Small Business Research Board Industry Study: Confidence of Construction, Contracting Business Owners Registers Third Consecutive Quarterly Gain
Owners of construction, contracting industry businesses look to increase hiring despite concerns about economy, revenue during next 12 months says SBRB report prepared in conjunction with International Profit Associates
Norhfield, IL, June 20, 2007 --(PR.com)-- Owners of construction and contracting businesses continue to remain positive about the future as indicated by the third consecutive quarterly improvement in the Small Business Research Board (SBRB) Small Business Confidence Index (SBCI) reported today.
The Construction and Contracting Industry SBCI rose to 48 during the second quarter of 2007, an increase of 4.6 points from the first quarter according to the latest SBRB report issued here today co-sponsored by International Profit Associates (IPA).
The SBCI of 48 is just more than one point shy of the indicator’s historical high of 49.3 recorded during the second quarter if 2006. The index plunged to 30.7 during the third quarter of last year before rebounding to 42.04 during the final quarter -- and what is now the first of three consecutive quarterly gains. The SBRB began reporting the Construction and Contracting Industry SBCI during the second quarter of last year.
The current industry SBCI is two points higher than the SBCI reported for all U.S. small businesses. Furthermore, the confidence expressed by owners in the industry is greater than that of two other key categories. The manufacturing industry and the food industry both reported identical SBCI scores of 40.33.
The higher construction and contracting SBCI resulted entirely from plans for increased hiring over the next 12 months. A full 50% of the respondents indicated they will increase hiring compared to 31.1% that were prepared to make that commitment during the first quarter.
Respondents said they were prepared to add staff despite showing a slight drop in their opinion about the strength of the economy and reduced revenue expectations. The SBRB report indicated 42% of the respondents believe the economy will improve over the next 12 months, a decline from the 43.4% the previous quarter. As for revenue predictions, 52% are projecting improvement in sales versus 55.7% during the first quarter.
“Consistent with current market realities and in respect to predictions for the future, it is evident that those construction and contracting firms which maintain a tight reign on all aspects of their operations -- including taking advantage of any and every opportunity to improve productivity -- will be best positioned to weather the gyrating economic conditions,” said Gregg M. Steinberg, President of IPA.
More than 770 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.
The second quarter summary follows:
SBRB INDUSTRY COMPARISONS
Second Quarter 2007 (vs. Prior Quarter)
All US 46 (40.78)
Construction/Contracting 48 (43.4)
SBRB Construction / Contracting Industry Forecast:
>> Outlook for the general economy is for the next twelve months
42% Better
19% Worse
39% No Change
>> Revenue expectations for the next twelve months
38% Increase of 10% or more
14% Increase of less than 10%
34% Will be about the same
7% Decrease of less than 10%
7% Decrease of 10% or more
>> Expectation for hiring new employees during the next twelve months
50% Increase hiring
8% Decrease workforce
34% Remain the same
9% Unsure
###
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
The Construction and Contracting Industry SBCI rose to 48 during the second quarter of 2007, an increase of 4.6 points from the first quarter according to the latest SBRB report issued here today co-sponsored by International Profit Associates (IPA).
The SBCI of 48 is just more than one point shy of the indicator’s historical high of 49.3 recorded during the second quarter if 2006. The index plunged to 30.7 during the third quarter of last year before rebounding to 42.04 during the final quarter -- and what is now the first of three consecutive quarterly gains. The SBRB began reporting the Construction and Contracting Industry SBCI during the second quarter of last year.
The current industry SBCI is two points higher than the SBCI reported for all U.S. small businesses. Furthermore, the confidence expressed by owners in the industry is greater than that of two other key categories. The manufacturing industry and the food industry both reported identical SBCI scores of 40.33.
The higher construction and contracting SBCI resulted entirely from plans for increased hiring over the next 12 months. A full 50% of the respondents indicated they will increase hiring compared to 31.1% that were prepared to make that commitment during the first quarter.
Respondents said they were prepared to add staff despite showing a slight drop in their opinion about the strength of the economy and reduced revenue expectations. The SBRB report indicated 42% of the respondents believe the economy will improve over the next 12 months, a decline from the 43.4% the previous quarter. As for revenue predictions, 52% are projecting improvement in sales versus 55.7% during the first quarter.
“Consistent with current market realities and in respect to predictions for the future, it is evident that those construction and contracting firms which maintain a tight reign on all aspects of their operations -- including taking advantage of any and every opportunity to improve productivity -- will be best positioned to weather the gyrating economic conditions,” said Gregg M. Steinberg, President of IPA.
More than 770 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.
The second quarter summary follows:
SBRB INDUSTRY COMPARISONS
Second Quarter 2007 (vs. Prior Quarter)
All US 46 (40.78)
Construction/Contracting 48 (43.4)
SBRB Construction / Contracting Industry Forecast:
>> Outlook for the general economy is for the next twelve months
42% Better
19% Worse
39% No Change
>> Revenue expectations for the next twelve months
38% Increase of 10% or more
14% Increase of less than 10%
34% Will be about the same
7% Decrease of less than 10%
7% Decrease of 10% or more
>> Expectation for hiring new employees during the next twelve months
50% Increase hiring
8% Decrease workforce
34% Remain the same
9% Unsure
###
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
Contact
Small Business Research Board
Raymond Minkus
(847) 441-4192
www.ipasbrb.com
Raymond Minkus
(847) 441-4192
www.ipasbrb.com
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