2012 Survey of Connecticut Businesses

11th annual survey Broad-based business survey including the

following topics: business and economic conditions, workforce, risk management and public policy

Conducted in late May and early June 2012 580 responses +/- 4.15% margin of error

2

About the Survey

3

Privately held - 46%

Family owned - 41%

Incorporated - 39%Limited Liability Corporations - 17%

Minority owned - 8%

Publicly held - 3%

Foreign owned - 1%

About the Survey Respondents

Business Profitability2008 - 2012

Profitability

4

Hig

hly

educ

ated

wor

kfor

ce

Pro

xim

ity to

cus

tom

ers

and

maj

or m

arke

ts

Tran

spor

tatio

n in

frast

ruc-

ture Q

ualit

y of

life

Oth

er

0%

20%

40%

60%

Connecticut’s Greatest Assets for Businesses

5

Excell

ent

Good

Averag

eFair

Poor

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

CurrentlyEnd of 2012End of 2013

Business Conditions

Current and anticipated conditions for Connecticut businesses

6

New Product Development

Companies adding a new product or service

7

8

Very optimistic 2%

Somewhat op-timistic 16%

Unsure 22%

Somewhat pessimistic

30%

Very pessimistic 29%

Optimism on CT’s Economy Over Next Five Years

Opinions about Connecticut’s ability to overcome problems and have a vibrant economy over the next five years

9

Top Business Concerns

26%

52%

11%

10%

Negative impact on organization?

25%

36%

13%

27%

Negative impact on your or-ganization adding new em-

ployees?

Yes, significantly

Yes, somewhat

Not sure

No

Impact of 2011 Tax Increases

10

Ver

y po

sitiv

e

Som

ewha

t pos

itive

Nei

ther

pos

itive

nor

neg

ativ

e

Som

ewha

t neg

ativ

e

Ver

y ne

gativ

e0%10%20%30%40%50%

Opinion of CT as a Place to Operate a Business

11

Approached by Other StatesAbout Moving or Expanding

Has your company been approached by other states about moving or expanding to their state within the last five years?

Top Five States:1. Virginia2. North Carolina3. Florida4. South Carolina5. Massachusetts

No 71%

Yes, within last year 20%

Yes, within last 2-5 years

9%12

Yes31%

No69%

Moving or Expanding

Companies considering moving or expanding to another state within the next five years

13

Companies hiring full-time non-replacement employees

Potential to Add Employees

14

Retirement Outlook

15

Positive signs that businesses in our state are becoming profitable again

Overall sentiment about Connecticut as a place to do business is still very negative

Our businesses are being aggressively pursued by other states

Our elected officials need to focus more than ever on legislation focused on attracting and retaining business and creating a positive business image for our state

Summary

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Thank you