What’s Important to Maine Employers 

 

A Research-Based Compilation

Of Three Statistically Significant Studies

Based on the

MAINE ECONOMIC RESEARCH INSTITUTE’s

senior management SurveY

 

Prepared By:

Ed McLaughlin & Glen Foss

Maine Economic Research Institute

March 2007

 

THE REPORT:

 

This report represents the results of three comprehensive surveys completed by Market Research Insight of Maine Senior Management officials between 1999 and 2005.  These surveys provide insight into the opinions of key business decision-makers in Maine.  Each study represents the views of more than 500 business leaders and each study provides a statistical error factor of less than 4.5% at the .95 level of confidence. The full reports are available at www.fixmaine.com

 

THE BOTTOM-LINE:

Establishing Priorities for Strengthening Maine’s Economy

The following questions examined how Maine can deal with retaining Maine businesses and the jobs they represent, and attracting new business and industry to the state.  The question read:  “How can State policies change to help create an environment that enhances the competitive position of Maine companies while maintaining Maine’s quality of life?  Please indicate your top 3 recommendations for how State policies can help attract new business and industry and help strengthen current businesses.” NOTE: Table displays total results for question combining up to three recommendations received by each respondent.

HOW STATE POLICIES CAN HELP ATTRACT NEW BUSINESS

 

1999

2002

2005

Tax Relief

   57%

 43%

   44%

Less Government

11

6

22

Ease Regulations

26

8

15

Control Healthcare Costs

NA

15

10

Improve Infrastructure/Transportation

21

10

9

Increase Incentives

13

10

9

Control Insurance Costs

NA

5

9

Stable/Consistent Policies

10

4

9

Fix Workman’s Compensation

8

19

8

Be Pro-Business

13

5

8

Expand Economic Development

10

2

7

Improve Education

28

11

6

Diversify/Bring in New Industries

3

3

4

Less Environmental Control

NA

3

4

Lower Business Expenses

12

1

4

Help Small Business

NA

3

4

Promote the State

12

4

3

Put Existing Business First

3

1

3

More/Promote Environmentally Friendly Industry

NA

3

1

 

Other

  13%

    1%

    1%

Uncertain/Don’t Know

NA

29

28

 

Question read:  “What do you consider the top 3 roadblocks to improving Maine’s business environment?”

ROADBLOCKS TO IMPROVING MAINE’S BUSINESS ENVIRONMENT

 

2005

2002

Taxation

    37%

 24%

Lack of Political Leadership

16

3

Anti-Business Legislature/Government

15

              13

Government Regulations/Mandates

11

5

Worker Comp Costs

9

              10

Insurance Costs

8

5

Local Governments

8

1

Healthcare Costs

7

9

Lack of Qualified Labor

7

5

Special Interests/Unions

7

5

Lack of Foresight/Planning

7

3

Inexperienced Legislators

6

8

Environmental Regulations

6

3

Cost of Business

6

2

Politics

5

5

High Utility Costs

5

4

Cost of Living/Quality of Life

5

3

Infrastructure/East-West Highway

4

6

Transportation Costs

4

4

Size of Government

4

3

Schools/Education

3

5

Location

3

4

Population Resistance to Change

3

3

Competitors/Canada

2

3

Lack of Capital/Banks

2

1

Retaining Employees

2

1

Perception of Maine

2

1

Population Distribution

1

2

Unemployment Compensation Too High

1

2

 

Other

    1%

    3%

Uncertain/Don’t Know

23

24

 

Executive Summary

Market Research Insight assisted Maine Economic Research Institute with three separate surveys of Maine’s senior business officials.  Each of the Senior Management Surveys had more than 500 business leader participants providing a sampling error factor of below 4.5% at a .95 level of confidence for each study. While each study provided unique insights, the comparisons between the surveys are made only for key issues in this report. The full reports are available at www.fixmaine.com.  Dr. Verne Kennedy, MRI President and Senior Analyst, served as Project Director for all studies.

Survey participants had considerable diversity in business industry classification and size base on number of employees. The studies are representative of Maine business as a whole and reflect what is important to small, often family-owned, Maine businesses.

