KNOXVILLE, TENN. – More lay-offs could be on the way for East Tennessee businesses according to a recently released survey by Ackermann PR.
Some 300 business leaders responded to the survey and most said they are adjusting their business strategies primarily by reducing expenses and inventory, including lay-offs and delaying capital expenditures. A majority of respondents also mentioned the need to conserve cash and carefully manage their cash flow.
One respondent said, “We are going back to basics and eliminating any unnecessary expenditures, as well as looking for new customers in better performing industries.”
Approximately 45 percent of those participating in the Ackermann PR survey expect a decrease in their business volume/revenues for 2009, with 30 percent saying their volume will probably remain the same, and only 25 percent anticipating an increase of anywhere from 5 to 25 percent next year.
Business leaders do not expect the problems to end quickly. In terms of predicting the length of the current recession, 50 percent of survey respondents expected it to last through 2009, while 40 percent said it would last through 2010.
Some were even less hopeful. Ten percent thought it would continue through 2011 or longer. Many cited fear of the unknown as a factor in paralyzing people who question “where the bottom really is.”
Congress may have voted for hundreds of billions in bailouts, but business leaders in East Tennessee aren’t sure that was the right move. Business leaders here feel the government should end bail-outs and resist making poor decisions based on panic and partisan politics. They recommended taking a long view of the economic recession, putting strategies in place to increase consumer confidence and responsible spending, and employing prudent fiscal and energy policies to get the economy back on track.
One respondent commented that “we are on the verge of socialism with people looking to the government for too much.”
“East Tennessee business leaders seem to agree that free market principles, decreased government involvement, and responsible consumer and corporate spending are key to improving the health of the current ailing economy,” said Cathy Ackermann, CEO of Ackermann PR. “Our firm decided to conduct the e-mail survey as a result of the strategic consulting we are doing with many of our corporate clients who are grappling with their plans for 2009.”
Other concerns cited in the survey included high unemployment, the national debt crisis and fear of inflation, the “rampant irresponsibility”
There were additional wide-ranging suggestions from East Tennessee business leaders regarding how to put the economy back on course. Some of these include:
• Creating new jobs and keeping people working
• Making more credit available to businesses quickly
• Reducing the housing inventory
• Acceptance of lower values
“No one knows the East Tennessee business climate better than those who run businesses here,” said Ackermann. “And what those businesspeople are telling all of us is to have lower and realistic expectations for the year ahead.”
Ackermann PR is a full-service, integrated marketing communications firm providing strategic public relations and marketing.
