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 recently released.
The SBRB is part of International Profit Associates Inc (IPA), Buffalo Grove IL, a privately held provider of management consulting services to small- and medium-sized businesses in North America.
Of the owners and managers responding to the nationwide quarterly SBRB poll co-sponsored by International Profit Associates, 51 percent reported that they are experiencing inflationary pressures. 70 percent of those who responded said they are raising prices, 30 percent are adding or increasing shipping/handling costs, and 25 percent are renegotiating customer pricing agreements.
With regards to the general economy, 56 percent said they expect a worse economy. This was an increase of 14 points from the 42 percent reporting in the first quarter of 2008.
Of the same respondents, 38 percent believe their revenues will increase. This is a decrease of 20 points from the previous study.
In addition, 28 percent plan to increase hiring and 38 percent 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 percent 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 US 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.