Sioux Falls CEOs report strong jump in business conditions

Oct. 6, 2020

Sioux Falls CEOs are feeling considerably better about conditions in their businesses than they were three months ago.

That’s according to CEOs representing businesses of all sizes who responded to the quarterly SiouxFalls.Business CEO survey, done in conjunction with the Augustana Research Institute and conducted during the second half of September.

Nearly one-third of CEOs said overall conditions in their business were excellent, compared with 4 percent three months ago and 21 percent during the same time last year.

Two-thirds said conditions were good or excellent, up from 37 percent three months ago but behind last year’s 92 percent.

In the past three months, 68 percent of businesses also reported slight or significant increases in sales, while 24 percent reported slight or significant decreases. Those numbers also are considerably better than three months prior, when 17 percent reported increases of any type and two-thirds reported decreases.

Half of business leaders also reported slight increases in hiring in the past three months, compared with 21 percent who reported increases three months prior.

Eighteen percent reported decreased hiring in the most recent quarter compared with one-third in the previous three months.

“Our portfolio of seven companies has done well in 2020,” said Blaine Crissman, an Augustana graduate and founding partner of South Dakota Equity Partners.

“We are cautiously investing in growth and are seeing either positive impacts from COVID or a delay in revenue but not a loss of revenue.”

Looking ahead, 73 percent of Sioux Falls CEOs expect average or above-average activity in the next three months, which is more optimistic than the prior quarter.

About seven in 10 expect average or above-average capital expenditures, while 26 percent expect below average – also improved from three months ago.

And 59 percent expect average or above-average hiring, compared with 37 percent three months ago.

“Capex and hiring are leading indicators,” Crissman said. “It looks as if investment in future growth is still tepid in the Sioux Falls economy. Business leaders are seeing some rebound from the second quarter of 2020, but they are not yet ready to return to the investment in growth of 2019.”

More broadly, the CEOs share improving views of the local economy, with 82 percent calling the overall business climate good or excellent in Sioux Falls, compared with 57 percent three months ago but still behind the 97 percent who shared the view one year ago.

Their view of the overall U.S. economy also is slightly improving with 24 percent calling it good or excellent compared with 9 percent three months ago and 85 percent during the same time last year.

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Sioux Falls CEOs report strong jump in business conditions

Sioux Falls CEOs are feeling considerably better about conditions in their businesses than they were three months ago.

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