NUMBER OF MAINE EMPLOYEES

 

1999

2002

2005

5 Employees or Less

   21%

  15%

   14%

6 - 20 Employees

23

28

28

21 - 50 Employees

18

23

25

51 - 99 Employees

10

11

13

100 - 1,000 Employees

24

21

19

Over 1,000 Employees

3

3

1

 

The organization of participating businesses was primarily corporate, 83%, with 6% sole proprietor, 6% not for profit, 4% partnership, and 2% other structures.  Among participating companies, between 24% (2005) - 34% (2002) also have operations in other states.  Cumberland, Penobscot, and York Counties were most represented and together made up over 50% of all respondents.  Actual survey participants were 60% owners, 26% CEOs, 10% senior management officials, and 4% other categories.

 In 2005, fifty-nine percent of respondents said based on their experience, the average Maine-based business makes under 10% after tax profit.  In comparison, the average individual holds the opinion that businesses in Maine make closer to 27-33% profit.  A reality gap exists between actual and perceived profits by most Maine citizens. 

Senior management officials are extremely pessimistic about the business climate in Maine with 94% saying they consider the overall business climate in Maine poorer than in other states and Canada in 2005, compared to 88% in the 2002 survey.  Business leaders in Maine are more pessimistic than business leaders in any other state in which MRI has conducted similar surveys. In addition, 90% of Maine business leaders hold the opinion that the perception of Maine’s business climate as held by business executives in other states is negative, up from 85% in 2002.  Pessimism about Maine’s economy is greater today than when surveyed in 2002. 

The perception of Maine business taxes changed between 2002 and 2005 with business executives responding 90% too high in 2002 and 95% too high in 2005.  Respondents also said that personal taxes have gone up as well.  Senior management officials consider Maine’s tax burden much higher for both corporate and personal taxes than in other states.  In fact, 95% said that personal taxes were too high and 95% said corporate taxes were too high.  Among respondents, 82% said their companies would be more likely to expand or invest new capital in Maine if the overall tax burden for businesses and individuals were lowered.

Several questions asked Maine business leaders to compare taxes, availability of skilled labor, and quality of that labor with other states and Canada.  The following graph summarizes results depicting the percent of business leaders saying that Maine is better or poorer.

 

Maine business leaders comparing essential business characteristics in their state with other states say that business taxes are much higher in Maine, the availability of quality skilled labor much lower, but that the labor ethic of Maine workers is better.  Maine’s business leaders point to a business climate which is no longer competitive with other states and Canada.

The quality of life, Maine work ethic, and access to raw materials were key factors attracting businesses to Maine.  Senior management officials were asked if factors attracting their company to Maine have changed.  They say the Maine quality of life is now slightly worse, access to raw materials slightly worse, the Maine work ethic and skill level somewhat worse, but general access to labor is much worse.

The survey also examined Maine’s regulatory environment.  The administration of state and local regulations in Maine was considered 74% too strict and 2% too lenient.  Although business people generally complain about regulations, no state surveyed by MRI has responded with 74% of business leaders saying too strict. 

The survey tested support for four new issues in 2005.  Strongest support existed for greater competition among healthcare insurance providers, with 89% support.  Seventy-two percent of senior management officials support locating a liquid natural gas (LNG) on Maine’s coast.  Much lower support existed for the other two healthcare issues.  Forty-nine percent were against the Maine Dirigo Healthcare Program, and respondents were nearly evenly split in their support of the state policies creating a healthcare risk pool, with 28% supporting and 29% against.

When it comes to encouraging business expansion in Maine, 89% of respondents say that Maine should offer incentives to encourage existing business and industry to expand and incentives for new companies to locate in the state.  In addition, 91% say Maine should make its business tax incentive programs competitive with other states.  Seventy-six percent of respondents prefer a broad-based approach to state economic development that helps all businesses.

Among respondents, 82% said their companies would be more likely to expand or invest new capital in Maine if the overall tax burden for businesses and individuals were lowered.  Eighty-five percent of Senior Management officials disagree that Maine’s economic policies provide competitive advantages to Maine businesses relative to other states.  In addition, 93% of senior management officials said the overall cost of doing business in Maine is higher than in other states, and 60% said much more expensive.

