Release Date: 06/ 01/ 2005
CONTACT: Jason Shelley, (317) 638-4447 or Kevin Walter, (614) 221-4107
Hoosier small-business owners much more positive than those in Illinois, Michigan and Ohio
Indianapolis, June 1, 2005 – Indiana’s overall business climate is positive, improving, and considerably better than neighboring states Illinois, Michigan and Ohio according to the Indiana Small-Business ConditionsSM report. The report’s data, which was released today by the National Federation of Independent Business/Indiana, provides an overview of small-business conditions within Indiana and compares them with neighboring states.
“Hoosier small-business owners feel good about their business environment. They sense government officials, bankers, media outlets, community organizations, etc., on the whole are supportive of small business,” said Jason Shelley, NFIB/Indiana state director. “Indiana’s business environment is very positive when compared to Illinois, Michigan and Ohio. Compared to the last Indiana Small-Business Conditions report, Indiana took a big jump forward and our neighboring states took a big jump back.”
Indiana’s business climate shot from a net percent (percent positive minus percent negative) of 21 to a net percent of 32. At the same time, Illinois fell from a net percent of 16 to 6, Michigan fell from a net percent of 18 to 7 and Ohio fell from a net percent of 27 to 8 percent.
Indiana small businesses reported increased sales and profits that outpaced neighboring states. However, room for improvement remains regarding Indiana’s business conditions. “The economy and day-to-day business is not so hot, but the improving climate strengthens our chances for recovery,” said Shelley.
When asked to rank their most important business problem, Indiana small-business owners ranked the cost of insurance as the most serious of all conditions. When asked which type of business insurance has had the most rapidly rising premiums over the last year, health insurance was by far the most often cited. Fifteen percent answered that insurance premium increases have caused them to terminate or postpone planned business investments.
“The cost of health insurance remains the number-one problem facing Hoosier small-business owners, and NFIB/Indiana will continue to oppose legislative efforts that would lead to increased health insurance premiums,” said Shelley.
The Small-Business Conditions reports are developed from surveys of small-business owners in selected states. The surveys are designed to determine the condition of the small-business economy in each particular state. The surveys are conducted every three months and results are released on the first day of the month following completion. The text of the questions and the complete response set to the survey can be found at www.NFIB.com/research.
| Indiana Small-Business ConditionsSM | ||||||
| This chart shows the results from Indiana and its comparative standing among selected states in the region. | ||||||
| Ind. | Ill. | Mich. | Ohio | |||
| Business Climate | Survey Date | |||||
| Overall state business environment | ||||||
| Net % supportive of small business | 5/2005 | 32 | 6 | 7 | 8 | |
| Prior qtr. | 21 | 16 | 18 | 27 | ||
| Business conditions in market area | ||||||
| Net % "good" | 5/2005 | 31 | 30 | 0 | 23 | |
| Prior qtr. | 31 | 29 | 15 | 34 | ||
| Net % "improving" | 5/2005 | 12 | 10 | -4 | 4 | |
| Prior qtr. | 15 | 14 | 16 | 17 | ||
| Outlook for business | ||||||
| Net % "good" in next three months | 5/2005 | 52 | 61 | 52 | 51 | |
| Prior qtr. | 63 | 59 | 55 | 68 | ||
| Reason for optimism | ||||||
| % Sales prospects | 5/2005 | 47 | 46 | 38 | 40 | |
| Prior qtr. | 55 | 43 | 45 | 39 | ||
| % Lower costs | 5/2005 | 2 | 5 | 3 | 2 | |
| Prior qtr. | 3 | 3 | 2 | 3 | ||
| % Price increases | 5/2005 | 3 | 4 | 5 | 6 | |
| Prior qtr. | 2 | 3 | 2 | 5 | ||
| % Greater productivity | 5/2005 | 12 | 12 | 12 | 17 | |
| Prior qtr. | 17 | 13 | 14 | 19 | ||
| % Government policy | 5/2005 | 4 | 5 | 2 | 6 | |
| Prior qtr. | 2 | 5 | 3 | 4 | ||
| % Seasonal/Weather | 5/2005 | 13 | 7 | 19 | 13 | |
| Prior qtr. | - | - | - | - | ||
| Reason for pessimism | ||||||
| % Sales prospects | 5/2005 | IC* | IC | IC | IC | |
| Prior qtr. | IC | IC | IC | IC | ||
| % Cost increases | 5/2005 | IC | IC | IC | IC | |
| Prior qtr. | IC | IC | IC | IC | ||
| % Pressure on selling prices | 5/2005 | IC | IC | IC | IC | |
| Prior qtr. | IC | IC | IC | IC | ||
| % Lower productivity | 5/2005 | IC | IC | IC | IC | |
| Prior qtr. | IC | IC | IC | IC | ||
| % Government policies | 5/2005 | IC | IC | IC | IC | |
