economic 18

welcome ROB WONDERLING, President & CEO, The Chamber of Commerce for Greater Philadelphia @ChamberPHL

economic survey results ELIF SEN, Senior Economic Analyst, Federal Reserve Bank of Philadelphia @PhiladelphiaFed

keynote speaker introduction RICHARD J. GREEN, Chairman and Chief Executive Officer, Firstrust Bank @FirstrustBank

keynote interview MICHAEL J. ANGELAKIS, Chairman and CEO, Atairos and Former Chairman of the Board, Federal Reserve Bank of Philadelphia

INTERVIEWED BY: DAVID L. COHEN, Senior Executive Vice President and Chief Diversity Officer, Comcast Corporation @comcast

panel discussion MODERATOR: TIMOTHY J. ABELL, President, Firstrust Bank

@FirstrustBank

WILLIAM P. HANKOWSKY, Chairman, CEO, and President, Liberty Property Trust

@LibPropTrust

VIJAY KUMAR, Nemirovsky Family Dean, Penn Engineering, University of Pennsylvania

@PennEngineers

DEIRDRE RUTTLE, Vice President, Strategy, InstaMed

@deirdre_ruttle @InstaMed

JANE SCACCETTI, CEO and Shareholder, Drucker & Scaccetti

@txwarr @TaxWarriors

audience participationThroughout the event please visit YORN.COM/CHAMBERPHL on your mobile device to post comments or questions for the panelists.

Friday, January 19, 2018

Registration: 7:30 – 8:00 a.m. • Breakfast & Program: 8:00 – 9:30 a.m.

economic OUTLOOK ‘18

TITLE SPONSOR: PRINT SPONSOR:

#ECONOMYPHL @CHAMBERPHL

keynote speaker

MICHAEL J. ANGELAKISChairman & Chief Executive Offi cer, Atairos

and Former Chairman of the Board, Federal Reserve Bank of Philadelphia

Michael Angelakis is the Chairman and Chief Executive O� cer of Atairos, and also serves as a Senior Advisor to the Executive Management Committee of Comcast Corporation. Prior to founding Atairos, he served as Comcast’s Vice Chairman and Chief Financial O� cer. In those roles, Mr. Angelakis was responsible for many strategic, fi nancial, administrative and other areas within the Corporation. During his tenure at Comcast, Mr. Angelakis was recognized by Institutional Investor magazine as one of “America’s Best Chief Financial O� cers” six out of eight years.

Prior to joining Comcast, Mr. Angelakis served as Managing Director and a member of the Management and Investment Committees of Providence Equity Partners, one of the leading private equity fi rms investing in technology, media and communications companies around the world. Before joining Providence, Mr. Angelakis was Chief Executive O� cer of State Cable TV Corporation and Aurora Telecommunications. He also served as Vice President at Manufacturers Hanover Trust Company in New York, where he oversaw one of the bank’s media and communications portfolios. Additionally, Mr. Angelakis spent several years in London developing Manufacturers Hanover’s acquisition fi nance and merchant banking activities throughout Western Europe.

He is the former Chairman of the Board for the Federal Reserve Bank of Philadelphia, a member of the Board of Directors of Bowlmor, Groupon, Hewlett Packard Enterprises, Learfi eld Communications, TriNet, and The Orogen Group, and a trustee of Babson College.

Mr. Angelakis is a graduate of Babson College and the Owner/President of the Management Program at the Harvard Business School.

TIMOTHY J. ABELLPresident, Firstrust Bank

As a banker, Tim Abell has been working with entrepreneurs in the Philadelphia area for more than 30 years. He is an energetic and charismatic leader who has signifi cant business and real estate lending experience. Tim was named President of Firstrust Bank in 2007, and recently appointed to its Board of Directors. Tim has helped lead the Bank’s continued growth as a full service bank that is focused on cultivating prosperity for its customers and community.

