A report issued by BMO Harris Bank found that the majority of business owners and executives plan on making investments in their business in 2015. A nation-wide poll of 781 business owners and executives found that 58% plan on making at least one investment in their business, with the expansion of operations leading the way as the most popular option.
“The economic recovery in the United States over the past five years has been driven by the optimism and determination of business owners, large and small, throughout the country,” said Dave Casper, Executive Vice President and Head, Commercial Banking, BMO Harris Bank. “It is encouraging to see their continued confidence translate into plans for future growth.”
“Real GDP growth has averaged above 3% for the past 18 months, long enough to convince businesses that the United States has indeed freed itself from its prior low-growth rut,” added Michael Gregory, Head of U.S. Economics, BMO Capital Markets. “This is instilling confidence that such performance will persist, prodding businesses to expand - or at least start thinking about it.”
When asked where they plan on making those investments, the most popular answers from business owners and executives were:
- Expanding operations 31%
- Upgrading/Purchasing New Equipment 26%
- Modernizing Technology/Systems 23%
- Hiring More Employees 20%
“More and more business owners are coming to us, looking for help in financing their capital equipment needs,” said Jud Snyder, Managing Director and Head, BMO Harris Equipment Finance Company. “The continued demand for specialized expertise and access to capital is a very good sign for the economy.”
Plans for upgrading or purchasing new equipment were most common for Automotive / Manufacturing (59%), Computer / Information Technology (41%) and Healthcare (35%).
The survey was conducted by Pollara with an online sample of 781 American business owners between September 8 and 18, 2014. A probability sample of this size would be accurate to +/- 3.5 percent, 19 times out of 20.