Previously Published in The Messenger
By Raheem Soto
Long Island business leaders are optimistic and brimming with hope for the future. As highlighted in the thirtieth Annual’ Long Island Economic Survey— Outlook 2025, released by PKF O’Connor Davies in partnership with the Siena College Research Institute, this positive outlook is a beacon of light. The survey reveals that 84% of CEOs are confident in their companies’ growth prospects over the next five years. This optimism is further reflected in employment plans, with 43% of respondents intending to expand their workforce in 2025, while only 6% anticipate layoffs.
The positive outlook extends to the national economy, where confidence has risen from 28% in 2023 to 48% in 2024. Concerns about a potential recession have also diminished, with only 32% of CEOs considering it likely, down from 43% the previous year. This shift suggests a broader sense of economic stability and recovery.
Revenue growth remains a primary objective for many businesses, with 58% expecting increases and 52% aiming to boost profits. Market demand and new opportunities are key drivers of this anticipated growth. In response, companies focus on workforce development, with 43% planning to hire additional employees in 2025. This commitment to expansion underscores confidence in the region’s economic environment.
Despite the optimistic outlook, businesses face significant challenges, notably rising operating costs and housing affordability. The survey highlights concerns over increasing expenses and affordable housing availability, which impact talent attraction and retention. In Suffolk County, 60% of CEOs report that high housing costs hinder their ability to recruit and retain skilled workers.
County Executive Ed Romaine (R-Center Moriches) acknowledges the severity of the housing affordability issue. He emphasizes the need for immediate solutions that balance economic growth with affordable living. His stress on addressing housing costs is a call to action to ensure the region remains competitive and livable for all residents.
The survey also reveals a pressing need for changes in tax policies and increased investment in infrastructure. Businesses are not just advocating; they are urgently calling for tax reforms that would alleviate financial burdens and for enhancements to infrastructure that support economic activities. These concerns highlight the need for collaborative efforts between business leaders and policymakers to create a conducive environment for sustained growth.
Real estate remains a significant component of Long Island’s economy. According to the survey, 69% of CEOs expect home prices to rise in 2025, a 13-point increase from the previous year. While this indicates a strong market, it also exacerbates the tension between growth and affordability, particularly for first-time homebuyers. Local leaders are urged to find ways to meet housing demand while ensuring affordability to maintain the region’s economic vitality.
The Annual Long Island Economic Survey provides valuable insights into the region’s economic landscape. While optimism prevails among business leaders, addressing rising costs, housing affordability, and infrastructure needs is crucial. Collaborative efforts between businesses, policymakers, and community leaders are essential to foster a sustainable and inclusive economic environment that benefits all residents.