HIA-LI’s 31st Annual Economic Summit, held on February 13, 2025, provided a deep dive into the economic landscape of Long Island, revealing both optimism and ongoing challenges for businesses and residents alike. The event, attended by some 200 business leaders and presented in partnership with HIA-LI, Citrin Cooperman, and Adelphi University, featured the release of the 2024 Economic Survey. It offered insights into local business sentiment, workforce issues, and the region’s economic trajectory.

The survey showed 54% of respondents believe the Long Island economy is growing, while 45% expect business growth in 2025. However, challenges persist, with 71% of business leaders concerned about retaining young professionals and families, 46% reporting increasing difficulty in finding quality candidates, and 45% expressing strong concerns about inflation.

HIA-LI President and CEO Terri Alessi-Miceli opened the summit by emphasizing the importance of gathering data to guide Long Island’s business strategy.

“This year’s survey confirms what we’re seeing in the business community—optimism about Long Island’s economy is strong, and investments in infrastructure and economic development are creating new opportunities,” said Alessi-Miceli. “At the same time, we must address key concerns like workforce retention, affordability, and the impact of inflation to sustain this growth.”

Workforce Retention and the Struggle to Keep Young Professionals

One of the most pressing concerns for Long Island businesses is the ongoing loss of young professionals and families, which has become a long-term threat to the region’s economy. High housing costs and limited affordable options are major drivers of this trend. 71% of business leaders cited the retention of young professionals as a critical issue, underscoring the need for increased housing availability.

As John Finn, Director of Leasing and Acquisitions at Damianos Realty Group, explained, the housing crisis is directly impacting Long Island’s workforce sustainability.

“Housing affordability is at a crisis level, and it directly affects our ability to retain talent,” said Finn. “Municipalities need to proactively rezone and support housing initiatives to ensure Long Island remains a viable place for professionals to live and work.”

The regional housing shortage has led to increased demand for new development projects. Finn noted that municipalities must take a proactive approach to zoning and approvals, creating an environment that attracts investment and expands housing options.

Similarly, Diane Manders, CEO of Habitat for Humanity of Long Island, highlighted the dramatic rise in demand for affordable housing, stating that applications for homeownership have increased 600% over the past five years.

“To keep our workforce here, we need to provide real housing solutions, from workforce housing to multi-family developments, and that requires a strong partnership with local governments and developers,” Manders said. “Many of the people struggling to find affordable housing are essential workers—healthcare aides, social workers, and first responders—people who are vital to our community’s well-being.”

Economic Growth and Business Expansion Amid Inflation Concerns

Despite challenges, 42% of businesses surveyed plan to expand on Long Island, demonstrating strong confidence in the region’s economic outlook. At the same time, inflation remains a significant concern, with 45% of respondents citing it as a major business challenge.

Brian Teplitz, Chief Credit Officer at Dime Bank, discussed how inflation, rising interest rates, and increased borrowing costs have affected business lending.

“Long Island’s business lending environment is competitive, but we are seeing cautious optimism,” said Teplitz. “Banks are looking for strong projects to back, and the ability to secure financing for growth will be a key factor in shaping Long Island’s economy in the coming years.”

With 70% of businesses meeting or exceeding their 2024 profitability goals, financial stability remains a strong point. However, concerns about future economic conditions, particularly high taxes and political uncertainty, continue to shape business decisions.

Infrastructure and Economic Development: A Game-Changer for Long Island

A major highlight of the summit was the discussion surrounding Long Island’s infrastructure investments, particularly New York State Governor Kathy Hochul’s $150 million state funding announcement for MacArthur Airport, which will connect the airport to the Long Island Rail Road.

Islip Town Supervisor Angie Carpenter, who played a key role in securing the funding, stressed the regional impact of the project.

“This investment is a game-changer for our region,” said Carpenter. “MacArthur Airport is an asset not just for the town, but for all of Long Island. With JetBlue expanding service and a direct rail connection, this project will boost business and tourism, making Long Island more accessible and economically vibrant.”

Beyond transportation, businesses also highlighted the role of technology in driving economic growth, with 51% of survey respondents citing the ability to leverage technology as critical to business success.

Rich Humann, President & CEO of H2M Architects + Engineers, spoke about how digital transformation and AI are reshaping industries.

“AI and automation are revolutionizing industries, but they won’t replace our workforce—they will enhance it,” said Humann. “The challenge is ensuring we have the talent pipeline ready to adapt and thrive in this evolving environment.”

A Call for Collaboration and Strategic Action

The summit underscored the need for stronger collaboration between businesses, government, and educational institutions to address these challenges. Workforce shortages, housing affordability, and infrastructure investment were identified as key areas where immediate action is needed to sustain Long Island’s growth.

John Fitzgerald, Partner at Citrin Cooperman and moderator of the event, emphasized that while optimism is strong, real solutions must follow.

“We have the assets to keep talent here—the Long Island Innovation Park at Hauppauge, research institutions, and a thriving business ecosystem,” said Fitzgerald. “The key is aligning business, government, and education to create sustainable solutions.”

HIA-LI will continue its advocacy efforts and workforce development initiatives to ensure Long Island businesses remain competitive in the years ahead.

For a copy of the survey, go to: http://tiny.cc/HIA-LI-Survey2025. 

For more information about HIA-LI and upcoming events, visit www.HIA-LI.org or call (631) 543-5355.

ABOUT HIA-LI

Now in its 46th year, HIA-LI is one of the region’s largest business advocacy organizations, a recognized voice of Long Island business, and a powerful force in regional and economic development. It also represents the Long Island Innovation Park at Hauppauge, the largest industrial park in the Northeast. The park supports 55,000 jobs, produces $13 billion in goods and services annually, and accounts for eight percent of Long Island’s gross domestic product. For more information, visit www.HIA-LI.org.