Distribution & Wholesale Industry Small Business Confidence Decreases Four Points Says Small Business Research Board Report; Study Indicates Businesses Experiencing Inflationary Pressures
 

BUFFALO GROVE, ILL (October 6, 2008) – A decreased confidence in the economy and strong inflationary pressures reported by distribution and wholesale companies during the second quarter of 2008 replaced the first quarter of 2008’s concerns about interest rates, according to the latest Small Business Research Board (SBRB) report issued today.

The SBRB study indicated the Distribution & Wholesale Industry Small Business Confidence Index (D-SBCI) decreased to 36 during the second quarter of 2008, or by four points (10%), from the 40 recorded during the prior quarter. The second quarter 2008 report is the fourth wholesale and distribution industry confidence index issued by the SBRB. Declines in all three major categories comprising the confidence index contributed to the lower second quarter results.

Of the respondents, 43% said they believed the economy would worsen over the next 12 months, which was 16 points higher than the 27% who expressed such concern during the first quarter of 2008. Concurrently, 29% of the participants said they expected revenue increases of 10% or more during the coming 12 months. This is four points more than the 25% who said they expected higher revenues when polled during the first quarter of 2008.

55% of the owners and managers participating in the poll said they are experiencing inflationary pressures. 73% of the respondents reporting inflationary pressures said they have raised prices and 25% have added or increased shipping costs. 17% have renegotiated customer pricing agreements.

The current distribution and wholesale industry confidence index is six points higher than the 30 point index that was reported for all U.S. small businesses during the second quarter of 2008.

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. 
 
More information 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.

© 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.