3rd/4th Quarter 2009 Results

Have you noticed a change in business now from Quarters 1 & 2?

While 32% of those surveyed indicated their business is down, a full 20% report business as relatively stable. Almost one half of the companies surveyed noted that business was up or up slightly from Quarters 1 & 2. One company attributes their increase in sales to business strategies that have been put in place. Several companies cite their use of contract work in maintaining employee productivity. Another credits the recent purchase of an additional company for making it possible to maintain consistent sales figures with the previous year.

Have you increased/decreased staff/employees since Quarters 1 & 2?

It appears that approximately 1/3 of the companies surveyed noted a slight increase in staff or at least were able to remain within the same range as Quarters 1 & 2. Some companies found themselves in a position needing to make small cuts in staff. An even smaller percentage indicated the necessity to make a 25% reduction since the first half of 2009. Several had downsized considerably throughout 2009 even up to 50% of their usual full staff, and were starting slowly to bring back employees throughout the 3rd Quarter. Hiring freezes were still in effect at most businesses and one noted their only future hiring will be to replace an individual who is planning retirement.

When might you expect to rehire any (laid off) employees?

The vast majority of companies do not plan to rehire individuals in the near future. Because many employee's hours have been reduced, several companies commented that they will first increase hours to full-time and consider overtime for these employees. Most indicated they will utilize their current workforce prior to hiring laid off employees or adding new staff. They have indicated that they will consider all of their options prior to rehiring. A few companies will continue to offer voluntary lay-offs or reduction in hours to their employees during their off or slow seasons. A small percentage had no employee lay-off's currently and some had begun to rehire either part-time or on a temporary basis.

Have you changed any of your products or services to compensate for a slowdown in business? If yes, please provide details.

Just under 1/3 of the companies surveyed noted the addition of products, diversification of merchandise, and even bringing back a formerly discontinued product line. Some mention increasing solicitation of orders. Yet another noted that making changes to their products and services has always been part of their business model, reminding us all of our need to stay current and listen to our customer needs.

Have any of the stimulus efforts affected your business? Please share which plan and the effects.

Though the majority of companies were not affected or unsure if they will receive any positive results from any of the stimulus efforts, it appears that 16% received some positive benefit. The "Cash for Clunkers" stimulus resulted in 70% of the yes answers citing company purchases to update vehicles and a portion with sales opportunities. The COBRA subsidy offered employees and families of several companies the opportunity to afford to continue their health insurance.

If you made cost savings changes in the first 2 quarters, which of these were most beneficial?

Companies indicated various cost savings measures, but most cited staff reduction/lay-off; wage/salary reduction; and inventory level adjustments as the top three performed in the first 2 Quarters of 2009. They also attributed benefit changes as helpful, including reducing or eliminating their 401K match.

Most Beneficial Cost Savings Measures:

Wage Freeze
Wage/Salary Reduction
Eliminate Overtime
Hiring Freeze
Staff Reduction/Lay Off
Reduction of Hours
401K Match elimination
Benefit reduction or changes
Inventory Adjustments
Material Cost Recovery
Curb Wasteful Practices
Reduce Supplier Expenses
More Efficient use of Equipment