Businesses do not like uncertainty. But many in Southeast Alaska say that’s exactly what they’re facing amid recent actions by the federal government. That’s driving down local business owners’ optimism about their economic prospects.
The news comes in a report released Tuesday by the Southeast Alaska Business Climate Survey. It included insight from more than 400 business leaders from throughout the region.
“Anytime you put the words uncertainty and business together — it’s not a recipe for success,” said Meilani Schijvens, the owner of Rain Coast Data, which conducts the annual survey.
The survey shows that almost half of the businesses that participated expect recent federal actions to negatively impact their operations. Those actions include the Trump Administration’s funding and job cuts, executive orders and tariffs. Timber, arts and manufacturing businesses were reportedly the most concerned.
Schijvens said both business confidence and economic optimism have also appeared to shrink compared to previous years. That worries her.
“We’ve seen a big shift in how people view the economy and in a short period of time, which has been really interesting, really fascinating,” she said. “It’s definitely not the positive outlook that we’re looking for.”
Tourism industry leaders shared concerns that tariffs might stop people from traveling or participating in tours. They’re also worried about the increasing cost and decreasing availability of goods, such as parts for helicopters.
Housing availability was also an important topic in the report. Nearly 80% of employers reported that housing issues directly cause turnover or deter potential hires from moving to the region.
The study says that’s most problematic in Juneau and Sitka, where affordable and workforce housing is particularly scarce.
