More Construction, Contracting Firms Preparing for Growth  Next 12 – 24 Months;

Firms Considering Expansion at Current Locations, Addition of New Facilities Says Latest SBRB Report

NORTHFIELD, IL (November 7, 2007)  --  A growing number of owners and managers of small construction and contracting businesses indicated during the third quarter of 2007 that they are planning for expansion during the next 12 to 24 months, 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, 36% said they plan to expand their businesses the next 12 to 24 months.  This was an increase of 5 points from the 31% who said during the second quarter that were planning to expand their businesses. 

Expansion at current locations and the addition of new locations were noted by 53% of the respondents intending to expand as their primary methods for growing their businesses.  Expansion at current locations was mentioned by 30% of the participants while 23% (an increase of 13 points from the prior quarter) said they intend to add locations. 

Enhancing customer services capabilities was third among the methods indicated for future expansion.

Training is viewed as a primary measure for improving productivity. Improved staff training ranked first among the options for enhancing business efficiency during the third quarter. These same owners also said they would add staff (second) before improving automated systems (third) just as they had similarly indicated during the second quarter.  However, employee incentive programs was the fourth choice for increasing efficiency during the third quarter followed by investments in new automation and technology (fifth).

IPA, with more than 1,800 professionals, is the largest privately-held provider of management consulting services to small and medium-size businesses in North America. IPA is based in Buffalo Grove, IL.

More than 800 small businesses participated in the overall nationwide third quarter SBRB poll. As previously reported, the SBRB Construction & Contracting Industry Small Business Confidence Index (SBCI) was 47 during the third quarter after having posted an SBRB SBCI of 48 the previous quarter.  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. 

Also as previously reported, the SBRB SBCI for all U.S. small businesses dropped to 43 during the third quarter, a decline of three points from the prior period.  The opinions and projections about the strength of the economy, revenues and hiring looking forward 12 months are the three key ingredients to determining the SBCI and providing the basis for these quarterly and annual comparisons.  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.

The SBRB study is a voluntary survey conducted quarterly.  The universe of participants is developed from among small businesses across the United States.  

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.net.

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-c.com  

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