Conducted by the Business and Industry Association, the Center for Ethics in Society, and the Saint Anselm College Survey Center.

New Hampshire Business Leaders Express Optimism Amid Concerns Over Housing, Workforce, and Rising Costs

Business leaders across New Hampshire remain optimistic about their companies' growth over the next year, despite pressing concerns about housing affordability, workforce shortages, and rising costs in key sectors. These insights come from a recent survey conducted by the Business & Industry Association of New Hampshire (BIA) in collaboration with the Center for Ethics in Society at Saint Anselm College.

According to the survey, over 90% of respondents expect their businesses to either grow or remain stable within the next 12 months. Notably, 59% of companies plan to hire additional employees, while only 3% anticipate downsizing their workforce during the same period.

Bar graph with the title "How do you expect employment at your company to change over the next 12 months?" Parameters include Decline Significantly (0), Decline Somewhat (under 10), Remain the Same (over 30), Increase Somewhat (just under 60), and Increase Significantly (under 10). Responses are indicated by blue bars.

Housing Affordability: A Critical Challenge

Despite the overall optimism, the survey highlights a widespread concern about the critical shortage of affordable housing, which 86% of business leaders identified as the most urgent policy issue facing New Hampshire. Many expressed worries that the lack of affordable options is hindering workforce growth and, consequently, their business operations.

When asked about contributing factors and potential solutions to the housing crisis, 80% of respondents cited restrictive local zoning regulations as a significant barrier. Nearly 77% supported the idea of implementing state-level limits on local zoning to foster housing development, while more than two-thirds emphasized the importance of state investment in municipal infrastructure to support new housing initiatives.

A horizontal bar graph with y-axis parameters ranging from Strongly Disagree to Strongly Agree and x-axis parameters ranging from 0 to 40. The title is "The State should enact reasonable limits on restrictive local zoning regulations, as well as on the time required for approval of new developments. Data is indicated by blue horizontal bars: Strongly Agree (38), Somewhat Agree (38), Neither (12), Somewhat Disagree (10), Strongly Disagree (1).

Workforce Availability: A Major Barrier to Growth

Workforce shortages emerged as the second most critical issue for businesses in the state. Nearly 75% of business leaders reported that the lack of qualified workers is preventing their companies from expanding. In response to this challenge, almost 90% of respondents advocated for aligning the state’s educational system more closely with the needs of employers. Additionally, around 80% suggested that expanding legal immigration could help alleviate workforce shortages.

A horizontal bar graph with y-axis parameters ranging from Strongly Disagree to Strongly Agree and x-axis parameters ranging from 0 to 50. The title is "The lack of qualified workers in New Hampshire hampers our company's ability to grow." Responses are indicated by horizontal blue bars: Strongly Agree (26), Somewhat Agree (47), Neither (16), Somewhat Disagree (8), Strongly Agree (2)

Embracing Artificial Intelligence

New Hampshire’s business community appears ready to embrace artificial intelligence (AI) as a tool for future growth. Over 60% of those surveyed expect AI to play an important role in their operations within the next five years, and 44% stated that they are already incorporating AI into their business processes.

A pie chart titled "Which of the below technologies will be most important to your company over the next five years?" Responses from greatest percentage of the pie to lowest are A.I., Advanced Energy, Cloud Computing, Robotics/Drones, Advanced Materials, Virtual/Augmented Reality, Blockchain, Genomics, and Space Technology. The first takes up approximately 60% of the pie, with the second and third each taking approximately 1/8 of the pie. The latter 6 take up the remaining 1/8 of the pie.

Rising Costs: Healthcare, Wages, and Energy

Cost concerns, particularly in healthcare, wages, and energy, were also top of mind for business leaders. A vast majority — 88%— anticipate higher healthcare expenses, while 81% expect salary and wage increases. Additionally, 68% foresee rising energy costs. However, only 21% of respondents expect an increase in the cost of financing and borrowing, reflecting recent signals from the Federal Reserve.

Reflecting these concerns, 55% of respondents agreed that the state “isn’t doing enough to control rising healthcare costs,” with only 6% disagreeing, and 79% agreed that the state “should encourage new energy generation sources,” with only 2% disagreeing.

A horizontal bar graph with y-axis parameters ranging from Strongly Disagree to Strongly Agree and x-axis parameters ranging from 0 to 45. The graph is titled "The State isn't doing enough to control rising health case costs for our employees, constricting our ability to grow." Responses are indicated by horizontal blue bars: Strongly Agree (21), Somewhat Agree (34), Neither (40), Somewhat Disagree (4), Strongly Disagree (2)

Broader Concerns: Cybersecurity, Instability, and Childcare

In addition to economic concerns, the survey revealed apprehension around cybersecurity, with 53% of respondents reporting they are "very concerned" about the issue and 94% expressing overall concern. Political and social instability (50% very concerned, 93% concerned) and economic uncertainty (34% very concerned, 94% concerned) were also frequently cited.

Furthermore, 68% of business leaders acknowledged that a shortage of childcare options is making it difficult to attract and retain employees, adding another layer of complexity to workforce challenges.

A circle chart titled "How concerned are you about the risk of cybersecurity over the next 12 months?" Responses are indicated by color in decreasing order of percentage of the chart: Very (indicated by blue and taking up over 50% of the chart); Somewhat (indicated by orange and taking up less than 50% of the chart), and Not at all (indicated by grey and taking up the remaining small portion of the chart).

Business Climate in New Hampshire: Favorable, but Room for Improvement

When asked about the ease of doing business in the state, responses were mixed but generally positive. Only 29% of respondents agreed that it is difficult to do business with state and local governments, while 46% disagreed, signaling a general appreciation for the transparency and accessibility of government officials.

A horizontal bar graph with y-axis parameters ranging from Strongly Disagree to Strongly Agree and x-axis parameters ranging from 0 to 35. The graph is titled "It is difficult to do business in N.H. and to work with local and state governments." Responses are indicated by horizontal blue bars: Strongly Agree (6), Somewhat Agree (22), Neither (26), Somewhat Disagree (29), Strongly Disagree (17).

Survey Methodology

The survey was conducted by the Saint Anselm College Survey Center over a four-week period from August 12 to September 9, 2024. A total of 126 business leaders representing a broad range of industries, regions, and company sizes participated, including both large enterprises (over 500 employees and $100 million in revenue) and small businesses (fewer than 11 employees and less than $1 million in revenue). Business leaders were defined as “individuals authorized to answer questions on behalf of the company” and were recruited from the Business & Industry Association database.