M&T Bank’s Delaware President Nick Lambrow says middle market businesspeople remain optimistic about the economy.
The Commercial Economic Outlook Survey, was the first since the federal tax reform was signed into law.
Among the key findings:
- 70 percent of businesses say the economy is stronger today than it was six months ago, a post-recession high
- 72 percent expect the economy to further improve in the next six months— an all-time high in the eight years M&T has been conducting the survey.
“I’m bullish on Delaware,” says Lambrow, who noted that the upbeat outook has continued, despite some clouds on the horizon
Asked about the impact of later decisions by the Trump administration to impose tariffs and countermeasures by the nations affected by the move, Lambrow says business owners have become a little less bullish while waiting for developments to unfold.
The report from the bank’s region that now stretches from southern New England to Virginia did not offer a separate analysis for Delaware. M&T and its Wilmington Trust business employ 1,800 in Delaware, with about 80 jobs open.
Issues faced by middle market companies in Delaware include a tightening labor market, regulatory issues and health care costs, Lambrow noted.
One interesting finding indicates that mid-market businesses plan to use savings from the tax plan to re-invest in their enterprises and boost wages, rather than distribute the proceeds to owners or shareholders. That’s a marked contrast to announcements from many of the nation’s largest companies.
Turning to Delaware, Lambrow says business owners are seeing signs of a tightening labor market that could hold down hiring.
Delaware has seen some mid-sized companies sold to private equity investors or publicly traded companies, according to Lambrow.
He pointed to other positive developments that include:
- Continuing growth at the University of Delaware STAR Campus that is bringing high-paying jobs in technology and related areas. The campus is at the former Chrysler Assembly Plant site and will house R&D activities for DuPont-spinoff, Chemours Co.
- Development of the AstraZeneca site on Concord Pike in north Wilmington. The pharmaceutical company sold the campus to Delle Donne and Associates, with AZ occupying a portion of the office complex.
- Investments in highways and other infrastructure.
- Two of three of the spin-offs from DowDuPont staying in Delaware.
- Continuing development and redevelopment in downtown Wilmington, including the DuPont Building.
- Expansion in Delaware by mid-sized companies, including a growing HVAC service.
