Inc. Tanc - Where Business Trends Emerge - A research effort of MarketSearch and Arkansas Business

August 2008

Inc. Tanc Results Have Arrived!

As a stakeholder in the Arkansas economy you can see what other decision makers in the state are thinking in terms of the present and future economic outlook – all thanks to Inc. Tanc, the Arkansas “Think Tank.”

Please keep in mind that Inc. Tanc results are taken from an exclusive respondent group, consisting mostly of Arkansas Business readership. This survey does NOT reflect the entire population of Arkansas and should be taken as only a view of the Arkansas economy among key decision makers and decision influencers.

Three in four respondents expect their company’s revenue to either remain stable or increase in 2008. 21% expect revenues to be up 10% or more, while 23% expect revenues to be up 3% or more, and 32% expect revenues to be relatively stable (up or down less than 3%). On the other end of the spectrum, 8% of respondents expect their company’s revenues to be down 10% or more and 7% expect revenues to be down 3% or more. 9% are unsure.
A slight majority of survey respondents (52%) expect to maintain their current staffing level, while one in three expect to add staff. 9% of respondents expect to reduce staff and 6% are unsure.
Salary growth expectations are extremely optimistic. 36% of respondents expect wage and salary growth to keep up with inflation, while 14% expect growth to be above the rate of inflation and 18% expect growth to be less than the rate of inflation. 16% of respondents expect to freeze current pay levels, and another 16% are unsure about expected wage and salary growth. For purposes of this survey, the expected rate of inflation was expressed to survey participants as just below 4%.
Staff referrals is the most widely used method for recruiting employees, followed by newspaper advertising and online postings on company websites. Other staff recruiting methods include staffing agencies and recruiters, followed by online job boards such as monster.com.
Survey participants consider the economy to be the most pressing issue currently facing businesses and organizations in Arkansas, followed by fuel/energy costs and recruiting, retaining and training staff.
Four in five respondents report that their company offers group health insurance policies to employees. Two in three reported that their company pays more than 50% of employee healthcare premiums.

We appreciate all who participated in this survey and hope you will share your economic outlook in future Inc. Tanc surveys. It is YOU who makes the decisions about the direction of the Arkansas economy, and we value the opportunity to learn more from you as a key decision maker.

About the Survey

The second quarter Inc. Tanc survey launched June 4, 2008 and concluded June 30, 2008. A total of 1,184 Arkansas decision makers participated in this survey.

The Inc. Tanc project started in 2007 as a partnership between Arkansas Business and MarketSearch, the independent market research division of Mangan Holcomb. Together, they developed a co-branded, quarterly, online questionnaire to be sent to key Arkansas decision makers to collect valuable information concerning the Arkansas economy.

About Arkansas Business

Arkansas Business is the state's leading business journal, providing business news, research and analysis to 80,000 readers monthly. Arkansas Business readers are upscale, affluent decision makers who influence their company's purchasing choices, making them an ideal target for luxury retailers and business marketers. Contact Chip Taulbee, associate publisher, at 501-372-1443 or ctaulbee@abpg.com for more information.

About MarketSearch

MarketSearch is the independent marketing research division of Mangan Holcomb Partners, a marketing, advertising and public relations agency in Little Rock. MarketSearch stands apart from other research firms in its unique ability to guide clients from custom-designed research initiatives to innovative advertising and business strategies. Among its services, MarketSearch offers surveys, focus groups, customer and employee satisfaction benchmarking and tracking, as well as strategic marketing planning and consulting services. Contact David Bell, director, at 501-376-0321 or dbell@marketsearch.us for more information.