LONG ISLAND ECONOMIC SURVEY 2025
Adelphi University
Sponsored by HIA-LI
Citrin Cooperman
Summary of Our Findings
Citrin Cooperman and Adelphi University worked together to conduct the Long Island Economic Survey, sponsored by the HIA-LI. This survey was conducted to provide relevant data on the Long Island economy to help business owners and other stakeholders better understand the sentiment of the Long Island community as it relates to the upcoming year’s opportunities and challenges and provide insight to informed business decisions.
Adelphi University is a highly awarded, nationally ranked, and widely connected doctoral research university with locations on Long Island and in New York City.
Citrin Cooperman is one of the nation’s largest professional services firms, providing clients with access to top-tier professionals who strive to understand a company’s differentiators and goals, specializing in going beyond the core compliance functions to provide valuable insights on key business decisions. With deep roots in the Long Island community, they serve as advisors and industry leaders throughout all facets of the business community.
This year, the survey was made possible with the participation of Long Island businesses who provided their perspectives on various economic and political issues.
The survey results highlight key economic issues that Long Island businesses faced in 2024 and how they plan to address them in 2025.
KEY TAKEAWAYS INCLUDE:
1. Optimism About the Economy: 54% of respondents believe the economy on Long Island is growing.
2. Major Concerns for Business Owners:
o Retention of young professionals and families
o High taxes
o Inflation
o Availability of workers
3. Political Issues: Partisan policies and immigration are the most important political issues influencing Long Island businesses.
4. Talent Acquisition Challenges: 46% responded that finding quality candidates is becoming an increasingly difficult issue (up from 17% just two years ago).
5. Factors for Business Growth: 51% of business owners view a stable workforce and the ability to leverage technology as the most critical factors for growth.
In a year with a presidential changing of the guard, and an administration that’s platform was primarily focused on the United States economy, we hope you find this local business survey helpful for the business you are managing now and what you plan to achieve in the future.
Methods and Demographics
Out of the Long Island businesses that participated in this survey, nearly half (42%) of the participants identified themselves as either presidents or chief executive officers. The others identified themselves as executive directors (17%), owners (16%), chief financial officers (6%), or as having another role, such as vice president, chief of staff, partner, or senior manager (19%).
PRIMARY PLACE OF BUSINESS
The survey identified that most of the respondents were from Suffolk County:
• 44% Suffolk County
• 16% Nassau County
• 40% Nassau and Suffolk
INDUSTRY
A wide range of industries were represented, with professional services (26%) having the most representation.
NUMBER OF EMPLOYEES ON LONG ISLAND
Over 60% of respondents have fewer than 50 employees while 8% have greater than 500.
NUMBER OF YEARS IN BUSINESS
Over 65% of the participants have been in operation for more than 20 years.
• 50% for more than 30 years
• 15% for 21-30 years
• 14% in business for 11-20 years
• 12% for 5-10 years
• 9% for less than 5 years
ANNUAL REVENUE
The majority of the respondents were small businesses with revenue of under $100M.
• 76% less than $50M
• 11% between $50M and $200M
• 6% between $200M and $500M
• 3% between $500M and $1B
• 4% over $1B
TYPE OF BUSINESS
Business Climate Assessment
CURRENT VIEWS OF THE LONG ISLAND ECONOMY
In 2024, businesses largely avoided the setbacks and obstacles to growth that had been anticipated. While concerns about a potential downturn persist, this year’s results reflect a more cautious outlook, with 45% of participants forecasting growth, compared to 52% last year.
OUTLOOK OF LI ECONOMY
ACTUAL REVENUE IN FISCAL 2024 COMPARED TO PROJECTIONS FOR 2025
When asked how companies fared as related to meeting their fiscal projections for 2024 compared to actual revenue:
• Only 25% exceeded their projections
• 45% met projections
• 30% fell short
PROJECTED NET PROFITS FOR 2025 COMPARED TO PROJECTIONS IN 2024
• 40% of respondents expect growth in 2025, a slight decrease from the previous year, however 42% expect to stay consistent up 7% from 2024.
• A small percentage (12%) are projecting a decrease in net profits.
INFLATION AND MISSING PROJECTED PROFITS
Most survey participants who did not meet their projected 2024 profit margins cited inflation as the primary reason, marking the third consecutive year it has been the leading factor. However, this percentage has decreased from 39% in 2024 to 31% in 2025. The second most common reason for not maintaining profit margins was price increases driven by rising payroll-related costs.
WHAT’S HAPPENING WITH THE LONG ISLAND ECONOMY TODAY?
The results of the participants surveyed on Long Island are in line with the greater economy: rising taxes, attraction and retention of young professionals and families, and inflation. These top issues continue to increase from year to year when compared to previous surveys.
TOP 3 ISSUES FACING LI ECONOMY ACCORDING TO RESPONDENTS
Respondents could select up to three.
PROJECTED REVENUE AND NET PROFITS FOR 2025
Survey participants were more optimistic about projected revenue for 2025 and believe their net profits are more likely to stay relatively consistent. Below are the percentages of companies who believe their projected revenue and profits for 2025 will either grow, remain the same, or decrease:
Emergence of Artificial Intelligence (AI)
The rise of artificial intelligence (AI) in 2023 marked a transformative shift for businesses, and its impact continues to be a key topic of discussion into 2025. AI holds the potential to revolutionize various aspects of business operations, driving greater efficiency, enhanced decision-making, and improved customer experiences. Rather than replacing jobs, AI is seen as a valuable tool for addressing labor challenges and reallocating resources to more meaningful, complex tasks.
