The New Jersey Business & Industry Association (NJBIA) is out Dec. 2 with its 66th Annual Business Outlook Survey.

Conducted in partnership with Signet Research of Englewood, the yearly analysis collects responses from more than 600 New Jersey business owners and executive staff. Most respondents represent small businesses.

The outlook comes amid the backdrop of the 2025 New Jersey gubernatorial race to replace term-limited Gov. Phil Murphy.

This week, the NJBIA hosts its annual Public Policy Forum Dec. 4 in Woodbridge. The event features a panel of five of the gubernatorial candidates. Republican hopefuls Jack Ciattarelli and Bill Spadea as well as Democratic candidates Steve Fulop, Sean Spiller and Steve Sweeney will take a part in a discussion on the state’s economy and business landscape. The survey findings will also be discussed.

“With a ground-shifting Election Day just in our rearview mirror and the upcoming gubernatorial and legislative elections coming in 2025, this event promises some very timely and dynamic discussions on the status and direction of New Jersey’s economy and business climate,” said NJBIA President and CEO Michele Siekerka. “We very much look forward to hearing from all of our panelists and presenters on what will be a lively and informative program.”

Respondents to NJBIA’s survey were asked to list their top three actions, in order, that the next governor could take to have the greatest positive impact on their business.

They were:

• Lowering property taxes: listed by all respondents, with 23% listing it as their top priority and more than 53% listing it in their top three
• Reducing health insurance costs: cited in the top three by 51%, including 15% who listed it at the top
• Lowering corporate taxes: 40% made it a top three item, including 16% who listed it first

“That a reduction in property taxes is desired by New Jersey businesses isn’t necessarily surprising, but the idea that they never seem to be in the conversation for property tax relief by policymakers is,” said Siekerka. “New Jersey businesses have been excluded from any property tax reductions from the ANCHOR and Stay NJ programs, even though they pay nearly half the property taxes in the state annually. A new governor clearly has the opportunity to endear themselves to our job creators by finding them some much-needed property tax savings.”

Key findings

Inflation impacts

• 46% substantial
• 42% moderate
• 9% barely
• 2% not at all

Staffing

• 55% said they were challenged to find appropriate staffing, 45% were not

Employment

• About 20% increased hiring this year, versus 23% in 2023, meanwhile another 20% decreased hiring, resulting in a net-zero hearing number in 2024
• In 2025, 28% predicted they will increase employment; 0% predicted less hiring for a +18% net positive hiring outlook; 62% said they will stay about the same

Sales

• 39% saw an increase in sales this year
• 48% projected an increase in sales for 2025 – higher than the 43% forecast of increase last year
• 19% foresee less sales next year, for a +29% net positive forecast for sales  (versus +17% last year)

Profits

• Only 32% reported profits for 2024
• 45% reported a loss this year
• In 2025, 40% believe they will make a profit, compared to 25% who project to lose money, for a net positive of +15% (versus +9% in 2024)

Economic climate in New Jersey

• 34% said they were experiencing a slowdown
• 15% expansion
• 8% said their industry was moving from slowdown to recovery
• 5% said their industry was moving from expansion to slowdown
• 38% said business conditions in their industry were staying the same
• 57% said they had no plans to expand
• 25% said they would expand in another state
• 14% would expand in the Garden State
• 5% who said they would expand in New Jersey and another state

Economic outlooks

• 37% said New Jersey’s economy was fair
• 31% poor (13% higher than last year)
• 28% good
• 4% excellent
• For the first first six months of 2025, 23% said the economy would be better
• 26% worse (for a -3% outlook — a jump from the last two surveys, which saw -31% in 2024 and -36% in 2023

Challenges

• Cost of doing business was the top challenge for the fourth straight year – with 23% listing it as tops among their top four, followed by availability of skilled labor (15%), health insurance cost (14%), and property taxes (13%)

Affordability concerns

• Just 4% said the governor and lawmakers had done enough to address business affordability in last year while 74% said no (68% last year); 79% said business affordability has decreased in the state in the last five years, compared to just 4% who said it improved in that time, and 17% who feel that business affordability has remained the same in the last five years

“Business affordability unfortunately does not seem to get any meaningful traction with policymakers,” said Siekerka. “It’s our hope that a new regime in Trenton will recognize the extreme costs of doing business in the state, taken as a collective, and consider policies to improve this sobering trend.”

You can see out the complete NJBIA Annual Business Outlook Survey here.