What are top concerns for businesses in Washington? Here’s what new survey found
Fewer employers in Washington think a recession is on the way, when compared to the spring, but there’s still more concern than there was last summer.
Employers also are “increasingly frustrated over rising taxes and health care costs,” and a majority report that tariffs are affecting their business.
That’s according to the Association of Washington Business, or AWB, which recently announced the results of a summer survey of employers.
AWB is the state’s chamber of commerce and manufacturers association. It surveys employers in Washington each quarter.
The summer survey was conducted via email between July 21 and Aug. 6.
A total of 427 employers — in sectors from manufacturing and construction to insurance and real estate — took part, according to AWB.
Are employers expecting a recession?
About 32% of responding employers said they expect the state’s economy to go into a recession in the next year, according to AWB. That’s a drop from 44% in the spring, but up from 19% a year ago, the association reported.
Meanwhile, “a growing share — 23%, up from 11% in spring — now believe the state will avoid a recession entirely,” AWB said.
The biggest share, at 46%, reported being unsure about a recession.
When it comes to the state’s economy, 63% of responding employers rated it as moderate, while 12% rated it as strong and 21% gave it a weak rating.
Smaller percentages said it was very strong or very weak.
As for the U.S. economy, 52% rated it as moderate, 26% as strong and 18% as weak, with smaller shares choosing very strong or very weak.
How are businesses faring in Washington?
According to AWB, “growth projections appear modest,” with 45% of responding employers saying business is flat and 23% saying it’s growing. That’s compared to 42% reporting flat business and about 24% reporting growth in the spring.
In the next six months, 6% foresee good growth, 33% foresee moderate growth, 45% expect business to remain flat and 15% expect a decline.
Tariffs, a tax imposed on imported products, have been in the news for months, with President Donald Trump issuing and sometimes suspending them, and other world leaders responding, The New York Times reported.
On Aug. 7, he “imposed some of his steepest levies yet,” the outlet reported, “pushing the average tax on imports to more than 18 percent.”
What are employers’ biggest challenges in Washington?
Employers were asked to identify their key business challenges. Here’s how they responded (they could pick more than one):
- Overall tax burden: 58%
- Cost of health care: 50%
- Government regulations: 46%
- Inflation: 39%
- Lack of qualified workers: 31%
- Tariffs: 30%
- Cost of energy: 30%
- Lack of affordable housing for employees: 21%
- Supply chain disruption: 18%
- Public Safety: 12%
- Homelessness: 10%
- Other: 10%
How are tariffs affecting Washington employers?
More than half of employers — 58% — reported being “concerned that potential tariffs/retaliatory tariffs could negatively impact” their business, AWB said.
That’s a drop from 72% in the spring, according to AWB.
Meanwhile, 51% said they’ve experienced direct business impacts from tariffs, such as increased business costs or supply chain disruptions. That’s up from 48% in the spring.
Are Washington employers using AI?
A relatively small share of employers — 12% — reported using artificial intelligence in their business, according to AWB. But that number could be growing, as 46% said they’ve started looking into ways it could help them.
Meanwhile, 38% said their business hasn’t looked at incorporating AI.
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