The Iowa City Area Chamber of Commerce recently
surveyed its members to determine attitudes towards current economic conditions.
Survey results indicate that while 69 percent of members who responded to the
e-mail survey view the national economy as weakening, more than 59 percent
perceive the local economy as very strong, strong or moderately strong.
Thirty-four percent of members specified that
energy prices would impact their business most during the next six months. Other
forces noted were an increase in raw material costs (25 percent) and property
taxes (24 percent).
"The results will assist us in
identifying strategies best aligned with the needs of our members,” said Nancy Quellhorst, Iowa City Area Chamber of
Commerce President and CEO. “We will take advantage of the most relevant
legislative opportunities and cost-saving initiatives, which we hope will abate
the challenges presented by the weakening economy."
The survey, sent out earlier this month, is based
on 112 responses, or about 11 percent response rate of the chamber's
membership. Sixty-four percent of respondents are small businesses with less
than 50 employees.
The majority (48
percent) of survey members predicted that their company’s capital spending
would decrease during the next 6 months to one year due to economic challenges.
While members may postpone capital spending, 76 percent responded that the
ability to obtain credit for their business is about the same compared to last
year.
Despite an
anticipated decrease and/or delay in capital spending, 24 percent of members were
“somewhat confident” in their company’s ability to grow in the Iowa City Area
during the next six months.
Employee retention
ranked high among respondents, with 62 percent forecasting retention of current
employee levels during the next six months.
The chamber survey
also found that 41 percent of respondents anticipate an increase in company
reserves for 2008.
The Iowa
City Area Chamber of Commerce, on behalf of more than 1,000 members, actively
fosters a better business environment through community and economic
development, member services and public policy advocacy.