Hoosier business leaders predict fewer layoffs, more outsourcing

Discussion

June 20, 2012

Hoosier business leaders predict fewer layoffs, more outsourcing

Cost of living listed as Indiana’s big advantage

By SUSAN ORR Evansville Courier & Press The News and Tribune Wed Jun 20, 2012, 08:27 PM EDT

EVANSVILLE — Hoosier business executives said they expect fewer layoffs — but also more outsourcing — at their companies over the next 18 months, according to a recently released survey.

The 2012 Indiana CEO Survey is a joint project of business news company Inside INdiana Business, law firm Ice Miller and Butler University.

Administered annually, the survey is intended to provide insight into business leaders’ attitudes, opinions and plans, and to track changes in their responses over time.

This year’s survey included responses from 552 chief executive officers representing a range of industries. Most of those respondents — 81 percent — are from companies based in Central Indiana.

In one part of the survey, respondents were asked about the likelihood of pursuing specific business activities over the next 18 months.

As compared with the 2011 survey, respondents said they are less likely to lay off workers.

The number of respondents saying they planned to conduct layoffs peaked in 2009 and has declined each year since then.

A greater number of respondents also said they plan to fill open positions and add jobs in the next 18 months.

Also as compared with last year, respondents said they are more likely to engage in outsourcing and expansions outside Indiana.

Other survey highlights

When asked about the challenges and issues they face, respondents named corporate reputation and customer loyalty and retention as top issues.

They said global issues are of the lowest concern, though the survey’s authors said this might be because many of the respondents work at smaller companies without a global presence.

When asked how Indiana compares with its neighboring states, respondents cited cost of living as the state’s biggest advantage. They cited education as the area in which Indiana least favorably compares with its neighbors.

New this year, respondents were also asked about how they expect certain legislative issues to affect their business. Indiana’s status as a right-to-work state was the issue respondents believe will have the most positive impact. Right-to-work legislation was passed by state lawmakers earlier this year.

Many of the survey responses did not change significantly between last year and this year. That in itself was a bit of a surprise, said Steve Humke, a partner in Ice Miller’s business group.

Based upon previous year’s trends, Humke said, he had expected to see more optimism.

“I think a lot of people are closely guarded about where their businesses are going.”