HARRISBURG, Pa., Sept. 27, 2005 (PRIMEZONE) -- Businesses want to invest in their workforce and operations, but Pennsylvania has not made it easy to do so. That's the conclusion reached in the Pennsylvania Chamber of Business and Industry's 15th Annual Economic Survey, which was unveiled today at a Capitol news conference.
"In general, Pennsylvania businesses are optimistic about the potential for future growth, but retain a heavy dose of skepticism about the current economy," said Kirk Liddell, president and CEO of Lancaster-based Irex Corporation and first vice chairman of the PA Chamber Board.
Liddell was joined at the news conference by PA Chamber Board Chairman Henry Fader, Esq., a partner in the Philadelphia office of Pepper Hamilton LLP; several area business and local chamber of commerce leaders; Senate Majority Whip Jeffrey Piccola, R-Dauphin; and state Rep. Mike Turzai, R-Allegheny.
A majority of businesses surveyed indicated that the economic situation in their community had improved over the past 12 months, and that they expected it to get better over the next 12 months. Additionally, more than half experienced increased sales over the past year, and half are expecting sales to improve over the next 12 months. Coming off a five-year low in the percentage of companies that made investments in their operations, 83 percent of this year's respondents indicate they plan to make some level of investment over the next 12 months.
"This is where the optimism ends," Liddell said. "The survey also contained several warning signs that Pennsylvania's business climate is not close to where it should be, including a significant drop in businesses that perceive Pennsylvania as business-friendly."
One of the most alarming aspects of the survey is the number of businesses that would consider leaving the state because of the business climate, which increased to four in 10, virtually tying the highest number in five years.
"When you compare that to 2001, when only 16 percent said they would consider leaving, it's obvious Pennsylvania is heading in the wrong direction," said Liddell, who noted that taxes, the business climate in general and healthcare costs were cited as the top three reasons that influence the decision to relocate outside of Pennsylvania.
Liddell and Fader said the survey clearly indicates that Pennsylvania can and must do more to create a business climate that fosters the competitiveness of Pennsylvania's job creators. They pointed to the Chamber's Agenda for Jobs -- unveiled earlier this year -- as a way to improve the Commonwealth's business climate through business tax, healthcare, labor law and legal system reforms.
"This year's survey, while revealing some good news, indicated that the issues addressed in the Agenda for Jobs are still very much on the minds of the Commonwealth's job creators," Fader said.
State lawmakers in attendance at the news conference echoed the call for enactment of pro-jobs legislation.
"People from across the Commonwealth have been telling me that they are concerned about jobs and job creation," Piccola said. "Too much time has been spent talking about jobs and too little time spent fostering a better climate for the private sector to create jobs. The time for action is now.
"Pennsylvania must take steps to improve our ability to create and maintain jobs," he added. "We need to get the Commonwealth in the job creation and retention business and out of the taxing, borrowing, and spending business."
Rep. Mike Turzai, sponsor of many pro-jobs bills in the House, added, "The bottom line for Pennsylvania is that, without employers, we will not have jobs. We need to create an environment that reduces their overhead costs. We want existing employers to stay here and expand here. And we want new businesses to start up or relocate here."
Liddell and Fader urged members of the General Assembly and the Rendell administration to act.
"We want to stand here next year and have nothing but good news to report from Pennsylvania's job creators," Liddell said.
Complete survey results, as well as additional information about the Agenda for Jobs, is available at www.pachamber.org.
The Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with more than 9,000 members covering all 67 counties. More information is available on the Chamber's website at www.pachamber.org.
The PA Chamber of Business and Industry logo is available at: http://media.primezone.com/prs/single/?pkgid=353