Executive Business Climate Survey shows concern over SWFL water, midterm election

Red tide and blue-green algae’s impact on the local economy weighs somewhat heavily on the minds of Lee County business leaders, according to latest Executive Business Climate Survey.

They’re also eager to have Tuesday’s midterm election over, so they can better plan for the future.

Results from the fourth-quarter survey, conducted in mid-October by the Horizon Council and Florida Gulf Coast University, were released today .

Red tide has lurked in Gulf waters off Lee's coast since October 2017, but moved closer starting in June, killing thousands of pounds of marine life and irritating humans' lungs.

For a double-whammy, blue-green algae rolled in on Lake Okeechobee freshwater discharges, fouling the Caloosahatchee River, canals and marinas.

Those two toxic algal blooms continued to make national news headlines and social media posts all summer, keeping many would-be visitors away.

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Those harmful algal blooms aren’t as severe or as widespread as they were a few months ago, but perceptions die hard – particularly among people who live out of state.

Among the executive survey findings:

• Ninety-one percent of respondents were “very or somewhat concerned” about the effect this year’s environmental crisis will have on the region’s economy.
• Still, 56 percent of executives responding said the harmful algal blooms had “little or no impact” on their businesses.
• Sixty-four percent believed the adverse environmental conditions would have an only temporary effect on the region’s economy, while 36 percent of the executives believed the economic impact of the harmful algal blooms will be permanent.

Survey organizers attributed a four-point decline in the survey index over the previous quarter mostly to the water quality concerns. The index is measured on a scale of zero to 100. After beginning the year with a peak of 73, the index now stands at 64 – the lowest reading on record since the fourth quarter of 2016.

"The red tide was overall, a very difficult thing for the hospitality industry, particularly for the islands," said Gary Griffin.

He's president of B&I Contractors Inc. and president of the Horizon Foundation, the nonprofit arm of the Horizon Council established to promote business investment in the long-term economic development of Lee County.

More:Critics say water quality problems could have been avoided

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Griffin doesn't believe the water quality crisis hurt business overall, in the short term.

However, "if this became a yearly ordeal, it could clearly have a negative impact on all of us," Griffin said.

On a positive note, 85 percent of survey respondents indicated Lee County’s economy is headed in the right direction. And 75 percent thought the general business climate here was excellent or good.

"I would say it's improving moderately because it was pretty good this time last year," Griffin said.

And because the region has a limited supply of highly skilled workers, "anything beyond moderate growth is not sustainable," Griffin said. 

To grow workforce skills, Griffin said his company and others are creating in-house training programs and using apprenticeship programs when appropriate.

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The survey also asked: “How concerned are you about the outcome of the upcoming Florida gubernatorial election?”

On this, 82 percent of respondents said they were “very concerned” or “somewhat concerned.”

The levels of concern were lower for the senatorial race (77 percent very concerned or somewhat concerned) and county school board races (50 percent very concerned or somewhat concerned).

“Around election time, there’s more uncertainty. The gubernatorial and Senate elections are very contentious, and that affects the business climate,” said Christopher Westley, survey director and head of FGCU's Regional Economic Research Institute.

Uncertainty over who'll be elected to help set future government policy can delay capital investments, Westley said.

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Even if a candidate not favored by the business community wins, just having an outcome – and knowing where that person stands – allows companies to more confidently take action, Westley noted.

Other survey findings:

• Eighty-two percent of the executives said they were very concerned or somewhat concerned about the affordability and attainability of workforce housing. Eighteen percent said they were not too concerned or not concerned at all.
• Sixty-two percent of executives expect the economy to improve over the next year. Twenty-five percent expect it to stay the same.
• Fifty-five percent expect to increase employment at their companies during the next year. Forty-one percent expect employment to stay the same at their companies.
• Sixty-six percent of companies expect to increase their investment next year. Five percent expect to reduce investment levels.

One-hundred ninety-five executives completed the online survey from Oct. 10 through Oct. 26.

An invitation to complete the internet survey went to 1,344 individuals. And, in the hope of soliciting more responses, a link was sent to the Cape Coral Chamber of Commerce and the Bonita Springs Area Chamber of Commerce.