According to Roundtable President, Lisa Ventriss, “Overall, these data represent the third straight reporting period in which indicators have been trending positively for sales, capital expenditures, and employment levels. In particular, a strengthening in the sales forecasts from our CEO members; now more than two-thirds (69 percent) of respondents expect their sales to increase in the next six months, compared to 63 percent from the first quarter. That bodes well for Vermont products and services.” Ventriss said.

Chair Stritzler, who is managing director of the Jeffersonville-based Smugglers’ Notch Resort, says the results of the CEO survey reflect encouraging attitudes of the marketplace.  “The anecdotal information from Roundtable members over the past several months is now being validated by our survey results and that is continued good news for those seeking employment.  Forty-six percent of respondents expect to increase their workforce in the next six months, compared to 40% in the previous survey.”

Capital spending was the one area in which the rate of change from the previous quarter saw the least change. A majority of CEOs continued to forecast an increase in capital expenditures (51% v. 50% in 1Q), and roughly 10% expect to decrease spending in the next six months, up slightly from the previous quarter (11% v. 8% in 1Q).

“In sum, we are encouraged by these results and believe that the economy continues to strengthen as we move into the busy summer and fall seasons”, said Stritzler.

The Roundtable’s CEO Economic Outlook Survey provides a forward-looking view of the economic assumptions and attitudes of chief executive officers for 110 of the state’s top employers.  Vermont’s agriculture, construction, education, health services, finance, real estate, insurance, hospitality/leisure, manufacturing, information, utilities, professional/business services, wholesale trade, and non-profit industries are represented.  The response rate for this quarter was 67 percent.  Historically, rates have varied from 35 to 73 percent.

1. How do you expect your company’s sales to change in the next six months?

Totals may not equal 100 due to rounding.

2. How do you expect your company’s capital spending to change in the next six months?

Totals may not equal 100 due to rounding.

3. How do you expect your company’s employment to change in the next six months?

Totals may not equal 100 due to rounding.

# # #

The chief executives of Vermont’s leading businesses appear optimistic for long-term growth and a gradually improving employment environment.  According to the most recent Vermont Business Roundtable survey, business leaders expect to invest more in both capital expenditures and personnel compared to the last quarter.  While most respondents predict that sales will remain unchanged for the coming quarter, there are businesses that are already experiencing an increase in sales.  Roundtable President, Lisa Ventriss, said “The forecasts gathered this quarter indicate an economy in transition and activity that is trending upward nicely. It complements what we are hearing anecdotally from our members.”

Carolyn Edwards, CEO and President of Competitive Computing says, “We have been experiencing a healthier market in recent months and are actively working with a number of clients on their technology investment plans for the coming year.  We are still being conservative with our own growth plans but are confident enough to move ahead with hiring for a few key positions.”

“The survey reflects what we are seeing in our business.  Those commercial and industrial clients that are optimistic about their futures are making investments in their physical plants to take advantage of unusually low, very competitive construction costs,” notes Mark Neagley, President of Neagley & Chase Construction Co.

The Roundtable’s CEO Economic Outlook Survey provides a forward-looking view of the economic assumptions and attitudes of chief executive officers for 100 of the state’s top employers.  All sectors of Vermont’s economy and all geographic regions are represented.  The response rate for this quarter was 35 percent.

Posted with permission by MT. Mansfield Television, Inc.
Produced by WCAX TV News (www.wcax.com)
All rights reserved by MT. Mansfield Television, Inc.

“Interestingly, in all three areas of sales, capital expenditures, and employment levels, our members’ responses appear to be slowing moving in a more positive direction, which suggests that employers may be starting to feel better about their future prospects”, said Ventriss. Chair Stritzler, who is managing director of the Jeffersonville-based Smugglers’ Notch Resort, says “The results of the CEO survey echo similar results of the National Business Roundtable. Though economic conditions are still difficult, conditions appear to be improving among our members and we’re finding fewer negative outlooks.”

The Roundtable’s CEO Economic Outlook Survey provides a forward-looking view of the economic assumptions and attitudes of chief executive officers for 100 of the state’s top employers.  All sectors of Vermont’s economy and all geographic regions are represented.  The response rate for this quarter was 47 percent.  Historically, rates have varied from 40 to 73 percent.

1. How do you expect your company’s sales to change in the next six months?

Totals may not equal 100 due to rounding.

2. How do you expect your company’s capital spending to change in the next six months?

Totals may not equal 100 due to rounding.

3. How do you expect your company’s employment to change in the next six months?

Totals may not equal 100 due to rounding.

“Interestingly, our members’ responses appear to be very similar to last quarter, which suggests that employers are in a ‘wait and see’ frame of mind.With economic stimulus monies and the summer tourism season on the horizon, employers are not ready to commit themselves until they see further developments. ” Ventriss said.

Chair Stritzler, who is managing director of the Jeffersonville-based Smugglers’ Notch Resort, says the results of the CEO survey reflect the realities of the marketplace.  “The news has been full of bad reports for business over the past three months, so CEOs’ wariness of business prospects over the next six months is understandable.  A good summer tourism season, however, could change a lot of perspectives.”

The Roundtable’s CEO Economic Outlook Survey provides a forward-looking view of the economic assumptions and attitudes of chief executive officers for 100 of the state’s top employers.  Vermont’s agriculture, construction, education, health services, finance, real estate, insurance, hospitality/leisure, manufacturing, information, utilities, professional/business services, wholesale trade, and non-profit industries are represented.  The response rate for this quarter was 46 percent.  Historically, rates have varied from 40 to 73 percent.

1. How do you expect your company’s sales to change in the next six months?

Totals may not equal 100 due to rounding.

2. How do you expect your company’s capital spending to change in the next six months?

Totals may not equal 100 due to rounding.

3. How do you expect your company’s employment to change in the next six months?

Totals may not equal 100 due to rounding.

The Roundtable’s fourth quarter ’08 membership survey showed greater pessimism today against CEO expectations in the previous quarter. …

Chairman Volk, who is president of the Burlington-based marketing firm Kelliher Samets Volk, says the results of the CEO survey reflect the realities of the marketplace.

The Roundtable’s CEO Economic Outlook Survey provides a forward-looking view of the economic assumptions and attitudes of chief executive officers for 110 of the state’s top employers. Vermont’s construction, education, health services, finance, real estate, insurance, hospitality/leisure, manufacturing, information, transportation, utilities, professional/business services and non-profit industries are represented. The response rate for this quarter was 59 percent. Historically, rates have varied from 40 to 73 percent.

- 2 -

1. How do you expect your company’s sales to change in the next six months?

Totals may not equal 100 due to rounding.

2. How do you expect your company’s capital spending to change in the next six months?

Totals may not equal 100 due to rounding.

- 3 -

3. How do you expect your company’s employment to change in the next six months?

Totals may not equal 100 due to rounding.

-###-

The Roundtable is composed of 110 CEOs of Vermont’s top private and nonprofit employers dedicated to the vision of making Vermont the best place in America to do business, be educated, and live life.

“Clearly the expectations of the business community for robust economic activity have fallen since our last survey in late 2006,” Ventriss said. “These expectations seem to mirror the nationwide economic slowdown and gloomy predictions for the New England economy.”

The Roundtable’s third quarter ’08 membership survey showed greater pessimism today against CEO expectations in the fourth quarter of 2006, when the last survey was conducted. In 2006, 73 percent of responding CEOs expected sales to increase in the first half of 2007. In August, 2008, when the latest survey was conducted, only 50 percent expected increased sales in the six-month period ahead. When those predicting “no change” are included however, Vermont’s economy fared better. Eighty-six percent of respondents thought sales would stay the same or get better in the next six months versus 96 percent in 2006.

Chairman Volk, who is president of the Burlington-based marketing firm Kelliher Samets Volk, says the results of the CEO survey reflect the realities of the marketplace.

“We have to be careful in making too many comparisons, because of the gap in the data,” he said, “but these numbers confirm what we are hearing and seeing. Unemployment in Vermont is up by one percent over last year, and those numbers are reflected in the 60 percent of employers who predict level or declining employment in the period just ahead.”

Considering capital investments, 38 percent of the CEOs responding said they plan to increase capital spending. That sets an all-time low when measured against expectations over the five year history of the survey, which have ranged from a low of 40 percent in the third quarter of 2006 to a high of 62 percent in March of 2004. When those predicting “no change” are included, however, again, Vermont’s outlook improved. Ninety percent of respondents predicted that capital spending would stay the same or get better in the next six months, versus 95 percent in 2006.

Ventriss also cautioned against a direct comparison between 2006 and 2008 based only on this data. “These are different times. This is a different economy. Some of the CEO members of the Roundtable have even changed,” she said. “The long-term value of this survey is that it establishes a new benchmark for gauging the views of the business community in the future.”

Although the 2008 third quarter survey showed that eighty-two percent of CEOs expect their employment levels to stay the same or increase, the 18 percent predicting a decrease in employment is the largest group since the surveys began in 2004. If additional job losses come to pass, employment in Vermont would mirror the national trend. On Sept. 5 the U.S. Department of Labor reported that unemployment nationwide has reached 6.1 percent. In July, the Vermont Department of Labor pegged Vermont’s unemployment rate at 4.8 percent, a one point increase from a year ago. The Roundtable’s survey, however, neither predicts nor enumerates the number or quality of the jobs expected to be lost in the time ahead.

The Roundtable’s CEO Economic Outlook Survey measures the attitudes of chief executive officers for 120 of the state’s top employers. Vermont’s construction, education, health services, finance, real estate, insurance, hospitality/leisure, manufacturing, information, transportation, utilities, professional/business services and non-profit industries are represented. The response rate for this quarter was 63 percent. Historically, rates have varied from 40 to 73 percent.

1. How do you expect your company’s sales to change in the next six months?

- 2 -

Totals may not equal 100 due to rounding.

2. How do you expect your company’s capital spending to change in the next six months?

Totals may not equal 100 due to rounding.

3. How do you expect your company’s employment to change in the next six months?

- 3 -

Totals may not equal 100 due to rounding.

-###-

The Roundtable is composed of 120 CEOs of Vermont’s top private and nonprofit employers

dedicated to making Vermont the best place in America to do business, be educated, and live life.

Member businesses employ over 49,000 employees in virtually every county across Vermont.