honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Tuesday, November 6, 2007

OWNERS ALSO CITE WORKER WORRIES
Cost of doing business still No. 1 concern, survey shows

By Curtis Lum
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Jim Tollefson

spacer spacer

The cost of doing business in Hawai'i continues to top the concerns of business owners here, but a recent survey revealed that there also is a growing concern over the shortage and quality of workers and also the impact the Islands' aging infrastructure has on business.

The Chamber of Commerce of Hawai'i this week released the results of its annual membership survey, which asked its members to list their most pressing business concerns. Ward Research conducted telephone interviews of 301 members, and the results are intended to help the chamber meet the needs of its membership.

When asked to name the three most important issues facing their business, 53 percent of the respondents said the cost of doing business. This complaint has consistently been the No. 1 concern in previous surveys.

Coming in second at 38 percent was the quality of Hawai'i's workforce, followed by the availability of workforce at 33 percent.

The shortage of quality employees has been a solid No. 2 in the survey for several years, said Jim Tollefson, chamber president and chief executive officer.

"There's not a day that goes by I don't have a conversation with a member of the business community that indicates they're having a difficult time finding people and then finding the quality of the workforce that they need," Tollefson said.

He said the problem is expected to get worse as the aging baby boomer workforce begins to retire.

While Tollefson said he expected the cost of doing business and workforce issues to top the survey, he was surprised that many members cited the replacement of aging infrastructure as a top priority. Ten percent of those surveyed said it was one of their top three concerns, while 43 percent listed it as a top priority that the chamber should address.

Tollefson said businesses are worried that if government doesn't act fast to improve the state's roads, sewage system and utilities, businesses will suffer. For example, he said another large sewage spill like last year's massive spill in the Ala Wai Canal could have a devastating impact on the tourism industry.

He said the aging infrastructure's impact on business also is felt whenever a water main or sewer line breaks or there are problems with the roads.

"The constant work that's being done on the streets that impedes traffic, the long term is to improve, but you encounter delays driving from point A to point B," Tollefson said. "The business community realizes that something must be done to improve the infrastructure to sustain where we are today and grow into the future."

Overall, the survey showed that chamber members are pleased with the work done by the organization. The chamber has 1,150 members who represent about 200,000 employees, Tollefson said.

One of the biggest accomplishments this past legislative session was the approval of a measure to reduce the unemployment insurance premiums. Tollefson said the chamber worked with other organizations to pass the bill, which is expected to save businesses $151 million over the next three years.

Reach Curtis Lum at culum@honoluluadvertiser.com.