Q4 Small Business Research Board Automotive Vehicle Dealer and Service Industry Key Issues Report: Auto, Other Vehicle Dealers Report Slightly Improving Economy Expectations Says Latest SBRB Report

Of the owners and managers responding to the nationwide quarterly SBRB poll, co-sponsored by IPA, 44% said access to credit has been more difficult to obtain

BUFFALO GROVE, ILL. (March 9, 2009) – During the fourth quarter of 2008, owners and managers of small automotive and other vehicle dealerships indicated that economic conditions are currently having the greatest impact on their businesses, but look forward to an improved economy in the next 12 months, according to the latest Small Business Research Board (SBRB) study released here today.

Regarding the outlook on the general economy, 40% of owners and managers of automotive/vehicle dealers and the automotive service industry said they expect it to improve over the next 12 months. This is a 12 point increase over the second quarter of 2008. 33% report their revenue and hiring expectations to remain consistent from the previous year.
According to the SBRB Automotive/Vehicle Dealer and Service Industry Report, 40% believe the single most important issue impacting their business is economic conditions, an 11 point increase from the second quarter of 2008. 19% reported that the greatest issue impacting their business is interest rates.

The report indicated that 44% of the responding businesses said that access to credit has been more difficult to obtain. Within the next year, 12% will request to increase their line of credit, 24% will request a decrease and 63% expect their lines of credit to remain the same.
           
More than 500 small businesses participated in the overall nationwide fourth 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.net.
           
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 increased to 36 points during the second quarter of 2008, six points lower than 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 provide 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.net.

# # #

© 2009 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 Scott Wood, (847) 495-6786.