Business
Umpqua Bank 2023 Business Barometer: Optimism, Expectations for Revenue and Profitability Rise Despite Lingering Economic Concerns
Business leaders focused on efficiency, reducing uncertainty, protecting working capital 74% focused on digitization to become more efficient60% investing in
About this update from Columbia Banking System, Inc.
[{"type":"text","content":"Business leaders focused on efficiency, reducing uncertainty, protecting working capital \n74% focused on digitization to become more efficient60% investing in tools to protect payments systems57% of middle market businesses likely to bring supply chains back to U.S.Cybersecurity surpasses talent issues as a top middle market company concernLAKE 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 U.S. While concerns about the direction of the economy persist, business optimism is rising, and expectations for revenue and profitability are increasing. The study also found a growing appetite among businesses to make prudent investments that will help them become more efficient and competitive.\n\n \n \n \n \n \n \n\n \n\"Small and middle market businesses across the country continue to show why they are the backbone of the U.S. economy,\" said Tory Nixon, Umpqua's President of Commercial Banking. \"While economic concerns linger, they're responding to the uncertainty with growing optimism and confidence in their ability to adapt and move forward. Businesses are planning strategic moves they believe will help them become more efficient, more profitable, and ready for what's ahead.\"\nWith positivity about the current state of the economy (41% excellent/good), and expectations for increased revenue (58%) and profitability (51%) hovering around or exceeding five-year highs, businesses are noticeably more likely than last year to take planned action to achieve their goals in the next 12 months. This is especially true of middle market businesses, which are more likely to invest in digitization for efficiency (87%) and tools to protect payments systems (74%), make significant changes to products and services (65%), expand their commercial real estate footprint (57%), finance expansion (49%), or acquire another business (40%).\nAlthough 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 intere...