bizoptimism

Michigan Business Survey Shows Record Optimism for Future Work

bizoptimism

While most businesses across the state are taking a day off following a busy summer, there’s excellent news on at least one front for the fall and beyond as the latest Michigan Future Business Index report is reflecting record optimism for the small to medium-sized business community across the state.

The latest Michigan Future Business Index (MFBI) data show record optimism among the leaders of Michigan’s small- to mid-sized businesses, resulting in planned increases in investment into their businesses through wage hikes and equipment updates. The percentage of those businesses reporting wage increases over the past six months has hit an all-time high for the MFBI report.

The report says, “The percentage of those expecting an improved bottom line in the next six months has hit a new record for the MFBI. Forty-two percent (42%) now expect their bottom line to improve. That is seven points higher than last June (35%) and the highest that number has been since the MFBI began. Only 18% expect a worsening bottom line, while 38% expect it to stay the same, the lowest that number has ever been.”

In addition, other key indicators including sales and hiring have stayed in positive territory with no significant slippage from record results over the past 12-18 months. Many employers continue to point to an improving economy, excellent employees, in-demand products/services and a renewed hope for regulatory reform.

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As has become a steady drumbeat in recent years, the challenges to doing business continue to center around qualified worker availability, with the need for qualified workers remaining a significant challenge throughout the state.  Data collectors say that while that is concerning as it continues to cause a drag on growth, it is also a positive sign that small business in Michigan continues to grow regardless.

The survey also points to the apparent impact the Affordable Health Care Act (ACA) has had on small businesses. With the current availability of health insurance through the ACA, a record 43-percent of Michigan small businesses now say they do not offer health care benefits to their employees. That number has more than doubled in the past year.

Al Gileczek is President of the Accident Fund Insurance Company of America, a partner in the data collection process. He tells us that, “Despite the challenges, the reasons for optimism are clear: business is growing and opportunities are abundant.” Gileczek adds, “Michigan is leading the way as a role model for the rest of the country.”

Chris Holman is CEO of the Michigan Business Network, another partner in the regular survey system. Holman says, “After a decade of MFBI survey data, it is great to learn that optimism of small business owners is at a record level.” He notes, “In my travels around the state, I have been able to witness that optimism first-hand.  We appreciate the survey participation of business leaders throughout Michigan. It helps us amplify the voice of small business in Michigan and provide data to guide decisions of business advocacy organizations and policymakers, setting an agenda to help Michigan business prosper.”

You can review a detailed summary of the Summer 2017 Michigan Future Business Index at AccidentFund.com or MichiganBusinessNetwork.com. Or by clicking the link below for a direct link to the study:

The semi-annual Michigan Future Business Index has been commissioned by Accident Fund Insurance Company of America and the Michigan Business Network since 2006 and is conducted by the Michigan-based market research firm, ROI Insight. A total of 608 Michigan business executives from companies with 500 or fewer employees were interviewed throughout July 2017 via phone and web for the Summer 2017 survey.

Accident Fund Insurance Company of America is a member of AF Group.

Here’s a link to the full report:

July-2017-MFBI-Final-Report-1