The First Facility Management Blog

Owners of construction and contracting businesses expressed concern about their business prospects during the next 12 months as the Small Business Research Board (SBRB) said that its Small Business Confidence Index (SBCI) fell during the third quarter for the first time since last year. More than 800 small business owners participated in the nationwide poll.

The lower construction and contracting SBCI resulted from heightened concern about growth in the economy the next 12 months and plans by 46% (a decrease of four points) of the respondents to reduce hiring during the same period. Respondents said they were prepared to decrease staff, despite 54% of the participants (two points more than the prior quarter) reporting they expect to attain higher revenues.

Outlook for the general economy is for the next 12 months?
41% better
22% worse
37% no change

Revenue expectations for the next 12 months?
37% increase of 10% or more
17% increase of less than 10%
38% will be about the same
4% decrease of less than 10%
4% decrease of 10% or more

Expectation for hiring new employees during the next 12 months?
46% increase hiring
10% decrease workforce
30% remain the same
13% unsure

“Small construction and contracting firms are experiencing the realities of the marketplace and thus feeling less confident about chances for a turnaround in the economy the next 12 months,” observes Gregg M. Steinberg, president of IPA. “However, it is appears most are taking actions to manage labor costs during this time so as to minimize the downside risk.”

The SBRB 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 universe of participants is developed from among small businesses across the United States. The SBRB study is a voluntary survey conducted quarterly.

* Numbers may not equal 100% as a result of rounding