Though more optimistic than their counterparts in the rest of the country, Montgomery County business owners have a dimmer view of their economic futures than they did earlier this year.
High housing costs and outdated infrastructure in the area pose challenges for those looking to hire new workers.
“Our members are wildly optimistic,” Montgomery County Chamber of Commerce President and CEO Georgette Godwin told an audience of bankers and business owners at an event sponsored by PNC Bank.
But the outlook of business owners is actually down compared with this spring, according to a survey by PNC Bank. About 30 percent of small and mid-sized business owners in the Washington area are optimistic about the local economy, and 14 percent are pessimistic, plus or minus 8 percent.
In April, 34 percent were optimistic and 10 percent were pessimistic. The majority of those surveyed fell somewhere in the middle in both surveys.
Compared with national trends, however, area business owners are still feeling more upbeat. The study shows that only 21 percent of business owners in the U.S. have a bright view of their local economies this fall, while 22 percent are pessimistic.
Local hiring expectations are also down slightly though still above the national numbers.
About 29 percent of business owners in the metro area expect to hire full-time employees over the next six months, down from 35 percent in April. Nationally, the figure is at 27 percent, down from 32 percent in April. National survey results have a larger sample and an error rate of plus or minus 4 percent.
The difficulty is actually finding those workers. High housing costs in the Washington area, and long commutes for those who can’t afford to live close by, is making it hard to attract employees.
“We’re about 20 years behind in infrastructure” in Montgomery County, Godwin said.
The service industry is wholly dependent on human capital, said Michael Harreld, PNC regional president for the Greater Washington area. The high housing costs and long commute factor into quality of life decisions, especially for younger workers, he added.