The survey examined influences on Maine’s economy.  Senior management officials were asked if each of the following was a positive or a negative factor on Maine’s economic and business growth.  The survey used a five-point scale ranging from five for very positive to one for very negative.  The following graph depicts results.  The higher the score, the more positive the factor.

The following graph depicts the top factors receiving most positive influence responses for helping Maine’s economy. 

 

Top positive influences were vocational, technical, and private colleges, the banking system, and the State University system.

The next graph depicts the top negative response factors influencing Maine’s economy.

Top negative influences continue to be state and local taxes, health insurance and healthcare costs, and energy costs.

How do business leaders determine which legislative candidates to support based upon specific issues?  Using a ten-point scale, business leaders rated the following issues.  The higher the rating, the more important the issue when it comes to identifying pro-business candidates for the State Legislature.

 

Maine business leaders are very aware of negative influences on their economy.  When it comes to support for legislative candidates, business leaders want candidates who will work to reverse the negative consequences of these factors.

The most important issues determining business candidate support were state and local tax reform, healthcare cost containment, improved management of state government, state partnerships for business development and attraction, and tort reform and related insurance reform. 

When asked about government responsiveness to their needs, Maine businesses leaders responded: 75% say that Maine legislators are unresponsive and only 17% responsive to the needs of business people.  Sixty-seven percent of business leaders think the current administration is unresponsive and 18% said responsive.  Laws and programs affecting businesses were labeled 83% inconsistent and only 18% consistent.  State agencies were considered 58% unresponsive and 20% responsive.  Key business leaders believe that Maine state legislators are not at all knowledgeable of business needs when it comes to state policies.

When compared to 2002 survey results, Maine business leaders believe that legislators are less responsive to business needs, say that laws and programs effecting businesses are more inconsistent today than before, and say that state agencies are less responsive in 2005.

Business leaders say that the top remedial actions for improving public education in Maine are improved basic skills, improved funding, less administration, increased teacher skills, accountability, merit pay, teacher quality, teacher testing, maintaining standards; and improved vocational and technical schools.

When it comes to priorities for strengthening Maine’s economy, tax relief, less government, easing regulations and controlling healthcare costs were most frequently mentioned.  The state’s tax system, lack of political leadership, and government regulations and mandates were considered the main roadblocks to improving Maine’s business environment. 

Overall, Maine business leaders participating in the 2005 Senior Management Survey were very pessimistic about the state’s economy and potential for future growth.  When compared to 2002 survey results, business leaders are more pessimistic today on almost every issue tested.   More importantly, Maine business leader responses paint a more negative picture of the business economy in Maine than MRI has seen in any state in which the research firm has worked. Business executives say that Maine is at a strong disadvantage compared to other states and Canada on almost all issues important for a strong economy.  High taxes, healthcare costs, rapidly increasing worker’s compensation costs, high cost of insurance, energy costs, state regulatory policies and agencies, transportation costs, and a legislature that lacks understanding of critical business needs and is unresponsive when business leaders ask for help were seen as key factors hurting the state’s economy and preventing economic growth.

 

Maine Business Characteristics

Industry Background Material

This section examines background descriptions of individual business leaders participating in the study.  The question identified industry groups taking part in the Senior Management Survey.  That question asked:  “Which of the following industries most nearly identifies your particular business?”

 

As indicated, Senior Management respondents represented a broad diversity of industries in Maine. 

Question asked:  “Voter surveys indicate that the average Maine voter believes that the average Maine company makes over 30% after tax profit.  Based on your experience, what is the average Maine-based after tax profit of companies comparable to your business?”

AFTER TAX PROFIT

 

2005

Under 5%

   30%

5% - 9%

29

10% - 14%

22

15% And Over

18

 

Mean

8.32%

Median

6

 

Fifty-nine percent of respondents said based on their experience, the average Maine-based business makes under 10% after tax profit.

Question asked:  “Does your company have operations in states other than Maine?”

