A survey funded by the by Accident Fund Insurance Company of America and the Michigan Business Network shows that most leaders of small-to mid-sized businesses in the state continue to be wary about the economy.
The latest Michigan Future Business Index (MFBI) data show that while satisfaction with the Michigan economy has slightly improved since last May, it lags significantly behind record levels of satisfaction at this time last year.
Twenty-eight percent of statewide business leaders representing small- to mid-sized businesses are satisfied with the current overall economy in Michigan, somewhat better than the record low of 11 percent in May.
Before COVID-19, more than 82 percent of last December’s MFBI respondents indicated satisfaction with the economy in Michigan.
The percentage of businesses describing their performance as “pretty good” or “excellent” rebounded to 27 percent after plummeting from 81 percent before the pandemic to eight percent in May.
A little over half (52 percent) said they were optimistic about business after COVID-19, up from 39 percent in May. Those expressing optimism pin their hopes on loyal customers and pent-up demand. The 31 percent who are pessimistic about getting back to normal cite the loss of customers as the top concern followed by government overreach and regulation.
Nearly two-thirds (64 percent) say they have not laid off any employees and more than eight in ten (82 percent) say they have not cut wages. Respondents cite their ability to adapt and to have more employees work remotely as the main contributors to saving jobs. Additionally, more than eight in ten say they have been able to maintain or improve employee benefits.
Finally, respondents indicated that sales decreased (70 percent), profits decreased (64 percent) and cash flow decreased (64 percent).
Review a detailed summary of the December 2020 Michigan Future Business Index at: MichiganBusinessNetwork.com.
The semi-annual Michigan Future Business Index has been commissioned by Accident Fund Insurance Company of America and the Michigan Business Network since 2006 and is conducted by the Michigan-based market research firm, ROI Insight. A total of 600 Michigan business executives from companies with 500 or fewer employees were interviewed from Nov. 5 to Dec. 2, 2020 via the web for the December 2020 survey.
Source: Accident Fund Insurance Company of America
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