Rising healthcare costs, workforce shortages, housing constraints, and operating expenses are influencing how Vermont businesses make critical decisions about pricing, hiring, investment, and expansion, according to the 2026 Vermont Business Climate Survey, conducted by the Vermont Futures Project in partnership with the Vermont Chamber of Commerce.

The findings reveal the economic consequences of these pressures. Over the past year, half of participating businesses raised prices, one-third delayed hiring, or left positions unfilled, and approximately one-quarter delayed or canceled capital investments. These decisions have implications for household affordability, employment opportunities, and Vermont’s long-term economic competitiveness.

Businesses participating in the 2026 survey rated Vermont’s overall business climate 2.62 out of 5, down from 2.86 in 2025. Forty percent gave the business climate a rating of 1 or 2, compared with approximately 29% last year. While participation varies between years, the findings reinforce concerns about the conditions needed to support business confidence and investment.

Affordability, Workforce, and Housing Pressures Constrain Growth

Healthcare and health insurance costs emerged as the most frequently cited business challenge in 2026, identified by 59% of participating businesses. Healthcare ranked fourth in 2025 but first this year, reflecting a shift in reported priorities, although changes to survey categories limit direct comparisons.

Workforce availability and housing affordability remain significant barriers to growth. Sixty-seven percent of participating businesses identified the availability of qualified applicants as a limiting factor, followed by housing affordability and availability (53%) and the cost of living (51%). Together, these interconnected challenges affect businesses’ ability to attract talent, manage expenses, and pursue growth opportunities.

Taxes, regulatory requirements, and permitting processes further shape Vermont’s operating environment. Sixty-eight percent of participating businesses identified state taxes and fees as limiting factors, while 62% cited regulatory requirements and compliance, and 59% identified state and local permitting. Approximately half described regulatory requirements and permitting conditions as unpredictable, highlighting the importance of consistency and clarity in business planning.

External economic pressures are also affecting Vermont businesses. Sixty-eight percent reported negative impacts from tariffs, trade policy, or Canada–U.S. cross-border conditions over the past year. Among businesses identifying specific impacts, 51% cited Canadian visitor or customer demand, 45% identified supply chain or product availability challenges, and 35% reported increased input or raw-material costs.

“When businesses are raising prices, delaying hiring, and postponing investments, Vermont’s business climate is not an abstract measure,” said Amy Spear, President of the Vermont Chamber of Commerce. “These findings ground our advocacy in the realities facing businesses and inform our government affairs priorities, helping us advance practical policies that improve affordability, strengthen business confidence, and drive long-term economic growth.”

Business Confidence and Opportunities for Competitiveness

The survey also identified a lack of confidence in elected officials’ understanding of the Vermont business environment. Sixty-nine percent of participating businesses expressed a lack of confidence in state government’s ability to manage public funds efficiently and make spending decisions that support long-term affordability and economic growth. Seventy-one percent lacked confidence that elected officials understood the economic pressures facing businesses. Similar concerns emerged in 2025, reinforcing the importance of connecting policy decisions with the conditions employers experience.

Despite these challenges, participating businesses identified opportunities to strengthen productivity and competitiveness, particularly through emerging technology. Eighty percent reported using artificial intelligence, primarily through limited applications or pilot projects, while 19% reported regular use across multiple business functions. Improved productivity and reduced administrative burdens were among the most frequently identified benefits.

“The findings underscore the importance of coordinated, measurable progress on affordability, housing, workforce development, and regulatory predictability,” said Kevin Chu, Executive Director of the Vermont Futures Project. “Together, the Business Climate Survey, Vermont Competitiveness Dashboard, and Vermont Economic Action Plan connect business experience with comparative data and a long-term roadmap for strengthening the state’s economy to deliver better outcomes for Vermonters.”

About the Survey

The second annual 2026 Vermont Business Climate Survey, conducted August 28 to October 15, reflects input from 135 participating businesses across all 14 counties, from industries including manufacturing, healthcare, tourism, hospitality, agriculture, professional services, technology, and nonprofit organizations.

The survey approach captures the experiences and expectations of participating businesses rather than representing a statistically measured change across all Vermont businesses. Because participation, certain questions, and response categories differed between 2025 and 2026, year-over-year comparisons provide directional insight rather than precise measurements of statewide change. The results are unweighted.

Full Report Now Available

Explore the complete 2026 Vermont Business Climate Survey Report, including visualizations, year-over-year comparisons, selected industry perspectives, and methodology.