Fuel costs leading concern of small companies

The cost of energy and fuel was by far the greatest leading concern of small transportation businesses during the second quarter of 2007, according to the latest Small Business Research Board study.
Owners of transportation businesses responding to the nationwide poll said health care costs, the general state of the economy, cost of materials and finding quality employees were included among the top five concerns.
The costs for energy and fuel were cited by 50 percent of the respondents as the top concern during the second quarter. The next closest concern, health care costs, was cited by 8.5 percent of the respondents as the single most significant concern.
The quarterly poll of small business owners and managers also measured their interest in expanding their operations over the next 12 to 24 months. A full one-third of the respondents said they intend to expand during this period.
Of those respondents, 33 percent said they would expand at current locations and 21 percent said they would add locations. About 17 percent of the business owners said that customer service enhancements would be part of expansion programs.
The SBRB Transportation Industry study also indicated that 47 percent of the respondents believe the economy will improve during the next 12 months and that nearly 56 percent believe their revenues will increase during the same period. Transportation companies intend to increase hiring. The survey results showed that nearly 49 percent will add employees with almost 28 percent maintaining current staff levels.
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 affect 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.

SBRB Leading Business Issues
Second Quarter 2007

All US Small Businessess
1. Taxes
2. General economic conditions
3. Cost of energy/fuel
4. Other
5. Health care costs

Transportation Industry
1. Cost of energy/fuel
2. Health care costs
3. General economic conditions
4. Cost of materials (tied 4)
Finding quality employees

SBRB Transportation Industry
Conditions Survey
• Outlook for the general economy
is for the next 12 months:
47 percent Better
26 percent Worse
28 percent No Change
• Revenue expectations for the next 12 months
32 percent Increase of 10 percent or more
23 percent Increase of less than 10 percent
28 percent Will be about the same
16 percent Decrease less than 10 percent
• Expectations for hiring new employees during
next 12 months
49 percent Increase hiring
12 percent Decrease workforce
28 percent Remain the same
12 percent Unsure
• Plan to expand your business during next 12 to 24 months
33 percent Yes
67 percent No
• If planning expansion, will
33 percent Expand at current locations 21 percent Add locations
17 percent Enhance customer service capabilities
8 percent Provide more services
8 percent Add new products
8 percent Other
4 percent Acquisition
Source: Small Business Research Board (SBRB)