OPERATIONS IN OTHER STATES

 

2005

2002

Yes

   24%

  34%

No

76

66

 

Question on business location.  The question asked:  “In which Maine County is your office located?”

 

 

The following question determined position of respondents.  Question asked:  “Which of the following descriptions best describes your position with the company?”

POSITION OF RESPONDENT IN COMPANY

 

1999

2002

2005

Owner

NA

   55%

   60%

Chief Executive Officer

   59%

23

26

Senior Management Official

25

14

10

Branch Manager

7

3

3

Middle Management

7

3

1

Government Affairs Representative

2

1

0

 

Business Climate and Issues in Maine

Three questions examined overall respondent optimism and pessimism concerning Maine’s business climate.  Question asked:  “How does the overall business climate in Maine compare to other states and Canada?”

BUSINESS CLIMATE IN MAINE COMPARED TO

OTHER STATES AND CANADA

 

2005

2002

1999

5  Much Better

   0%

   0%

  1%

4  Somewhat Better

2

2

6

3  About The Same/Uncertain

3

9

15

2  Somewhat Poorer

31

39

54

1  Much Poorer

63

49

24

 

Total Better

     2%

     2%

     7%

Total Poorer

94

88

78

Ratio Better/Poorer

0.02:1

0.02:1

0.9:1

Mean Score

1.45

1.59

2.06

 

Question asked:  “How would you describe the perception of Maine’s business climate as held by business executives in other states?”

PERCEPTION OF MAINE’S BUSINESS CLIMATE HELD ELSEWHERE

 

2005

2002

1999

5  Very Positive

   0%

   0%

   1%

4  Somewhat Positive

1

2

8

3  Neutral/Uncertain

9

13

18

2  Somewhat Negative

52

55

61

1  Very Negative

38

30

13

 

Total Positive

     1%

     2%

    9%

Total Negative

90

85

74

Ratio Positive/Negative

0.01:1

0.02:1

0.1:1

Mean Score

1.74

1.82

2.24

The final question in this series looked at state and local taxes in Maine compared to other areas.  Question asked:  “How would you describe the current level of state and local taxes paid by business and industry in Maine compared to business taxes in other States?”

MAINE BUSINESS TAXES VERSUS OTHER STATES

 

2005

2002

1999

5  Much Too Low

   0%

   0%

   1%

4  Too Low

0

0

0

3  About Right/Uncertain

5

9

11

2  Too High

37

41

60

1  Much Too High

58

49

29

 

Total Low

     0%

     0%

     1%

Total High

95

90

89

Ratio Low/High

NA

NA

0.01:1

Mean Score

1.48

1.54

1.84

 

Question asked:  “How would you describe the current level of state and local taxes paid by individuals in Maine compared to taxes in other States?”

MAINE INDIVIDUAL TAXES VERSUS OTHER STATES

 

2005

2002

6  Uncertain

   1%

  1%

5  Much Too Low

0

0

4  Too Low

0

0

3  About Right

4

5

2  Too High

38

38

1  Much Too High

57

54

 

Total Low

    0%

    0%

Total High

95

92

Ratio Low/High

NA

NA

Mean Score

1.48

1.52

 

Question asked:  “How would you compare the availability of skilled labor in Maine with that of other states?”

MAINE’S AVAILABILITY OF SKILLED LABOR VERSUS OTHER STATES

 

2005

2002

1999

6  Uncertain

   6%

   5%

---

5  Much Greater

0

0

2

4  Greater

8

7

18

3  About The Same

30

24

25

2  Poorer

44

50

48

1  Much Poorer

11

14

8

 

Total Greater

     8%

     7%

   20%

Total Poorer

55

64

56

Ratio Greater/Poorer

0.1:1

0.1:1

0.4:1

Mean Score

2.39

2.26

2.58

 Question asked:  “How would you compare the quality (skill level) of labor in Maine with that of other states?”

