Q2 Small Business Research Board Automotive Vehicle Dealer and Service Industry Key Issues Report: Auto, Other Vehicle Dealers Report Declining Economy Expectations Says Latest SBRB Report   

Of the owners and managers responding to the nationwide quarterly SBRB poll, co-sponsored by International Profit Associates, 46% said they believe the economy will worsen in the next twelve months

BUFFALO GROVE, ILL (September 25, 2008) -- During the second quarter of 2008, owners and managers of small automotive and other vehicle dealerships indicated they have experienced inflationary pressures and expect no change to or a worse economy in the next 12 months, according to the latest Small Business Research Board (SBRB) study released here today.

Regarding revenue expectations, 64% of owners and managers of automotive/vehicle dealers and the automotive service industry said they expect no change to or decrease in revenues over the next 12 months.  46% predict their hiring expectations to remain consistent from the previous year, according to the SBRB Automotive/Vehicle Dealer and Service Industry Report.  36% believe the single most important issue impacting their business is energy/fuel costs, 29% said it is economic conditions.

Meanwhile, the quarterly report said 59% of the responding businesses are feeling inflationary pressures.  For the businesses adjusting to those pressures, 45% have raised prices.  19% are reducing other operating costs.  Renegotiating customer pricing agreements was the third mentioned possibility for offsetting costs with 16% reporting an additional increase in their shipping and handling costs.

Reducing lead times had 15% of the vote.
           
More than 1,000 small businesses participated in the overall nationwide second quarter SBRB poll supported by IPA.  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, Ill.  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.com.
           
The SBRB also provides a quarterly Small Business Confidence Index (SBCI) for all U.S. businesses, as well as those in five industries, in addition to trend reports for the transportation industry, among others.
           
Also, as previously reported, the SBRB SBCI for all U.S. small businesses decreased to 30 points during the second quarter, 13 points lower than the prior period and a historical low.  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 latest information about the Small Business Research Board can be found at www.ipasbrb.com.

© 2008 Small Business Research Board

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