How To Find Out What Your Business Is Doing In Minnesota

Transcription

1 2012 Business Barometer: Is Growth on the Horizon?

2 Methodology Co-sponsored by MN Chamber & Himle Rapp since 2004 Conducted July 16 - August 8, randomly selected owners & managers Balloon 50+ employees to 100 Balloon Chamber members to 100 Sample reflects Minnesota s business community Size Location Business category retail, service, manufacturing Margin of error percent

3 General Economic Indicators

4 Profitability Reports Remain Weak All Employers

5 Optimism About Economy Is Bouncing Back All Employers NOTE: Chamber members are somewhat more optimistic than the general business population

6 Job Picture is Improving

7 Confidence in Minnesota s Economic Future (10 Yrs) is Still High All Employers 2009 All Employers 2010 All Employers 2011 All Employers 2012

8 Compared to Other States, Minnesota Is Seen as Having a Favorable Business Climate All Employers 53% of Chamber members agree Minnesota has a good business climate

9 Encouraging a Pro-Growth Economy

10 Taxes Remain the Primary Barrier to Job Creation All Employers Top Two Choices Taxes 63% Taxes 72% Taxes 64% Taxes 74% Taxes 69% Lower Costs in Other Countries 45% Lower Costs in Other Countries 31% Cost of Health Care 29% Gov t Regulations 38% Cost of Health Care 34% Trained Workers 18% Cost of Health Care 22% Trained Workers 25% Lower Costs in Other Countries 23% Trained Workers 33% Cost of Health Care 18% Trained Workers 18% Lower Costs in Other Countries 18% Lack Capital 19% Gov t Regulations 24%

11 Modest Differences in Opinions on Barriers to Job Creation Top Two Choices All Employers Large Employers Chamber Members High Taxes 69% 71% 80% Cost of Health Care 34% 43% 23% Trained Workers 33% 34% 24% Gov t Regulations 24% 15% 23% Lack Capital 14% 11% 23% Foreign Competition 4% 4% 16%

12 Tax Burden Continues to Grow Compared to Five Years Ago 61% report business property taxes increasing 53% say locals want new revenue 27% say we are replacing LGA 15% say change in value

13 Employers Memo for St. Paul: We Need a Better Effort Role for Governor and Legislature in Determining Business Climate Success in That Role 35% Somewhat Important 19% Not Very/No Role 47% Mixed (Vol) 45% Very Important 1% Other 33% Negative 20% Positive MN Chamber members are more likely to feel negative about government s performance

14 Goals of Tax Reform Highly Rated Simplify Tax Voluntary Behavior Predictable Revenues Tax Activity, Not Income Modestly Rated Reduce Dependency on Property Taxes Progressive Poorly Rated Reduce Business Taxes By Increasing Income Taxes

15 Impact of Stability/Predictability of Government Regulations Important Factors in Decisions on Investment 18% Strong Yes 2% DK/R 2% Strong No 69% The Right Decisions Most Important Change We Can Make 29% Quicker Decisions 11% No 67% Yes 2% DK/R

16 Health Care

17 Use of Health Insurance as a Benefit All Employers

18 Differences in Willingness to Cover Employees Continues All Large Chamber

19 For Those Who Offer Coverage, Costs Are Increasing 47% believe costs will increase due to federal reform Only 3% would stop providing coverage in five years if costs keep increasing at current rate

20 Employers Believe Responsibility for Coverage Falls With Individuals, Not Business or Government 38% or more likely to offer a lump sum benefit because of insurance exchange Chamber members are even more certain this is an individual responsibility

21 Workforce

22 More Believe MN K-12 Schools Better than Rest of Country All Employers

23 Are Schools Preparing Workers In Key Areas? Four point scale with percent saying Excellent highlighted

24 Support for New Revenue Continues All Employers 2011 All Employees 2012 Revenue Yes Revenue No Revenue Yes Revenue No Reform Yes 43% 23% Reform Yes 37% 35% Reform No 17% 5% Reform No 23% 1% More certainty in 2012

25 Strong Support for Tenure Reform

26 Energy Policy

27 Concerns About Affordability and Reliability Continue All Employers

28 Support for Traditional Fuels Weakens Commitment to Continued Use of Coal 34% Moving to replace coal too quickly Support for Pro-Nuclear Policies 10% Strong Yes 12% Strong No 31% No 6% DK/R 60% Agree with reducing use of coal 33% Yes 13% DK/R Chamber members more supportive of nuclear, but not coal

29 Support Lacking for Full Transition From Cross-Subsidization of Electric Rates Businesses should not subsidize residential customers Subsidization is okay to help those who have trouble paying electric bills Current system works if electric rates are kept competitive All Employers Large Employers Chamber Members 15% 11% 15% 35% 45% 29% 45% 40% 51% Don t know/ Refused 6% 4% 5%

30 Role for Government

31 Satisfaction in Work of Minnesota Legislature Stabilizes All Employers Satisfied Frustrated 2010 Satisfied Frustrated 2011 Satisfied Frustrated 2012

32 Most Important Issue For Legislature and Governor to Address All Employers Top Two Choices 2011 Taxes/ Spending 73% Health Care 41% Issue 2012 Most Important Second Important Total Spending 29% 21% 50% Health Care 25% 16% 41% Redesign Government Services 28% Tax Reform 13% 25% 38% Workforce 11% 13% 24% Workforce 22% Redesign 3% 12% 15%

33 Most Important Issue For Legislature and Governor to Address Top Two Choices All Employers Large Employers Chamber Members Spending 50% Health Care 53% Spending 56% Health Care 41% Spending 48% Health Care 41% Tax Reform 38% Workforce 36% Tax Reform 37% Workforce 24% Tax Reform 23% Workforce 24%

34 Constitutional Amendments

35 Support for Using Amendments Weakens Job of Legislature let s keep controversial issues off ballot Amendments OK, but be careful Voters should decide more issues All Employers 2011 All Employers 2012 Chamber Members 2011 Chamber Members % 26% 17% 24% 37% 45% 30% 58% 37% 14% 52% 9%

36 Views on Same Sex Marriage Amendment All Employers Chamber Members Support Amendment 14% 18% Oppose Amendment 24% 32% Oppose same sex marriage, amendment is a political game 21% 11% None (Vol) 32% 34%

37 Support for Right-To-Work Laws, Not Necessarily Amendment Decide with law 60% Amendment 29%

38 Role of Business Community in Political Affairs

39 Does Business Community Play a Large Role in State Elections Yes No All Employers % 42% All Employers % 26% Chamber Members % 27% Chamber Members % 16%

40 Focus on Business Activity Should be Candidates Issues Both Neither All Employers % 45% 34% 18% All Employers % 39% 43% 12% More Political More Civic/ Philanthropy Both Neither All Employers % 46% 28% 23% All Employers % 37% 33% 15%

41 Conclusions Consensus on Importance Consensus on the Business Challenge Consensus on Solutions Taxes Yes Yes Emerging Health Care Yes Yes Not Yet Workforce Yes Yes Emerging Energy No Yes Not Yet