QUALITY OF LABOR (SKILL LEVEL) IN MAINE

 

2005

6  Uncertain

   5%

5  Much Greater

1

4  Greater

17

3  About The Same

37

2  Poorer

34

1  Much Poorer

5

 

Total Greater

  18%

Total Poorer

39

Ratio Greater/Poorer

0.5:1

Mean Score

2.72

 

Question asked:  “How would you compare the quality (work ethic) of labor in Maine with that of other states?”

QUALITY OF LABOR (WORK ETHIC) IN MAINE

 

2005

6  Uncertain

     3%

5  Much Greater

11

4  Greater

50

3  About The Same

24

2  Poorer

9

1  Much Poorer

4

 

Total Greater

    61%

Total Poorer

13

Ratio Greater/Poorer

4.7:1

Mean Score

3.55

 

In the 2002 survey, these questions were combined; the following table depicts those results.  The question read:  “How would you compare the quality (including skill level & work ethic) of labor in Maine with that of other states?”

QUALITY OF LABOR IN MAINE

 

2002

6  Uncertain

   3%

5  Much Greater

5

4  Greater

36

3  About The Same

31

2  Poorer

20

1  Much Poorer

6

 

Total Greater

   41%

Total Poorer

26

Ratio Greater/Poorer

1.6:1

Mean Score

3.15

 

Question asked:  “What strengths does Maine have that attracted your company to Maine and keeps it here?”

MAINE STRENGTHS THAT ATTRACTED YOUR COMPANY

 

2005 Survey

2002 Survey

Maine Quality Of Life

   79%

   69%

Maine Work Ethic

19

35

Access To Raw Materials

8

10

Founded In Maine/Native

5

10

Access To Labor

3

6

Market For Product

2

1

Worker Skill Level

2

---

Location

1

1

Nothing

1

1

 

Question read:  “Have any of the reasons in Question 54 above changed in the past five years and if so are they:”

STRENGTHS CHANGED

 

2005 Survey

2002 Survey

 

Better

Same

Worse

Better

Same

Worse

Maine Work Ethic

   4%

   55%

   41%

     5%

   57%

   38%

Maine Quality Of Life

7

71

23

13

73

14

Access To Raw Materials

1

75

24

4

74

22

Access To Labor

6

44

50

5

44

51

Maine Worker Skill Level

6

55

39

---

---

---

 

Other

---

---

---

6%

44%

50%

 

Maine’s Regulatory Environment

Several questions examined regulatory issues in Maine.  Question asked:  “How would you describe the administration of state and local regulations in Maine applicable to business and industry?”

ADMINISTRATION OF REGULATIONS IN MAINE

 

2005

2002

1999

5  Much Too Lenient

    0%

    0%

   1%

4  Too Lenient

2

2

6

3  About Right

24

39

38

2  Too Strict

53

45

47

1  Much Too Strict

21

13

9

 

Total Lenient

      2%

     2%

     7%

Total Strict

74

58

56

Mean Score

2.08

2.32

2.43

 

Question asked:  “If your company does business in other states besides Maine, how does your workers’ compensation expense in those states compare to Maine?”

WORKERS’ COMPENSATION COSTS IN OTHER STATES

COMPARED TO MAINE

 

2005

2002

5  Much Less Expensive Than Other States

   1%

   16%

4  Somewhat Less Expensive Than Other States

3

24

3  The Same As Other States

5

8

2  Somewhat More Expensive Than Other States

16

13

1  Much More Expensive Than Other States

17

10

Uncertain/Cannot Compare

57

29

 

Total Less Expensive Than Other States

    4%

   40%

Total More Expensive Than Other States

33

23

Ratio Less/More

0.1:1

1.7:1

Mean Score

1.96

3.35

 

Question asked:  “If your experience shows that Maine’s Workers’ Compensation costs are higher than other states, why do you believe they are higher?”

