Business Survey Provides Survey Provides Real Times Insight Into Trends In LA County Business Trade

Perhaps the most surprising trend in the survey is the extent our businesses have globalized," said Lee Harrington, CEO of the LAEDC and World Trade Center Association Los Angeles-Long Beach.

Los Angeles, CA (PRWEB) January 29, 2004 -- The Los Angeles County Economic Development Corporation (LAEDC) and National Center for Business and Economic Research (NCBER) have now completed more than 5,000 C-level" interviews with businesses in Los Angeles County with 25 or more employees since April 2004.

Business outlook has continued to brighten over the past eight months," stated K.D. Nyegaard, President of NCBER, particularly since the November election." Eighty-five percent of these businesses have been able to remain profitable and 25% plan to expand their staffs this year in anticipation of greater revenues.

However, manufacturing is the sector experiencing lower profitability with 9% of the companies planning to downsize staffs. This is a concern because of the importance of manufacturing in providing middle income jobs with benefits for the region," commented Jack Kyser, LAEDC Chief Economist. Twenty-three percent of manufacturers expect to grow this year.

Finance (42percent) and Business Services (36%) appear to have the most robust plans for growth in employment.

Companies remain mixed on the impact of the local economy with 14 percent viewing conditions as positive, 48 percent as neutral, and 38% negative.

Of the 25% of the companies who plan to expand this year, 80% will be local, 13 percent will be elsewhere in California, and seven percent out of state. The two most commonly cited barriers to expansion involved governmental action (40%) and taxes (36 percent). Of the 6.4 percent of the businesses planning relocation, 19 percent anticipate a move somewhere outside California. Insufficient room, costs of doing business, cost of occupancy/utilities and taxes are the most often cited reasons for relocation.

Perhaps the most surprising trend in the survey is the extent our businesses have globalized," emphasized Lee Harrington, CEO of the LAEDC and World Trade Center Association Los Angeles-Long Beach. About 37 percent of the surveyed businesses export internationally while 26 percent import goods from international sources. Manufacturing companies lead in exports (48 percent%). Wholesalers (53 percent) lead in imports followed closely by manufacturing (44 percent).

Overall, business outlook is improving," agreed Harrington, but we need to help manufacturing and keep our eye on out-of-state expansions and relocations." The survey is available at www.laedc.org.         ###                                                                ;