In a recent statewide survey of 609 small to medium sized businesses, respondents to the latest Michigan Future Business Index (MFBI) survey indicated while businesses are seeing a rebound in sales and profits compared to the June survey, talent shortages, supply chain challenges, and inflation are creating uncertainty for future projects. While past surveys revealed that talent acquisition challenges stemmed primarily from a lack of qualified candidates applying for open positions, most respondents now say they are having difficulty attracting any applicants, whether qualified or not.
The semi-annual MFBI was commissioned by the Michigan Business Network and Cinnaire and is conducted by the Michigan-based market research firm, ROI Insight. Chris Holman, Michigan Business Network CEO, and leaders from the Michigan Economic Development Corporation (MEDC) shared the survey results in a forum today.
“The survey provides an opportunity for leaders throughout Michigan to share their perspective on the current economic outlook in our state,” said Mark McDaniel, Cinnaire President and CEO. “The information collected is critical to supporting the future success of business in Michigan, providing data for policy makers, community leaders, and advocates to better understand current challenges businesses are facing. We are pleased to join the Michigan Business Network and the MEDC to share the results during the 10th Annual Mid-Michigan Economic Forecast Breakfast held in Lansing, MI.”
The survey found that wage inflation continues to provide a drag on profits. Businesses continue to warm to the idea of providing remote work opportunities, especially in the white-collar sectors. More are also considering vaccine requirements, though most still say they will not require employees to get the COVID-19 vaccine.
Additional findings include:
- Satisfaction with the economy has stalled since June.
- While sales and profits have rebounded since June, optimism for future sales and profits has softened as business owners navigate labor shortages, supply chain challenges, wage inflation and overall inflation.
- Even as employers continue to increase wages at record levels, they are still experiencing significant challenges with attracting applicants for open positions.
- Price inflation for goods and services continues to cause increased anxiety, as seven in ten small business owners consider it a significant concern now.
- While a strong majority still believe Michigan is a great place to do business, this survey shows a slight softening of positive perceptions since June.
For more details, data, and graphs covering the results of the latest MFBI, please click here.
About the Michigan Business Network
As a leading voice for small businesses in Michigan, the Michigan Business Network (MBN) believes the people making decisions need to hear how your business is doing. MBN is an information provider seeking to help grow and develop Michigan’s economic community. https://www.michiganbusinessnetwork.com