Tim is a Board Member of the Chamber of Commerce for Greater Philadelphia, Holy Redeemer Hospital, and LaSalle Academy. In 2007, he was the recipient of Variety Club’s Gold Heart Award and in 2008, he received the American Diabetes Association’s Father of the Year Award. He served as Chairperson of the 2011 American Heart Association Heart Walk Philadelphia, and previously served as President of the Philadelphia Chapter of the Risk Management Association and the United Cerebral Palsy Association of Philadelphia. He also was a Board Member for City Year Philadelphia for 10 years and was a Board member of the Pennsylvania Bankers Association for a 3-year term.

Tim earned his undergraduate degree from Indiana University and MBA from Drexel University.

DAVID L. COHENSenior Executive Vice President and Chief Diversity Offi cer, Comcast Corporation

David has a broad portfolio of responsibilities, including corporate communications, government and regulatory aff airs, public aff airs, legal aff airs, corporate administration, and community investment. He also serves as senior counselor to the CEO. Before joining Comcast, David served as a partner in and Chairman of Ballard Spahr Andrews & Ingersoll, LLP, one

of the 100 largest law fi rms in the country. A native of New York, David graduated from Swarthmore College in 1977 with a B.A. and with a J.D. from the University of Pennsylvania Law School (summa cum laude) in 1981. From January 1992 to April 1997, David served as Chief of Staff to the Honorable Edward G. Rendell, the Mayor of the City of Philadelphia.

David serves as Chairman of the Trustees of the University of Pennsylvania and its Executive Committee. David also serves as a member of the Trustee Board and the Executive Committee of Penn Medicine. In addition, David serves on both the Board of Directors and the Executive Committee of the Chamber of Commerce for Greater Philadelphia, as well as Co-Chair of the Roadmap for Growth Action Team, is a member of the Chamber’s CEO Council for Growth, and serves as honorary chair of Campus Philly’s board of directors. David serves as Vice Chair of the national board of City Year and is Chair of its Governance Committee and a member of the Executive Committee. He also serves on the

national board of the National Urban League and is Chair of its Audit Committee and Chair of the Corporate Advisory Board of the National Council of La Raza. David lives in Philadelphia with his wife and their two sons.

RICHARD J. GREENChairman and Chief Executive Offi cer, Firstrust Bank

Richard J. Green, the grandson of founder Samuel A. Green, joined Firstrust Bank in 1978 as General Counsel. In 1986, he joined the Bank’s Board of Directors, became President and CEO in 1995, and Board Chairman in 2015. As Firstrust’s Chairman and CEO, his primary responsibility is overseeing the overall strategic direction of the company. During his tenure at the helm of Firstrust, its assets have grown to $3.1 billion and is considered one of the strongest, best capitalized banks in the country.

Richard currently serves on the Board of Trustees of The Franklin Institute, the Board of Trustees of Penn Medicine, the Board of Trustees of the Jewish Federation of Greater Philadelphia, and the Executive Board of Federation Housing, Inc.

In 2017, Richard was selected as Drexel LeBow’s Business Leader of the Year. In 2015, Richard was named one of the Most Admired CEOs by the Philadelphia Business Journal and received the Distinguished Alumni Award from his alma mater, The Haverford School.

Prior Board a� liations include his appointment, in 2009, by the Chairman of the Federal Reserve Board, to its Community Depository Institutions Advisory Council (“CDIAC”) for a three-year term, and served as Chairman of the Federal Reserve District of Philadelphia CDIAC from 2011-2012. Richard also served on the Board of Trustees of Lehigh Valley Health Network where he was on the Executive Committee and Chaired the Finance Committee from 1997 to 2011, as well as the Board of Trustees of the Haverford School from 2010 to 2014. Richard has been a limited partner in the NFL Philadelphia Eagles Football Team since 1994.

Richard earned his B.A. from Tufts University, his M.B.A. from the Wharton School at the University of Pennsylvania and attended SMU and the University of Pennsylvania Schools of Law. He is a member of the Philadelphia, Pennsylvania and American Bar Associations. He is also a Sustaining Member of the Zell-Lurie Real Estate Center at Wharton School of University of Pennsylvania.

