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Connecticut businesses are continuing to adapt to a worsening economy, according to a new survey, but many are raising prices to do so.

The Connecticut Business and Industry Association teamed with Blum Shapiro to produce this annual survey, which they say reveals a high level of creativity from companies in the state, as they deal with challenging times.  Most responding to the survey said their businesses performed well last year, and more than half expected growth in the coming year.  But they do see challenges, with most identifying the cost of healthcare as one of their biggest problems.  

CBIA economist Pete Gioia says we can’t yet say the recovery has come.

“We’re seeing things are better than you might see when you get a national recession.  It shows there’s going to be some tough sledding still ahead.  We’re not out of the woods on this economic downturn which is likely not a recession in Connecticut.”

More than half of the companies surveyed say they’re raising prices for their products to deal with increases in costs such as energy.  But Jay Sattler of Blum Shapiro says companies are also using more creative strategies to beat the downturn.

“Sixty percent of the businesses that are out there in the next twelve months are in fact planning on coming out with new products and services; 27 percent are planning on increasing their R&D expenses; 50 percent are planning on increasing their purchases of new equipment.  It’s those kinds of actions that help Connecticut business thrive.”

In what’s becoming a recurring theme in the state, many businesses identified a lack of skilled workers as a serious challenge, especially as more experienced employees retire.