Local Business Execs Upbeat About 2006

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Economists may be talking about an economic slowdown next year, but a survey released Tuesday shows local chief executives are very bullish about their companies’ fortunes over the next 12 months.


According to a quarterly survey by TEC International of 68 local chief executives of small and mid-sized firms, 63 percent said they plan to add workers next year. Thirty-four percent said they expected to keep current staffing levels, while just three percent anticipated cutbacks.


Eighty-one percent of executives surveyed said they expect their own company sales to increase next year, while 51 percent said they are looking for increased profitability, despite rising costs.


The executives were less bullish on the state of the overall U.S. economy next year: 34 percent said they expected economic conditions to worsen, 28 percent said it would improve, and 38 percent expected the economy to remain at roughly current levels.


“While L.A. executives are expecting the economy to come down a bit next year, we just came off a very good year, so they still expect the economy to remain relatively strong,” said Daniel Barnett, chief operating officer of TEC International.


Barnett said the executives’ outlook has improved markedly since the third quarter survey, which was taken the week after Hurricane Katrina devastated the Gulf Coast. At that time, he said, rising gas prices were the overwhelming concern for executives.


Now, according to the survey, the top concern of local executives is the ability to hire and retain quality employees. Concern about the costs of business, including energy prices, has fallen to third place, behind concerns about growing too rapidly.

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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