Q1 Construction/Contracting SBRB Industry Report:
Construction, Contracting Business Owners Report Increase in Confidence

Small Business Research Board study indicates construction, contracting industry looks to an improved economy in the next 12 months.  

BUFFALO GROVE, ILL (May 14, 2008) – Owners of construction and contracting businesses expressed their improved outlook regarding the general economy during the next 12 months as the Small Business Research Board (SBRB) said its Small Business Confidence Index (SBCI) increased during the first quarter.

The construction and contracting industry reported an SBCI of 44 during the first quarter, a nine point increase from the 35 recorded during the fourth quarter of 2007, according to the study co-sponsored by International Profit Associates.  

The first quarter 2008 SBCI of 44 was slightly more than five points 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 current industry SBCI is nine points higher than the SBCI of 35 reported in the previous quarter.  It remains consistent with the U.S. businesses confidence index during the first quarter of 2008, at only one point higher.

The higher construction and contracting SBCI resulted from a positive outlook regarding the general economy in the next 12 months and 36% (an increase of 12 points) of the respondents plan to increase hiring during the same period.  46% of respondents said they were prepared to increase staff and 54% reported they expect to attain higher revenues. 

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. 
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, 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-c.com.

*numbers may not equal 100% as a result of rounding

Copyright 2008 Small Business Research Board (SBRB)

For more information about this poll, results of previous studies or other matters related to the SBRB, please contact Jennifer Cumbee, (847) 495-6786.