By ROBIN COOPER
Albany Business Review

Cost-cutting will be the primary survival strategy among executives across the state in the coming year, according to a new Siena Research Institute survey.

Seventy-two percent of CEOs and senior managers surveyed expect the economy to worsen in 2009.

Only 11 percent expect economic conditions to improve, while 17 percent expect it to remain unchanged, according to the Siena Research Institute survey, done in conjunction with First Niagara Bank. SRI is affiliated with Siena College, near Albany.

"We find it a little bit disturbing that companies may be placing cost reductions over improving their business," said Donald Levy, director of the Siena Research Institute survey released Tuesday.

The survey of 404 executives from all sectors and across Upstate New York showed a dramatic shift from a year ago, when executives said their primary strategy for 2008 was to do what they do better, Levy said.

"They are taking a primarily defensive posture," he said. Of those surveyed, 20 percent planned to cut jobs this year, 19 percent planned to increase staffing this year and 61 percent expect staffing levels to remain the same as last year.

The second annual survey, commissioned by Pendleton-based First Niagara, includes data from 404 CEOs, chief financial officers and senior managers in the Albany, Buffalo, Rochester and Syracuse areas.

Questions were directed at executives of private companies with annual revenues of $5 million to $150 million.

The survey was designed to gauge the opinions of executives about market conditions and where their industries are headed.

Amell said he has a "cautiously optimistic" view for 2009. The credit crisis has been tough, but he said banks still have money available for companies looking to borrow.