & Hodgdon to evaluate small- to medium-sized businesses, was completed by 88 businesses located throughout the state. All results below.
January 2024 survey results:
https://www.dh-cpa.com/wp-content/uploads/2024/03/BES-2024.pdf
January 2023 survey results:
https://www.dh-cpa.com/wp-content/uploads/2023/11/BES-2023.pdf
January 2022 survey results:
https://www.dh-cpa.com/wp-content/uploads/2023/11/BES-2022.pdf
January 2021 survey results:
https://www.dh-cpa.com/wp-content/uploads/2023/11/BES-2021.pdf
January 2020 survey results:
https://www.dh-cpa.com/wp-content/uploads/2023/11/BES-2020.pdf
January 2019 survey results:
https://www.dh-cpa.com/wp-content/uploads/2023/11/BES-2019.pdf
January 2018 survey results:
https://www.dh-cpa.com/wp-content/uploads/2023/11/BES-2018.pdf
About Davis & Hodgdon
Davis & Hodgdon CPAs is a full-service public accounting firm with the unique ability to offer tax planning, financial and investment planning, and client accounting services under the umbrella of and as a wholly owned subsidiary of the Davis & Hodgdon Advisory Group, a business and financial services firm with locations in Williston and Rutland Vermont. The firm serves its clients by providing progressive, proactive services through expert staff, high-end technology, and unparalleled efficiency.
About the Vermont Chamber of Commerce
The Vermont Chamber of Commerce is dedicated to advancing the Vermont economy. Trusted by the businesses that make living, working, and thriving in Vermont possible, we prioritize collaboration and uphold the core values that define our state. As the preeminent not-for-profit business organization, we advocate, build community, and provide resources for businesses statewide.
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