Skip to main content

Greenville Business Magazine

The Business Narrative: Hopeful About the Economy

Jan 15, 2025 09:52AM ● By Donna Walker

Survey Says Small Business Optimism Surges Again, Reaches Six-Year High

(123rf.com Image)

 

The NFIB Small Business Optimism Index rose by 3.4 points in December to 105.1, the second consecutive month above the 51-year average of 98 and the highest reading since October 2018.

 

Of the 10 Optimism Index components, seven increased, two decreased, and one was unchanged. The Uncertainty Index declined 12 points in December to 86.

 

“Optimism on Main Street continues to grow with the improved economic outlook following the election,” said NFIB Chief Economist Bill Dunkelberg.

 

Dunkelberg added, “Small business owners feel more certain and hopeful about the economic agenda of the new administration. Expectations for economic growth, lower inflation, and positive business conditions have increased in anticipation of pro-business policies and legislation in the new year.”

 

State-specific data is unavailable, but NFIB South Carolina State Director Ben Homeyer said, “There’s a real sense of hope among South Carolina’s small business owners when it comes to federal policy. Our members also hope the General Assembly will pass laws to help them grow their businesses and create jobs.”

 

Homeyer added, “One important step lawmakers could take is to address lawsuit abuse in the state. This would give Main Street businesses greater security, ensuring they aren’t one frivolous claim away from shutting down.”

 

Key findings of the national survey include:     

                                                       

* The net percent of owners expecting the economy to improve rose 16 points from November to a net 52 percent (seasonally adjusted), the highest since the fourth quarter of 1983.

* The percent of small business owners believing it is a good time to expand their business rose six points to 20 percent, seasonally adjusted. This is the highest reading since February 2020.

* The net percent of owners expecting higher real sales volumes rose eight points to a net 22 percent (seasonally adjusted), the highest reading since January 2020.

* A net 6 percent (seasonally adjusted) of owners plan inventory investment in the coming months, up five points from November and the highest reading since December 2021.

* Seasonally adjusted, a net 29 percent reported raising compensation, down three points from November and the lowest reading since March 2021.

* A net 1 percent of owners reported paying a higher rate on their most recent loan, down four points from November and the lowest reading since September 2021.

* Twenty percent of owners reported that inflation was their single most important problem in operating their business (higher input and labor costs), unchanged from November and leading labor quality as the top issue by one point.

 

As reported in NFIB’s monthly jobs report, a seasonally adjusted 35 percent of all small business owners reported job openings they could not fill in December, down one point from November.

 

Of the 55 percent of owners hiring or trying to hire in December, 89 percent reported few or no qualified applicants for the positions they were trying to fill.

 

Fifty-six percent of owners reported capital outlays in the last six months, up two points from November.

 

Of those making expenditures, 37 percent reported spending on new equipment, 24 percent acquired vehicles, and 16 percent improved or expanded facilities.

 

Eleven percent spent money on new fixtures and furniture and 7 percent acquired new buildings or land for expansion.

 

Twenty-seven percent (seasonally adjusted) plan capital outlays in the next six months, down one point from November’s highest reading since January 2022.

 

A net negative 13 percent of all owners (seasonally adjusted) reported higher nominal sales in the past three months, unchanged from November.

 

The net percent of owners expecting higher real sales volumes rose eight points to a net 22 percent (seasonally adjusted), the highest reading since January 2020.

 

The net percent of owners reporting inventory gains rose seven points to a net 0 percent, seasonally adjusted. Not seasonally adjusted, 13 percent reported increases in stocks and 14 percent reported reductions.

 

A net negative 1 percent (seasonally adjusted) of owners viewed current inventory stocks as “too low” in December, up one point from November.

 

A net 6 percent (seasonally adjusted) of owners plan inventory investment in the coming months, up five points from November and the highest reading since December 2021.

 

The net percent of owners raising average selling prices was unchanged from November at a net 24 percent seasonally adjusted.

