Southeast Alaska Business Climate Survey 2024

Southeast Conference, in partnership with organizations across the region, conducts an annual Southeast Alaska Business Climate Survey. A total of 440 Southeast Alaska business owners and top managers, representing a combined staff of approximately 11,000 workers, responded to the survey in April 2024. Survey analysis includes the following key findings:

Strong Business Climate Overall: More than two-thirds (67%) of regional business leaders currently have a positive view of the Southeast Alaska business climate, the second highest positivity rating since recording began in 2010.
Strong Visitor Sector: The regional tourism sector is remarkably strong, with 83% of tourism business leaders calling the current business climate good or very good; and more than half reporting a better or much better outlook in the summer of 2024, moving into 2025. Tourism leaders have plans to increase capacity, with 28% expanding staffing levels to meet rising demand.
Seafood Sector in Decline: Leaders in the seafood industry are experiencing significant economic challenges, marked by historically low salmon prices, rising operational costs, and unfavorable global dynamics. Nearly three-quarters (73%) of seafood leaders call the current Southeast business climate poor or very poor, with 43% projecting that the next 12 months will be worse or much worse.
Outlook is Slightly Below Average: Just over two-thirds (68%) of respondents describe the economic outlook for their business or industry over the next 12 months as positive; and 30% of regional business leaders say that their business or sector is on track for continued improvement or growth over the next year. Compared to past survey years this is slightly below average.
Housing, Workforce Challenges: Southeast business leaders continue to identify housing as the top obstacle to economic development and critical for creating a vibrant business climate in the region. The housing shortage is deterring young families and workers from relocating to, or remaining in, the region.
Businesses are Hiring: The survey shows that about a quarter (24%) of regional businesses are actively hiring or anticipate growing their workforce over the next twelve months.
Industry Strengths, Weaknesses, Opportunities, and Threats: Business leaders were asked to participate in sector specific SWOTs. The sectors that received their own SWOTs in 2024 include seafood, energy, transportation, tourism, and mining.
Open-ended Comments: While significant challenges related to workforce, housing, transportation, and inflation were emphasized, there is also optimism and growth opportunities. Addressing housing affordability and improving transportation infrastructure are seen as crucial steps for supporting sustained economic development in Southeast Alaska.