Capital Region biz see recession, but don't expect to lay off workers

Eighty percent of Capital Region businesses say they view the area economy as stagnant or recessionary, but 82 percent say they do not expect to lay off workers in the coming year, according to a business climate survey conducted by the UAlbany School of Business.

The 23rd annual business climate survey, conducted in partnership with Marvin and Company, shows a significant decline in  expectations and optimism since last year: only 30 percent of businesses expect business to increase for 2009. Last year, 54 percent of businesses said they expected increased business.

In fact, 27 percent of respondents said they expected business to decline this year. Last year, only 8 percent said they expected a decline.

The resigned attitude reappeared when businesses were asked about their outlook for future growth: only 29.8 percent of businesses said they expected the Capital Region economy to prosper. Most said the economy will experience little or no growth (42.3 percent), and 27.9 percent said they expected the economy to struggle.

The top issue concerning employers in 2009? The national economy -- making this the first time in 14 years that healthcare costs did not top the list of concerns.

The initiative to brand the Capital Region the "Tech Valley" of the U.S. apparently has done little to boost business, according to the survey: 78 percent of respondents said that technology-based companies had either very little impact or no impact at all on business.

"The growth of technology-based companies in the Capital Region has not apparently spilled over to other sectors yet," said Dr. Donald Siegel, dean of the University at Albany School of Business.

"However, prospects for entrepreneurs in a variety of industries are likely to increase as companies such as AMD expand in the region," Siegel continued. "The economic downturn is also a tremendous opportunity for many entrepreneurs. Our results also suggest that the business climate in the Capital Region is much better than in other parts of the state and country."

The survey had a greater than 10 percent return rate. To view the survey results, click the link at right.