Once thought to be an exception to national trends, Nevada is “recession-proof” no more. From the 2008 real estate crisis to the current workforce woes and housing hardships, Nevada businesses have been through the proverbial wringer over the past several years. An informal tracking of Nevada executives’ thoughts on the economy, the state of industry and various social and political issues, the “Power Poll” annually analyzes the perception of these leaders.
Introduced in 2003 by Nevada Business Magazine, this poll reviews where the state is and where decision makers think Nevada is headed. This year’s poll was conducted from mid-February to mid-March. While not a scientific poll, the profile of those that respond has been similar each year. The 2024 “Power Poll” saw more executive respondents than previous years but the majority (63 percent) have traditionally been business owners.
The poll also follows the state population centers with the majority of respondents based in southern Nevada. In addition, 65 percent of executives from the poll have been in business for over 20 years. When asked why they continue to do business in the Silver State the consensus has been because of the state’s business-friendly atmosphere and relatively low tax burden for companies.
“I absolutely think Nevada has been a great place to do business. It’s got a small-town feel, even though it’s a large state,” said Eileen Christensen, president, principal scientist and founder, BEC Environmental, Inc. BEC is an environmental consultant for businesses and government agencies with locations in both northern and southern Nevada, as well as Arizona.
“It’s such a growing state. Potential new clients are moving in,” added Deborah Danielson, CFP, MSFS, president and owner of Danielson Financial Group a wealth management firm in southern Nevada.
“As a resident here, Nevada has been very good in my career,” agreed Angela Quinn, CEO of FirstMed Health and Wellness, a nonprofit federally qualified health center (FQHC) in southern Nevada. “I’m able to create an environment where I pay my employees above market average. Nevada has made it easier than states that have more restrictive regulations and more restrictive taxes.”
Most poll respondents agreed that Nevada is business-friendly; nearly 90 percent, in fact. Kurt Hoge, president and owner of RenoType, a print shop in northern Nevada, added it’s a matter of relativity. He said, “Talking to peers in other states, I find the administrative burden way to big in Nevada [so] I can’t imagine how people run businesses in other states.”
“Our members are generally optimistic about Nevada’s business economy,” said Amanda Hilton, president of Nevada Mining Association. “And, as the former general manager of Nevada’s oldest operating copper mine, I can tell you there are some excellent things about doing business in Nevada, and there are some struggles.”
Determining Direction
When it comes to executive’s own businesses, as well as the state’s economic direction, decision makers are fairly optimistic about where we are, and where we’re headed. Poll-takers were asked to compare the state of their business to the same time last year and nearly half (45 percent) felt their business’ bottom line was better. Just over half (51 percent) said the same of Nevada’s economy.
“We are sitting in a very different way than we were this time last year,” said Quinn. “This time last year we were emerging out of a very confusing time, a time that was debilitating financially. Our ability to emerge out of the pandemic has been really strong.”
Christensen credits some of that improvement to the strength of Nevada’s economic development agencies. “We are doing phenomenally, as a state, [with our] economic development and small business development groups,” she said. “The nice part about Nevada being so small is they all network and work together. That collaborative spirit is really present and that’s helped the economy quite a bit.”
Looking forward, optimism amongst executives is even higher with 70 percent expecting their businesses to be in a better position next year and 57 percent anticipating an improvement to Nevada’s economy.
“We do an annual survey of our members,” said Hilton. “In our last annual survey, we had 67 percent of our members [say] the economy is headed in the right direction. That’s an improvement from the prior year.”
“I think it’s going to go up,” agreed Hoge. “It’s partially because the economy is getting stronger. The United States government, for better or worse, is dumping tons of money into the economy. For the short term, the next year to three, maybe four years, the economy is going to continue to improve.”
Totaling Taxes
Whether the economy is up or down, the government will be asking for their share of the financial pie from businesses. As many have said, Nevada is known to be fairly business, and tax, friendly. However, many executives echo former President George H. W. Bush’s statement at the 1988 Republican National Convention when he said, “Read my lips: no new taxes.” If it were proposed in Nevada, 90 percent of respondents would not support a state income tax.
“I think there’s revenue from other sources we could [look at],” said Danielson. She also pointed out that once a tax is added to the books, they are rarely taken back off.
While not in support of a state income tax, Hoge isn’t opposed to increasing government revenues. “I would rather see sales tax increases,” he said. “I would prefer that to just taxing people’s income.”
When looking at taxes from an industry level, the majority of Nevadans believe gaming and mining are paying their fair share. Nearly 70 percent of respondents agreed somewhat or strongly that gaming paid its fair share. While still in the majority, despite the recent tax increases, only 59 percent said the same of the mining industry.
“While I personally would like to see mining pay more, I don’t think the casino [industry] should pay more,” said Quinn. “A two or three percentage increase in mining taxes would raise the boat of social services considerably across the state.”