WILLIAM P. HANKOWSKYChairman, President, and CEO, Liberty Property Trust

Mr. Hankowsky joined Liberty in January of 2001 as chief investment o� cer, responsible for refi ning the company’s corporate strategy and investment process. In 2002 he was named president, and in 2003 he was appointed chief executive o� cer and elected chairman of Liberty’s board of trustees. Under his leadership Liberty has become the nation’s leading commercial developer of high performance

speaker biographies

green buildings, earning an unparalleled series of national awards. Prior to joining Liberty, Mr. Hankowsky served in a number of private-sector and public-service roles. He created the Camden, New Jersey Community and Economic Development Agency and directed the agency for eight years. He then served in real estate management positions for the Amtrak and Reading rail corporations, before joining the Philadelphia Industrial Development Corporation, one of the premier public development agencies in the nation, where he served for 11 years as president. During a two-year hiatus from the PIDC, Mr. Hankowsky also served as the city of Philadelphia’s commerce director. With his extensive experience in both the public and private real estate sectors he is a frequent speaker at real estate conferences and has been featured in The Wall St. Journal, Christian Science Monitor, Real Estate Portfolio, Commercial Property News and Development Magazine, among other media outlets. Mr. Hankowsky currently serves on the boards of Aqua America Inc., Citizens Financial Group Inc., Delaware River Waterfront Corporation, Greater Philadelphia Chamber of Commerce, National Association of Real Estate Investment Trusts (NAREIT), Pennsylvania Academy of the Fine Arts, Philadelphia Convention and Visitors Bureau, Philadelphia Shipyard Development Corporation, and United Way of Greater Philadelphia and Southern New Jersey. Mr. Hankowsky received a Bachelor of Arts degree in economics from Brown University.

VIJAY KUMARNemirovsky Family Dean, Penn Engineering, University of Pennsylvania

Vijay Kumar is the Nemirovsky Family Dean of Penn Engineering with appointments in the Departments of Mechanical Engineering and Applied Mechanics, Computer and Information Science, and Electrical and Systems Engineering at the University of Pennsylvania. Since joining the faculty in 1987 he has served Penn Engineering in many capacities, including Deputy Dean for Research, Deputy Dean for Education, Chairman of the Department of Mechanical Engineering and Applied Mechanics and Director of the GRASP Laboratory, a multidisciplinary robotics and perception laboratory. Dr. Kumar has served as the assistant director of robotics and cyber physical systems at the White House O� ce of Science and Technology Policy (2012 – 2013). He received his Bachelor of Technology degree from the Indian Institute of Technology, Kanpur and his Ph.D. from The Ohio State University in 1987. Dr. Kumar maintains an active research portfolio with interests in robotics, specifi cally multi-robot systems, and micro aerial vehicles. Detailed information on his research portfolio is available at www.kumarrobotics.org. He is a Fellow of the American Society of Mechanical Engineers (2003), a Fellow of the Institute of Electrical and Electronic Engineers (2005) and a member of the National Academy of Engineering (2013). Dr. Kumar is also the recipient of the

1991 National Science Foundation Presidential Young Investigator award, the 1996 Lindback Award for Distinguished Teaching (University of Pennsylvania), the 1997 Freudenstein Award for signifi cant accomplishments in mechanisms and robotics, the 2012 ASME Mechanisms and Robotics Award, the 2012 IEEE Robotics and Automation Society Distinguished Service Award, a 2012 World Technology Network Award, a 2013 Popular Mechanics Breakthrough award, a 2014 Engelberger Robotics Award and the 2017 IEEE Robotics and Automation Society George Saridis Leadership Award in Robotics and Automation. Dr. Kumar’s work has been featured in multiple venues, including three TED talks with over 5 million views on Ted.com and YouTube, one of which is on Bill Gates’ playlist of 13 favorite talks

