Economic Confidence Among Small to Mid-Sized Businesses Remains High, but Cracks Begin to Show
24 Julio 2024 - 7:30AM
Business Wire
The CBIZ Main Street Index — Summer 2024
reveals the need for skilled workers, a lack of pricing power and
marginal pressures as key challenges for SMBs
CBIZ, Inc. (NYSE: CBZ), a leading provider of financial,
insurance and advisory services, has released the CBIZ Main Street
Index — Summer 2024, taking the pulse of and gauging the outlook
for small and mid-sized businesses (SMBs). While the Index found a
notable sense of confidence for SMBs, labor challenges remain the
top concern. About two-thirds (62.4%) say having an adequate number
of skilled workers is their biggest concern, up 16% from January
2024. To address workforce issues, nearly half of respondents
(44.9%) are enhancing compensation and/or health and benefits
packages.
The Index’s Business Confidence Study saw its weighted average
rise to 69.7, up nine points from last summer. But while confidence
levels among SMBs remain high, the Index found that these
businesses are still making adjustments in preparation for a
downturn in the economy, with over half (52.8%) of respondents
having increased or planning to increase their sales efforts. As
businesses enhance their focus on driving volume, the Index also
found that price increases of 10% or more are down compared to
January 2024. Only 3.2% have increased or plan to increase prices
by 10% in summer 2024, compared to 9.7% in January 2024.
“The stabilization of interest rates and a strong stock market
are contributing to the elevated business confidence,” said Anna
Rathbun, Chief Investment Officer of CBIZ Investment Advisory
Services. “Steady rates allow business owners to plan more
effectively without the disruption of continual rate hikes, and a
robust stock market tends to bolster the confidence of business
owners who have investments or brokerage accounts. Despite this
optimism, there are signs of underlying stress. Businesses are
increasingly finding that they lack the pricing power they once
had, leading them to push for higher sales volumes to compensate.
Additionally, the ongoing challenge of attracting and retaining
skilled workers is forcing many to enhance compensation and
benefits, further squeezing margins. These factors suggest that
while confidence remains strong at the surface, there are
significant pressures building beneath.”
Based on a survey conducted from May 13 - June 19, the Index
analyzed responses from 549 businesses with fewer than 100
employees in 31 industries across the U.S.* The Index assesses a
range of timely trends, including business sentiment, areas of
growth and decline, and cash flow.
The data was evaluated from an overall perspective, as well as
based on company size, region and industry. An interactive
infographic with the results is available on the CBIZ website.
Additional key findings include:
- Healthcare costs and economic factors remain top-of-mind
concerns: The Summer 2024 CBIZ Main Street Index reveals that
40.3% of small to mid-sized businesses are worried about affording
healthcare coverage costs, marking it as the second highest.
Additionally, 35.5% of businesses are concerned about interest
rates, while 34.5% are worried about cybersecurity threats. With
the upcoming election, 29.1% of SMBs are also uneasy about
potential tax policy changes.
- SMBs focusing on workforce optimization amid economic
uncertainty: Nearly half of businesses (49.5%) have implemented
or plan to implement workforce optimization strategies, including
evaluating and adjusting current staffing levels and exploring
outsourcing options. Additionally, 48.8% of businesses are
reviewing and optimizing fixed costs, such as insurance coverages,
to better prepare for potential economic downturns.
- Turning to technology to tackle workforce challenges:
More than 39% of businesses are focusing on improving efficiency
with technology to address workforce issues. This includes the use
of AI, which 42.4% of businesses are leveraging, to save time
drafting emails and other documents. Additionally, 34.1% are
utilizing AI for data analysis and insights. However, 81% of SMBs
do not have an AI risk management program in place to understand
and manage AI-related risks.
*Note: Not all those surveyed in the CBIZ Main Street Index are
clients of CBIZ.
About CBIZ
CBIZ is a leading provider of financial, insurance and advisory
services to businesses throughout the United States. Financial
services include accounting, tax, government health care
consulting, transaction advisory, risk advisory, and valuation
services. Insurance services include employee benefits consulting,
retirement plan consulting, property and casualty insurance,
payroll, and human capital consulting. With more than 120 offices
in 33 states, CBIZ is one of the largest accounting and insurance
brokerage providers in the U.S. For more information, visit
www.cbiz.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240724499638/en/
Media Alex Ortiz Gregory FCA for CBIZ, Inc.
Cbiz@gregoryfca.com 610-228-2119
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