Life insurance and financial service professionals who cater to small and mid-size businesses should be cheered by a new survey, which concludes that investing by business owners is on the rise.
A new BMO Harris Bank study finds that the majority of business owners/executives plan on investing in their business in 2014, with upgrading/purchasing new equipment being their primary planned expenditure. Conducted by Pollara, the survey polled 601 American business owners in November.
“Businesses, large and small, are expressing confidence in their prospects for the future,” says Dave Casper, executive vice president and head, commercial banking, BMO Harris Bank. “They’re displaying their confidence in a variety of ways — from technological and equipment purchases, to investments in their most valuable asset, their people.”
When business owners/executives were asked where they would make those business investments:
- 42 percent said they would upgrade or purchase new equipment;
- 26 percent plan on hiring more employees;
- 25 percent are focused on modernizing technology and systems; and
- 24 percent plan on expanding operations.
“The numbers shouldn’t come as a surprise,” adds Jud Snyder, managing director and head, BMO Harris Equipment Finance Company. ”They reflect what we’ve seen over the past 18-24 months, with companies making more investments in capital expenditures for both maintenance and expansion.”