DEIRDRE RUTTLEVice President, Strategy, InstaMed

Deirdre is the Vice President of Strategy at InstaMed, a healthcare payments network connecting providers, payers and consumers. In this role, Deirdre oversees InstaMed’s corporate brand and thought leadership including the publication of the industry-leading Trends in Healthcare Payments Annual Report. She also focuses her time on people development throughout the organization. Deirdre co-chairs GROW, InstaMed’s Women’s Group. Prior to her current role, she held leadership positions in Marketing and Product Management at InstaMed. She worked closely with some of the country’s largest payers to roll out healthcare payment solutions for both B2B and C2B payments. Before joining InstaMed, Deirdre held senior marketing roles at alphabroder and Collages.net, where she led marketing strategy to drive usage of B2B and B2C e-commerce platforms. Deirdre graduated from the College of the Holy Cross with a Bachelor of Arts in English.

JANE SCACCETTICEO and Shareholder, Drucker & Scaccetti

A lifelong Philadelphian, Jane Scaccetti has been a practicing CPA since 1977. She has extensive experience in tax and fi nancial services for the family-owned and entrepreneurially driven business. Jane consults with public and privately owned companies and provides fi nancial counseling to both corporate and individuals. In 1987, while a partner in the national accounting fi rm of Laventhol & Horwath, Jane became the fi rst woman tax partner of any Big Eight fi rm in Philadelphia. In 1990, she was a founding shareholder of D&S. As CEO, she leads over 80 employees plus two active a� liates and related business operations. She is responsible for strategic initiatives, business development and professional career development while continuing to service complex family-owned and closely-held businesses. She is a member of the American and Pennsylvania Institutes of Certifi ed Public Accountants. Jane’s civic and community service includes serving as a trustee of Temple University and a trustee of Salus University. She

served as chair of the board of Temple University Health System for 5 years from 2008-2013 and continues as a member of the Board of Directors. Jane is also the current chair of the board at Temple University Hospital. Starting in 2018, Jane will be a board member of the Philadelphia Center City District Foundation. Jane is a board member of Penn National Gaming, Inc. (NASDAQ: PENN), Myers International (NYSE: MYE) and Mathematica Policy Research. Previously, Jane was a member of the board of The Pep Boys (NYSE:PBY) from 2002-2016. Jane is active in civic matters as a member of the Philadelphia 2016 DNC Host Committee, Mayor Rendell’s 1992 Transition Team, and the Committee for Judicial and U.S. Attorney Nominations for the Eastern District of PA (1993-95). From 1990-92, She was a full-time professor at Temple University, teaching taxation in the master’s program and managerial accounting as part of the undergraduate curriculum. Jane is the fi rst woman regular host of Money Matters TV, a locally produced fi nancial-focused program. Among many awards and distinction, in 2017, Accounting Today recognized Jane nationally as an Elite Managing Partner. Also in 2017, Ms. Scaccetti was selected as one of 20 Most Admired CEO’s in Philadelphia by the Philadelphia Business Journal.

ELIF SENSenior Economic Analyst, Federal Reserve Bank of Philadelphia

Elif Sen is a senior economic analyst in the Research Department of the Federal Reserve Bank of Philadelphia. She analyzes regional data for the Bank’s Third District, which includes eastern Pennsylvania, southern New Jersey, and Delaware; these analyses are released on the Bank’s website. Elif also developed the monthly State Unemployment Rate Nowcasts, which predict the current month’s unemployment rate for the Third District states.

Elif joined the Bank in 2006. She has a bachelor’s degree in economics with a concentration in mathematical economics from Haverford College in Haverford, PA; earned a master’s degree in urban spatial analytics from the University of Pennsylvania; and completed the Bank’s Financial Business Management Certifi cate Program at Temple University’s Fox School of Business.

* The views expressed today are my own and not necessarily those of the Federal Reserve Bank of Philadelphia or the Federal Reserve System.

Economic OutlookSurvey Results

JANUARY 19, 2018

Elif Sen*

ECONOMIC OUTLOOK SURVEYRespondent Distribution

• Conducted from Nov. 29 to Dec. 13, 2017

• Other category includes Information; Construction, Natural Resources, and Logging; Government; and Other Services sectors.

