Business Up Front - September 2007

Business Up Front

Poll Shows Good Deeds Often Go Unrewarded

More than one-third of professionals recently polled by OfficeTeam said businesses are ineffective at rewarding their employees’ strong performance. Thirty percent of managers who were surveyed agreed. Here are some suggestions to effectively recognize staff:

• Say thanks, either in writing or in person;

• Give the gift of time, such as extra days off or extended lunch breaks;

• Provide plum – desirable – assignments to improve employee motivation and enthusiasm for work.

These strategies also encourage others to excel in their positions. The survey included responses from 150 senior executives and 534 full- or part-time workers aged 18 or older.

Non-Residential Construction “Overpowered” Housing Slump

Economist Ken Simpson for the Associated General Contractors of America (AGC) forecasts private construction will keep a steady pace and public spending will weaken in the future, according to findings in the construction spending and GDP reports from the Commerce Department. In the private sector, lodging construction is up 60 percent; offices, 26 percent; hospitals, 22 percent; and multi-retail – big-box and other general merchandise stores, shopping centers and malls – 20 percent. Non-residential construction is expected to keep this pace for the second half of 2007 and through 2008. And although public construction rose 11 percent year-to-date, cutbacks will occur later this year as state and local revenues begin to trail budgeted amounts.

Cost of Materials Greatest Among Manufacturers’ Concerns

The state of the economy, taxes and the cost of materials were the leading concerns of small manufacturing businesses during the second quarter of 2007, according to the latest Small Business Research Board (SBRB) study. Healthcare costs fell to sixth. The quarterly poll also measured interest in expanding operations over the next 12 to 24 months. Only 29 percent said they will expand. Twenty-eight percent said they are considering expanding at their current locations. Rather, the small business owners surveyed said adding more automation or technology, along with improving existing automation, would be their primary means for enhancing productivity within the coming 12 to 24 months.