Special Economic Study
in Greater Lansing Survey of Business Plans
October 2003
Including comparison with April 2003
Prepared
by Ed Sarpolus This
study is based on a telephone survey of
300 businesses in the Greater Lansing area.
The
survey was conducted October 1 – 13, 2003,
and has a margin of error of ±5.7 percent.
Satisfaction
with local economy
declines to plurality
Overall, how satisfied are you with the
condition of the economy as it affects your
business … ?
Oct’03
Apr’03
Oct’03
Apr’03
9%
19%
very
satisfied
Total SATISFIED
39%
37%
somewhat
satisfied
48%
56%
28%
33%
somewhat
dissatisfied
Total DISSATISFIED
20%
8%
very
dissatisfied
48%
41%
4%
3%
Undecided/don’t
know
Six-month
business outlook declines, still looks
good
Over the next six months, would you say
that your business outlook is good or
bad?
Oct’03
Apr’03
Oct’03
Apr’03
22%
23%
very
good
Total GOOD
46%
50%
somewhat
good
68%
73%
9%
10%
Some ways good/some
ways bad (volunteered)
14%
11%
somewhat
bad
Total BAD
4%
1%
very
bad
19%
12%
4%
5%
Undecided/don’t
know
Six-month
bottom line projection just holding steady 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?
Oct’03
Apr’03
Oct’03
Apr’03
7%
22%
improve
a lot
Total IMPROVE
22%
31%
improve
somewhat
29%
53%
4%
2%
Costs will exceed
profits (volunteered)
49%
27%
Costs will remain
the same(volunteered)
13%
5%
worsen
somewhat
Total WORSEN
1%
worsen
a lot
14%
5%
4%
13%
Undecided/don’t
know
Most
will maintaining 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?
Oct’03
Apr’03
21%
23%
Plans to hire
more employees
65%
60%
Will maintain
number of employees
8%
3%
May have to lay
off employees
3%
1%
Will lay off
employees(volunteered)
3%
13%
Undecided/don’t
know
More
will offer pay increases for employees
This year, do you plan to increase wages
for your employees?
Oct’03
Apr’03
45%
36%
Yes
47%
44%
No
1%
3%
Will seek a decrease/wage
concessions (volunteered)
7%
17%
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?
Oct’03
Apr’03
80%
70%
Benefits will
stay the same
14%
9%
Benefits will
change
6%
21%
Undecided/don’t
know
Most
will absorb higher health care costs;
employees see increases 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?
Oct’03
Apr’03
31%
27%
Absorb the costs
16%
10%
Increase employee
premiums
8%
2%
Decrease healthcare
benefits
3%
1%
Combination of
increased premiums and decreased
benefits (volunteered)
4%
2%
Combination of
all options (volunteered)
22%
18%
No increase in
costs
(volunteered)
16%
40%
Undecided/don’t
know
Still
few planning new office equipment expenditures
Do you plan to spend money in the next
six months by either purchasing or leasing
any office equipment?
Oct’03
Apr’03
13%
12%
Yes
84%
85%
No
3%
3%
Undecided/don’t
know
More
than half plan new advertising expenditures Do you plan to purchase advertising
in the next six months?
Oct’03
Apr’03
51%
38%
Yes
47%
56%
No
2%
6%
Undecided/don’t
know
Solid
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?
Oct’03
Apr’03
11%
14%
Will add location
3%
2%
Will consolidate
83%
67%
Will keep the
same number of locations
3%
17%
Undecided/don’t
know
Decline
in projected product/service expansion Do you plan to expand
your business with a new product line
or a new service in the next six months?
Oct’03
Apr’03
12%
21%
Yes, a new product
line
13%
11%
Yes, a new service
6%
Both
63%
60%
No, will not
expand either
6%
8%
Undecided/don’t
know
Serious
increase in the number planning education/training
expenditures Do you plan to spend any
funds on employee education and training
over the next six months? [IF “YES”] How much do you expect to spend?
Oct’03
Apr’03
47%
23%
Yes, will spend
Mean:
$2,411.96
$5,704.17
47%
60%
No, will not
spend anything
6%
17%
Undecided/don’t
know
Increase
in planned business travel Do you plan to travel
or have any of your employees travel for
business purposes in the next six months?
