Special Economic Study
in Greater Lansing Survey of Business Plans
April 2004
Including comparison with April 2003 and October
2003
Prepared
by Ed Sarpolus for the Greater Lansing Business
Monthly. This
study is based on a telephone survey of
300 businesses in the Greater Lansing area.
The
survey was conducted April 5 – 15, 2004,
and has a margin of error of ±5.7 percent.
Bare
majority now dissatisfied with local
economy
Overall, how satisfied are you with the
condition of the economy as it affects your
business … ?
Apr ’03
Oct ’03
Apr ‘04
19%
9%
8%
very satisfied
37%
39%
39%
somewhat satisfied
56%
48%
47%
Total
SATISFIED
33%
28%
24%
somewhat dissatisfied
8%
20%
26%
very dissatisfied
41%
48%
50%
Total
DISSATISFIED
3%
4%
3%
Undecided/don’t
know
Some
rebound in six-month business outlook Over the next
six months, would you say that your business
outlook is good or bad?
Apr ’03
Oct ’03
Apr ‘04
23%
22%
24%
very good
50%
46%
47%
somewhat good
73%
68%
71%
Total
GOOD
10%
9%
8%
Some ways good/bad
11%
14%
13%
somewhat bad
1%
5%
6%
very bad
12%
19%
19%
Total
BAD
5%
4%
2%
Undecided/don’t
know
Small
increase in 6-month bottom line outlook Over the next six months,
do you expect your bottom line to improve
with profits growing over expenses, will
your bottom line worsen with costs taking
a larger share of profits, or do you think
your bottom line will pretty much remain
the same?
Apr ’03
Oct ’03
Apr ‘04
22%
7%
11%
improve a lot
31%
22%
20%
improve somewhat
53%
29%
31%
Total
IMPROVE
2%
4%
4%
Costs
will exceed profits
27%
49%
45%
Costs
will remain the same
5%
13%
11%
worsen somewhat
--%
1%
3%
worsen a lot
5%
14%
14%
Total
WORSEN
13%
4%
6%
Undecided/don’t
know
Most
still plan to maintain current number
of employees Over the next six months, do
you plan to hire more employees, maintain
the number of employees you have, or do
you expect that you might have to lay
off some of your employees?
Apr ’03
Oct ’03
Apr ‘04
23%
21%
22%
Plans
to hire more employees
60%
65%
66%
Will
maintain number of employees
3%
8%
6%
May
have to lay off employees
1%
3%
2%
Will
lay off employees(volunteered)
13%
3%
4%
Undecided/don’t
know
Small
increase in numbers planning pay increases
for employees
This year, do you plan to increase wages
for your employees?
Apr ’03
Oct ’03
Apr ‘04
36%
45%
47%
Yes
44%
47%
41%
No
3%
1%
1%
Will
seek a decrease/wage concessions (volunteered)
17%
7%
11%
Undecided/don’t
know
Most
see no change in employees’ benefits In the next six months, do you
anticipate that the benefit package for
your employees will stay the same or change?
Apr ’03
Oct ’03
Apr ‘04
70%
80%
75%
Benefits
will stay the same
9%
14%
16%
Benefits
will change
21%
6%
9%
Undecided/don’t
know
More
expect increase in employees’ health
care costs Specifically, based on any expected
increased cost for health care for your
business, do you expect to absorb those
costs, increase employee premiums or decrease
healthcare benefits?
Apr ’03
Oct ’03
Apr ‘04
27%
31%
29%
Absorb
the costs
10%
16%
22%
Increase
employee premiums
2%
8%
6%
Decrease
healthcare benefits
1%
3%
1%
Combination
of increased premiums and decreased
benefits (volunteered)
2%
4%
4%
Combination
of all options (volunteered)
18%
22%
13%
No
increase in costs (volunteered)
--%
--%
3%
No
insurance
40%
16%
22%
Undecided/don’t
know
About
one-quarter plan new office equipment
expenditures
Do you plan to spend money in the next
six months by either purchasing or leasing
any office equipment?
Apr ’03
Oct ’03
Apr ‘04
12%
13%
25%
Yes
85%
84%
72%
No
3%
3%
3%
Undecided/don’t
know
Half
plan no new advertising expenditures Do you plan to purchase advertising
in the next six months?
Apr ’03
Oct ’03
Apr ‘04
38%
51%
48%
Yes
56%
47%
50%
No
6%
2%
2%
Undecided/don’t
know
Majority
will maintain current number of locations Do you plan to expand
your business by adding one or more new
locations in the next six months, do you
expect to consolidate your business by
closing one or more locations, or will
you be keeping the same number of locations?
