Greater Binghamton Chamber releases 2023 economic outlook

BINGHAMTON, N.Y. — The Greater Binghamton Chamber of Commerce held its annual Economic Forecast and Building BC Awards event on Tuesday.

Peter Kneis, senior VP of commercial planning and analytics at M&T Bank, presented an overview of some of the key disrupters of U.S. economic growth including labor shortages and wage costs, pent-up demand and savings, and inflation.

The event was held at the Holiday Inn Binghamton Downtown at 2-8 Hawley St.

Locally, Binghamton private-sector employment hasn’t fully bounced back, hovering around 1,000 jobs below its pre-pandemic peak. The number of unemployed is smaller than before the pandemic, driven by competition for a diminished overall workforce that is 2.6 percent smaller than before the pandemic.

Employment is trending upward in retail trade, transportation, utilities, leisure, and hospitality, while health care, education, business, and professional services are lagging behind.

Leadership Alliance CEO Stacey Duncan reviewed the results of a December 2022 survey of local business leaders.

The top five state and local business challenges were state business regulations, lack of qualified workers, state business taxes, attracting and retaining employees, and the regional economic climate.

National factors of concern that impact the Binghamton area’s economic outlook include inflation/deflation, access to talent, the cost of health care, energy policy, and interest rates.

Survey results on predictions for the 2023 economy were split, with 39 percent of businesses predicting the economy will expand, while 39 percent expect the economy to remain unchanged. Optimism was also mixed with 35 percent of those responding expressing an optimistic outlook for the year, while 40 percent feel less optimistic.

When it comes to revenue and growth, 43 percent of businesses believe revenue will increase this year, while 41 percent anticipate adding employees.

Among those who responded to the survey, 55 percent were business owners, CEOs, or the main management decision makers; and 60 percent of responding businesses have 50 or fewer employees.

The chamber says Broome County’s 2023 Economic Outlook Guide is available for download on its website.