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1 Released: 10/2/2017 According to the latest Survey of Business Conditions in Corpus Christi, the overall business outlook remains positive in the wake of Hurricane Harvey. Despite uncertainty about how soon the local business community, particularly in the coastal areas devastated by the storm, will fully recover, the storm s impact on the area economy was widely perceived to be temporary. As in the previous survey, less than 10 percent of survey respondents had faced a less favorable business condition. Slightly less than half of them (47%) saw at least some growth in their own business. More than two-third of those respondents also expected the overall business environment or their own markets to improve at the current pace in the near future. The pace of hiring and capital investment remained stable among those business leaders. Harvey s impacts, however, are most noticeable in the challenges businesses expect to face. More than one in three (34%) respondents were concerned about declining sales, and another 21 percent of them were facing a workforce shortage. Not surprisingly, most concerns were related to the damages and uncertain consequences that Harvey has brought to the regional economy. # # URL of the online survey: Survey results are released quarterly at SouthTexasEconomy.com. This survey generated a total of 55 responses. We appreciate the time of our participants and our partners who helped distribute this survey. For questions, please contact Jim Lee at jlee@tamucc.edu. Page 1 of 5
2 1. How have overall business conditions changed since the last time you responded to this survey (or the last 3 months)? 4 41% Question 1 31% 1 ly Improved Improved No Change Worse ly Worse 4% 2. How do you expect overall business conditions to change over the next 6 months? 6 2 ly Improved 5 51% Question 2 31% 1 3% 14% Improved No Change Worse ly Worse Page 2 of 5
3 3. What changes in your company's sales or business activity do you expect over the next 6 months? 7 64% Question % 1 11% Growth 25% 1 14% Modest Growth No Change Small Declines Large Declines 4. Is your company hiring? % Question 4 51% 49% Hiring 3% Modest Hiring No Change Small Job Cuts Large Job Cuts Page 3 of 5
4 5. Is your company investing in new equipment or software? Question % 15% Modest No Change Small Cuts in Large Cuts in 6. Is your company investing in new office or other space? 10 Question % Modest No Change Small Cuts in Large Cuts in Page 4 of 5
5 Weak Sales Lack of Pricing Power Labor Costs and Availability Ability to Obtain Financing Borrowing Costs Regulatory and Legal Requirements Availability and Cost of Supplies Other (elaborate on Q9 below) 7. How easy is it for your company to obtain financing on reasonable terms? % 33% Question 7 29% 21% Very Easy Somewhat Easy Neutral Somewhat Difficult 3% Very Difficult 8. What is the most significant problem facing your company? 6 Question 8 23% 34% 9% 4% 21% 4% 33% 11% 5% 17% Page 5 of 5
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