Poll: Texas execs sunnier on economy
DALLAS — Texas business executives are more optimistic about the nation’s economic outlook than their peers in other states, even though more than a quarter of them have started or are considering job cuts.
That’s the key finding of a survey of more than 500 C-level and senior executives across the U.S. on their economic outlook for the next year. Digital consulting firm West Monroe, which has a Dallas office, said its survey included 51 executives from Texas, 69 from California, 43 from Florida, 32 from Illinois and 53 from New York.
Of the executives polled, those in Texas were the least likely to be considering job cuts over the next six months.
According to the Texas businesses that responded, 8% have already eliminated some jobs and are considering additional reductions in the payroll, 8% are in the process of reducing employee ranks and 12% are considering cuts. The other 73% aren’t considering job cuts over the next six months, higher than the 59% average among the states.
The overwhelming concern among Texas executives considering job reductions is the effect on employee morale.
Adam Gersting, West Monroe’s Dallas office lead, said companies need to be thoughtful about how they go about cuts.
“The way in which employers let employees go has a significant impact on morale and retention of those who remain,” he said.
Texas respondents indicated that their top concerns over the next year are the economy, inflation and pricing and labor and employment issues. The state’s executives are more concerned about labor than those in any of the other states, with 43% of Texas respondents identifying it as a top concern.
“I actually view this as a good thing,” Gersting said. “It’s an indication that businesses continue coming to and expanding in Texas, which creates a demand for more and higher-caliber team members to be hired.”
When asked about what business issues they think will be resolved in the next 12 months, 40% of Texas executives said supply chain and 33% said inflation.
Gersting said what he found most interesting in the survey results is that Texas executives had a more positive outlook than those in any other state.
“It ties into what we’re seeing with more and more companies coming to Texas, given the favorable business environment, its geographical location and the political climate,” he said.
When asked about the most overhyped tech trend, 45% of the Texas business leaders answered with “crypto” and 33% said the Metaverse.
“While in recent days the crypto market has had some notable downward impacts with the FTX bankruptcy, it’s certainly an area that will continue to exist and play into what banks are doing and needing to support,” Gersting said. “Or maybe banks may need to recognize that it’s part of banking now.”
West Monroe has sent out a similar survey to executives since the beginning of the covid-19 pandemic, Gersting said. It’s a way to gain insights into what executives across the country are thinking and feeling about the market, he said.
Texas executives who participated represented a range of industries, from agriculture, health care and finance to real estate, retail, telecommunications and energy. About 41% work at companies with more than 1,000 employees; 29% between 100 and 999 employees, and 29% under 100 employees.
About 51% of Texas executives said their company’s revenue was under $500 million, while 22% were between $500 million and $1 billion, 17% were between $1 billion and $3 billion and 12% were over $3 billion.