Survey of Upstate New York Business Leaders

1. Survey of Upstate New York Business Leaders Dr. Don Levy April 16, 2014 www.siena.edu/sri

2. Siena Research Institute Political Economic Client Social and Cultural

3. Political Polls: Statewide Issues Politicians* 58% 34% Statewide Issues 63% 32% 40% 42% Gun Control* Hydrofracking* 56% 40% 43% 53% *Siena Political Poll Mar 2014 **Siena Political Poll Feb 2014 ***Siena Political Poll Oct 2013 Recreational Marijuana** Casino Gambling*** Right Track/Wrong Direction* 46% 43%

4. Economic Polls: Indicators Index of Consumer Sentiment Upstate Business Leader Sentiment Consumer Real Estate Sentiment

5. Social and Cultural Polls Civic Health Quality of Life Health: Tobacco and Public Health Issues Leisure Time Technology

6. Client Services

7. Index of Consumer Sentiment

8. Consumer Sentiment: Buying Plans Cars/Trucks Electronics* *In July 2013, the wording was changed from “computer” to “consumer electronics like a personal computer, cell phone, television or tablet. Furniture

9. Home Buying/Improvement Plans

10. Consumer Real Estate Sentiment

11. Economic Polls: Trends Gas and Food Holiday Budgets 2007 – 2013 Holiday Spending Is government more of the problem or more of the solution when it comes to the economic issues? Recession Effects Don’t Know 13% Solution 23% 64% Problem

12. Fiscal Condition of New York State

13. Attitudes Towards Taxes and Education Thinking about those five issues which do you think should be the MOST important item on Governor Cuomo's 'to do' list? Working to improve public education 28% Improving the state's economic climate 25% Reducing the state's tax burden on middle class families 25% Ensuring New York is prepared for future natural disasters 4% Eliminating corruption in state government 15% Siena NY Poll November 2013

14. Public vs. CEO View: Making NY Business Friendly Thinking specifically about New York and the relationship between the state government and businesses like yours, overall would you say the government of the State of New York is doing an excellent, good, fair or poor job of creating a business climate in which companies like yours will succeed? Do you think Governor Cuomo has succeeded in creating a business climate that helps New York State businesses be more successful or have his efforts had little effect? CEO Public

15. Is NY Business Friendly? If You Had to do it All Over Again, Would You Locate in NY or Someplace Else?

16. Business Leader Index vs. ICS* *Chart includes data from statewide numbers (ICS) and compares to upstate numbers (CEO)

17. What Is The Upstate Business Leaders Study? SRI conducted the seventh annual Upstate New York Business Leader Survey from October 21 – December 31, 2013. SRI mailed surveys to all private, for-profit businesses with yearly sales approaching $5 million up to $200 million according to publicly available records. The surveys could also be completed online. The survey broke down the businesses into the following industry categories: 27% 17% 19% 15% 12% 3% 6% Manufacturing Wholesale and Distribution Service Engineering and Construction Food and Beverage Financial Retail SRI interviewed 651 CEO’s (up from 592 last year) of private for profit companies in Buffalo (30%), the Capital Region (24%), Rochester (29%) and Syracuse (14%)

18. Business Leader Index How is the Index Compiled? New York Current Future CEO Index Industry

19. History of the Study Upstate New York Business Leaders Index 2007 - 2012 The Index ranges from an absolute low of zero to a high of 200. If equal numbers of respondents indicated “better” and “worse” on a series of questions the index would be 100. Therefore any score below 100 points demonstrates more respondents seeing and/or expecting things to worsen as opposed to improve.

20. Business Leader Index: Cluster Analysis Optimistic Business leaders in the optimistic group describe an economy in which they see improved conditions and expect better days ahead.  73% expect increasing revenues and 56% anticipate increasing profits.  63% will invest in fixed assets and 41% will enlarge their workforce. 31% Treading Water (Middle) Business leaders in the middle group are treading water.  They tend to feel as though the economy is stable but do not anticipate improving conditions.  39% expect increasing revenues and 25% anticipate increasing profits.  53% will invest in fixed assets and 27% will enlarge their workforce. 45% Pessimistic Business leaders in the pessimistic group feel as though conditions have worsened recently and expect further decline.   Only 9% expect increasing revenues and 10% anticipate increasing profits.  37% will invest in fixed assets and 13% will enlarge their workforce. 24%

21. Business Leader Index Over Time

22. Business Leader Overall Confidence Engineering Food and Beverage Financial Manufacturing Service Wholesale & Dist. Retail UpstateTotal Industry Totals

