Rhode Island Business Leaders Express Cautious Optimism About Economy During Annual Forum Hosted by Santander Bank and Greater Providence Chamber of Commerce - Seite 2

Economic Outlook

• Over 70% of business and civic leaders surveyed believe the U.S. economy will be about the same, or in better shape over the next 12 months.

• Thinking only about the Rhode Island economy over the same time period, over 80% believe the economy will be about the same, or in better shape.

Business Perspective

• Almost half of leaders said their business is in better shape compared to one year ago, and when asked about the future outlook of their business, over 60% said they expect it to be in better shape a year from now.

• Revenue and sales growth (39%), acquiring talent and managing labor costs (27%) and regulatory requirements (13%) are the top challenges leaders believe they will face over the next 12 months.

• Leaders remain neutral about the importance of having an ESG framework in place over the next 12-24 months, with nearly 30% of leaders report it being an important aspect of their business.

• More than 40% of leaders said their capital expenditure spending plans in 2024 will remain unchanged, while 31% cite an increase for this year. These results echo hiring plans – over half said that there will be no changes in their workforce over the next year, while 34% are planning for a slight increase in hiring.

Supply Chain and Expanding Markets

• The majority of business leaders do not currently engage in global trade, while almost 45% of leaders said that global markets are important to their business, and 14% report it to be extremely important.

• The top three geographies businesses are currently using as part of their supply chain or part of their export strategy are Europe, including the United Kingdom (23%), Asia, including China, Taiwan and South Korea (19%), and Canada (15%).

• In regard to supply chain changes, almost half (46%) of business leaders have not changed key vendors and are not planning changes.

The economic outlook and guarded optimism of the Rhode Island business community aligns with Santander US market research that recently revealed financial optimism is increasing across middle-income households, as concerns about inflation and a possible recession are easing. Three in four middle-income Americans say they are on the right track toward financial prosperity. In addition, 80% believe they will achieve financial prosperity in the next 10 years.