OIA & Piper Jaffray Release Industry Executives Perspective on Economy - SNEWS

OIA & Piper Jaffray Release Industry Executives Perspective on Economy

OIA, in conjunction with Piper Jaffray, recently surveyed industry executives with respect to their view of current economic prospects, recovery timeline, cost inflation, and the effect of tightenened credit markets on near-term business operations.
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Outdoor Industry Association (OIA), in conjunction with Piper Jaffray, recently surveyed industry executives with respect to their view of current economic prospects, recovery timeline, cost inflation, and the effect of tightenened credit markets on near-term business operations. Results of that survey are now available in a new report entitled, The Piper Jaffray Survey of Consumer Industry Executives.

The report finds that business recovery is widely anticipated by industry executives no earlier than the second half of 2009. It also finds suppliers with a more pessimistic view than retailers and overall, nearly 70% of those surveyed believe they expect current business trends to remain flat or to deteriorate through 2008.

Approximately 88% of respondents expect their business to improve in the second half of 2009 or later. Similarly, 95% of manufacturers/distributors and 100% of retailers indicated they are “very” or “somewhat concerned” that current economic conditions will negatively affect their business.

The survey also provides insight into what are viewed to be the strongest and weakest revenue categories, how businesses are planning on responding to the current economic conditions and what the near- and mid-term business outlook is for improvement.

Initiatives to preserve margin and mitigate risk are in place, but slippage is starting to occur. Approximately 46% of manufacturers/distributors are reducing inventory exposure and cutting future orders while 38% are eliminating overhead and fixed expenses. Among retailers, 73% are reducing inventory exposure and 18% are eliminating overhead. Merchandise mix shift to higher margin categories was cited by only 9% of respondents.

Cost inflation was signaled by 88% of executives with near 76% indicating increases in the 5% to 15% range. Higher costs will translate into higher prices on consumer goods. Approximately 89% of suppliers and retailers plan to pass along higher costs and pricing to their customers.

Tightening credit markets are affecting approximately 46% of manufacturer/distributor businesses and approximately 42% of retailers. Of those suggesting tightening credit markets are having a negative effect on their business operations, 35% suggested they are responding by cutting investment spending, 26% are attempting to extend payment terms with suppliers, while 16% suggested they are slowing store and capacity expansion.

"This new report is one of the many useful business tools for OIA member companies in benchmarking their business and making critical operations and investment decisions," remarked Frank Hugelmeyer, president of OIA.

Other current OIA industry research and market intelligence available to OIA members includes the OIA Monthly Topline Sales data, the Manufacturer Financial Performance Report, the Manufacturer Compensation Report, the Specialty Retailer Operational Report and online education such as the Improving Your Bottom Line Webinar presented by Dr. Al Bates of the Profit Planning Group.

A copy of the full report, as well as all OIA research is available to members at http://www.outdoorindustry.org.


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About Outdoor Industry Association
Outdoor Industry Association® (OIA) is a national trade association whose mission is to ensure the growth and success of the outdoor industry. OIA provides trade services for over 4000 manufacturers, distributors, suppliers, sales representatives and retailers in the outdoor industry. OIA programs include representation in government/legislative affairs, market and social research, business-to-business services and youth outreach initiatives. Educational events include the annual Rendezvous, Outdoor University, and the Capitol Summit. Outdoor Industry Association is based in Boulder, Colorado, and is the title sponsor of the Outdoor Retailer tradeshows. For more information go to http://www.outdoorindustry.org or call 303.444.3353.

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