AI EFFECTS ON BUSINESS IN 2024
Heading into 2024, survey respondents had differing views on how AI could impact their business. These are the results for this past year.
• At the start of 2024 59% believed AI will positively impact their business. For the most part, this sentiment was confirmed throughout our survey.
• A small percentage (7%) believed AI could negatively impact business; this belief also came to fruition as 8% were negatively impacted.
• 33% said there will be no effect, negative or positive.
INVESTMENTS IN AI FOR 2025
Capella Solutions, a recognized global leader in enterprise data technology markets, including low-code app development, digital transformation, process automation, and relational data mapping, conducted several case studies on how different industries are utilizing AI and its impact on their business. According to their studies the impacts of AI were largely positive in terms of production and improving safety in the workplace.
Human Resources
TOP HUMAN RESOURCES CONCERNS FOR 2025
The labor crisis looks like it will continue in 2025, with significant worker shortages still affecting all industries and geographies. Similar to the past few years, survey participants identified compensation and benefits (32%) as the top human resources concerns for 2025. In addition to this concern, workforce productivity is steadily increasing year to year as it has grown from 9% in 2023 to 19% in 2024 and now at 25% in 2025.
Other top human resource (HR) concerns: Selling products, political issues in the workplace, mental health, affordable housing, and quality applicants.
CONCERNS FOR WORKPLACE PRODUCTIVITY AND THE LABOR MARKET
Thirty-seven percent of responding organizations reported a change in workforce productivity over the past year. When asked to identify the causes of these changes, many participants expressed concerns about work ethics, the impact of remote work, and the presence of less qualified candidates in the labor market.
EXPECTATIONS FOR PAYROLL COSTS IN 2025
Close to half of all respondents anticipate increased payroll costs in 2025.
• 49% expect payroll costs to increase
• 50% expect payroll costs to be similar to 2024
• 1% expect payroll costs to decrease
REASONS FOR INCREASED 2025 PAYROLL
COSTS
Survey participants expecting costs to increase cited this is due to:
Other: Increased fees and taxes, keeping up with competition.
ECONOMIC INSIGHT PAYROLL COSTS:
A salary budget planning survey by WTW, a leading global advisory, broking, and solutions company, found that U.S. employers expect payroll costs to remain at the same level as in 2024. ”The average increase in payroll for respondents was 5.5% in 2024.” Inflation and concerns over a tight labor market remain the top drivers of salary increases. While companies looking to reduce salary-increase budgets cite poor financial results and cost management concerns.
PLANS TO MANAGE CONTINUED INCREASES IN MEDICAL PREMIUMS
2025 will mark the fourth straight year that health insurance premiums will rise. 41% of respondents in 2025 plan on passing part of the increase on to their employees, which is a sentiment that is up from 34% last year. Organizations reported the following regarding how they are handling increasing medical premiums:
INCREASED HEADCOUNT FOR 2025
Nearly half of all respondents plan to increase their organization’s headcount in 2025, which is similar to the results from last year. There is a slight upward trend of 4% in those planning to increase headcount on Long Island and a slight downward trend of 2% in those planning to increase headcount outside of Long Island.
OUTLOOK OF LABOR MARKET IN 2025
Seventy-four percent of survey respondents agree that recruiting and retaining employees continues to be a challenge for LI employers.
REPORTING TO THE OFFICE IN 2025
When asked if they are requiring employees to return to the office in 2025, 34% are requiring employees to fully return, a drop of 13% from 2024. Please see the chart for more information on what respondents are requiring of employees in 2025:
WAYS TO RETAIN EMPLOYEES IN 2025
To deal with the issue of retaining employees in the new year, employers are:
Economic Outlook
PLANS FOR EXPANSION IN 2025
The majority of survey respondents indicated they do not plan to expand their business in 2025.
PLANS TO MAKE CAPITAL IMPROVEMENTS IN 2025
Similar to last year (54%), businesses plan to make capital improvements in 2025 (55%).
MOST IMPORTANT ELEMENTS FOR GROWTH IN 2025
The need for a stable workforce, leveraging technology, and introducing new products are the most prominent issues affecting growth. Survey participants identified the following as the key elements affecting business growth in 2025:
Note: Respondents could choose up to two responses.
Government Support and Resources
PERFORMANCE EXPECTATIONS OF THE GOVERNMENT
What is your opinion on how the federal government and state and local governments are performing as related to business on Long Island?
MOST IMPORTANT POLITICAL ISSUES FACING LONG ISLAND TODAY
Long Island employers have found that partisan policy making with influences on the business environment and immigration continue to be the two most important issues facing Long Island:
BIGGEST GOVERNMENT SPENDING NEEDS TO FACILITATE GROWTH
Survey respondents believe that the key areas the government needs to invest more in to facilitate growth on Long Island are subsidized housing (34%) and roads and infrastructure (30%).
DOES
LONG ISLAND HAVE THE RESOURCES TO SUPPORT YOUR GROWTH STRATEGY?
Seventy-five percent of respondents believe that Long Island has the resources to support business growth, a large increase from the previous year (58%).
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”Citrin Cooperman” is the brand under which Citrin Cooperman & Company, LLP, a licensed independent CPA firm, and Citrin Cooperman Advisors LLC serve clients’ business needs. The two firms operate as separate legal entities in an alternative practice structure. The entities of Citrin Cooperman & Company, LLP and Citrin Cooperman Advisors LLC are independent member firms of the Moore North America, Inc. (MNA) Association, which is itself a regional member of Moore Global Network Limited (MGNL). All the firms associated with MNA are independently owned and managed entities. Their membership in, or association with, MNA should not be construed as constituting or implying any partnership between them. Published 2025.