Confidence of Small Manufacturing Companies Higher

The Small Business Research Board (SBRB, Buffalo Grove, IL) 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 percent are expecting the outlook for the general economy to improve over the next 12 months. 36 percent of the same group said they expect to increase hiring during the coming 12 months, verses 27 percent who predicted revenue increases during the second quarter of 2008.

In regard to the third major indicator of confidence, revenue expectations, 39 percent 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 percent of the responding businesses said they have been a customer or client of their principal lender for five years or more. 42 percent 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 percent will request to increase their lines of credit, 15 percent will request a decrease and 59 percent expect their lines of credit to remain the same. 33 percent 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.

www.ipasbrb.net