PROFESSIONAL & BUSINESS SERVICES

EDUCATION & HEALTH SERVICES

FINANCIAL ACTIVITIES

TRADE, TRANSPORTATION, & UTILITIES

MANUFACTURING

LEISURE & HOSPITALITY

OTHER

SURVEY RESPONDENTS

0% 5% 10% 15% 20% 25% 30% 35% 40%

• Conducted from Nov. 29 to Dec. 13, 2017

• Other category includes Information; Construction, Natural Resources, and Logging; Government; and Other Services sectors.

ECONOMIC OUTLOOK SURVEYRespondent Distribution

PROFESSIONAL & BUSINESS SERVICES

EDUCATION & HEALTH SERVICES

FINANCIAL ACTIVITIES

TRADE, TRANSPORTATION, & UTILITIES

MANUFACTURING

LEISURE & HOSPITALITY

OTHER

SURVEY RESPONDENTS

PHILA. MSA EMPLOYMENT SHARE

0% 5% 10% 15% 20% 25% 30% 35% 40%

Sources: Survey results; Bureau of Labor Statistics

2017 compared with 2016

diff usion index

38.7

DIFFUSION INDEXWhat is your assessment of changes in business conditions for

your company?

SIGNIFICANTLY LOWER

SLIGHTLY LOWER SAME SLIGHTLY HIGHERSIGNIFICANTLY

HIGHER

5.6% 14.5% 16.1% 43.5% 15.3%

2010

3.0

2.5

2.0

1.5

1.0

0.5

0.0

Q4

/Q4

PE

RC

EN

T C

HA

NG

E

2011 2012 2013 2014 2015 2016 2017(forecast)

2018(forecast)

REAL GROSS DOMESTIC PRODUCT(U. S.)

Source: Bureau of Economic Analysis via Haver Analytics, FOMC Summary of Economic Projections – Dec. 13, 2017

2010

60

70

50

40

30

20

10

0

DIF

FUSI

ON

IND

EX

2011 2012 2013 2014 2015 2016 2017 2018(forecast)

SURVEY RESPONSEBusiness Activity

ACTIVITY AT COMPANY

ACTIVITY IN REGION

Source: Survey Results

Source: Institute for Supply Management (ISM) via Haver Analytics

2010

60

62

64

58

56

54

52

50

IND

EX

(+5

0 IS

INC

RE

ASI

NG

)

2011 2012 2013 2014 2015 2016 2017

ISM NONMANUFACTURING

ISM MANUFACTURING

NEW ORDERS(U. S.)

2010

60

70

50

40

30

20

10

0

DIF

FUSI

ON

IND

EX

2011 2012 2013 2014 2015 2016 2017 2018(forecast)

SURVEY RESPONSENew Orders and Sales

NEW ORDERS

SALES/REVENUE


Sources: Bureau of Economic Analysis via Haver Analytics; Federal Reserve Bank of Philadelphia Fourth Quarter 2017 Survey of Professional Forecasters

NONRESIDENTIAL INVESTMENT(U. S.)

2010

10

8

9

7

6

5

4

2

3

0

1

Q4

/Q4

PE

RC

EN

T C

HA

NG

E

2011 2012 2013 2014 2015 2016 2017(forecast)

2018(forecast)

2010

30

45

35

50

25

40

20

15

10

5

0

DIF

FUSI

ON

IND

EX

2011 2012 2013 2014 2015 2016 2017 2018(forecast)

SURVEY RESPONSECapital Expenditures

PHYSICAL PLANT

EQUIPMENT & SOFTWARE


Source: Bureau of Labor Statistics via Haver Analytics

NONFARM JOB GROWTH(U. S.)

