Printer Friendly

SMALL- TO MEDIUM-SIZE BUSINESSES IN LOS ANGELES COUNTY REMAIN PESSIMISTIC ABOUT ECONOMY, WORK HARDER THAN NATIONAL COUNTERPARTS

 SMALL- TO MEDIUM-SIZE BUSINESSES IN LOS ANGELES COUNTY REMAIN


PESSIMISTIC ABOUT ECONOMY, WORK HARDER THAN NATIONAL COUNTERPARTS
 LOS ANGELES, Oct. 29 /PRNewswire/ -- Small- to medium-size businesses in Los Angeles County have pessimistic views of the local economy for both the short and long term, but feel that a national economic recovery has begun. And despite their location on the Pacific Rim, fewer than 10 percent of their revenues come from exporting. These were some of the findings of "The Pulse of the Los Angeles Middle Market -- 1992" survey conducted by BDO Seidman and the Economic Development Corporation of Los Angeles County (EDC). Firms surveyed have sales ranging from $5 million to more than $80 million and 78 percent had between 20 and 99 employees.
 The survey indicated that 57 percent of these firms had laid off workers over the past year, mainly because of the recession. "The recession has also caused 72 percent of the firms to cancel, delay or scale back expansion plans, and 62 percent have reduced prices for their products or services, said Ronald C. Marinella, principal at BDO Seidman. "It's no surprise that the most important management objective for the next 12 months of 57 percent of the respondents is improving growth and revenues.
 "Although most respondents to the survey feel that a North American Free Trade Agreement (NAFTA) would spur exports, almost half feel that such an agreement would cause a loss of local jobs," Marinella added. While exports were a small portion of the sales volume of middle market firms in Los Angeles, the destinations were rather diverse, with 22 percent doing business with the Pacific Rim, 17 percent with the European Community, and 14 percent each with Canada and Latin America.
 "Obtaining financing was a problem for these firms," continued Marinella. "While 58 percent plan to apply for a bank loan in the coming year, 78 percent feel that it will be harder to get one and, 68 percent expect the terms to be tighter."
 While Los Angeles has the reputation of being "laid back," the survey results disproved that image. The majority of local business owners (83 percent) worked 40-60 hours a week, compared with 68 percent of national survey respondents. Moreover, 65 percent of Los Angeles business owners take two weeks or less annual vacation, while 62 percent of the national respondents take three weeks or more.
 Los Angeles has the reputation of being "anti-business," and 57 percent of all respondents stated that they had considered moving or have already relocated some portion of their business out of the area. The most popular destinations were the adjacent states of Arizona, Nevada and Oregon (44 percent). The top two reasons for considering a move were the high costs of doing business in the area (30 percent), and workers' compensation insurance costs (25 percent). While these responses do not necessarily indicate that business relocations will be a major cause of job losses in the county, they do indicate that small- to medium-size businesses perceive current government policy within California as a major handicap in their efforts to survive and create jobs.
 "These survey findings represent further validation of the focus of our 'L.A. Means Business!' campaign," said Gary N. Conley, president of the EDC. "It also corroborates the findings of earlier work by the California Business Roundtable, and the Council on California Competitiveness, which indicated that regulatory gridlock and workers' compensation are factors that discourage business expansion and formation." The survey indicated that 40 percent of the respondents had the most problems with state government, while 24 percent were bedeviled by special agencies such as the South Coast Air Quality Management District (AQMD).
 The "Pulse of the Los Angeles Middle Market -- 1992" survey was conducted during the months of July and August, and there was a 5.4 percent response rate. Copies of the survey results are available either from BDO Seidman or the EDC, at no charge.
 -0- 10/29/92
 /CONTACT: Ronald C. Marinella, 310-557-0300; or Jack Kyser, 213-462-5111/ CO: BDO Seidman; Economic Development Corporation of
 Los Angeles County ST: California IN: SU:


EH-JB -- LA028 -- 6731 10/29/92 15:53 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 29, 1992
Words:692
Previous Article:DE TOMASO INDUSTRIES TO CLOSE MILAN PLANT
Next Article:APPLIED RESEARCH SIGNS LONG-TERM AGREEMENT WITH EPOCH FINANCIAL MARKETING CONSULTANTS
Topics:


Related Articles
FEDERAL GOVERNMENT AWARDS ECONOMIC DEVELOPMENT CORP. (EDC) $2.5 MILLION GRANT FOR AEROSPACE/HIGH TECHNOLOGY CONVERSION EFFORT
LOS ANGELES COUNTY AEROSPACE WORKERS LOSE ESTIMATED $1.8 BILLION IN PERSONAL INCOME DURING 1991-1992
NEARLY THREE-QUARTERS OF SMALL & MID-SIZED SOUTHERN CALIFORNIA COMPANIES PROFITABLE IN LAST FISCAL YEAR

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters