Understanding the nuances of the economic environment is crucial for any successful business. For business owners in Southeastern Pennsylvania and Philadelphia, The Chamber of Commerce for Greater Philadelphia‘s in-depth business sentiment reports, conducted as part of the Pennsylvania Department of Community & Economic Development’s “Engage!” Initiative, provide a glimpse into current market conditions.

For the past seven years, the Chamber has been conducting a comprehensive sentiment analysis of data collected by the region’s local partners across Berks, Bucks, Chester, Delaware, Montgomery, and Philadelphia counties. By proactively listening to what businesses are saying, these reports provide invaluable insights into key opportunities and challenges as well as the overall business climate.

Key Data Categories

The analysis in both the regional and Philadelphia County reports focuses on several critical areas that directly impact a business’s success and strategy:

  • Reasons for Company Locations: Understanding the key factors, such as proximity to markets, quality of life, and cost of living, that drive where companies choose to operate.

  • Top Issues Impacting Company Growth: Identifying the most significant hurdles, which often include access to capital, current market conditions, supply chain, and skilled workforce availability.

  • Upcoming Expansion Expectations: Gauging the confidence and investment plans of the business community, providing insights on job creation and capital spending.

  • Market Opportunities and Challenges: Identifying current market dynamics like demand for goods and services, the overall economic outlook, and marketing the business.

  • Workforce Opportunities and Challenges: Analyzing issues, such as the availability of skilled labor, employee retention, and talent development needs.

The Southeastern PA Regional Report: A Six-County View

The regional report synthesizes business sentiment from all six Southeastern PA counties (Berks, Bucks, Chester, Delaware, Montgomery, and Philadelphia), providing a high-level view of the collective opportunities and challenges facing the broader metropolitan economy. Key data insights include:

  • Access to capital has been the #1 or #2 issue impacting company growth every year since we began this analysis in 2018/2019, with companies commenting that difficulty accessing capital is limiting their business growth.
  • 75% of companies surveyed noted they expect expansion in the next three years, which is the lowest since 2020–2021.
  • All 39 companies that discussed the economic outlook noted a challenge in that area.
  • 87 companies mentioned finding qualified/good talent in their responses, with almost two-thirds of them categorizing it as a challenge for the company. Finding qualified/good talent has been the #1 or #2 response every year on record.
Gain more insights from the full regional report.

 

The Philadelphia County Report: A Localized Deep Dive

The Philadelphia County report offers a localized and granular perspective by analyzing data from a dedicated set of 100 conversations with Philadelphia business owners over the past fiscal year. This focused report is particularly valuable for city-based enterprises, comparing their specific environment to the broader regional findings. Key data insights include:

  • 37% of Philadelphia companies cited proximity to markets/customers as a reason they located their business in Philadelphia. This option is ranked high every survey year in both Philadelphia and its neighboring counties, supported by the region’s strategic location on the East Coast, its international airport, robust rail system, and port.
  • 35% of companies in Philadelphia said that current market conditions are impacting growth, compared to 26% for the region.
  • 86% of companies surveyed in Philadelphia noted they expect to expand in the next three years, which is the lowest in three years.
  • 19 out of 20 companies found opportunities in having a strong local presence.
  • Most businesses that discussed talent attraction said it represented a workforce challenge for their company.
Gain more insights from the full county report.