Companies do not like uncertainty. But many in the south-eastern Alaska say that this is exactly what they face in the midst of recent actions in the federal government. This lowers the optimism of local business owners about their economic perspectives.
The news comes in a report Released Tuesday by Southeast Alaska Business Climate Survey. It included information of more than 400 business leaders from the whole region.
“Each time you bring together words and business – it is not a success recipe,” said Meilani Schijvens, owner of Rain Coast Data, who conducts the annual investigation.
The survey shows that almost half of the companies that participated expect that recent federal actions have a negative impact on their operations. These actions include funding from the Trump administration and job cuts, decrees and prices. Wood, arts and manufacturing companies would have been the most concerned.
Schijvens said that business confidence and economic optimism also seemed to decrease compared to previous years. Who worries him.
“We have seen a big change in the way people see the economy and in a short period of time, which was really interesting, really fascinating,” she said. “This is certainly not the positive perspectives that we are looking for.”
The leaders of the tourism industry have shared concerns that the prices could prevent people from traveling or participating in visits. They are also concerned about the increase in the cost and the decrease in the availability of goods, such as parts for helicopters.
The availability of housing was also an important subject in the report. Almost 80% of employers said that housing problems directly cause turnover or dissuade potential hiring from moving to the region.
The study indicates that it is the most problematic in Juneau and Sitka, where affordable housing and labor is particularly rare.