CenterState CEO report: 72% of area firms expect higher sales

SYRACUSE — Nearly three quarters of area firms (72 percent) surveyed anticipate increased sales or revenue in 2024.  That’s according to a new report from CenterState CEO, that’s based on the responses of 165 businesspeople in the region. The report also found 55 percent of those surveyed expect an increase in jobs and hiring in 2024 — down 17 percent from 2023 projections.  CenterState CEO released the 2024 Economic Forecast for Central New York report on Jan. 31. Baldwinsville–based Research & Marketing Strategies, Inc. (RMS) conducted the survey. The economic forecast report includes the insight and projections of CenterState CEO members and business leaders from across industry sectors, with perspectives on company growth, employment trends, and the expected impacts of Micron Technology’s (NASDAQ: MU) investment and other major initiatives taking place in the region on their own businesses, and on the region’s economy, CenterState CEO said in its news release about the report. Besides the hiring and revenue projections, the survey found 56 percent of respondents expect to expand products and services in 2024, up about 2 percent from the 2023 projections. And 49 percent anticipate they will increase capital investments, up 2 percent from 2023.  Nearly 65 percent of respondents expect the strength of their business in 2024 will be “strong” or “very strong,” with 49 percent dealing with a mix of positive momentum and challenges. Of those surveyed, 89 percent have a positive outlook for Central New York’s economic health. Additionally, 85 percent said they see the Central New York economy five years from now getting better. The economic-development organization released the report during its annual Economic Forecast breakfast on Jan. 31 at the Nicholas J. Pirro Convention Center at Oncenter.  The program attracted 750 attendees, CenterState CEO tells CNYBJ. During the event, Robert Simpson, president and CEO of CenterState CEO, highlighted the “positive momentum felt by the business community” in this year’s Economic Forecast survey.  “This year’s forecasters felt the forces of continued momentum and shared an optimistic outlook, with increased confidence in the success of projects on the horizon,” Simpson said in the news release. “The economic success experienced by many Central New York businesses in 2023 is more proof that Micron’s historic investment was the launching point, not the limit, for this region’s potential. However, despite many successes, our forecasters are still fully aware that growth doesn’t come without challenges. They identified talent attraction as an ongoing pain point and potential deterrent to their growth, as well as concerns ranging from housing and health care system capacity, to supply chain issues. We must intentionally invest in our business ecosystem to address these challenges and take full advantage of all the opportunities that lie ahead.”

Keynote speaker

Luke Tilley, chief economist at Wilmington Trust Investment Advisors, Inc., was the event’s keynote speaker.  Tilley presented a national economic outlook with a focus on the drivers of U.S. economic and market outperformance, while questioning whether the prospects of maintaining its superior status may be imperiled by risks — such as massive debt and deficit spending — especially in a high interest-rate environment. “The U.S. economy continues to outperform for a host of reasons but mainly because of the dynamism of large and small businesses managing through the challenges of high labor costs and elevated interest rates,” Tilley said. “The main threat to the U.S.’s dominant global position is the high and rising debt burden of the federal government.” Tilley’s assessment of national economic trends provides “important and relevant context for understanding the forces that are influencing the Central New York region’s trajectory,” CenterState CEO contended.