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Local businesses upbeat about 2008
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Despite rising energy prices and ongoing global uncertainty, local businesses are cautiously optimistic about the national economy in 2008. That’s according to a new Valleywide business economic forecast by the law firm of Baird Williams & Greer.
The survey was distributed to members of the Scottsdale, Tempe and Southwest Valley chambers of commerce.
“Regardless of the concerns people have about the general economy, the results reflect people themselves are very optimistic about their own businesses,” said J. Ernest Baird, the firm’s managing partner.
While 49 percent of respondents are uncertain about the world’s economy in an election year, 82 percent plan to hire and 92 percent estimate a higher revenue growth rate.
Other findings include:
• 53 percent of businesses are not expecting to expand next year.
• 62 percent aren’t planning new capital investments, while 36 percent are during or after the first quarter.
“I do believe that the entire business community … is looking at this economy right now with a certain degree of caution,” said Rick Kidder, president and CEO of the Scottsdale chamber.
“Moving into a presidential election cycle … we have an open field and nobody really knows what’s going to happen with economic policy.”
When asked what political issues have the most significant impact on their business, 32 percent said freeways and transportation, 28 percent said metropolitan expansion and zoning, and 23 percent said immigration and worker documentation.
Arizona’s population growth will make it less susceptible to economic downturn next year, Kidder said.
“One of our fundamental strengths and fundamental weaknesses at the same time is we are still a dirt-based economy,” he said. “We’re still very dependent on what happens with real estate, but the upside is people are still deciding to move here.”
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