Eastern Shore business leaders’ confidence in both the short- and long-term economy continues to weaken, according to the results of the latest Eastern Shore Business Sentiment Survey conducted by the Business, Economic, and Community Outreach Network (BEACON) at Salisbury University.
Compared to both winter 2025 and summer 2024 survey results, the new data show sharper declines in optimism. The most dramatic drop came in business leaders’ outlook for conditions in their own counties: only 31% predict better conditions over the next year, down from 40% in winter 2025 and 68% a year ago.
Longer-term expectations for the standard of living are also down. Just 33% of respondents believe living standards will rise locally or nationally over the next five years, compared to 61% in summer 2024. Interestingly, business leaders were more optimistic about the nation (44% expect improvement) than Maryland itself (49% expect decline).
While confidence has eroded, some 47% of business owners still describe the U.S. economy as “growing slowly” or “growing rapidly.” However, that figure is down 14 points from last summer.
The survey also highlights key pressures facing firms:
- Inflation impacts: 76% of respondents said household income has fallen behind the cost of living, nearly double the share from summer 2024. Rising insurance costs remain the single greatest business expense, followed by utilities and payroll/benefits.
- Workforce and regulation challenges: Regulations, labor force issues, and financing emerged as the top barriers to expansion, while labor force issues and funding topped the list of challenges for starting a business.
- Tariff concerns muted: Despite national uncertainty, a majority of businesses (56%) reported no impact from tariffs over the past three months, and 44% expect no near-term effect. Those who did cite effects pointed to supply delays, competitiveness, and rising raw material costs.
- Business continuity: Encouragingly, 84% of firms expect to still be operating on the Eastern Shore in five years.
“This ongoing decline in business confidence should be a signal for policymakers and support organizations,” the report notes, emphasizing the need to monitor workforce, cost, and regulatory pressures across the region.
The Eastern Shore Business Sentiment Survey is conducted twice yearly in partnership with the Eastern Shore Regional GIS Cooperative (ESRGC), the region’s three Tri-County Councils, and local economic development departments including the Talbot County Department of Economic Development and Tourism. Results are part of the Eastern Shore Economic Recovery Toolkit, supported by the U.S. Department of Commerce Economic Development Administration (EDA).
The full survey results are available online at: https://recovery.delmarvaindex.org/.
About Talbot County Department of Economic Development and Tourism
The Talbot County Department of Economic Development and Tourism’s mission is to enhance and promote a business-friendly environment for current and prospective enterprises and to advocate for policies that support and strengthen the economic vitality of Talbot County. The department’s vision for Talbot County is built on the principles of strong communities, empowered businesses, and innovative solutions.
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