Q3 Small Business Research Board Distribution & Wholesaling Industry Key Issues Report:

Fewer Distribution & Wholesaling Companies Preparing for Growth Next 12 – 24 Months Says Latest SBRB Report

NORTHFIELD, IL (November 7, 2007)  --  Fewer owners and managers of small distribution and wholesaling businesses indicated during the third quarter of 2007 that they are planning for expansion during the next 12 to 24 months, according to the latest Small Business Research Board (SBRB) study released here today.

Of  the owners and managers responding to the nationwide quarterly SBRB poll co-sponsored by International Profit Associates, 26% said they plan to expand their businesses the next 12 to 24 months.  This was a decrease of 5 points from the 31% who said during the second quarter that they were planning to expand their businesses. 

Prospective facilities based activities  --  expansion at current locations and the addition of new locations --  were noted by 40% of the respondents intending to expand as their primary methods for growing their businesses.  The addition of new locations was mentioned by 21% while 19% said they intend to expand at current locations. 

The addition of new products also was mentioned by 21% of the respondents as a principle means for achieving growth.

The provision of additional services and the enhancement of customer service were both mentioned by 16% of the respondents as their leading methods for assisting in the expansion of their business during the third quarter.

Training is viewed as a primary measure for improving productivity. Improved staff training ranked first among the options for enhancing business efficiency during the third quarter. These same owners also said they would add staff (second) before improving automated systems (third).    Improvements to existing automation or technology and enhanced employee incentive programs tied for fourth.
           
 IPA, with more than 1,800 professionals, is the largest privately-held provider of management consulting services to small and medium-size businesses in North America.  IPA is based in Buffalo Grove, IL.

More than 800 small businesses participated in the overall nationwide third quarter SBRB poll.    

The Small Business Research Board previously reported that its Distribution & Wholesaling Small Business Confidence Index (SBCI) was 41 during the third quarter.  It was the first time the SBRB issued an SBCI for the distribution and wholesaling industries. The outlook for the general economy, revenue growth and hiring expectations are three key indicators used to determine the SBCI.

The overall SBCI during the third quarter for all US small businesses, by contrast, was 43 or a decline of three points from the prior period.  The historical SBRB SBCI high occurred during the first quarter of 2005 when the SBCI hit 52 points.  The historical low was during the third quarter of 2005 when the SBCI fell to 39.3 points.

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

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 impact 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.

about IPA can be found at www.ipa-iba.com.    

# # #

Copyright 2007 Small Business Research Board (SBRB)

For more information about this poll, results of previous studies or other matters related to the SBRB, please contact Raymond D. Minkus, (847) 441-4192.