Q3 Construction / Contracting SBRB
Industry Report:
Construction, Contracting Business
Owners Report First
Decline in Confidence After Three
Consecutive Quarterly Gains
Small Business Research Board study indicates construction,
contracting industry to decrease hiring next 12 months.
NORTHFIELD, Ill. (Business Wire EON/PRWEB ) October 12, 2007 --
Owners of construction and contracting businesses expressed concern
about their business prospects during the next 12 months as the Small
Business Research Board (SBRB) said that its Small Business Confidence
Index (SBCI) fell during the third quarter for the first time since last
year.
The construction and contracting industry reported an SBCI of 47 during
the third quarter, a one point decline from the 48 recorded during the
second quarter according to the study co-sponsored by International
Profit Associates.
The second quarter 2007 SBCI of 48 was slightly more than one point shy
of the indicator’s historical high of 49.3
recorded during the second quarter of 2006, the first time the SBRB
issued such an industry indicator. The index plunged to 30.7 during the
third quarter of last year before rebounding to 42.04 during the final
quarter. The SBCI then rose again to 43.4 during the first quarter 2007
and was followed by the 48 during the second quarter.
The current industry SBCI is four points higher than the SBCI of 43
reported for all U.S. small businesses during the third quarter.
The lower construction and contracting SBCI resulted from heightened
concern about growth in the economy the next 12 months and plans by 46%
(a decrease of four points) of the respondents to reduce hiring during
the same period.
Respondents said they were prepared to decrease staff despite 54% of the
participants, two points more than the prior quarter, reporting they
expect to attain higher revenues.
“Small construction and contracting firms are
feeling the realities of the marketplace and thus feeling less confident
about chances for a turnaround in the economy the next 12 months.”
said Gregg M. Steinberg, President of International Profit Associates. “However,
it is appears most are taking actions to manage labor costs during this
time so as to minimize the downside risk.”
More than 800 small business owners participated in the nationwide poll.
The universe of participants is developed from among small businesses
across the United States. The SBRB study is a voluntary survey conducted
quarterly.
The Small Business Research Board ascertains and reports the opinions of
small business owners and managers on a wide variety of topics related
to their own businesses as well as national and international issues
that may impact their operations. The SBRB conducts these studies for
the benefit of small business owners and managers. The SBRB also
provides opportunities for third parties to gain real time insight into
the attitudes of small businesses nationwide through the independently
conducted research.
The latest information about the Small Business Research Board can be
found at www.ipasbrb.com.
International Profit Associates, Inc. (IPA) is the largest
privately-held provider of management consulting services to small and
medium-size businesses in North America. IPA and its more than 1,800
professionals offer a wide range of proven and innovative methodologies
to help businesses grow and prosper regardless of the economic cycle.
IPA either provides directly or through its affiliated companies a
comprehensive array of business advisory services, tax and estate
planning services or merger, acquisition and other financial advisory
services in the United States and Canada. More information about IPA can
be found at www.ipa-iba.com.
|
SBRB INDUSTRY COMPARISONS
|
|
Third Quarter 2007 vs. Prior Quarter
|
|
|
|
|
ALL
|
Construction/
|
|
|
|
US
|
Contracting
|
|
|
|
|
Q3 2007
|
43
|
47
|
|
|
(Current)
|
|
|
|
|
Q2 2007
|
46
|
48
|
|
|
|
|
Economy
|
|
|
|
|
Improving
|
|
|
|
|
|
|
Q3 2007
|
37
|
41
|
|
|
(Current)
|
|
|
|
|
Q2 2007
|
43
|
42
|
|
|
|
|
Revenues
|
|
|
|
|
To Increase
|
|
|
|
|
|
|
Q3 2007
|
53
|
54
|
|
|
(Current)
|
|
|
|
|
Q2 2007
|
58
|
52
|
|
|
|
|
Hiring
|
|
|
|
|
To Increase
|
|
|
|
|
|
|
Q3 2007
|
39
|
46
|
|
|
(Current)
|
|
Q2 2007
|
37
|
50
|
|
|
|
|
-- Outlook for the general economy is for the next twelve months?
|
|
|
41% Better
|
|
|
22% Worse
|
|
|
37% No Change
|
|
|
|
-- Revenue expectations for the next twelve months?
|
|
|
37% Increase of 10% or more
|
|
|
17% Increase of less than 10%
|
|
|
38% Will be about the same
|
|
|
4% Decrease of less than 10%
|
|
|
4% Decrease of 10% or more
|
|
|
|
-- Expectation for hiring new employees during the next twelve
months?
|
|
|
46% Increase hiring
|
|
|
10% Decrease workforce
|
|
|
30% Remain the same
|
|
|
13% Unsure
|
|
|
|
(a) numbers may not equal 100% as a result of rounding
|
Copyright 2007 Small Business Research Board (SBRB)
For more information about this poll, results of previous studies or
other matters related to the SBRB, please contact Raymond D. Minkus,
(847) 441-4192.
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