78% of State’s Businesses are Optimistic about 2014
ISELIN, N.J.--(BUSINESS WIRE)--
Even though the national current unemployment rate is hovering around
7%, New Jersey business owners are optimistic about their hiring plans
for 2014, with nearly 60% saying they plan to hire additional full- or
part-time employees next year, according to a recent survey by Provident
Bank, http://www.providentnj.com,
the oldest community bank operating exclusively in New Jersey for nearly
175 years. Further, Provident Bank's2013 Business Barometer, which
surveyed more than 300 business owners and members of executive
management of New Jersey-based businesses, revealed that 78% are either
very or somewhat optimistic about their business outlook for 2014.
“While the recovery has been slow and Superstorm Sandy was a decidedly
defining setback for businesses here in New Jersey, our research
underscores a compelling outlook among New Jersey’s business leaders
here that better days lay ahead,” said Provident Bank President and CEO
Chris Martin.
The 2013 Business Barometer revealed, however that this sense of
optimism is somewhat tempered by a good dose of reality and the lessons
learned over the last half a decade. The vast majority of business
owners did not borrow money for their businesses in 2013, with 79%
saying so. Another 68% said they do not plan to borrow in 2014 either,
citing the economy and consumer confidence as among their two top
business concerns.
Other important business concerns that respondents cited were the
country’s political climate, New Jersey’s property taxes and the state’s
own political climate.
“These have been challenging years for New Jersey businesses, and the
political and economic uncertainty have understandably impacted business
owners’ willingness to overextend themselves and take on additional
debt. But, all things considered, the survey revealed just how resilient
business owners are here, how eager they are ready to embrace the next
business cycle and are poised for growth,” noted Martin.
Among the 2013 Business Barometer’s other findings are:
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The majority of business owners (33%) indicated that their businesses
“held their own” during the last 12 months; 9% said business was
great; 28% said it was good; 23% reported struggling a bit, and 8%
said business was poor.
-
Among those who said they held their own or business was good or
great, the business owners attributed such factors as the economy
picking up, hard work and long hours, and an influx of new customers
to their outlook.
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Only 6% of respondents said they were not at all optimistic about
their business in 2014.
-
The majority of respondents (72%) indicated their business will grow
in 2014 as compared to 2013, with growth rates reported in the range
of less than 3% to more than 10%.
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Consultants are proving a good option for managing workforce needs in
uncertain times, with nearly one-fifth (19%) of survey respondents
saying they were planning to increase their use of consultants in 2014.
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Most businesses (67%) indicated their workforce remained stable in the
last year. Another 18% actually increased their headcount and 15%
decreased it in the last 12 months.
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Of those business owners that did borrow money in 2013 for their
business, they cited needing the cash for growth (27%), new equipment
(23%), and capital improvements (19%) as the primary reasons. Along
the same lines, of those that plan to borrow money for their business
in 2014, 33% cited for growth, 17% cited new equipment and 16% cited
capital improvements.
When asked about what they thought was the best news to come out of New
Jersey in the last 12 months, among the most common words respondents
used to describe their views were “business,” “Governor Christie,” the
“economy” and “rebuilding.”
“With change, there’s often an opportunity for growth and the
cultivation of fresh thinking,” noted Martin. “Over the course of our
long history here in New Jersey, we have seen firsthand how resilient
and innovative our business culture is through many business cycles. New
Jersey’s business owners are now showing once again their sense of
optimism and ingenuity with an eye toward growth as we enter this new
cycle in our economy.”
About the Survey
Provident Bank’s 2013 Business Barometer is an annual survey of
New Jersey business owners and senior management to assess their views
about the state of their businesses and the overall business economy in
New Jersey. More than 300 respondents (344 total: 171 non Provident Bank
customers and 173 Provident Bank customers) completed the survey in
October 2013.
Of the companies surveyed, 1% was publicly traded, 42% were privately
held and 58% were family-owned and operated. Their longevity ranges from
one to five years old to more than 50 years in business, with the
majority of respondents having been in business for 1-5 (28%).
Respondents fell across a wide range of business and industry, with the
highest concentration of respondents in professional services, service,
retail and other industries.
For a copy of the survey, please contact Robert Pertain, first vice
president and marketing director, at (732) 590-9403 or Robert.Pertain@ProvidentNJ.com.
About Provident Bank
With $5.3 billion in deposits, Provident Bank (www.ProvidentNJ.com)
serves its customers via a network of full-service branches throughout
northern and central New Jersey. Provident Bank is the wholly owned
subsidiary of Provident Financial Services, Inc. (NYSE:PFS), which
reported assets of $7.3 billion as of June 30, 2013.
MEDIA:
Kitchen Public Relations
Nina Dietrich,
201-493-8944
ndietrich@kitchenpr.com
or
Brian
Hyland, 212-687-8999
bhyland@kitchenpr.com
Source: Provident Bank