Food & Beverage Companies Growing
Wednesday, May 28th, 2008More owners and managers of small food and beverage businesses indicated, during the first quarter of 2008, that they are planning to increase hiring during the next 12 months and expect an increase in employees versus their 2007 statistics, 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, 44% said they plan to increase hiring over the next 12 months. This was an increase of 28 points from the 16% who said, during the fourth quarter of 2007, that they were planning to increase hiring. Concerning the total number of employees, 41% of the respondents expect their statistics in 2008 to increase from 2007. Only 8% thought they would have fewer employees in the coming year.
Meanwhile, the quarterly report said 46% of the businesses have raised prices in response to increased fuel costs. For those businesses adjusting to an increase in fuel prices, 25% have reduced business travel, 22% have reduced other costs and 19% are experiencing a higher level of just-in-time ordering.
Eliminating routes, or reducing the length of delivery routes, and committing to new vehicles with better miles per gallon efficiency was the fifth-mentioned possibility for offsetting costs.
The Small Business Research Board (SBRB) previously reported that its Food & Beverage Industry Small Business Confidence Index (SBCI) decreased by more than 18 points to 30 during the fourth quarter of 2007. The responses of owners and managers of small food and beverage producers participating in the quarterly poll indicated a weakened confidence in the economy, predictions for lower revenue and less hiring. The outlook for the general economy, revenue growth and hiring expectations are three key indicators used to determine the SBCI.
The first quarter of 2008 food and beverage SBCI (set at 43) was sharply higher than the 30 registered during the fourth quarter of 2007.
The SBCI, during the first quarter of 2008, for all U.S. small businesses was 43.67, a decline of nearly 10 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.
More than 1,000 small business owners participated in the nationwide poll.
The universe of participants is developed from among small businesses across the United States. The SBRB study is a voluntary survey conducted quarterly.

