Half of eastern CT’s businesses downsized

A survey released today shows the high cost of doing business in the state and rising health care expenses have caused nearly half of eastern Connecticut businesses to downsize during the recession, the Norwich Bulletin reports.

The 2010 Survey of Eastern Connecticut Businesses also indicates that nearly half the businesses in the region also have reduced employee wages and benefits, the newspaper reports on its Web site.

Costs were named as the biggest challenge by 72 percent of survey respondents, up from 59 percent a year ago and more than tripling from 26 percent four years ago.

“We should focus our attention on relieving the business community of some of the burdens,” said Tony Sheridan, Chamber of Commerce of Eastern Connecticut’s president and CEO. “We have the potential to make a swift and complete recovery.”

The chamber collaborated with the Greater Mystic Area Chamber of Commerce in collecting data for the stud, the Bulletin said. The Hartford-based Connecticut Business & Industry Association is lead author of the 11-page report, discussed today at a breakfast at the New London Radisson hotel.

State Comptroller Nancy Wyman was among the scheduled speakers.

The number of respondents rose this year to 703, from 403 last year, indicating a heightened sense of concern in the business world.

“People are really wanting to speak out,” said Jason Giuletti, a research economist at CBIA who is among this morning’s speakers.   

Technology is now considered the most important sector in driving the region’s economic success, the survey’s executive summary states. Military contracting and tourism remain vital elements.

Social networking technologies, such as Facebook, LinkedIn and Twitter have potential to boost business, 49 percent of respondents said. 

“We must remember there are opportunities all around us,” said Tricia Cunningham, the Greater Mystic chamber’s president. “We … have to be open to collaboration and open to new ideas.”

Eastern Connecticut is expected to lag behind the rest of the state, with lost jobs, housing prices and consumer confidence not recovering until next year, according to 35 percent of those surveyed. 2012 was put as the recovery year by 23 percent, while 17 percent said 2013. Just 18 percent expect employment, housing and consumer sentiment to rally to pre-recession levels during 2010.
   
Citizens Bank sponsored the survey. The document will be available on the Eastern chamber’s Web site at www.chamberect.com beginning today, the newspaper said.