While a growing number of Michigan’s small- to mid-size businesses are not satisfied with the economy, a recent survey indicates that more businesses plan to increase wages over the next six months.

In the semi-annual Future Business Index, a study funded by Lansing-based Accident Fund Insurance Company of America, the percentage of owners of small- to mid-size businesses who say they intend to increase wages bumped up four percentage points to 17 percent from the immediately preceding record low of 13 percent in April 2009.

Other positive results from the survey:

• More business owners say they intend to advertise. An even half of respondents said they intend to advertise, representing an 11-point increase (from 39 percent in April 2009 to 50 percent in January 2010). There is potential for this to be an even higher number since the lowest percentage to date (45 percent) unequivocally responded “no,” with 5 percent being “undecided.”
• Representatives of Michigan’s small and mid-size businesses take workplace safety seriously. This sentiment was expressed by the widest margin to date, with 77 percent of respondents professing workplace safety to be an “extremely high” or “very high” priority – a high degree of intensity.

“Business owners are simply not optimistic about the economy, with the highest number of them saying so in our survey,” said Keith Adkins, vice president of Marketing at Accident Fund. “But it’s somewhat positive that more of them plan to increase wages and there was a jump in the number who plan to increase their advertising spend. It demonstrates that business owners are continuing to invest in their businesses, even in these difficult times.”

That sentiment is echoed by Chris Holman, a longtime observer of business trends in the state of Michigan. “The business community in Michigan is a resilient bunch, and they recognize that it’s critical that businesses keep investing in their people and spending what they need to in promoting their product or service.”

A summary of the FBI survey is available here and full results are available here or visit http://www.accidentfund.com/media.
 

Accident Fund’s Future Business Index is produced twice annually. Working in conjunction with EPIC ▪ MRA, 600 to 700 small- to mid-sized businesses across Michigan are asked about their business outlook. The details are calculated and distributed throughout Michigan. The next survey will occur in late 2010. The survey margin of error is ±4.0 percent.

Founded in 1912 and headquartered in Lansing, Mich., Accident Fund Insurance Company of America actively markets in 18 core states and insures workers compensation clients across the country. Accident Fund is rated “A” (Excellent) by A.M. Best and is a wholly owned subsidiary of Accident Fund Holdings, Inc., the 10th largest workers compensation insurer in the United States. For more information, visit Accident Fund’s Web site at www.accidentfund.com.
 

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