Confidence of Small Manufacturing Companies Higher Than the General United States Outlook During the Fourth Quarter; Improves From Second Quarter


BUFFALO GROVE, ILL. (March 9, 2009) – The Small Business Research Board (SBRB) Manufacturing Industry Small Business Confidence Index (M-SBCI) increased to 39 during the fourth quarter of 2008, an increase of seven points from the 32 recorded in the second quarter of 2008.

Two major indicators contributed to the increase in the index including an improved outlook for the general economy and increased hiring expectations, according to the report co-sponsored by IPA.

The poll of owners and managers of manufacturing companies indicated that 42% are expecting the outlook for the general economy to improve over the next 12 months. 36% of the same group said they expect to increase hiring during the coming 12 months, verses 27% who predicted revenue increases during the second quarter of 2008.

In regard to the third major indicator of confidence, revenue expectations, 39% of the respondents said they expect an increase in revenues throughout the course of the next 12 months.

The fourth quarter’s manufacturing industry  confidence index of 39 is three points higher than 36 reported for all U.S. small businesses.

The quarterly report also indicated 71% of the responding businesses said they have been a customer or client of their principal lender for five years or more. 42% of those that have been with their bank for an extended period of time have reported their relationship is “excellent.” Within the next year, 26% will request to increase their lines of credit, 15% will request a decrease and 59% expect their lines of credit to remain the same. 33% find access to credit more difficult.

More than 500 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 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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© 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.