| Prior qtr. | IC | IC | IC | IC | ||
| Ind. | Ill. | Mich. | Ohio | |||
| Sales and earnings (last quarter) | ||||||
| Sales | ||||||
| Net % sales "good" | 5/2005 | 35 | 34 | 24 | 33 | |
| Prior qtr. | 28 | 22 | 21 | 36 | ||
| Profits | ||||||
| Net % profits "good" | 5/2005 | 19 | 15 | 6 | 17 | |
| Prior qtr. | 7 | 9 | 4 | 20 | ||
| Employment | ||||||
| Current job openings (one or more) | ||||||
| % "Yes" | 5/2005 | 16 | 19 | 16 | 17 | |
| Prior qtr. | 20 | 18 | 13 | 20 | ||
| Per employee payroll cost | ||||||
| Net % "risen" | 5/2005 | 14 | 11 | 11 | 9 | |
| Prior qtr. | 17 | 20 | 12 | 10 | ||
| Employee cost pressures (greater) | ||||||
| % Wages | 5/2005 | 55 | 51 | 52 | 52 | |
| Prior qtr. | 52 | 53 | 49 | 52 | ||
| % Benefits | 5/2005 | 30 | 29 | 30 | 30 | |
| Prior qtr. | 33 | 30 | 31 | 31 | ||
| Ind. | Ill. | Mich. | Ohio | |||
| Productivity | ||||||
| Upgraded technology/processes (last three months) | ||||||
| % "Yes" | 5/2005 | 38 | 44 | 39 | 40 | |
| Prior qtr. | 40 | 43 | 45 | 43 | ||
| Made capital expenditure(s) (last three months) | ||||||
| % "Yes" | 5/2005 | 38 | 43 | 39 | 39 | |
| Prior qtr. | 42 | 42 | 41 | 42 | ||
| Made expenditure to train employee(s) (last three months) | ||||||
| % "Yes" | 5/2005 | 35 | 40 | 42 | 35 | |
| Prior qtr. | 36 | 43 | 41 | 37 | ||
| Capacity utilization - can increase sales 10% without new inputs | ||||||
| % "Yes" | 5/2005 | 57 | 56 | 51 | 50 | |
| Prior qtr. | 60 | 59 | 59 | 57 | ||
| Credit availability (last three months) | ||||||
| % All credit needs satisfied | 5/2005 | 38 | 41 | 34 | 36 | |
| Prior qtr. | 37 | 36 | 36 | 39 | ||
| % All credit needs not satisfied | 5/2005 | 6 | 6 | 10 | 7 | |
| Prior qtr. | 11 | 8 | 10 | 7 | ||
| % No credit needs | 5/2005 | 50 | 46 | 49 | 51 | |
| Prior qtr. | 48 | 52 | 49 | 50 | ||
| Ind. | Ill. | Mich. | Ohio | |||
| Prices | ||||||
| Purchasing prices (last three months) | ||||||
| Net % increased | 5/2005 | 57 | 47 | 50 | 51 | |
| Prior qtr. | 58 | 55 | 60 | 46 | ||
| Selling prices (last three months) | ||||||
| Net % increased | 5/2005 | 17 | 17 | 15 | 17 | |
| Prior qtr. | 16 | 18 | 17 | 13 | ||
| Miscellaneous | ||||||
| Involvement in start of another business | ||||||
| % "Yes" | 5/2005 | 12 | 9 | 10 | 12 | |
| Prior qtr. | 12 | 15 | 11 | 8 | ||
| Single most important business problem | ||||||
| % Weak sales | 5/2005 | 9 | 13 | 16 | 12 | |
| Prior qtr. | 11 | 10 | 13 | 11 | ||
| % Taxes | 5/2005 | 15 | 15 | 11 | 11 | |
| Prior qtr. | 13 | 7 | 13 | 11 | ||
| % Employee quality/costs | 5/2005 | 4 | 6 | 5 | 8 | |
| Prior qtr. | 11 | 8 | 7 | 8 | ||
| % Insurance | 5/2005 | 18 | 17 | 20 | 18 | |
| Prior qtr. | 16 | 21 | 17 | 14 | ||
| % Big-business competition | 5/2005 | 15 | 14 | 11 | 13 | |
| Prior qtr. | 15 | 11 | 13 | 15 | ||
| % Inflation/Rising prices | 5/2005 | 13 | 13 | 10 | 15 | |
| Prior qtr. | 12 | 16 | 11 | 13 | ||
| % Credit availability/Interest rates | 5/2005 | 4 | 3 | 1 | 3 | |
| Prior qtr. | 5 | 3 | 3 | 2 | ||
| % Regulations/Red tape | 5/2005 | 8 | 8 | 8 | 7 | |
| Prior qtr. | 7 | 9 | 6 | 10 | ||
| Indiana Quarterly Spotlight | |
| Over the last year, which type of business insurance has had the most rapidly rising premiums? | |
| Vehicle collision and liability | 7% |
| Workers' compensation | 11% |
| Product or professional liability | 7% |
| Property and casualty | 11% |
| Employee health | 40% |
| Don't know/Refused | 25% |
| Total | 100% |
| Did those premium increases cause you to terminate or postpone planned business investments? | |
| Yes | 15% |
| No | 75% |
| Don't know/Refused | 11% |
| Total | 100% |
The Poll
NFIB’s Indiana Small-Business ConditionsSM is a telephone survey of a random sample of Indiana small employers regarding business conditions within the state. “Small employer” is defined here as employing between one and 250 people (not including the owner(s)) in a for-profit business. Each edition of the survey has a minimum of 350 respondents. The sampling error is ± 5 percentage points. Data are collected quarterly in the months of February, May, August and November, beginning in February 2005. The MRCGroup of Las Vegas conducts the survey for the NFIB Research Foundation.
The Sponsor
The NFIB Research Foundation is a 501 (c)(3) organization that provides policy-makers, media, educators, small-business owners and other interested parties empirically based information on small business and small-business owners. The Foundation is affiliated with the National Federation of Independent Business, the nation’s largest small- and independent-business advocacy organization, and is located in Washington, D.C.