REASON MAINE WORKERS’ COMPENSATION COSTS HIGHER

 

2005

2002

Maine’s Workers’ Comp System Overall

    57%

   52%

Medical Costs

35

27

Benefit Levels

27

24

Workforce Behavior/Characteristics

27

22

Administrative Costs (Of System)

26

14

Pharmaceutical Costs

21

12

Politics/Government

1

2

Fraud

1

2

Lawyers/Courts

1

2

 

All Of The Above

24%

30%

 

Question asked:  “Are your company’s costs for workers’ compensation:”

YOUR COMPANY’S COSTS FOR WORKERS’ COMPENSATION

 

2005

2002

5  Rapidly Increasing

    11%

   24%

4  Somewhat Increasing

47

51

3  Stable

39

23

2  Somewhat Decreasing

3

2

1  Rapidly Decreasing

0

0

 

Total Increasing

  58%

  75%

Total Decreasing

3

2

Ratio Increasing/Decreasing

19.3:1

37.5:1

Mean Score

3.65

3.97

 Question asked:  “Do you support the Maine Dirigo Healthcare Program?”

SUPPORT MAINE DIRIGO HEALTHCARE PROGRAM

 

2005 Survey

5  Strongly Support

    2%

4  Somewhat Support

11

3  Neutral

38

2  Somewhat Against

19

1  Strongly Against

30

 

Total Support

  13%

Total Against

49

Ratio Support/Against

0.3:1

Mean Score

2.36

 

Question asked:  “Do you support the state policies creating a healthcare risk pool?” 

SUPPORT HEALTHCARE RISK POOL

 

2005

5  Strongly Support

    7%

4  Somewhat Support

21

3  Neutral

44

2  Somewhat Against

18

1  Strongly Against

11

 

Total Support

   28%

Total Against

29

Ratio Support/Against

1.0:1

Mean Score

2.96

  

Question asked:  “Do you support creating state policies that encourage competition among healthcare insurance providers?”

SUPPORT COMPETITION AMONG HEALTHCARE INSURANCE PROVIDERS

 

2005

5  Strongly Support

   51%

4  Somewhat Support

38

3  Neutral

8

2  Somewhat Against

1

1  Strongly Against

2

 

Total Support

89%

Total Against

3

Ratio Support/Against

29.7:1

Mean Score

4.35

 

Question asked:  “Do you support the locating a Liquid Natural Gas (LNG) on Maine’s coast?” 

SUPPORT LOCATING LIQUID NATURAL GAS ON MAINE’S COAST

 

2005

5  Strongly Support

   38%

4  Somewhat Support

34

3  Neutral

17

2  Somewhat Against

6

1  Strongly Against

5

 

Total Support

72%

Total Against

11

Ratio Support/Against

6.5:1

Mean Score

3.95

 

The survey tested support for four new issues in 2005. Strongest support existed for competition among healthcare insurance providers, with 89% support.  Seventy-two percent of senior management officials support locating a liquid natural gas (LNG) on Maine’s coast.  Much lower support existed for the other two healthcare issues.  Forty-nine percent were against the Maine Dirigo Healthcare Program, and respondents were nearly evenly split in their support of the state policies creating a healthcare risk pool, with 28% supporting and 29% against.

 

Business Taxation Incentives

Two Questions asked respondents to agree or disagree with specific statements regarding taxation.  The introductory comments to this section of the survey read:  “The next few questions concern opinions on issues relating to effectiveness and taxation in State Government.  Please indicate whether you agree or disagree with each of the following statements.”  Actual areas tested were:

·         “Maine should offer incentives to encourage existing business and industry to expand in the state and for new companies to come to Maine.”

·         “Maine should make its business tax incentive programs competitive with other states.”

MAINE SHOULD OFFER INCENTIVES TO EXISTING BUSINESSES

 

2005

2002

5  Strongly Agree

   46%

   48%

4  Agree

43

41

3  Uncertain

7

5

2  Disagree

3

5

1  Strongly Disagree

2

1

 

Total Agree

 89%

 89%

Total Disagree

5

6

Ratio Agree/Disagree

17.8:1

14.8:1

Mean Score

4.27

4.29

 


 

MAINE SHOULD MAKE ITS TAX INCENTIVES COMPETITIVE

WITH OTHER STATES

 

2005

2002

5  Strongly Agree

   48%

   50%

4  Agree

43

40

3  Uncertain

4

6

2  Disagree

3

3

1  Strongly Disagree

1

1

 

Total Agree

 91%

90%

Total Disagree

4

4

Ratio Agree/Disagree

22.8:1

22.5:1

Mean Score

4.35

4.37

 

Question asked:  “Do you prefer a targeted state economic development program which focuses on developing specific industries to help them become world leaders (e.g., composite materials) or a more broad-based strategy that helps all businesses?”

