More Syracuse CEOs worrying about the economy in 2013

SYRACUSE — Senior-level managers at Central New York Businesses are far from bullish on the state’s economic prospects in 2013, according to a survey released by First Niagara Bank.

The bank’s sixth annual Survey of Upstate New York Business Leaders found that a growing portion of polled CEOs, CFOs, and top managers believe business conditions will grow worse over the new year. More than one-third of the Syracuse region’s corporate leaders, 34 percent, predicted worsening business conditions in New York, up 4 points from a year ago.

An equal portion of business leaders, 34 percent, said conditions will improve in 2013. But that number was unchanged from last year. Meanwhile, 32 percent of those surveyed said conditions would stay the same, down from 36 percent last year.

“I think these companies are reacting to what they perceive to be very stable but bleak economic conditions,” said David Kavney, Central New York market executive for First Niagara Bank, which is a subsidiary of Buffalo–based First Niagara Financial Group, Inc. (NASDAQ: FNFG). Kavney spoke in a media session after the survey results came out Jan. 8.

“Our survey results in the Syracuse area, Central New York, were consistent with Upstate,” Kavney said. “It seems to be a lack of confidence in the ability of the overall economy just to get started. We’ve seen a lot of companies just staying very well positioned to deal with what they have today.”

The Siena (College) Research Institute conducted the survey for First Niagara. It polled 1,142 leaders of upstate private companies with annual sales between $5 million and $150 million. In the Syracuse area, 118 senior managers participated.

Of the Syracuse–area participants, 38 percent expected to boost revenue in 2013, down from 41 percent a year ago. Another 32 percent of business leaders in the area think revenue will decrease in the coming year.

The region’s senior managers painted a bleaker picture for profitability in 2013, with 38 percent anticipating a decrease in profits. Last year, just 28 percent believed profits would go down. Moving back to 2013 predictions, 27 percent of those surveyed foresaw rising profits.

Even so, 56 percent of Central New York’s business heads plan to invest in fixed assets over the coming year. More than half of those who want to invest, 56 percent, expect to use internally generated funds, and 33 percent said they will likely turn to a financial institution for funding.

Plans to hire edged up, with 23 percent of Syracuse-area survey participants sharing plans to grow their workforce in 2013. The result is up from 21 percent a year ago. The portion of executives intending to decrease their labor force also went up, rising to 15 percent from 13 percent last year.

“In general we’re starting to feel that there is a little more optimism in Central New York,” Kavney said. “There’s a lot of construction and building. There seems to be some construction optimism, I’d call it, which hopefully has resulted in some of that uptick in hiring.”

Overall, though, companies’ leaders were not optimistic, according to the survey’s confidence index. It is measured on a scale of zero to 200, with zero representing the greatest possible level of pessimism, 200 representing the highest level of optimism, and 100 being the break-even point where optimism and pessimism are equal.

Central New York’s overall confidence index slipped 5.4 points to 89, moving away from its break-even point. An index measuring the region’s current confidence dropped 6.6 points to 81.4, while one measuring its future confidence declined 4.3 points to 96.6.

The Syracuse area’s overall confidence index of 89 proved to be the third-highest overall confidence reading out of five Upstate regions that were measured. It slotted in behind Albany, where confidence tallied 96.3, and Rochester, where it was 91.8. Syracuse led the Hudson Valley and Westchester region, where confidence notched 83.5, and Buffalo, where it came in at 80.6.

Overall confidence declined in all five regions.

“I think there’s frustration out there with what is perceived to be a stalled economy,” Kavney said.

Contact Seltzer at rseltzer@cnybj.com

SYRACUSE — Senior-level managers at Central New York Businesses are far from bullish on the state’s economic prospects in 2013, according to a survey released by First Niagara Bank.

The bank’s sixth annual Survey of Upstate New York Business Leaders found that a growing portion of polled CEOs, CFOs, and top managers believe business conditions will grow worse over the new year. More than one-third of the Syracuse region’s corporate leaders, 34 percent, predicted worsening business conditions in New York, up 4 points from a year ago.

An equal portion of business leaders, 34 percent, said conditions will improve in 2013. But that number was unchanged from last year. Meanwhile, 32 percent of those surveyed said conditions would stay the same, down from 36 percent last year.

“I think these companies are reacting to what they perceive to be very stable but bleak economic conditions,” said David Kavney, Central New York market executive for First Niagara Bank, which is a subsidiary of Buffalo–based First Niagara Financial Group, Inc. (NASDAQ: FNFG). Kavney spoke in a media session after the survey results came out Jan. 8.

“Our survey results in the Syracuse area, Central New York, were consistent with Upstate,” Kavney said. “It seems to be a lack of confidence in the ability of the overall economy just to get started. We’ve seen a lot of companies just staying very well positioned to deal with what they have today.”

The Siena (College) Research Institute conducted the survey for First Niagara. It polled 1,142 leaders of upstate private companies with annual sales between $5 million and $150 million. In the Syracuse area, 118 senior managers participated.

Of the Syracuse–area participants, 38 percent expected to boost revenue in 2013, down from 41 percent a year ago. Another 32 percent of business leaders in the area think revenue will decrease in the coming year.

The region’s senior managers painted a bleaker picture for profitability in 2013, with 38 percent anticipating a decrease in profits. Last year, just 28 percent believed profits would go down. Moving back to 2013 predictions, 27 percent of those surveyed foresaw rising profits.

Even so, 56 percent of Central New York’s business heads plan to invest in fixed assets over the coming year. More than half of those who want to invest, 56 percent, expect to use internally generated funds, and 33 percent said they will likely turn to a financial institution for funding.

Plans to hire edged up, with 23 percent of Syracuse-area survey participants sharing plans to grow their workforce in 2013. The result is up from 21 percent a year ago. The portion of executives intending to decrease their labor force also went up, rising to 15 percent from 13 percent last year.

“In general we’re starting to feel that there is a little more optimism in Central New York,” Kavney said. “There’s a lot of construction and building. There seems to be some construction optimism, I’d call it, which hopefully has resulted in some of that uptick in hiring.”

Overall, though, companies’ leaders were not optimistic, according to the survey’s confidence index. It is measured on a scale of zero to 200, with zero representing the greatest possible level of pessimism, 200 representing the highest level of optimism, and 100 being the break-even point where optimism and pessimism are equal.

Central New York’s overall confidence index slipped 5.4 points to 89, moving away from its break-even point. An index measuring the region’s current confidence dropped 6.6 points to 81.4, while one measuring its future confidence declined 4.3 points to 96.6.

The Syracuse area’s overall confidence index of 89 proved to be the third-highest overall confidence reading out of five Upstate regions that were measured. It slotted in behind Albany, where confidence tallied 96.3, and Rochester, where it was 91.8. Syracuse led the Hudson Valley and Westchester region, where confidence notched 83.5, and Buffalo, where it came in at 80.6.

Overall confidence declined in all five regions.

“I think there’s frustration out there with what is perceived to be a stalled economy,” Kavney said.

Contact Seltzer at rseltzer@cnybj.com