Small Business Research Board Distribution / Wholesaling Industry Study: Taxes, General Economy, Costs of Energy / Fuel Greatest Distribution / Wholesaling Concerns
Report indicates fewer than one-third of small distribution / wholesaling companies are considering expansion during the next 12 to 24 months. Owners to concentrate on improving staff training says report issued in conjunction with International Profit Associates.
Northfield, IL, July 20, 2007 --(PR.com)-- Taxes, the general state of the economy and energy / fuel costs were the three leading concerns of small distribution and wholesaling companies during the second quarter of 2007 according to the latest Small Business Research Board (SBRB) study released here today.
Owners of distribution and wholesaling businesses responding to the nationwide poll co-sponsored by International Profit Associates (IPA) said foreign competition also was among their leading concerns.
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, IL.
The quarterly poll of small distribution and wholesale concerns also measured their interest in expanding their operations over the next 12 to 24 months. Only 31% of the respondents said they intend to expand during this period. Of those respondents, 21% said they would provide more services, 20% said they would expand current locations and 19% said they would add locations. Respondents to the poll also indicated they would add new products (18%) and enhance customer service (16%).
The business owners said improving staff training would be key to productivity improvements over the next 12 to 24 months. Improving automation, adding more staff and adding more automation or technology ranked second through fourth.
“Distribution and wholesaling companies are always striving to increase their productivity. It appears that they will be placing emphasis on improving staff training and upgrading their business systems in order to meet their optimistic revenue expectations and still maintain or grow their profitability,” said Gregg M. Steinberg, President of IPA.
The SBRB Distribution and Wholesaling Industry study also indicated that 47% of the respondents believe the economy will improve during the next 12 months and that 72% believe their revenues will increase during the same period. The survey results showed that 34% will add employees with 40% maintaining current staff levels.
This is the first study of the distribution and wholesaling industry completed by the SBRB. The SBRB intends to continue with quarterly distribution and wholesaling industry studies as it does for other industries such as manufacturing, construction and contracting and food processing.
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.
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 offer 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.
SBRB Comparisons:
All US Small Businesses vs. Distribution / Wholesaling Companies
Second Quarter 2007
All US
1. Taxes
2. Economic conditions
3. Energy/fuel costs
4. Other
5. Health care costs
Distribution / Wholesaling Companies
1. Taxes
2. Economic conditions
3. Energy/fuel costs (tied 3)
Other (tied 3)
5. Foreign competition
SBRB Distribution / Wholesaling Industry Q2 2007Opinions, Forecast
>>Outlook for the general economy is for the next twelve months
47% Better
22% Worse
31% No Change
>>Revenue expectations for the next twelve months
45% Increase of 10% or more
27% Increase of less than 10%
19% Will be about the same
6% Decrease less than 10%
3% Decrease of 10% or more
>>Expectations for hiring new employees during next twelve months
34% Increase hiring
14% Decrease workforce
40% Remain the same
12% Unsure
>>Plan to expand your business during next 12 to 24 months
31% Yes
69% No
>>If planning expansion, will
21% Provide more services
20% Expand at current locations
19% Add locations
18% Add new products
16% Enhance customer service capabilities
4% Other
2% Acquisition
>> Can best improve productivity by:
1. Improved staff training
2. Improvements to existing automation and technology
3. Adding more staff
4. Adding more automation or technology
5. Implementing or enhancing employee incentive programs
###
Copyright 2007 Small Business Research Board (SBRB)
For more information about this poll, results of previous studies or
other matters related to the SBRB, please contact Raymond D. Minkus,
(847) 441-4192.
Owners of distribution and wholesaling businesses responding to the nationwide poll co-sponsored by International Profit Associates (IPA) said foreign competition also was among their leading concerns.
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, IL.
The quarterly poll of small distribution and wholesale concerns also measured their interest in expanding their operations over the next 12 to 24 months. Only 31% of the respondents said they intend to expand during this period. Of those respondents, 21% said they would provide more services, 20% said they would expand current locations and 19% said they would add locations. Respondents to the poll also indicated they would add new products (18%) and enhance customer service (16%).
The business owners said improving staff training would be key to productivity improvements over the next 12 to 24 months. Improving automation, adding more staff and adding more automation or technology ranked second through fourth.
“Distribution and wholesaling companies are always striving to increase their productivity. It appears that they will be placing emphasis on improving staff training and upgrading their business systems in order to meet their optimistic revenue expectations and still maintain or grow their profitability,” said Gregg M. Steinberg, President of IPA.
The SBRB Distribution and Wholesaling Industry study also indicated that 47% of the respondents believe the economy will improve during the next 12 months and that 72% believe their revenues will increase during the same period. The survey results showed that 34% will add employees with 40% maintaining current staff levels.
This is the first study of the distribution and wholesaling industry completed by the SBRB. The SBRB intends to continue with quarterly distribution and wholesaling industry studies as it does for other industries such as manufacturing, construction and contracting and food processing.
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.
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 offer 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.
SBRB Comparisons:
All US Small Businesses vs. Distribution / Wholesaling Companies
Second Quarter 2007
All US
1. Taxes
2. Economic conditions
3. Energy/fuel costs
4. Other
5. Health care costs
Distribution / Wholesaling Companies
1. Taxes
2. Economic conditions
3. Energy/fuel costs (tied 3)
Other (tied 3)
5. Foreign competition
SBRB Distribution / Wholesaling Industry Q2 2007Opinions, Forecast
>>Outlook for the general economy is for the next twelve months
47% Better
22% Worse
31% No Change
>>Revenue expectations for the next twelve months
45% Increase of 10% or more
27% Increase of less than 10%
19% Will be about the same
6% Decrease less than 10%
3% Decrease of 10% or more
>>Expectations for hiring new employees during next twelve months
34% Increase hiring
14% Decrease workforce
40% Remain the same
12% Unsure
>>Plan to expand your business during next 12 to 24 months
31% Yes
69% No
>>If planning expansion, will
21% Provide more services
20% Expand at current locations
19% Add locations
18% Add new products
16% Enhance customer service capabilities
4% Other
2% Acquisition
>> Can best improve productivity by:
1. Improved staff training
2. Improvements to existing automation and technology
3. Adding more staff
4. Adding more automation or technology
5. Implementing or enhancing employee incentive programs
###
Copyright 2007 Small Business Research Board (SBRB)
For more information about this poll, results of previous studies or
other matters related to the SBRB, please contact Raymond D. Minkus,
(847) 441-4192.
Contact
Small Business Research Board
Raymond Minkus
(847) 441-4192
www.ipasbrb.com
Raymond Minkus
(847) 441-4192
www.ipasbrb.com
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