BUFFALO GROVE, IL -- A growing number of owners and managers of small transportation businesses indicated, during the second quarter of 2008, that they are experiencing inflationary pressures and have therefore raised prices, according to the latest Small Business Research Board (SBRB) study released here today.
Of the owners and managers responding to the nationwide quarterly SBRB poll co-sponsored by International Profit Associates, 51% reported that they are experiencing inflationary pressures. 70% of those who responded said they are raising prices, 30% are adding or increasing shipping/handling costs and 25% are renegotiating customer pricing agreements.
With regards to the general economy, 56% said they expect a worse economy. This was an increase of 14 points from the 42% reporting in the first quarter of 2008. Of the same respondents, 38% believe their revenues will increase. This is a decrease of 20 points from the previous study. In addition, 28% plan to increase hiring and 38% expect revenue increases in the next 12 months.
The Small Business Research Board currently reports that its Transportation Industry Small Business Confidence Index (T-SBCI) is set at 26.33, a decrease of 15.33% over the first quarter of 2008. The T-SBCI remains consistent with the overall SBCI. The outlook for the general economy, revenue growth and hiring expectations are the three key indicators used to determine the SBCI.
The overall SBCI, during the second quarter of 2008, for all U.S. small businesses was 30, a new historical low and a decrease of 13.67 points from the prior period. The historical SBRB SBCI high occurred during the first quarter of 2005 when the SBCI hit 52 points. The previous historical low was during the fourth quarter of 2007 when the SBCI fell to 33.67 points.
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.com.
International Profit Associates, Inc. (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-iba.com.