Business Leaders Say Profits Are Down and Optimism Is Falling

Twice a year, Hawaii Business Magazine asks the Anthology Marketing Group to take the pulse of the local business community. This spring, owners and executives of 407 companies each had unique stories to tell about their firms’ financial situations – ranging from awesome to awful and everything in between.

When taken as a whole, the results of this latest BOSS Survey are worse than last fall’s survey. Much more disturbing is that optimism about the local economy’s future fell dramatically.

“We’re bruised but back on track. We have not fully recovered from 2020 yet, but we work on this every day. We tackled higher food, liquor and labor costs by raising prices, but a lot of hidden costs affect our bottom line.”

— Kaleo Schneider, Director of Operations, Buzz’s Original Steak House (O’ahu)

“We are flourishing. Our sales are strong. We have really good staffing and all our positions are full. We have a good future.”

— Leila Thompson | GM, Window Trends (Kaua’i)

“Barely surviving. We have only booked 3 new weddings since the August fires. The message potential clients get is that those who live on Maui do not want them to come. Another issue is many wedding groups can’t afford the available accommodations.”

— A Maui wedding company that asked to remain anonymous

Optimism about the future – or the lack of it – is a huge factor in business decision-making. Optimistic business leaders will hire more workers, launch expansions and offer new products and services. Less optimistic leaders may freeze or cut staff, delay expansion and reduce product lines or services.

To further probe these attitudes, the survey’s respondents were asked which of these statements best describes their companies’ spending plans for the coming 12 months.

“The economy will hold steady. There’s still a lot of willingness to come to Hawai’i.”

— Byron Kay, Owner, Kona Honu Divers (Hawai’i Island)

“It’s hard to predict… but if housing continues to rise in cost, the economy will fall, because we don’t have the workforce.”

— Nichole Hutaff-Nakamura, President, Valley Isle Excursions

“Speaking with tons of friends, vendors, colleagues in the tourism and wedding industry this year, they are all in the same boat as I am. we’re not getting new business and not sure if it will happen any time in the next few years.”

— A Maui wedding company that asked to remain anonymous

“The economy is getting worse, and I expect this trend will continue until 2026. There are many issues worldwide and until they are cleared up, it will affect our economy.”

— Kaleo Schneider, Buzz’s Original Steak House