Speaking from within the field, Hilton said, “Mining is the only industry that has a revenue stream through a specific tax that goes directly to education. That’s the mining education tax that came in the 2021 legislative session. In addition, mining pays net proceeds on minerals, and a high percentage of that goes directly into education. We pay those two industry-related taxes, as well as all the other taxes that businesses pay.”
Regardless of where executives land on the details, they are fairly split on whether Nevada businesses are overburdened with taxes. Just over half, or 51 percent, of the business owners and executives polled somewhat or strongly agreed that Nevada businesses have too much of a tax burden.
Political players
With the 2024 presidential race on the horizon, many executives agree the coming elections will have a major impact on the economic direction of both Nevada, and the entire nation. Hoge said, “Everyone spends money to get re-elected, that’s what I think is happening right now.”
Quinn added that the state’s economic future will be greatly affected by what happens in November. “A lot, unfortunately, has to do with the elections and what happens in the political landscape,” she said. “As Nevadans, I like our libertarian attitude. We’ve always been outside of the national fray.”
Here in the Silver State, our currently elected leaders aren’t doing great in the eyes of Nevada executives. Of the statewide and national leaders, only Governor Joe Lombardo received anything higher than C+. He was given an annual statewide average of B-.
“Governor Lombardo, as far as I can see, is doing a good job,” said Christensen. “He seems to be supporting state workers by finally giving them a raise.”
“I don’t think he’s Governor Sandoval, who I adored, most of us Democrats did,” added Quinn of Lombardo. “But I think he’s doing okay.”
That bipartisan support should serve Governor Lombardo well come time for reelection.
At the city level, Nevada mayors are showing more favorably with three out of four receiving B- grades, up from last year’s poll.
However, this year all eyes will be on the national election. Indicators show a rematch between President Joe Biden and former-President Donald Trump is inevitable as the two have won their respective primaries in the majority of the states, as of press time. Even at the time the “Power Poll” was conducted, toward the end of the first quarter, the two were expected to be the candidates the nation would be choosing from.
However, it seems, Nevada executives were hopeful for new blood in the presidential race. When asked who they would vote for if the election were held right then, a close majority of 37 percent wouldn’t vote for either Biden or Trump. Between the two opponents, Biden edged out Trump by only 3 percent. However, an early April poll, sponsored by the Wall Street Journal, showed Trump winning 48 percent of the vote to Biden’s 44 percent. With numbers that close, it’s no wonder this election cycle is capturing the nation’s attention.
Casting Concern
While the election itself will be closely watched and the results, no doubt, hotly debated, the lead up has brought other issues to light. One such issue is whether ID should be required to vote. Nevada executives, for the past four years, have consistently polled that it should be. This year just over 80 percent wanted to see an ID requirement.
“We need ID for just about everything on earth,” said Danielson. “It’s such an important issue for a country and for a state that you should be able to show your ID.”
Not everyone agreed, however. “As long as people can provide some indication of who they are, we should be encouraging people to vote, not discouraging them from voting,” said Christensen.
Another issue executives are thinking about is, whether or not officials should have term limits. Eighty-eight percent of respondents felt that term limits should be instituted across the board. “I don’t think anything should be a legacy position,” said Quinn. Danielson added, “It’s good to have some turnover here and there.”
On a national scale, “Power Poll” respondents were most concerned about homelessness and crime rate with gun control, government overreach and immigration trailing behind. Particularly on the minds of Nevadans, a whopping 98 percent of respondents were either somewhat or very concerned about homelessness.
“Homelessness is something that’s definitely a concern of mine,” said Hoge. “I can’t believe [one of] the richest nation[s] in the world has this problem. We shouldn’t have this problem. It’s a moral issue, as far as I’m concerned.”
A close second to homelessness was the crime rate with 89 percent of respondents ranking it as somewhat or most concerning. “The crime rate to me is the most concerning, just the level of crime we’re seeing, the violent crime that’s coming out,” said Christensen. “It just doesn’t paint a good picture for the future.”
Closer to home, Nevada concerns that were addressed on the poll included healthcare, water, education, state budget, taxes and workforce. Of those, respondents were most concerned about the state’s healthcare, education and workforce. All of the respondents listed healthcare in the somewhat or most concerning columns, 94 percent said the same of education and 95 percent ranked workforce that highly.
Healing Healthcare
Healthcare is a major concern of Nevadans with 76 percent ranking the system at a C or below. “I think your poll is absolutely right,” said Quinn. “And I will tell that as a participant of care and a provider of care.”
“We have great doctors here, but they’re overloaded,” added Christensen.
“Just getting an appointment with a provider turns out to be next to impossible,” said Hoge. “The costs are insane and getting more insane.”
Those polled agreed; 98 percent ranked cost of healthcare as somewhat or very concerning. In addition, 94 percent were concerned about quality and just over 90 percent were worried about access.
One aspect of healthcare has been garnering a spotlight in recent years as the pandemic highlighted the importance of mental health. “Many of our member companies have really been working on tackling mental health,” said Hilton. “That’s an area where telehealth has opened up access.”
