News Release

For Immediate Release                                                                                                     Contact: Ed McLaughlin
May 25, 2005                                                                                                                                207) 622-9075
To View Executive Summary (click here)                                                                          Cellular: (207) 215-6083

MERI releases statewide survey of Maine business leaders:
Business Leaders say Maine's business climate amongst worst in United States

AUGUSTA, Maine-The Maine Economic Research Institute (MERI) released the results of the statewide 2005 Senior Management Survey, Maine's premiere survey of 531 Maine companies, at a presentation on Tuesday. Dr. Verne Kennedy, President and CEO of the nationally renowned research firm, Market Research Insight, which conducted the survey for MERI, presented the results of this third, biennial report.

The 118 question survey provides a high degree of reliability (95% confidence coefficient; +/- 4% error factor ) and presents a candid analysis of Maine's economy from the people who know it best-business owners, CEOs, presidents, and senior managers. Maine employers-small, medium, and large-provided insight into what it takes to create jobs and grow Maine's economy. Two-thirds of the Maine employers, who participated in the survey, represented small, often family-owned businesses-the backbone of Maine's economy.

"Comparing the 1999, 2002 and 2005 survey results, business leaders clearly say Maine's economy and business climate are getting worse rather than better," said Edward J. McLaughlin, MERI president & CEO. "But they also point out the opportunities and positive influences within the state."

Maine employers weighed in on numerous issues including the Dirigo Healthcare Program (4:1 negative), locating an LNG terminal on Maine's coast (7:1 positive) and Maine's educational system (2.5:1 positive for k-12, 4:1 positive for state university, and 5.5:1 positive for vocational/technical system). The survey also reported on business leaders opinions and attitudes regarding congressional, state and municipal government, business costs and regulations, transportation infrastructure and Maine's workforce.

According to the survey, business leaders believe Maine's negative business climate is due high taxes, overall cost of doing business in Maine, the state regulatory environment, legislative lack of understanding and unresponsiveness to business needs, lack of understanding and support from most levels of government and a fragmented business community that has failed to mount a united effort to improve things.

At the Tuesday evening event Dr Kennedy, who has conducted similar surveys in 27 other states commented," I can not say that Maine's business climate is the worst in the US because I have not surveyed every state. But I can tell you that business leaders in Maine are more pessimistic than business leaders in any other state in which MRI has conducted similar surveys. Pessimism about Maine's economy is greater today than when we surveyed in 2002 and 1999."

Copies of the MERI 2005 Senior Management Survey Executive Summary will be provided to Governor Baldacci, Maine Legislators, and MERI Subscribers; it will also be posted on MERI's web site, www.fixmaine.com 

State policies are crucial to the ability of Maine employers to compete in today's economy," said Peter G. Vigue, MERI chairman and Cianbro CEO. "Communicating these vital issues to policy-makers in Augusta and the public will increase our ability to work together as a team in improving Maine's economy and creating quality jobs."

This release represents the results of scientific surveys of public opinion conducted by Market Research Insight (MRI). Verne Kennedy, Ph.D., senior analyst for MRI, served as project manager. Dr. Kennedy is a former college president and is one of the most respected researchers in his field.

The Maine Economic Research Institute (MERI) is an independent, private, not-for-profit corporation governed by a board of directors who are business owners, CEOs, and senior staff representing a diverse group of Maine companies. Incorporated in 1999, MERI is dedicated to improving Maine's business environment by providing objective information to enhance economic policy-making. Committed to a healthy economy and quality jobs, MERI conducts nonpartisan research and tracks legislator performance on critical business issues. Please visit www.fixmaine.com