At First Citizens National Bank, we’re committed to understanding the unique challenges and opportunities that businesses in our region face every day. We’re here to support you with financial guidance tailored specifically for the communities we serve.
We recently shared insights from our 3rd Annual North Central Ohio Economic Survey — our yearly conversation with the local business community to understand the economic landscape and the key issues that matter most. This year, we heard from 271 businesses, ranging from those with sales under $1 million to those over $50 million. The following is a brief overview of what we discovered.
Inflation continues to be a top concern, identified as the biggest threat to economic growth this year across businesses of all sizes. Alongside this, higher taxes and rising costs are also significant worries. In addition, the outcome of the election and the overall condition of state and national governance are significant issues for all businesses (56% and 52% respectively).
Despite these challenges, there’s a strong sense of optimism. In fact, 80% of respondents, regardless of their business size, are feeling hopeful about the future. And, 46% of businesses have a very optimistic outlook, which is a 14% jump from last year.
In 2023, business performance varied: commercial entities saw the highest growth, while almost half of micro businesses (those companies under $1 million in sales) experienced a decline in sales.
Looking ahead, 42% of businesses are planning significant investments in the next 12 to 18 months, with three times more respondents planning to increase spending than decrease it. Technological upgrades are a top priority for 45% of businesses, and 44% are focusing on boosting their marketing and sales efforts. Larger companies are focused on IT upgrades and workflow automation to enhance efficiency and competitiveness. In addition, 37% of all respondents are planning to enhance their company’s website.
Adjusting staffing models is also a key focus. About 26% of businesses have fully returned to the workplace, 18% have adopted hybrid models, and 14% have shifted to fully remote operations. Smaller companies are less likely to have adapted their models, facing challenges like labor shortages and the need for effective employee retention strategies. While commercial businesses are likely to increase pay and benefits and offer flexible schedules, smaller businesses may find these adjustments more challenging.
We recognize the need for more resources on important topics like sales and marketing, cybersecurity, and employee retention. In response, we’re preparing a series of expert-led events and specialized content and actionable insights to address these concerns directly.
As we all navigate the uncertainties of 2024, the insights from our survey provide a snapshot of the local business climate, highlighting both the challenges and the resilience of our community. Together, we hope to leverage these insights to build a more prosperous and stable future.