 

Twenty percent of owners reported that inflation was their single most important problem in operating their business, unchanged from November and leading labor quality as the top issue by one point.

 

Unadjusted, 11 percent reported lower average selling prices and 31 percent reported higher average prices.

 

Price hikes were the most frequent in the finance (56 percent higher, 15 percent lower), retail 38 percent higher, 6 percent lower), construction (30 percent higher, 9 percent lower), and transportation (30 percent higher, 9 percent lower) sectors.

 

Seasonally adjusted, a net 28 percent plan price hikes in December.

 

Seasonally adjusted, a net 29 percent reported raising compensation, down three points from November and the lowest reading since March 2021.

 

A seasonally adjusted net 24 percent plan to raise compensation in the next three months, down four points from November.

 

The percent of small business owners reporting labor quality as the single most important problem for business was unchanged from November at 19 percent.

 

Labor costs reported as the single most important problem for business owners was also unchanged from November at 11 percent, only two points below the highest reading of 13 percent reached in December 2021.

 

The frequency of reports of positive profit trends was a net negative 26 percent (seasonally adjusted), unchanged from November.

 

Among owners reporting lower profits, 35 percent blamed weaker sales, 13 percent cited usual seasonal change, 12 percent blamed the rise in the cost of materials, and 11 percent cited labor costs.

 

For owners reporting higher profits, 51 percent credited sales volumes, 22 percent cited usual seasonal change, and 7 percent cited higher selling prices.

 

Two percent of owners reported that all their borrowing needs were not satisfied. Twenty-four percent reported all credit needs met and 65 percent said they weren’t interested in a loan.

 

A net 4 percent reported their last loan was harder to get than in previous attempts. Four percent of owners reported that financing was their top business problem in December, down one point from November.

 

The NFIB Research Center has collected Small Business Economic Trends data with quarterly surveys since the fourth quarter of 1973 and monthly surveys since 1986.

Survey respondents are randomly drawn from NFIB’s membership.

SCRA Contributes Over $1.3 Billion to South Carolina’s Economy

South Carolina Research Authority had over a $1.3 billion impact on the state’s economy in 2024.

 

Its recently published annual report shows what’s included in the billion-plus-dollar impact, determined by a study conducted at the University of South Carolina Darla Moore School of Business.

 

In 2024, SCRA and its investment affiliate, SC Launch Inc.:

 

* Supported 6,624 South Carolina-based jobs. The average annual salary of those employed by SCRA Member Companies and SC Launch Inc. Portfolio Companies was almost $92,000, 71 percent higher than the state’s average.

* Funded Member and Portfolio Companies and academic institutions with almost $5.5 million.   

*Owned and/or managed almost 1.4 million square feet of laboratory, office, and collaborative space.

*Enabled over $2.9 billion ($303 million in FY24 alone) in follow-on funding for Member and Portfolio companies that received SCRA grants and/or SC Launch Inc. investments since the inception of SC Launch Inc. in 2006. 

 

“SCRA continually demonstrates its contribution to our state’s economy. Their strength is the breadth and depth of their programs and services that enable growth from several angles,” said USC Darla Moore School of Business Research Economist Joseph Von Nessen.

 

He added, “Be it funding and support services for startups and academic institutions to foster innovation, facilities to house innovation, or matchmaking to address industry’s need for innovation, their services directly support the development of higher-paying jobs that have a significant multiplier effect. For every ten jobs developed through SCRA support, an additional 16 jobs are created elsewhere in South Carolina”.

 

Officials said that behind these higher-paying jobs are compelling stories of founders, researchers, and developers who recognize a societal need and create solutions and improvements to address these needs.

 

One example is the SCRA-Academia Collaboration Team Grant, a three-year program that funds and supports translational/use-inspired research to accelerate its development and bring it to market.

 

Current grantees are working on a cancer vaccineneurodegenerative disease treatment improvementsimproved fuel cell efficiency, and improvements in global logistics, to name a few.

