A recent survey commissioned by the Anchorage Economic Development Corporation reveals businesses have less confidence in the area’s economy than in previous years.  In general, business confidence is down to levels reported in 2010, with fewer than 37% of businesses expecting the 2015 Anchorage economy to be better than 2014.  While confidence in the economy may be down, 63% of those surveyed expect to see an increase in net profits for the year.

One of the more significant findings from the survey is that more businesses are showing support for the implementation of a municipal sales tax to help defray taxes paid by businesses.  60% of respondents indicated they favor a municipal sales tax if it offsets both business and residential property taxes, compared to 58% that supported the idea last year.

Consistent with recent economic projections and announcements regarding slowed growth in the oil and gas industry, businesses see the condition of the state economy as the primary barrier to business growth.  Other barriers included availability of a professional/technical workforce, condition of the national economy, cost of health insurance, and the cost of labor.

While the signs may be pointing to more difficult times ahead for businesses, being proactive is the best way for businesses to stay ahead of downward trends.  By actively revising your marketing strategy and expanding your thinking on who may be a potential customer, you can have greater success in leading your business through temporary turns in the economy.

Join participants at the PTAC Government Contracting Conference: Government Contracting On the Alaskan Horizon, which will be held on April 2, at the Anchorage Downtown Marriott, for more insight on the state’s economic forecast and tips on how to help your business weather a potential economic downturn. Register for the conference today.