STATE ECONOMIC DEVELOPMENT PROGRAM

 

2005

Targeted Approach

   24%

Broad-Based Approach

76

 

Question asked:  “If the overall tax burden for businesses and individuals were lowered, my company would be more likely to expand and/or invest new capital in Maine?”

EXPAND MY BUSINESS IF TAXES ARE LOWERED

 

2005

2002

5  Strongly Agree

   36%

   23%

4  Agree

46

53

3  Uncertain

15

21

2  Disagree

2

3

1  Strongly Disagree

1

0

 

Total Agree

82%

76%

Total Disagree

3

3

Ratio Agree/Disagree

27.3:1

25.3:1

Mean Score

4.13

3.96

 

Question read:  “Do you believe that Maine’s economic policies provide competitive advantages to Maine businesses relative to other states?”

MAINE ECONOMIC POLICIES PROVIDE COMPETITIVE ADVANTAGE

 

2005

5  Strongly Agree

  1%

4  Agree

2

3  Uncertain

11

2  Disagree

47

1  Strongly Disagree

38

 

Total Agree

    3%

Total Disagree

85

Ratio Agree/Disagree

0.04:1

Mean Score

1.81

 

Question read:  “How would you rate the overall cost of doing business in Maine relative to other states?”

OVERALL COST OF DOING BUSINESS IN MAINE

 

2005

2002

6  Uncertain

    2%

   4%

5  Much Less Expensive

1

0

4  Somewhat Less Expensive

1

3

3  The Same

3

3

2  Somewhat More Expensive

33

42

1  Much More Expensive

60

47

 

Total Less Expensive

    2%

    3%

Total More Expensive

93

89

Ratio Less/More

0.02:1

0.03:1

Mean Score

1.45

1.63

 

Question read:  “In some states, business and industry is well-organized and speaks with a strong, unified voice.  In other states, business and industry is poorly organized and lacks cohesiveness in pursuing business interests.  On a statewide basis, how unified is business and industry in Maine?”

 

BUSINESS AND INDUSTRY IN MAINE

 

2005

2002

1999

Very Fragmented

   30%

   24%

   21%

Moderately Fragmented

44

48

44

Moderately Unified

24

27

32

Very Unified

1

1

2

 

Total Fragmented

   74%

   72%

   65%

Total Unified

25

28

34

 

Question asked:  “In your experience, how responsive are Maine state legislators to the needs of business people like yourself?”

MAINE LEGISLATORS RESPONSIVENESS TO NEEDS

OF BUSINESS PEOPLE

 

2005

2002

1999

Very Responsive

    1%

    3%

    6%

Somewhat Responsive

16

21

33

Uncertain

9

16

19

Somewhat Unresponsive

38

39

31

Very Unresponsive

37

21

11

 

Total Responsive

   17%

   24%

   39%

Total Unresponsive

75

60

42

 

Question asked:  “In your experience, how responsive is the current Administration (Governor and Governor’s Staff)?” 

RESPONSIVENESS OF CURRENT ADMINISTRATION

 

2005

Very Responsive

    1%

Somewhat Responsive

17

Uncertain

15

Somewhat Unresponsive

36

Very Unresponsive

31

 

Total Responsive

   18%

Total Unresponsive

67

 

Question asked:  “When it comes to state laws and programs affecting business, would you describe these laws and programs as:  very consistent & fair, somewhat consistent & fair, somewhat inconsistent & unfair, very inconsistent & unfair?”

LAWS AND PROGRAMS AFFECTING BUSINESS

 

2005

2002

1999

Very Consistent & Fair

     0%

     1%

    1%

Somewhat Consistent & Fair

18

23

36

Somewhat Inconsistent & Unfair

61

60

55

Very Inconsistent & Unfair

22

16

8

 

Total Consistent

   18%

   24%

   37%

Total Inconsistent

83

76

63

 

Question asked:  “How responsive have state agencies been to the needs of your business?”

