Bullish business confidence barometer signals 'rosy' outlook for Maine
File photo / Tim Greenway
Michael Griffin is executive director, middle market banking, with JPMorgan Chase in Portland, where he leads a three-person commercial banking team.
Screen shot / Yahoo Finance
Hiring over the next six months is in the cards for 81% of businesses nationwide surveyed by JPMorgan Chase, which released its 2021 Business Leaders Outlook Pulse survey this week.
Nearly nine in 10 business leaders nationwide surveyed by JPMorgan Chase & Co. (NYSE: JPM) are optimistic about their company's performance over the next six months, up from 56% a year ago and the highest percentage in 11 years of the investment bank's annual mid-year barometer.
The bank, led by CEO Jamie Dimon, released its 2021 Business Leaders Outlook Pulse Survey this week. Of 1,375 executives surveyed, the vast majority are bullish on their industry's performance and the broader economy, with three out of four respondents optimistic about the national and local economy.
Optimism about the global economy, which has traditionally been more muted, is at its highest level, 53%, since 2018, up from just 17% a year ago.
In terms of their own companies, eight out of 10 respondents anticipate a rise in revenue and sales, 71% expect profits to rise for the remainder of 2021 and close to half expect to increase investments in capital expenditures.
The positive outlook extends to hiring, with 81% planning to add to their workforce in the next six months, 18% planning no change and only 2% planning workforce reductions.
Readout for Maine
While the survey did not give a breakdown by region, Michael Griffin, who leads JPMorgan's three-person Portland-based commercial banking team, shared his readout for Maine in a phone interview with Mainebiz.
JPMorgan serves around 244,000 business and consumer banking customers in Maine, where Griffin's team focuses on middle-market companies in northern New England with sales from $20 million to around $2 billion.
Based on anecdotal insights from clients, Griffin said the bullish sentiments expressed in the national survey hold true in Maine.
"Most of the companies we're talking to have come out stronger" from the pandemic, Griffin said. "They have more cash on the balance sheet and more equity than before — all encouraging signs the future is rosy."
JPMorgan has had a commercial banking presence in Maine since 2018, and recently opened the first of five southern Maine retail branches in Portland.
'Ripped up the script'
Asked which sectors are the strongest in Maine, Griffin pointed to insurance brokerages benefiting from real estate appreciation as a "macroeconomic bellwether," as well as companies offering companion animal products and services that have been faring well during the pandemic.
He said he's also encouraged by all the innovation he's seen by Maine companies, including increased digitization during the pandemic, saying, "I think Maine ripped up the script" in that regard.
Griffin said his team also adapted, stepping up for example to raise a large sum of money for a client without doing an in-person road show as in pre-pandemic times.
"It wasn't a roadshow, it wasn't going to New York, it wasn't travelling around the country to do it, but we will found ways to make it work for the client," he said. "If you would have asked pre-pandemic, 'Could we do that?' I would have said 'No.' ... We've exceeded all our goals, and have a strong outlook and pipeline going forward."
As for the survey findings, he said he was surprised by the large percentage of companies intending to spend more on capital expenses. Griffin also expressed concern about 81% of respondents who said they plan to hire over the next six months.
"That's a pretty significant signal of confidence, but 81% is a big number," he said.
Griffin noted that current hiring challenges extend to his own industry, where demand for products and services remains strong as the market gets more crowded and competitive.
"The sun's out and it's time to make hay," he added.
JPMorgan's full business survey report is available online.
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