An online company providing loans, LendingTree, conducted research on business with the most substantial profitability. The results include 50 cities in the U.S., and Phoenix is the 36th with 63% of the firms reporting a profit. The Valley of the Sun has fewer profitable companies than other cities across the country.
Phoenix metropolitan area is home to more than 41,000 different businesses employing more than five staff members. Last year, a survey conducted by the Enterprise Bank and Trust of their clients showed that 80% of companies reported a struggle to remain profitable as one of the key issues. Another trouble for the Phoenix employers was the low unemployment numbers, which lead to a workforce shortage as well as retaining employees.
LendingTree surveyed the companies hiring over five employees. To perform the research, the company compared the results with data collected by the U.S. Census Bureau three years ago. The results showed that Phoenix alone has 41,279 business operating in the area. From all the companies questioned, 63.23% reported a significant profit. Phoenix businesses also experienced debt, while 18.47% of firms reported massive losses.
The report shows that the Phoenix metropolitan area is less profitable than New York. According to LendingTree, 57% of the companies in the Big Apple had to cut back and had their share of losses. Although New York is one of the cities to break even, Houston reports considerable losses in the U.S. With 23.4% of firms in the city sliding into debt, the Space City has made it last on the list.
Research has discovered that the most lucrative businesses are stationed in Louisville, Indianapolis, and surprisingly, the first on the list is Seattle, as the most prosperous town in the U.S. The Emerald City reached the first place on the list of top-performing businesses in America. The total of 71% of companies in Seattle reported a profitable period, while only 13% were barely breaking even.
Phoenix had its shares of profitable businesses in the past years, mostly including raw materials. However, ever since the problems of a lack of workforce and efficiency of employees came up, the city has reached the bottom part of the list. Other cities in the U.S. outperform the Valley.