Small businesses planning to expand
Nov 9, 2007 12:27 PM
More construction and contracting businesses as well as small retailers and transportation companies reported during the third quarter of 2007 that they are considering expansion plans for the next 12 to 24 months, according to the latest Small Business Research Board (SBRB) study.
Fewer owners of manufacturing firms, distribution and wholesaling companies, food and beverage operations and automotive and other vehicles dealers indicated that they intend to expand their businesses the next 12 to 24 months as reported during the third quarter.
More than 800 small businesses participated in the overall nationwide third quarter SBRB poll co-sponsored by International Profit Associates (IPA). IPA is a privately-held provider of management consulting services to small and medium-size businesses based in Buffalo Grove, IL.
The SBRB Small Business Confidence Index (SBCI) for all U.S. small businesses dropped three points from 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 providing 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 historical low was during the third quarter of 2005 when the SBCI fell to 39.3 points.
The following indicates the thoughts by industry about future expansion as well as intentions for improving productivity.
CONSTRUCTION & CONTRACTING: A growing number of owners and managers of small construction and contracting businesses indicated during the third quarter of 2007 that they are planning for expansion during the next 12 to 24 months.
Of the owners and managers responding to the nationwide quarterly SBRB poll, 36% said they plan to expand their businesses the next 12 to 24 months. This was an increase of 5 points from the 31% who said during the second quarter that were planning to expand their businesses.
Expansion at current locations and the addition of new locations were noted by 53% of the respondents intending to expand as their primary methods for growing their businesses. Expansion at current locations was mentioned by 30% of the participants while 23% (an increase of 13 points from the prior quarter) said they intend to add locations.
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