Bennington, Vermont's Main Street bustles along on a summer day. Photos courtesy of the Southwestern Vermont Chamber & Lorianna Weathers Photography.
Vermont Business Magazine The Southwestern Vermont Chamber of Commerce recently conducted its annual State of the Commerce survey, providing valuable insights into the prevailing economic trends and sentiments about the regional economy. The survey, which saw participation from businesses and organizations across various sectors and towns in the region, highlighted both the challenges faced by businesses and their hopes for the future.
Town/Community Distribution
The survey respondents represented a diverse mix of communities within Southwestern Vermont, with Bennington leading as the predominant town, comprising 52.05% of the respondents. Manchester and Arlington also had significant representation, accounting for 31.51% and 6.85% of respondents, respectively. The survey showcased the collective voice of businesses and organizations from across the region, reflecting the Chamber's commitment to inclusivity and regional representation.
Industry Types
The survey also shed light on the diverse range of industries present in the region. Retail and shopping emerged as the leading industry, with 20.55% of respondents representing this sector. Other prominent sectors included dining (15.07%), lodging (15.07%), and attractions/art/culture (8.22%). This diversification of industries highlights the resilience and adaptability of the local economy.
Business Ownership Diversity
The survey revealed a positive trend in business ownership diversity, with 30.56% of businesses identifying as woman-owned and 8.33% as young professional-owned (40 and under). Additionally, 4.17% of respondents identified as BIPOC-owned and 5.56% as LGBTQI+ owned. While more needs to be done, this demonstrates the region's commitment to fostering an inclusive and equitable business environment.
Economic Impact of Recent Flooding and Storms
Vermont recently faced challenges due to flooding and storms, however the survey results indicated that 80.82% of businesses and organizations had not been directly impacted by these events. For the 19.18% that were affected, local, state and national relief efforts have continued to move forward.
Top Business Challenges
The survey highlighted rising costs and workforce availability as the top challenges for businesses in the region, both identified by 29.85% of respondents. Other significant challenges included supply chain disruptions (5.97%), employee costs (7.46%), and marketing and gaining customers (5.97%). These insights emphasize the need for strategic support and resources to address these pressing concerns.
Overlooking Dorset in Southwestern Vermont or what is commonly called The Shires of Southwestern Vermont.
Current & Future Outlook
When asked about their business's financial performance compared to 2019, a significant portion of respondents (45.45%) reported that their businesses were doing better. This optimistic response indicates that despite the challenges faced during the intervening years, many businesses in Southwestern Vermont have managed to recover and even improve their financial health.
On the other hand, 18.18% of respondents mentioned that their business's financial performance was worse compared to 2019. This subset of businesses may have encountered difficulties or setbacks that affected their revenue and overall financial stability.
A quarter of the respondents (25.76%) stated that their financial performance remained the same as it was in 2019. This could be a reflection of the businesses that managed to maintain a steady position despite the economic fluctuations over the years. Twelve percent of respondents mentioned that the question was not applicable to them as they were not around in 2019.
An overwhelming majority of respondents (93.85%) expressed that Southwestern Vermont is a good place to have a business or organization. This high approval rating reflects the region's favorable business environment, supportive communities, and the various resources available to help businesses thrive.
The positive perception of Southwestern Vermont as a business-friendly location can be attributed to several factors, including robust networks and services provided by the Chamber, government support for economic development, a diverse range of industries, and the region's natural beauty and attractions, which can draw in visitors and customers.
Regarding the future outlook for Southwestern Vermont as a business location, a significant majority (80.33%) of respondents believed that it will be a better place to have a business or organization within the next 3 years. This optimistic outlook suggests that businesses in the region anticipate growth and positive economic developments in the near future.
The positive sentiment could be influenced by various factors, including ongoing efforts by local and state authorities to attract investments, improve infrastructure, and foster a conducive business climate. Additionally, the region's resilience in the face of challenges and the commitment of businesses to adapt and innovate contribute to this positive outlook.
In response to the question about retirement or closure of their businesses in the next 3-5 years, 20.0% of business owners indicated that they plan to retire or close down. This finding indicates that a portion of business owners in Southwestern Vermont are considering transitioning out of their businesses during this time frame.
The majority of respondents planning to retire (70.77%) stated that they do not have a succession plan in place. This could present an opportunity for organizations like the Chamber of Commerce and other entities to offer support and resources to businesses seeking guidance on succession planning.
Support and Growth Opportunities
The survey also explored the resources and entities that businesses use to support their growth. Chambers of Commerce were the most widely utilized resource, with 75.38% of respondents benefiting from their services. Additionally, social media groups (64.62%), national industry/trade organizations (32.31%), and state government or agencies (27.69%) were other significant sources of support.
Business Services for Growth
When asked about additional business services that could aid growth, respondents identified improved cellular service (36.07%), better destination marketing of the area and region (34.43%), and more capital available for businesses (32.79%) as key factors. These insights provide valuable feedback to decision-makers and organizations looking to bolster economic growth and infrastructure in the region.
"The State of the Commerce survey results reaffirm the resilience and optimism of Southwestern Vermont's business community," remarked Matt Harrington, executive director of the Southwestern Vermont Chamber. ""As Peter Drucker famously said, 'If you can't measure it, you can't manage it,' and the State of the Commerce survey results affirm the truth in this statement. Our survey has provided invaluable data, allowing businesses in Southwestern Vermont to gain a comprehensive understanding of their challenges, opportunities, and overall economic landscape. Armed with this knowledge, we can now chart a course towards progress and growth, leveraging our strengths and addressing areas of concern. The insights from the survey have illuminated the path to success, and together, as a cohesive business community, we can navigate through any obstacles, capitalize on our potential, and build a brighter future for Southwestern Vermont."
A busy day of shopping as a family crosses Main Street at the Four Corners in Bennington, VT
About Southwestern Vermont Chamber of Commerce
The Southwestern Vermont Chamber of Commerce is a leading regional organization that represents businesses and organizations across diverse sectors and communities. It advocates for economic growth, fosters partnerships, and provides valuable resources and support to promote the region's economic vitality.
Source: 8.7.2023. Bennington. SOUTHWESTERN VERMONT SWVTChamber.com
