State of the Hawaiian Economy: NHCC Member Survey Q2 2024

In the second quarter of 2024, the Native Hawaiian Chamber of Commerce (NHCC) conducted its follow-up survey to understand the perspectives of our members regarding the current economic landscape. Members responded about economic conditions between April and June 2024.

Economy Sentiment: Mixed but Stable

In Q2, 46.2% of respondents rated the economy as the same as 2023, suggesting little change from Q1’s results, where 37% also viewed the economy as stable. While 15.4% in Q2 found the economy stronger than 2023, the same percentage believed it had worsened.

Employee Hiring Challenges: A Growing Concern

A notable shift occurred in Q2 regarding hiring challenges. In Q1, 26% of respondents found it difficult to find qualified candidates, but in Q2, this number grew to 38.5%. The increasing challenge of securing qualified workers highlights the continued strain on small businesses, particularly in a tight labor market where competition for talent remains fierce.

Access to Capital: A Steady Challenge

Access to capital, especially with a strong business plan, remained a consistent challenge across both quarters. In Q2, 23.1% found access to capital more difficult compared to 29% in Q1. Most respondents (38.5%) in Q2, much like in Q1, found access to capital remained the “same as always.” This suggests that access to capital remains a persistent issue for many small businesses.

AI Adoption: An Emerging Trend

AI continues to emerge as a growing focus for Native Hawaiian businesses. The results reflect how businesses are either embracing or holding back on integrating this technology. The feedback from the optional comments shows some concern about AI replacing workers, though others recognize the potential for AI to enhance business operations. That is why NHCC recently held an AI seminar presented by Accenture to show the potential benefits of applying AI to the workplace to increase productivity and results.

Feedback from Members: A Call for Innovation and Support

Member feedback provided valuable context to the numbers. Many voiced concerns over the long-standing challenges in the Hawai‘i economy, particularly around the dependency on tourism and military contracts. One respondent pointed out the high cost of living and how small businesses are not benefiting from broader economic success. Another raised a critical question about how small businesses can pivot to remote work opportunities and utilize AI without sacrificing employee jobs or business quality.

Conclusion: Steadfast Resilience and the Path Forward

The results of Q1 and Q2 paint a picture of mixed concerns. While some businesses see growth, others are feeling the pressure of inflation, high taxes, and the struggle to find qualified workers. The growing interest in AI also signals a pivotal moment for the chamber to provide more resources, education, and support to its members.

NHCC will continue to gather feedback and explore new ways to help our members overcome these challenges. Mahalo to all our members who participated in these surveys. Your voices are essential to shaping the chamber’s advocacy and programs moving forward.