Listen to this articleLong Island’s economy continues to tease opportunities for the business community, even in the face of mixed messages from the country’s macroeconomic outlook, according to data and the views of local finance executives.
Segments including construction, healthcare and some areas of technology continue to be areas of strength and upbeat assessments.
“The New York federal market represents something like 11 percent of our GDP in the nation, and Long Island is a big chunk of that,” said Frank Sorrentino III, CEO of ConnectOne Bank. “It’s no wonder things keep chugging along on Long Island.”
Add to that that Long Island is less expensive as a place to live for the region’s workforce than New York City, “where we can’t seem to build enough housing,” Sorrentino said. “There’s this constant need for additional housing space. There’s this constant inflow of construction.”
Even still, construction of new housing can’t keep pace with the number of people who want to live in Nassau or Suffolk County, he said.
In fact, per research released at the end of last year, the Federal Reserve Bank of New York pegged Long Island’s GDP at $246 billion, with the largest median household income in the region, including the five boroughs and Orange, Rockland and Westchester counties.
Healthcare, finance, government and education remained among the largest employers in Nassau and Suffolk, the Fed said.
And, while the country faces new pressures at a broad level, Long Island—home to about 3 million people—entered 2025 with the lowest unemployment rate in the region, according to the Fed.
“Unlike New York City, that is so heavily reliant on the financial services sector, Long Island’s economy is much more diverse, with a variety of industries greatly contributing to our stability and growth. Industries like healthcare, technology, aerospace and hospitality continue to thrive and grow in our region,” said Michael Puorro, chairman and CEO of Hanover Bank in Mineola.
“That is not to say we are immune to the highs and lows of economic conditions; however, I believe we continue to be cautiously optimistic about the future of our regional economic growth,” Puorro said.
Hanover Bank is focusing on expanding its commercial business banking services, he said, noting “we have hired an extremely talented team of professionals that consistently succeeds in expanding this area.”
The New York Fed’s February Business Survey for the region found that the New York-New Jersey region experienced some supply constraints and pricing pressure. Business sentiment backtracked along with national trends but remained more positive than negative.
“Business activity fell modestly in the New York-Northern New Jersey region’s service sector in February, with the survey’s headline index reaching its lowest reading in more than a year,” Richard Deitz, the New York Fed’s economic research advisor, said per the report. “Supply availability worsened and selling prices increased at the fastest pace in nearly a year.”
The Fed developed that assessment for the larger metro area, including New York City—but a closer look at Long Island can show broader suggestions of optimism.
A more positive, forward-looking indicator may be the continued brisk construction of warehouses across Nassau and Suffolk counties, which both Sorrentino and Puorro said suggests the result of significant growth in logistics and just-in-time product demands locally.
“(Cargo) starts at a seaport,” Sorrentino said. “It needs to go to warehouses. It needs to be distributed by either truck or by rail. Long Island has all of this.”
Construction to boost healthcare expansions on Long Island continue, said Puorro, “alongside a booming industrial sector fueled by e-commerce and logistics needs, leading to increased construction of warehouses and distribution centers.”
Supporting growth in the longer term will be continued development at airports and rail stations, such as Long Island McArthur Airport, Gabreski Airport in Westhampton and LIRR stations that continue to serve as hubs supporting transit-oriented development.
Sorrentino noted that ConnectOne’s approach to working with business customers remains geared toward having them assess their strengths, weaknesses, and readiness for long-term economic changes.
“Ask, ‘Have you thought of this? What contingencies do you have in your plan? You know, what if things go a little better? What if things go a little worse’?” Sorrentino said.
“When things are really good, everybody thinks they’re always going to be good,” he added. “And when things are really bad, people generally think they’re always going to be bad. And that’s just not the way business works.”
“Overall, while the current economic landscape may be uncertain, Hanover Bank has always managed to remain resilient due to our history of adapting to changing market conditions, embracing digital transformation and focusing on client service,” Puorro said.