Confidence In Long Island’s Economic Future Varies

Hauppauge Industrial Association’s Long Island Economic Summit made clear one thing today: business owners confidence in the future of Long Island’s economy is wavering, varying base on field and industry.

HIA-LI held its annual Long Island Economic Summit reviewing a survey of the current and future of Long Island business. Expert panelists in real estate to commercial real estate gave optimistic views of Long Island’s continual economic recovery, but among the approximately 75 member audience skepticism remained high.

During a hour-long roundtable discussion, five panelists evaluated Long Island’s economy based on various factors including real estate prices, banking outlook, availability of credit, college enrollment  and interest rates.

Linda Bonarelli Lugo, a licensed real estate broker, said she believed the real estate market hit rock bottom back in 2008, but remained cautious about the recent uptick in sales.

“What’s driving market right now are lower end sales because of Federal Housing Authority with what they have to offer is first-time home buyers get into the market. The high end sales are stabilizing also as that tends to be a cash-based market,”  Lugo said.

She rated her confidence in Long Island’s economy at a 6.5 to 7 out of 10, higher than the average surveyed business at 5.

Islandia-based Gold Coast Bank President and CEO Joe Perri said despite what he saw as an increase in business and cash flow, he would advice investors and banks to be cautious in making their investments.

“The construction industry area is really under more pressure than anything else right now. What you have with the construction lending is the unknown of someone building something and saying, if I build it – they will come and rent it. That’s not happening now,” Perri said.

His words spoke to the numerous “for rent” and “space available” signs that dot Hauuppauge’s industrial park.

In speaking to the availability of credit for businesses to continue growth and expansion, Patrick McCormick of Campolo, Middleton and McCormick compared increase in business to trickle, but a steady trickle he expects to increase and become significant force in upcoming months.

Dowling College representative said the private college has seen a slight increase in enrollment for post-graduate degrees and some graduate programs from those looking to change careers, but is having a difficult time with undergraduates.  Community colleges have gained enrollment in recent years.

However, the audience's vote of confidence in the Long Island economy averaged a 6.1 out a possible 10, despite hearing these opinions. It was higher than the Long Island Economic Survey result of 5, it was a far cry from ratings of 7-8, 8-9 and 10 given by the panelists.

When given the chance, the audience showed their concern about the potential impact of rising gas and oil prices might have on recovering businesses.

Both Lugo and McCormick also admitted to seeing a number of highly skilled candidates searching for employment. Lugo saw them entering the real estate industry in search of a second career, while McCormick saw plentiful candidates in response to a job ad.

It’s clear local businesses are looking to the economic future optimisticly, the vote of confidence remains uncertain.