 

“I’m extremely proud of our hardworking team and the achievements we made in 2024. We have strong partnerships throughout the state, allowing us to provide support that helped our technology-based startups grow and hire more people, and our academic institutions make greater strides in bringing innovation to the marketplace,” said President and CEO Bob Quinn.

 

Quinn added, “We’re able to have this significant economic impact on South Carolina with not only our partnerships but also the contributors to our tax credit program, the Industry Partnership Fund, who help to fund our programs and operations”. 

 

Individuals or businesses with a South Carolina tax obligation can redirect their taxes to SCRA’s tax credit program to grow the state’s innovation economy.

GSSM Expands Summer Camps to 14 Locations Statewide

The South Carolina Governor's School for Science & Mathematics (GSSM) announced the expansion of its summer day camps to four additional technical colleges across the state.

 

Officials said the expansion is part of GSSM's ongoing commitment to making STEM education more accessible to students in South Carolina.

 

The GSSM GoSciTech Day camps are designed for rising 6th through 8th graders and provide hands-on experiences in science, technology, engineering, and mathematics (STEM).

 

The four-day programs run from Monday to Thursday, 8:30 a.m. to 4:00 p.m., and focus on developing problem-solving and teamwork skills through exciting explorations in engineering, human biology, coding, and more.

 

The camps are hosted at technical colleges across the state, creating opportunities for

students to engage in STEM learning close to home.

 

The new host locations include:

* Aiken Technical College, Graniteville

* Piedmont Technical College, Greenwood

* Trident Technical College, North Charleston

* Williamsburg Technical College, Kingstree.

 

With these additions, GSSM now partners with a total of 14 technical colleges statewide to provide innovative learning opportunities.

 

"The GoSciTech Day camps offer students a hands-on introduction to STEM that can spark a lifelong passion for learning," said Susan Engelhardt, outreach director of summer programs.

 

Engelhardt added, "Through our partnerships with technical colleges, we're able to bring these enriching experiences closer to home for students across South Carolina, especially in rural and underserved areas. It's exciting to see students not only dive into STEM but also connect with like-minded peers who share their interests.”

 

Summer day camps in 2025 will be offered at the following technical colleges:

* Aiken Technical College (Graniteville) - June 16-19

* Central Carolina Technical College (Sumter) - June 23-26

* Denmark Technical College (Denmark) - June 23-26

* Florence-Darlington Technical College (Florence) - June 16-19

* Greenville Technical College (Greenville) - June 16-19

* Horry-Georgetown Technical College (Conway) - June 23-26

* Midlands Technical College (Columbia) - July 7-10

* Northeastern Technical College (Cheraw) - June 9-12

* Piedmont Technical College (Greenwood) - July 7-10

* Spartanburg Community College (Spartanburg) - June 23-26

* Technical College of the Lowcountry (Beaufort) - July 7-10

* Trident Technical College (North Charleston) - June 9-12

* Williamsburg Technical College (Kingstree) - July 7-10

* York Technical College (Rock Hill) - June 9-12.

 

Application details, camp descriptions, and financial aid opportunities will be available on GSSM's website in the coming weeks.

 

Families are encouraged to go to https://www.scgssm.org/summercamps for the most up-to-date information or contact [email protected].

Duke Energy Announces Dividend Payments to Shareholders

Duke Energy (NYSE: DUK) declared a quarterly cash dividend on its common stock of $1.045 per share.

 

The dividend is payable on March 17, 2025, to shareholders of record at the close of business on Feb. 14, 2025.

 

The company also declared a quarterly cash dividend on its Series A preferred stock of $359.375 per share payable on March 17, 2025, to shareholders of record at the close of business on Feb. 14, 2025.

 

Officials said this is equivalent to $0.359375 per depositary share.

 

Duke Energy has paid a cash dividend on its common stock for 99 consecutive years.

 

Duke Energy, a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies.

 

The company's electric utilities serve 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 54,800 megawatts of energy capacity.

 

Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky.

Allow us to tell your company's Business Narrative. Send your press release to David Dykes or for more information email [email protected]