Litchfield County businesses’ worries about the fallout from the state’s budget deficit are weighing down plans to expand their companies, a fresh survey shows.
Litchfield businesses share many of the same top business challenges as their counterparts throughout the state, according to a joint survey from the Connecticut Business & industry Assocation and the Northwest Connecticut Chamber of Commerce.
These include diminishing profitability/customer base, business taxes, a weak state economy, state mandates and regulations, and health care costs, the surveyors said.
“My real concern,” says Litchfield banker Mark E. Macomber, “is oriented toward Hartford and Washington, where irresponsible, unsustainable spending is exacerbated by a never-ending supply of costly new regulations. Together, these two factors create huge barriers to growth for small businesses.”
Macomber is president and CEO of Litchfield Bancorp.
As they emerge from the worst recession in decades, businesses in northwestern Connecticut say the projected state budget deficit is having an impact on their long-term business decisions. Virtually all businesses are concerned about Connecticut’s fiscal problems, and almost three-quarters are “extremely concerned.” In a post-recession economy, many believe the manufacturing and technology sectors will be critical to their region’s success.
 “While the survey may show some improvement in economic conditions, our biggest challenge will be to keep our state leaders focused on the key issue: fiscal responsibility, resulting in a major reduction in our uncontrolled state spending,” says Peter B. Kent, chairman and CEO of  Bicron Electronics Co. in Canaan, and chairman of the CBIA board.
While the cost of doing business in a high-cost state remains a top business concern, perceptions regarding which variables drive up business expenses have changed.
Two years ago, energy and health care costs were tied for the top spot among companies’ biggest cost concerns, each getting 31 percent of the vote. Today health care is the number one concern, with 71 percent calling it a significant burden. The price of electricity, oil, and gas is second, and labor costs and local property taxes were identified as the third most burdensome cost to doing business
To read the full survey.
