THE CHAMBER OF COMMERCE FOR GREATER PHILADELPHIA !@ChamberPHL ECONOMIC OUTLOOK SURVEY RESULTS ECONOMIC SURVEY RESULTS ll A AS ll Regional Economic Adviser Federal Reserve Bank of Philadelphia @PhiladelphiaFed *The views expressed today are my own and not necessarily those of the Federal Reserve Bank of Philadelphia or the Federal Reserve System. THE CHAMBER OF COMMERCE FOR GREATER PHILADELPHIA !@ChamberPHL ECONOMIC OUTLOOK SURVEY RESULTS RESPONDENT DISTRIBUTION EDUCATION AND I HEALTH SERVICES PROFESSIONAL AND BUSINESS SERVICES RETAIL TRADE I LEISURE AND HOSPITALITY Philadelphia MSA Employment FINANCIAL ACTIVITIES I Survevr MANUFACTURING TRANSPORTATION AND UTILITIES OTHER 0% 5% 10% 15% 20% 25% 30% 35% 40% Conducted from Nov. 19 to Dec. 9, 2019 Other category includes: Government. Information, Transportation 8: Utitilities. Wholesale Trade, and Other Service sectors. FEDEM RESERVE BANK Responses received from 89 members. oF PHILADELPHIA {is THE CHAMBER OF COMMERCE FOR GREATER PHILADELPHIA !@ChamberPHL WE ASKED CHAMBER MEMBERS: WHAT IS YOUR ASSESSMENT OF CHANGES IN BUSINESS LOOKING BACK ON 2019 COMPARED WITH 2018 AND LOOKING AHEAD TO 2020 COMPARED WITH 2019. In the Following Areas General Activityinthe Region . Capital Expenditures(physical plant) . General Activity in your Company . Capital Expenditures . New Orders (equipment and software) . Sales or Revenues Wage and Benefits Costs (full-time permanent) InventorIes . . Number of Employees(part-tIme, 1 PrIces PaId temporary, and contract) . Prices Received FEDERAL RESERVE BANK 01: PHILADELPHIA THE CHAMBER OF COMMERCE FOR GREATER PHILADELPHIA !@ChamberPHL SURVEY RESPONSE WHAT IS YOUR ASSESSMENT OF CHANGES IN BUSINESS For the Region 2019 compared with 2018 52.3% 13.6% 2020 compared with 2019 43.2% 23.9% 18.2% 14.7% Higher - Same Lower I Not Applicable or No Response Source: Survey Results FEDERAL RESERVE BANK OF PHILADELPHIA THE CHAMBER OF COMMERCE FOR GREATER PHILADELPHIA !@ChamberPHL SURVEY RESPONSE WHAT IS YOUR ASSESSMENT OF CHANGES IN BUSINESS For Your Company 2019 compared with 2018 61.4% 19.3% 5.7% 2020 compared with 2019 53.4% 18.2% 14.8% 13.6% Higher I Same Lower I Not Applicable or No Response Source: Survey Results FEDERAL RESERVE BANK OF PHILADELPHIA THE CHAMBER OF COMMERCE FOR GREATER PHILADELPHIA !@ChamberPHL SURVEY RESPONSE WHAT IS YOUR ASSESSMENT OF CHANGES IN BUSINESS Sales or Revenues 2019 compared with 2018 58% 22.7% 2020 compared with 2019 53.4% 10.2% 15.9% Higher I Same Lower I Not Applicable or No Response Source: Survey Results FEDERAL RESERVE BANK oF PHILADELPHIA THE CHAMBER OF COMMERCE FOR GREATER PHILADELPHIA U@ChamberPHL SURVEY RESPONSE WHAT IS YOUR ASSESSMENT OF CHANGES IN BUSINESS Prices Paid 1.1 ?In 3.4% Higher I Same Lower I Not Applicable or No Response Source: Survey Results FEDERAL RESERVE BANK OF PHILADELPHIA THE CHAMBER OF COMMERCE FOR GREATER PHILADELPHIA U@ChamberPHL SURVEY RESPONSE WHAT IS YOUR ASSESSMENT OF CHANGES IN BUSINESS Prices Received Higher I Same Lower I Not Applicable or No Response Source: Survey Results FEDERAL RESERVE BANK op PHILADELPHIA THE CHAMBER OF COMMERCE FOR GREATER PHILADELPHIA U@ChamberPHL SURVEY RESPONSE WHAT IS YOUR ASSESSMENT OF CHANGES IN BUSINESS Capital Expenditures - Physical Plant 3.4% Higher - Same Lower I Not Applicable or No Response Source: Survey Results FEDERAL RESERVE BANK OF PHILADELPHIA THE CHAMBER OF COMMERCE FOR GREATER PHILADELPHIA !@ChamberPHL SURVEY RESPONSE WHAT IS YOUR ASSESSMENT OF CHANGES IN BUSINESS Capital Expenditures - Equipment and Software 2019 compared with 2018 50.0% 8.0% 14.7% 8. 4.5% 2020 compared with 2019 48.9% 18.2% Higher I Same Lower I Not Applicable or No Response Source: Survey Results FEDERAL RESERVE BANK OF PHILADELPHIA THE CHAMBER OF COMMERCE FOR GREATER PHILADELPHIA !@ChamberPHL SURVEY RESPONSE WHAT IS YOUR ASSESSMENT OF CHANGES IN BUSINESS Wage and Benefit Costs 0% 2019 compared with 2018 72.7% 11.4% 1.1 12.5% 14.8% Higher I Same Lower I Not Applicable or No Response Source: Survey Results FEDERAL RESERVE BANK OF PHILADELPHIA 2020 compared with 2019 71.6% THE CHAMBER OF COMMERCE FOR GREATER PHILADELPHIA !@ChamberPHL SURVEY RESPONSE WHAT IS YOUR ASSESSMENT OF CHANGES IN BUSINESS Number of Employees Full-time Permanent 39.8% 11.4% 2020 compared with 2019 47.7% 35.2% 6.8% 10.3% Higher I Same Lower 2019 compared with 2018 42.0% I Not Applicable or No Response Source: Survey Results FEDERAL RESERVE BANK OF PHILADELPHIA THE CHAMBER OF COMMERCE FOR GREATER PHILADELPHIA !@ChamberPHL BIGGEST PROBLEMS FACING CHAMBER MEMBERS FOR 2020 LABOR - QUALITY LABOR COSTS - WAGES LABOR COSTS BENEFITS I I POOR SALES COMPETITION DOMESTIC I Must Impur?tant Problem TAXES I I Second-MostImportantProblem GOVERNMENT REGULATION I Third-Most Important Problem FINANCING AND INTEREST RATES COST OF RAW MATERIALS COMPETITION FOREIGN 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% FEDERAL RESERVE BANK OF PHILADELPHIA OTHER (WRITE-IN) {15 THE OF COMMERCE FOR GREATER PHILADELPHIA TO PARTICIPATE IN OUR SURVEYS: EMAIL us AT MANUFACTURING BUSINESS OUTLOOK SURVEY NONMANUFACTURING BUSINESS OUTLOOK SURVEY MICHAEL TREBING SENIOR ECONOMIC ANALYST ADAM SCAVETTE SENIOR ECONOMIC ANAL YST L.FRB.ORG I @ChamberPHL Contact Information RYOTARO TASHIRO REGIONAL ECONOMIC AD VISOR, RESEARCH DEPARTMENT RYO.TASH FOLLOW US ON TWITTER @philadelphiafed @philfedresearch LIKE US ON FACEBOOK FEDERAL RESERVE BANK op PHILADELPHIA