300

250

200

150

100

50

0AV

ER

AG

E M

ON

THLY

NU

MB

ER

OF

JOB

S (T

HO

USA

ND

S)

2010 2011 2012 2013 2014 2015 2016 2017

SURVEY RESPONSEHiring

NO. OF FULL-TIME EMPLOYEES

NO. OF PART-TIME, TEMPORARY, & CONTRACT EMPLOYEES

2010

40

30

20

10

0

-10

DIF

FUSI

ON

IND

EX

2011 2012 2013 2014 2015 2016 2017 2018(forecast)


2008 2010 2012 2014 2016 2018

10

12

8

6

4

2

0

Source: Bureau of Labor Statistics via Haver AnalyticsLast month plotted: December 2017 for U.S. and November 2017 for

Philadelphia-Camden-Wilmington Metropolitan Statistical Area (MSA)

U.S.

PHILA. MSA

PE

RC

EN

T, S

EA

SON

ALL

Y A

DJU

STE

D

UNEMPLOYMENTNational & Regional

Government Regulation

Poor Sales

Labor Costs — Benefi ts

Taxes

Other (Write-In)

Financing and Interest Rates

Cost of Raw Materials

Competition — Foreign

0% 30%10% 40%20% 50%

BIGGEST PROBLEMS FACINGCHAMBER MEMBERS FOR 2018

Competition — Domestic

Labor Costs — Quality

Labor Costs — Wages


MOST IMPORTANT SECOND-MOST IMPORTANT THIRD-MOST IMPORTANT

2010 2011 2012 2013 2014 2015 2016 2017

100

80

60

40

20

0

Source: Federal Reserve Bank of PhiladelphiaLast month plotted: December 2017

CHANGE IN ACTIVITY OVER THE NEXT 6 MONTHS

PHILADELPHIA FED MONTHLY BUSINESS OUTLOOK SURVEYS

DIF

FUSI

ON

IND

EX

MANUFACTURING

NONMANUFACTURING

MANUFACTURING BUSINESS OUTLOOK SURVEY

NONMANUFACTURING BUSINESS OUTLOOK SURVEY

EMAIL US AT [email protected]

FOLLOW US ON TWITTER

@philadelphiafed@philfedresearch

LIKE US ON FACEBOOK

Elif SenSENIOR ECONOMIC [email protected]

Michael TrebingSENIOR ECONOMIC [email protected]

Michael BoldinSENIOR ECONOMIC [email protected]

Contact Information

To participate in our surveys:

SIGNIFICANTLY LOWER

SLIGHTLY LOWER SAME SLIGHTLY

HIGHERSIGNIFICANTLY

HIGHERNOT

APPLICABLE NO

RESPONSEDIFFUSION

INDEX

A: What is the assessment of changes in business conditions? (General Activity)