STATE AGENCIES RESPONSIVENESS TO NEEDS OF YOUR BUSINESS

 

2005

2002

Very Responsive

     1%

    2%

Somewhat Responsive

19

24

Uncertain

21

27

Somewhat Unresponsive

39

36

Very Unresponsive

19

10

 

Total Responsive

20%

26%

Total Unresponsive

58

46

 

Question asked:  “How well do you believe Maine’s state legislators understand your company’s needs when it comes to state policies?”

STATE LEGISLATORS UNDERSTANDING YOUR COMPANY’S NEEDS

 

2005

2002

Very Knowledgeable

    0%

    1%

Somewhat Knowledgeable

17

21

Barely Knowledgeable

51

57

No Idea

32

22

 

Question asked:  “How often do you communicate with your state legislators?”

HOW OFTEN COMMUNICATE WITH STATE LEGISLATORS

 

2005

2002

Frequently

   14%

  11%

Occasionally

43

44

Infrequently

36

35

Never

8

10

 

Question asked:  “How familiar are you with the methods of communicating with your state legislators?”

COMMUNICATING WITH YOUR STATE LEGISLATORS

 

2005

Very Knowledgeable

   31%

Somewhat Knowledgeable

53

Barely Knowledgeable

14

No Idea

3

Question asked:  “Do you agree or disagree:  ‘Maine’s state legislature understands the role of business in Maine’s economy?’ ”

MAINE’S STATE LEGISLATURE UNDERSTANDS ROLE OF BUSINESS

 

2005

2002

5  Strongly Agree

   1%

    1%

4  Agree

7

10

3  Uncertain

13

17

2  Disagree

39

45

1  Strongly Disagree

40

27

 

Total Agree

    8%

   11%

Total Disagree

79

72

Ratio Agree/Disagree

0.1:1

0.2:1

Mean Score

1.90

2.14

Education in Maine

Questions examined Senior Management opinion concerning Maine’s education.  The question asked:  “From a business needs point of view, what are the top three remedial actions that must be taken to improve public education in Maine?”

TOP REMEDIAL ACTIONS TO IMPROVE PUBLIC EDUCATION

 

2005

2002

Improve Basic Skills

   19%

  15%

Improve Funding

18

12

Less Administration

16

6

Increase Teacher Skills/Accountability/Merit Pay

14

16

Teacher Quality/Testing/Maintain Standards

14

12

Improve Vocational/Technical Schools

11

8

Improve Universities/Higher Education

9

8

Closer Cooperation With Business

7

7

Eliminate Mandates

7

3

Discipline

6

5

Reduce Union Influence

5

3

Increase Teachers’ Pay

4

7

Increase Computer Skills

4

6

Improve Business Skills

4

5

Emphasize Technology

3

6

Parent Involvement

2

4

Vouchers

2

3

Smaller Class Size

1

3

 

Other

   3%

   4%

Uncertain/Don’t Know

33

30

 


WHERE TO FROM HERE:

MERI is preparing to conduct its 2007 Senior Management Survey to update and compare results from the previous three studies. MERI will be reporting the results as soon as the study is completed. We are encouraging input as to the 2007 questions that may provide answers to the most critical issues currently facing Maine. We will try to accommodate as many germane suggestions as the study will allow. Please direct your thoughts to the MERI office at 207.622.9075; or fax them to 207.622.0371; or email to info@me-ri.org

In 2005, MRI strongly recommended that business and political leaders convene a Maine Economic and Business Summit to address the increasing concerns among business leaders in the state that Maine businesses can no longer be competitive with the business economies in other states.  Although Maine, like most states, always faces difficulties with state and local government finances, things will only worsen if the business economy does not grow and business revenues are not available to assist in meeting the state’s economic needs.  There is no question that results of this survey should serve as an alarm bell that the state’s employers and the economy they drive need thoughtful attention. The economy is key to all the issues surrounding opportunity for Maine citizens and for achieving the vision most Mainers have for our state.