Officials with the Kaua’i County Office of Economic Development released results of a survey of local businesses last week that indicates confidence in the continued strong performance of Kaua’i’s economy. “I’m pleased to see that so many of our businesses
Officials with the Kaua’i County Office of Economic Development released results of a survey of local businesses last week that indicates confidence in the continued strong performance of Kaua’i’s economy.
“I’m pleased to see that so many of our businesses are experiencing success, and that they expect that success to continue,” said Mayor Bryan J. Baptiste.
The Kauai Business Conditions Survey report, compiled by Byron Ganges, an associate professor of economics and Hawai’i group director of the University of Hawai’i Economic Research Organization (UHERO), only had 39 participants.
Of those who answered, however, almost 70 percent of those reported an improvement in overall economic conditions, as well as conditions within their own industry, said Ganges.
“Kaua’i’s economic conditions have improved markedly over the past six months, and even better times are on the way,” said Ganges. “This is the view expressed by 39 participants in the most recent Kauai Business Conditions Survey.”
Fewer than 10 percent say conditions have worsened, said Ganges. Firms were equally optimistic about prospects for the next six months, with 68 percent saying general business activity on Kaua’i will rise, 32 percent seeing unchanged conditions, and no respondents expecting lower economic activity, he added.
The Kauai Business Conditions Survey is conducted for the County of Kaua’i by UHERO. Surveyed firms are asked to gauge whether various economic indicators are higher, lower or unchanged compared with six months ago.
They are also asked to evaluate these same indicators over the next six months. The economic indicators include: the general level of business activity; business activity in the respondent’s industry; and profits, sales, number of employees and prices in the individual’s business, said Ganges.
Company leaders participate via local business organizations, or via the Internet.
Respondents may not represent a statistically random sample of all Kaua’i businesses, he added.
The Kaua’i firms responding to this survey appear to be more upbeat about economic prospects than other firms statewide as reported by Bank of Hawaii officials in late summer, he said.
The Bankoh survey reported that 35 percent of leaders of firms surveyed expected improvement in the statewide economy, while 41 percent expected improvement in their particular industry, said Ganges. About the same proportion (44 percent) expect no change over the next year.
The more-positive numbers for Kaua’i may reflect the healthier tourism economy on the island, which is not reliant on the still-struggling Japanese market, and the island’s buoyant construction sector, said Ganges.
UHERO does not currently conduct business-outlook surveys beyond Kaua’i, and the small sample suggests caution in comparing results, he added.
“It appears that the optimism that firms expressed in our last survey back in April is now showing up in measurable gains at the firm level,” said Ganges.
“More than half of surveyed firms report an increase in both sales and profits compared with six months ago, and nearly 40 percent now report they are getting higher product prices.”
Although the economy is getting stronger, it still appears that Kaua’i’s job market is growing slower than the rest of the economy.
“The labor market continues to stand out as an area of relative weakness, with only 21 percent of firms reporting higher employment or plans for hiring in coming months,” said Ganges.
For more details, go to http://www.uherosurveys.hawaii.edu. UHERO’s privacy policy ensures that the identity of individuals participating in UHERO surveys will not be disclosed in any manner, said Ganges.