1. For the REGION

2017 compared with 2016 3.2% 10.5% 18.5% 53.2% 5.6% 2.4% 6.5% 45.2

2018 compared with 2017 2.4% 8.9% 26.6% 45.2% 7.3% 1.6% 8.1% 41.1

2. For your COMPANY

2017 compared with 2016 5.6% 14.5% 16.1% 43.5% 15.3% 1.6% 3.2% 38.7

2018 compared with 2017 3.2% 7.3% 25.0% 38.7% 18.5% 0.0% 7.3% 46.8

B. Specifi c Company Performance Measures

1. New Orders

2017 compared with 2016 3.2% 15.3% 15.3% 29.0% 10.5% 16.9% 9.7% 21.0

2018 compared with 2017 1.6% 7.3% 16.1% 30.6% 16.1% 14.5% 13.7% 37.9

2. Sales or Revenues

2017 compared with 2016 8.1% 17.7% 12.9% 39.5% 15.3% 4.0% 2.4% 29.0

2018 compared with 2017 2.4% 10.5% 16.1% 47.6% 15.3% 2.4% 5.6% 50.0

3. Unfi lled Orders

2017 compared with 2016 0.8% 1.6% 16.1% 4.0% 0.8% 48.4% 28.2% 2.4

2018 compared with 2017 0.8% 2.4% 14.5% 2.4% 0.8% 46.0% 33.1% 0.0

4. Inventories (Finished Goods or Goods for Sale)

2017 compared with 2016 0.0% 8.9% 14.5% 4.8% 1.6% 45.2% 25.0% -2.4

2018 compared with 2017 0.0% 1.6% 17.7% 7.3% 0.8% 44.4% 28.2% 6.5

5. Prices Paid

2017 compared with 2016 0.8% 1.6% 35.5% 41.1% 4.0% 9.7% 7.3% 42.7

2018 compared with 2017 0.8% 3.2% 26.6% 46.0% 3.2% 8.9% 11.3% 45.2

6. Prices Received

2017 compared with 2016 2.4% 4.0% 37.1% 36.3% 0.8% 12.1% 7.3% 30.6

2018 compared with 2017 1.6% 6.5% 24.2% 43.5% 1.6% 10.5% 12.1% 37.1

7. Number of Employees — Full-time Permanent

2017 compared with 2016 4.0% 19.4% 30.6% 33.1% 5.6% 1.6% 5.6% 15.3

2018 compared with 2017 0.0% 12.1% 30.6% 39.5% 7.3% 0.0% 10.5% 34.7

8. Number of Employees — Part-Time, Temporary, and Contract

2017 compared with 2016 1.6% 10.5% 45.2% 32.3% 3.2% 5.6% 1.6% 23.4

2018 compared with 2017 0.8% 9.7% 40.3% 34.7% 3.2% 4.8% 6.5% 27.4

APPENDIXSurvey Results

MOST IMPORTANT PROBLEM

SECOND-MOST IMPORTANT PROBLEM

THIRD-MOST IMPORTANT PROBLEM TOTAL

C: What are the three most important problems your business is facing at this time?

Competition — domestic 13.7% 23.4% 8.9% 46.0%

Labor — quality 16.1% 16.1% 12.1% 44.4%

Labor costs — wages 10.5% 14.5% 16.1% 41.1%

Labor costs — benefi ts 12.9% 8.9% 14.5% 36.3%

No response 3.2% 7.3% 17.7% 28.2%

Government regulation 9.7% 8.9% 7.3% 25.8%

Poor sales 16.9% 4.0% 0.8% 21.8%

Taxes 6.5% 4.0% 9.7% 20.2%

Other (write-in) 8.1% 4.8% 1.6% 14.5%

Financing and interest rates 0.8% 3.2% 4.8% 8.9%

Cost of raw materials 1.6% 2.4% 3.2% 7.3%

Competition — foreign 0.0% 2.4% 3.2% 5.6%

APPENDIXSurvey Results

SIGNIFICANTLY LOWER

SLIGHTLY LOWER SAME SLIGHTLY

HIGHERSIGNIFICANTLY

HIGHERNOT

APPLICABLE NO

RESPONSEDIFFUSION

INDEX

9. Average Hours Worked Per Week

2017 compared with 2016 0.0% 2.4% 58.1% 26.6% 6.5% 3.2% 3.2% 30.6

2018 compared with 2017 0.0% 3.2% 53.2% 29.0% 5.6% 1.6% 7.3% 31.5

10. Wage and Benefi t Costs

2017 compared with 2016 0.0% 3.2% 22.6% 62.9% 8.1% 1.6% 1.6% 67.7

2018 compared with 2017 0.0% 2.4% 20.2% 58.1% 12.9% 0.0% 6.5% 68.5

11. Capital Expenditures — Physical Plant

2017 compared with 2016 0.8% 3.2% 38.7% 27.4% 5.6% 15.3% 8.9% 29.0

2018 compared with 2017 2.4% 7.3% 27.4% 23.4% 11.3% 13.7% 14.5% 25.0

12. Capital Expenditures — Equipment and Software

2017 compared with 2016 0.8% 1.6% 39.5% 37.1% 7.3% 4.8% 8.9% 41.9

2018 compared with 2017 0.8% 2.4% 37.9% 33.9% 8.1% 4.0% 12.9% 38.7

economic 18

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