Eastern Shore Business Sentiment Survey Shows Declining Optimism
The Summer 2025 Eastern Shore Business Sentiment Survey, conducted by Salisbury University’s Business, Economic, and Community Outreach Network (BEACON), reveals that confidence among business leaders across the region has declined for both the short and long term.
Outlook Worsens for Local Conditions
Compared to both winter 2025 and summer 2024, business leaders on the Eastern Shore are reporting less optimism about economic conditions in the months ahead. Only 31 percent of respondents expect better business conditions in their county over the next year, down from 68 percent last summer and 40 percent earlier this year. Looking further ahead, just 33 percent believe the standard of living will improve locally or statewide over the next five years, compared to 61 percent a year ago.
Interestingly, leaders were somewhat more optimistic about national trends: 44 percent believe the U.S. standard of living will rise in the next five years, even as they remain cautious about Maryland and their own region.
Rising Costs and Labor Challenges
The survey highlights that 76 percent of respondents feel household incomes have fallen behind the cost of living, underscoring the ongoing impact of inflation. Businesses continue to cite insurance costs, utilities, and payroll/benefits as the most significant expenses weighing on their operations.
When it comes to barriers to growth, business leaders ranked regulations, labor force issues, and financing as the biggest obstacles to expansion. For new businesses, labor shortages and access to capital were identified as the primary challenges.
Minimal Impact from Tariffs
While national reports raise concerns about tariffs and inflation, most Eastern Shore respondents have not yet experienced major disruptions. Fifty-six percent reported no impact from tariffs over the past three months, and nearly half expect that stability to continue in the months ahead. Still, some noted potential risks tied to supply delays, raw material costs, and inventory issues.
Businesses Committed to the Shore
Despite the cautious outlook, the survey also offers encouraging news. Most respondents—84 percent—believe their firm will still be operating locally in the next five years. This figure is up two percentage points from winter 2025 and just slightly lower than last summer. The steady trend suggests that while businesses are navigating economic headwinds, they remain committed to staying rooted in the Eastern Shore’s communities and economy.
About the Survey
The Eastern Shore Business Sentiment Survey is conducted twice a year by BEACON in partnership with the Eastern Shore Regional GIS Cooperative, the region’s Tri-County Councils, and local economic development departments. Caroline County Economic Development is proud to be a regional partner in this initiative, which is part of the Eastern Shore Economic Recovery Toolkit developed with support from the U.S. Department of Commerce Economic Development Administration.
To explore the full survey results and related data tools, visit the Maryland Eastern Shore Economic Recovery Project or view the full report here.
