Q3 Construction / Contracting SBRB Industry Report:
Construction, Contracting Business Owners Report First
Decline in Confidence After Three Consecutive Quarterly Gains

NORTHFIELD, Ill.--(EON:Enhanced Online News)--Owners of construction and contracting businesses expressed concern about their business prospects during the next 12 months as the Small Business Research Board (SBRB) said that its Small Business Confidence Index (SBCI) fell during the third quarter for the first time since last year.

“Small construction and contracting firms are feeling the realities of the marketplace and thus feeling less confident about chances for a turnaround in the economy the next 12 months.”

The construction and contracting industry reported an SBCI of 47 during the third quarter, a one point decline from the 48 recorded during the second quarter according to the study co-sponsored by International Profit Associates.

The second quarter 2007 SBCI of 48 was slightly more than one point shy of the indicator’s historical high of 49.3 recorded during the second quarter of 2006, the first time the SBRB issued such an industry indicator. The index plunged to 30.7 during the third quarter of last year before rebounding to 42.04 during the final quarter. The SBCI then rose again to 43.4 during the first quarter 2007 and was followed by the 48 during the second quarter.

The current industry SBCI is four points higher than the SBCI of 43 reported for all U.S. small businesses during the third quarter.

The lower construction and contracting SBCI resulted from heightened concern about growth in the economy the next 12 months and plans by 46% (a decrease of four points) of the respondents to reduce hiring during the same period.

Respondents said they were prepared to decrease staff despite 54% of the participants, two points more than the prior quarter, reporting they expect to attain higher revenues.

“Small construction and contracting firms are feeling the realities of the marketplace and thus feeling less confident about chances for a turnaround in the economy the next 12 months.” said Gregg M. Steinberg, President of International Profit Associates. “However, it is appears most are taking actions to manage labor costs during this time so as to minimize the downside risk.”

More than 800 small business owners participated in the nationwide poll. The universe of participants is developed from among small businesses across the United States. The SBRB study is a voluntary survey conducted quarterly.

The Small Business Research Board ascertains and reports the opinions of small business owners and managers on a wide variety of topics related to their own businesses as well as national and international issues that may impact their operations. The SBRB conducts these studies for the benefit of small business owners and managers. The SBRB also provides opportunities for third parties to gain real time insight into the attitudes of small businesses nationwide through the independently conducted research.

The latest information about the Small Business Research Board can be found at www.ipasbrb.com.

International Profit Associates, Inc. (IPA) is the largest privately-held provider of management consulting services to small and medium-size businesses in North America. IPA and its more than 1,800 professionals offer a wide range of proven and innovative methodologies to help businesses grow and prosper regardless of the economic cycle. IPA either provides directly or through its affiliated companies a comprehensive array of business advisory services, tax and estate planning services or merger, acquisition and other financial advisory services in the United States and Canada. More information about IPA can be found at www.ipa-iba.com.

SBRB INDUSTRY COMPARISONS
Third Quarter 2007 vs. Prior Quarter
	ALL	Construction/
	US	Contracting
Q3 2007	43	47
(Current)
Q2 2007	46	48
Economy
Improving
Q3 2007	37	41
(Current)
Q2 2007	43	42
Revenues
To Increase
Q3 2007	53	54
(Current)
Q2 2007	58	52
Hiring
To Increase
Q3 2007	39	46
(Current)
Q2 2007	37	50
-- Outlook for the general economy is for the next twelve months?
	41% Better
	22% Worse
	37% No Change
-- Revenue expectations for the next twelve months?
	37% Increase of 10% or more
	17% Increase of less than 10%
	38% Will be about the same
	4% Decrease of less than 10%
	4% Decrease of 10% or more
-- Expectation for hiring new employees during the next twelve months?
	46% Increase hiring
	10% Decrease workforce
	30% Remain the same
	13% Unsure
(a) numbers may not equal 100% as a result of rounding

Copyright 2007 Small Business Research Board (SBRB)

For more information about this poll, results of previous studies or other matters related to the SBRB, please contact Raymond D. Minkus, (847) 441-4192.

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