“I don’t think this is [just] a Nevada issue,” added Quinn of mental health needs. “When you look at the advances in healthcare generally, the connection in understanding that mental health is physical health and that comorbidities flow both ways, that is a contemporary view. That’s a view that has taken place in the healthcare industry in the last 10 years.”
When asked what they would do to fix healthcare, executives agreed one clear place to start is with insurance companies. “This is not a popular thing to say, especially since a number of my clients are insurance agencies, but that’s where the money is wasted,” said Hoge. “If we could get the insurance company out of [the process], the patient and the medical system, we’d be better.”
“There [needs to be] more transparency in the way the insurance companies set pricing, the process for prior authorization [and] the way they disclose determinations of whether the care you need is valid,” said Quinn. “When you look at profits that are in the billions [for] insurance companies, but they ration care, that’s broken.”
Strengthening Schooling
While healthcare was ranked as most concerning on the poll, education was close behind and business owners and executives felt Nevada’s system deserved a failing grade. Over half (58 percent) of respondents gave education in Nevada a D or F grade.
“The education system is developing our future employees,” said Hilton of the mining industry. “At the same time, as we’re recruiting worldwide for people to come work, those prospective employees are looking at the education system in Nevada and they need to have confidence that their children will be receiving a good education.”
Accountability in education topped the list of concerns with 64 percent of poll respondents saying they were very concerned with holding leaders in education responsible for the way students are taught.
Parental involvement and teacher salaries also ranked high for executive’s concerns. Eighty-eight percent of respondents were somewhat or very concerned with how involved parents are and 83 percent wanted a spotlight on teacher salaries.
When asked how to fix education, some felt that teachers were the starting point. “I’d start by asking teachers what works,” said Christensen. “We don’t seem to do that; we seem to come from the top down.”
“When I look at my workforce and time lost, most of my employees lose [time] because they have to be at home with their kids, not because their kids are sick, but because something has happened at the school. There’s been a teacher shortage or a threat of violence,” said Quinn. “It is inhibiting my current employee’s way to work, but it is also inhibiting that ecosystem that grows future employment.”
Workforce Woes
The state’s education system feeds Nevada’s workforce and, in many ways, the two go hand in hand. When asked about workforce development, nearly all of the poll’s respondents, or 93 percent, agreed that it is critical for Nevada.
“I know there is a tremendous amount work being done,” Hilton said of workforce development. “As we look at the number of employees who are baby boomers and are going to be retiring, the gap with open positions and skilled employees to build those positions has the potential to just get wider.”
“I would love to see more investment in things like trade schools,” said Hoge. “I think unions and the apprenticeship programs have a ton to offer. We can certainly invest more in those sorts of things.”
Unions are a divisive issue for executives, with sentiment somewhat split on whether they are necessary to Nevada’s workforce. Forty-four percent of respondents agreed somewhat or strongly that they are necessary with the remaining 56 percent on the other side of the fence.
“I’ve seen pros and cons,” said Christensen. “They have done a lot of good for individuals in trying to get back to the [idea of] a middle class. On the negative side, some of the pay scale wages for unions [increase] the cost of building something, especially out in the rurals. The wages just kill a number of projects.”
On a wider scale, employment needs for Nevada businesses have been on a steady increase for the past several years. From 2022 to 2024, over half of the executives that have participated in the “Power Poll” each year indicated their staffing needs have increased from the prior 12 months. This year, nearly 60 percent are expecting an increase in the next 12 months. When asked what their biggest workforce challenge is, 77 percent answered that it is finding qualified employees.
“The biggest challenge is finding somebody in my industry that is educated in the financial services,” said Danielson. “There’s just not that many. It’s very hard to find a really good person.”
“Our member companies are struggling to find employees,” added Hilton. “We do anticipate increasing the number of jobs available but, it’s important to note that, as of today, our members have over 1,000 open positions.”
New Normal
With economic diversification and new industries comes less dependence on tourism and gaming for Nevadan’s bread and butter. And, as was illustrated by the darkness of the Las Vegas Strip at the start of the COVID pandemic, varied reliance on industries that aren’t visitor-dependent is essential. “The more diverse our economy, the better it is,” said Danielson.
To that end, Nevada’s leaders have pursued professional sports for years. In the last half-decade, that pursuit has paid off. Now the state has expanded economic diversification through sports and the industry’s ancillary services. And Nevada’s sports industry is only expected to grow from here. In southern Nevada, the A’s stadium on the Las Vegas Strip will add yet another arena in one of the world’s most recognized tourist locations. In northern Nevada, the Grand Sierra Resort is planning a $1 billion entertainment district which will bring a home arena to the University of Nevada men’s basketball team.
As business owners and executives in Nevada adjust to massive changes in a state that can longer be called recession-proof they realize these changes are essential for continued growth. And it appears the Silver State is just beginning to come into its own. Growing pains in the form of diversification, increased population and decreased land availability are the new normal. Some can focus on the pain; most Nevadans focus on the growth.
