Small Business Research Board Study Says
Owners of
Food Industry Businesses Showing Improved
Outlook
Plans
for increased hiring drive improved food
industry confidence index says SBRB report
prepared in conjunction with International
Profit Associates
Northfield,
IL- Owners of food industry companies
are more positive about prospects
for their companies during the next 12
months despite concerns about the economy
and lower revenue projections according
to the latest Small Business Research
Board (SBRB) report issued here today.
The
second quarter 2007 Food Industry Small
Business Confidence Index (SBCI) was 40.3
or an increase of 2.27 points from the
first quarter according to the latest
SBRB report issued here today co-sponsored
by International Profit Associates (IPA).
The current industry SBCI is lower than
the SBCI of 46 reported for all U.S. small
businesses. The confidence expressed
by owners in the industry is identical
to that of the manufacturing industry,
but lower than the 48 recorded by the
construction and contracting industry
during the same period.
The higher food industry SBCI resulted
entirely from plans for increased hiring
over the next 12 months. A
full 40% of the respondents indicated
they will increase hiring compared to
24.4% 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 33% of the respondents
believe the economy will improve over
the next 12 months, a decline from the
34.6% the previous quarter.
As for revenue predictions, 48% are projecting
improvement in sales versus 55.1% during
the first quarter.
"Looking ahead, the food industry
will need to make certain that strong
cost controls and employee training programs
are part of their operating recipe otherwise
owners many undermine the ability to meet
their projections," 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 2007 food industry
summary follows:
SBRB INDUSTRY COMPARISONS May/June
2007 (vs. Prior Quarter)
SBRB
SBCI All US 46
(40.78)
Food Industry
40.3 (38.03)
SBRB
Food Industry Forecast
Outlook for the general economy is for
the next twelve months
33% Better
23% Worse
44% No Change
What are your revenue expectations for
the next twelve months
30% Increase of
10% or more
18% Increase of
less than 10%
45% Will be about
the same
06% Decrease of
less than 10%
01% Decrease of
10% or more
Expectations for hiring new employees
next twelve months
40% Increase hiring
13% Decrease workforce
39% Remain the
same
07% Unsure
Copyright 2007 Small Business Research
Board (SBRB)