BOSTON, March 20, 2014 /PRNewswire/ — Santander Bank, N.A., one of the largest retail banks in the United States by deposits, and the Greater Boston Chamber of Commerce today hosted their 14th annual meeting for the business community focused on the region’s economic outlook. Attending corporate executives and business owners were surveyed regarding their expectations for the local economy in 2014 as well as plans for their respective businesses over the coming year.
Roman Blanco, president and CEO of Santander US, said: “Massachusetts is at the forefront of the recovering US economy. Unemployment has fallen, tax revenues are up and average home prices have risen—all very positive trends. This region is poised for continued growth. “
Attendees of the annual Economic Outlook Breakfast responded to a series of economic and business-related questions during a real-time poll.
“It’s encouraging to see that 82% of business leaders plan to expand their business in the year ahead—that’s a 25% increase over last year,” said Michael A. Lee, managing director of Commercial Banking and Real Estate at Santander. “Today’s results support the optimistic trajectory we’ve been seeing in business sentiment.”
Nearly 46% of respondents plan to increase their capital spending in 2014 and respondents cited attracting new customers, retaining existing customers and the cost of health insurance and other employee benefits as the most significant challenges facing them over the next two years. The poll was conducted in real-time with attendees using automated response devices. In addition to questions about the U.S. and Massachusetts economies, the survey queried attendees about their local and international business expansion plans, employer hiring plans and top challenges facing regional enterprises.
“We’re seeing median household income rising and unemployment coming down. That bodes well for the local economy,” said Steve Andrews, senior vice president and director of fixed income at Santander. “Indicators show that Massachusetts is adding new jobs and that office vacancies are declining—a clear sign that the economy is on the right track.”
Following the survey, attendees listened to a panel discussion about regional business issues. The panel included Brian Kavoogian, founder and president of Charles River Realty Investors; Lee Pelton, president of Emerson College; Shirley Singleton, president, CEO and chairman of Edgewater Technology; and Kevin Tabb, president and CEO of Beth Israel Deaconess Medical Center.
About Santander
Santander Bank, N.A. is a top 25 retail bank in the United States by deposits. Its main corporate offices are in Boston and it operates principally in Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania and Rhode Island. Santander’s 9,469 employees serve its 1.8 million customers through the Bank’s 706 branches, 2,084 ATMs, call centers, website and mobile app. Supervised by the Office of the Comptroller of the Currency and a member of the Federal Deposit Insurance Corporation, Santander in the United States is a wholly-owned, financially autonomous subsidiary of Banco Santander (NYSE: SAN), a global commercial and retail bank. For more information about Santander, visit www.santanderbank.com or call 877-768-2265.
Santander – Greater Boston Chamber of Commerce
2014 Economic Outlook Survey Results
1. Many economists are predicting continued economic growth for the nation and for Greater Boston in 2014. Thinking about your business, do you have plans to expand operations and/or increase hiring this year?
Responses
(percent)
Yes, we expect significant growth
14.17%
Yes, we expect some growth
68.02%
No growth anticipated
14.57%
We plan to somewhat cut operations and/or hiring
2.43%
We plan to significantly cut operations and/or hiring
0.81%
Total
100%
2. Which of the following factors have the most influence on your hiring plans? Please select up to three.
Responses
(percent)
Projected sales
24.71%
Current staffing levels
20.43%
Skills of workers as compared to your company’s needs
15.16%
Labor costs – (i.e. Wages, Health insurance, Unemployment insurance, etc.)
7.74%
Tax policy
0.99%
Current economic outlook
12.69%
Firm’s financial health
18.29%
Total
100%
3. Which of the following best describes your business’s capital expense spending plan in 2014?
Responses
(percent)
Increase spending
46.06%
Decrease spending
10.79%
No change
43.15%
Total
100%
4. In 2014, Massachusetts residents will elect a new governor. What do you consider to be the biggest business issues facing this state that candidates should be paying attention to? Please select up to three.
Responses
(percent)
Attracting retaining businesses
19.91%
Job creation
17.34%
Affordable housing
7.74%
Competition from neighboring states
3.01%
Attracting and retaining skilled labor
9.17%
Transportation infrastructure
12.18%
Cost of healthcare
6.45%
Overall cost of living
12.18%
Funding public education
5.87%
Tax policy
6.16%
Total
100%
5. Thinking about your business, what are the most challenging issues you expect to face in the next two years? Please select up to three.
Responses
(percent)
Regulatory costs and burdens
11.74%
Cost of fuel energy
2.82%
Cost of health insurance/other employee benefits
13.52%
Attracting new customers
26.30%
Retaining existing customers
19.76%
Hiring qualified employees
12.78%
Pressure from larger competitors
11.29%
Corporate taxes
1.78%
Total
100%
6. The current unemployment rate in Massachusetts is 6.8%, yet a number of unfilled positions exist due in part to a disconnect between required job skills and the available workforce. What do you see as the best opportunity to address this issue going forward? Please select up to three.
Responses
(percent)
Increased availability of college internships
15.34%
Expanded partnerships between community colleges and industry
26.38%
Enhanced state workforce training programs
15.80%
Development of new university degree programs
11.66%
Increased investment in K-12 STEM education
21.17%
Broader access to skilled foreign graduates and workers
9.66%
Total
100%
7. A major transportation bill was passed in 2013 that is designed to help strengthen the state’s transportation system. Which area of transportation infrastructure is most important to your business?
Responses
(percent)
Highways and roads
55.23%
Subway
21.76%
Airport
9.21%
Commuter rail
11.30%
Cargo
2.51%
Total
100%
8. Last year, Congress enacted 72 new laws – the lowest in any first year of a Congressional session since 1973. In your opinion, how much is the continued gridlock in Washington impacting the regional and national economy?
Responses
(percent)
Significantly
64.68%
Moderately
26.19%
Not at all
9.13%
Total
100%
9. Greater Boston has seen a significant boom in the housing market over the past year, resulting in increased competition for housing and rising prices. To what extent do you foresee this affecting your ability to attract and retain workers?
Responses
(percent)
Significantly
28.11%
Moderately
44.98%
Not at all
26.91%
Total
100%
10. The Massachusetts Legislature is currently debating legislation that could increase the minimum wage in Massachusetts. What impact, if any, would this wage hike have on your business?
Responses
(percent)
Significant impact
13.25%
Moderate impact
25.64%
No impact
61.11%
Total
100%
11. How likely are you to expand your business outside the US over the next year?
Responses
(percent)
Highly likely
14.04%
Likely
15.32%
Not sure
14.04%
We have no plans to expand our business globally
56.60%
Total
100%
12. What might inhibit your international expansion plans? Please select up to three.
Responses
(percent)
Lack of access to local market intelligence in geographic target areas
25.57%
Securing legal, accounting or financial experts who are experienced in foreign trade
18.03%
Managing currency risk
7.87%
Language barriers
8.85%
Lack of available workers experienced in global trade
11.15%
Geopolitical risks
13.44%
We are already fully prepared to expand internationally
15.08%
Total
100%
SOURCE Santander Bank, N.A.