Umpqua Bank 2023 Business Barometer: Optimism, Expectations for Revenue and Profitability Rise Despite Lingering Economic Concerns
- Business optimism is rising with expectations for increased revenue and profitability
- Middle market businesses focused on digitization for efficiency and tools to protect payment systems
- 57% of middle market businesses likely to bring supply chains back to the U.S.
- Commercial real estate expansion is increasing
- Businesses plan to continue hybrid work options
- Cybersecurity is a top concern
Business leaders focused on efficiency, reducing uncertainty, protecting working capital
74% focused on digitization to become more efficient60% investing in tools to protect payments systems57% of middle market businesses likely to bring supply chains back toU.S. - Cybersecurity surpasses talent issues as a top middle market company concern
LAKE OSWEGO, Ore., Sept. 19, 2023 /PRNewswire/ -- Umpqua Bank, a subsidiary of Columbia Banking System Inc. (Nasdaq: COLB), today announced the findings of its annual Business Barometer ― an in-depth study of the mood, mindset, and strategic priorities of small and middle market businesses across the
"Small and middle market businesses across the country continue to show why they are the backbone of the
With positivity about the current state of the economy (
Although businesses are cautiously more optimistic about the economy than in 2022, a majority believe an economic downturn is more likely now than they did at the beginning of the year. In order, all businesses surveyed rate inflation, a potential recession, and high interest rates as their top three concerns.
Other notable findings from this year's Business Barometer include the following:
Key Investments Target Efficiency over Aggressive Growth
Businesses are focused on becoming more efficient in the year ahead. Outside of increasing revenue and sales, improving operational efficiency ranks as the most "crucial" factor to success. Nearly 3 in 4 enterprises plan to invest in digitizing new areas of their business to improve efficiency. Middle market companies are especially focused on increasing efficiencies through automation, which ranks as the "most important" action to manage profitability in the next 12 months, as well as a top investment priority.
The majority of those surveyed, including
"Leaders are less focused on wholesale changes to their business right now and more focused on shoring up their fundamentals," said Umpqua's Head of Middle Market Banking Richard Cabrera. "Those enterprises with a sound business model, lean and efficient operations, and strong financial management will be well-positioned over the next 12-18 months for continued success and future growth."
Businesses in West More Optimistic Right Now than Other Regions
The West, with closer geographic ties to
This higher level of optimism is underscored by the fact that
Cybersecurity Now Top Non-Macroeconomic Concern for Middle Market Businesses, Ahead of Talent Issues
Of those surveyed,
Supply Chain Boomerang: Nealy Half of Middle Market Business Bring Supply Chains Back to
Close to half of middle market businesses (
Commercial Real Estate Holds Steady as Businesses Eye Opportunities
Appetite for expanding commercial real estate is holding steady. Middle market companies are more likely than last year to consider expanding their real estate footprints in the next 12 months (2023:
Businesses Plan to Continue Hybrid Options for Workers
For industries not constrained by in-person services, hybrid schedules remain the norm. More than half of all businesses surveyed offer consistent hybrid work options for employees, including 1 in 3 allowing remote days most of the week, and 1 in 5 allowing a full five remote workdays. While a solid majority (
Methodology
On behalf of Umpqua Bank, DHM Research conducted an online survey of 1250 owners, executives, and financial decision-makers of American small and middle market companies during July 27 to August 8, 2023.
About Umpqua Bank
Umpqua Bank is a subsidiary of Columbia Banking System Inc., (Nasdaq: COLB) and a premier regional bank in the
Learn more at https://www.umpquabank.com.
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SOURCE Umpqua Holdings Corporation