Q1 SBRB Food & Beverage Industry Key Issues Report:
More Food & Beverage Companies Prepare for Employee Growth
in Next 12 Months Says Latest Report
Buffalo Grove, IL- More owners and managers of small food and
beverage businesses indicated, during the first quarter of 2008,
that they are planning to increase hiring during the next 12
months and expect an increase in employees versus their 2007
statistics, according to the latest Small Business Research
Board (SBRB) study released here today.
Of
the owners and managers responding to the nationwide quarterly
SBRB poll co-sponsored by International Profit Associates, 44%
said they plan to increase hiring over the next 12 months. This
was an increase of 28 points from the 16% who said, during the
fourth quarter of 2007, that they were planning to increase
hiring. Concerning the total number of employees, 41% of the
respondents expect their statistics in 2008 to increase from
2007. Only 8% thought they would have fewer employees in the
coming year.
Meanwhile,
the quarterly report said 46% of the businesses have raised
prices in response to increased fuel costs. For those businesses
adjusting to an increase in fuel prices, 25% have reduced business
travel, 22% have reduced other costs and 19% are experiencing
a higher level of just-in-time ordering. Eliminating routes,
or reducing the length of delivery routes, and committing to
new vehicles with better miles per gallon efficiency was the
fifth-mentioned possibility for offsetting costs.
The
Small Business Research Board (SBRB) previously reported that
its Food & _Beverage Industry Small Business Confidence
Index (SBCI) decreased by more than 18 points to 30 during the
fourth quarter of 2007. The responses of owners and managers
of small food and beverage producers participating in the quarterly
poll indicated a weakened confidence in the economy, predictions
for lower revenue and less hiring. The outlook for the general
economy, revenue growth and hiring expectations are three key
indicators used to determine the SBCI.
The
first quarter of 2008 food and beverage SBCI (set at 43) was
sharply higher than the 30 registered during the fourth quarter
of 2007.
The
SBCI, during the first quarter of 2008, for all U.S. small businesses
was 43.67, a decline of nearly 10 points from the prior period.
The historical SBRB SBCI high occurred during the first quarter
of 2005 when the SBCI hit 52 points. The historical low was
during the third quarter of 2005 when the SBCI fell to 39.3
points.
More
than 1,000 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.More information
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,
offers 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.