23. Expectations for Growth in NYS Economy Looking forward from today through next year... how would you describe your expectations for the economy in NY State? Engineering Food and Beverage Financial Manufacturing Retail Service Wholesale & Dist. UpstateTotal Industry Totals

24. Indices by Industry Over Time

25. Expectations: Revenue Now thinking specifically about your company, what are your expectations for revenue through the year 2014? NY Overall Results

26. Expectations: Profit Now thinking specifically about your company, what are your expectations for profit through the year 2014? NY Overall Results

27. Revenue/Profitability Expectations Over Time

28. Expectations: Hiring NY Overall Results

29. Workforce Size Expectations Over Time

30. Expectations: Fixed Assets Intend to Invest in Fixed Assets How Will Assets be Financed NY Overall Results

31. Business Leader Views of Local Market And continuing to consider the local market, are conditions locally improving, staying the same or worsening for businesses in your industry? The Wholesale and Distribution industry believes local conditions are improving the least at 6%.

32. CEO Areas of Concentration Please indicate which of the following are major areas of concentration for your firm now and through 2014: CEO’s main area of concentration was Expansion of Existing Markets (33%) NY Overall Results

33. CEO Obstacles and Challenges Now thinking about other challenges that your company faces, which of the following are you concerned with: CEO’s greatest area of concern was Government Regulation (23%) NY Overall Results

34. CEO Attitudes Towards Government Thinking specifically about New York and the relationship between the government and businesses like yours, overall would you say the government is doing an excellent, good, fair or poor job of creating a business climate in which companies like yours will succeed? State Government Federal Government NY Overall Results

35. CEO Attitudes Towards Government Of the following, what would you like to see the Governor and Legislature of New York focus on? CEO’s single biggest issue for the Governor and Legislature to focus on is Spending Cuts (35%) NY Overall Results

36. CEO Attitudes Towards Government For each of the following national proposals indicate whether you support it or oppose it? NY Overall Results

37. CEO Attitudes Towards Government If the Tax-Free NY plan were to be implemented, what type of impact do you believe it would have on your business? How confident are you in the ability of the government of the State of New York to improve the business climate for businesses like yours here in New York over the next year? Are you… Somewhat confident Not at all confident Not very confident NY Overall Results

38. Workforce Supply Is there an Ample Supply of Trained Local Workers? NY Overall Results

39. Comparison of Workforce Supply Is there an ample supply of local workers that are appropriately trained for your employment needs? Percent that Responded “YES” Engineering Food and Beverage Financial Manufacturing Retail Service Wholesale & Dist. UpstateTotal Industry Totals

40. Quality of the Workforce NY Overall Results

41. Index of Workforce Quality Overall Good Fair Poor Excellent .9 Writing 1.1 Initiative 1.1 Realistic About Pay 1.2 Work Ethic 1.2 Verbal 1.3 Professionalism 1.4 Technical 1 0 2 3

42. Index of Workforce Quality Hiring Hiring: Workforce Ample Hiring: Workforce Not Ample 1.0 Writing Skills 1.3 0.8 1.2 Initiative 1.7 0.9 1.2 Realistic About Compensation 1.6 1.0 1.3 Work Ethic 1.7 1.0 1.3 Verbal Skills 1.7 1.0 1.4 Technical Skills 1.9 1.0 1.4 Professionalism 1.8 1.1 Poor 0 Fair 1 Good 2 Excellent 3

43. Attitudes Towards Local Market Which Industry Sectors Will Have a Positive Impact on Your Geographic Area? Technology Medical Education Manufacturing 57% 56% 43% 38% Tourism Green Energy Transportation 33% 24% 12% NY CEO’s believe the sector that will have the single greatest impact is the medical industry (29%) NY Overall Results

44. Attitudes Towards Local Market NY Overall Results

45. Affordable Care Act Do You Expect the Affordable Care Act to Have a Positive, Negative or No Real Impact? NY Overall Results

46. Affordable Care Act Have you made any of the following adjustments due to the Affordable Care Act? NY Overall Results

47. Takeaways Panic is Over, NY is “Open for Business” But, CEO’s ‘won’t get fooled again.’ 2014: Slow cautious growth overall. Most optimistic poised to take off Expect increasing revenues and profits with moderate investment PROBLEMS Soft Consumer Sentiment Lessening regulation? Expect increasing revenues and profits with moderate investment Sorting through the Affordable Care Act Expect Soft Consumer Sentiment Growth in and related to Medical Concentrate on Tech growth Will the Workforce be There? Soft Consumer Sentiment Partner with Higher, Secondary Education to prepare workers of tomorrow Combat Brain Drain with Quality of Life and the Quality of Local Opportunity