Archive for September, 2009

One Year Later

Tuesday, September 29th, 2009

It’s been a year now since the collapse of Lehman Brothers and the subsequent/concurrent fallout in real estate and consumer spending. Below is a list of the 20 industries that have been affected the greatest, for better and for worse.

  • Oil drillers, food & medicine manufacturers, and trade schools were some of the best.
  • Real estate, wood products and auto dealerships fared the worst.
Sageworks: Best-Performing Privately-Held Companies Over the Last 12 Months, by Sales Growth
Industry Sales % Change
2111 - Oil and Gas Extraction 29.7%
4245 - Farm Product Raw Material Wholesalers 21.2%
3254 - Pharmaceutical and Medicine Manufacturing 19.9%
5182 - Data Processing, Hosting, and Related Services 16.8%
1111 - Oilseed and Grain Farming 16.3%
3119 - Other Food Manufacturing 14.9%
3118 - Bakeries and Tortilla Manufacturing 14.1%
4235 - Metal and Mineral (except Petroleum) Wholesalers 13.7%
4885 - Freight Transportation Arrangement 13.0%
6115 - Technical and Trade Schools 12.8%
Sageworks: Worst-Performing Privately-Held Companies Over the Last 12 Months, by Sales Decline
2372 - Land Subdivision -13.79%
3212 - Veneer, Plywood, and Wood Product Manufacturing -13.45%
5312 - Offices of Real Estate Agents and Brokers -11.91%
4411 - Automobile Dealers -10.24%
4422 - Home Furnishings Stores -7.81%
4233 - Lumber and Construction Materials Wholesalers -7.40%
4441 - Building Material and Supplies Dealers -6.03%
3273 - Cement and Concrete Product Manufacturing -5.75%
4531 - Florists -5.25%
4412 - Other Motor Vehicle Dealers -5.01%

Consumers Find the Time & Money to Indulge

Tuesday, September 29th, 2009

Here is a brief list that was just compiled by the financial information company, Sageworks, outlining a handful of interesting recession-time behaviors, all of which are small indulgences that have seen growth in the last 12 months. People may not be spending on large luxuries like cars, jewelry and vacations but they are still keeping room in the budget for small luxuries like gym memberships and dining out.   

 

Indulgences that Are Helping Consumers De-Stress in the Recession
Recession-Time Indulgences NAICS - Industry Last 12 Months Sales Growth
   1. Shopping Online 4541 - Electronic Shopping 8.6%
   2. Belonging to a Gym 71394 - Fitness & Recreational Centers 6.7%
   3. Going Out for a Drink 7224 - Bars & Drinking Places 5.8%
   4. Playing Sports & Hobbies 4511 - Sporting Goods & Hobby Stores 4.7%
   5. Dining Out 7221 - Full-Service Restaurants 3.1%
   6. Getting Haircuts & Manicures 8121 - Personal Care Services 2.5%
Source: Sageworks, the leading provider of private company data. 

 

 

The Upside of a Down Economy

Tuesday, September 29th, 2009

Sageworks compiled this list of 4 favorable changes in the business world over the last year, showing the upside of the down economy for businesses.  The data is elaborated on by Sageworks CEO, Brian Hamilton, on this Fox Business segment.

The Upside of a Down Economy:
4 Ways Businesses Have Improved Over the Last Year
Businesses Have… Data/Reason
1. Become More Efficient Profit margins have increased in 10/15 major business sectors looking at private companies. 
2. Become Less Reliant on Debt Debt levels have decreased. The average debt/equity ratio for private companies is at its lowest levels in at least 6 years.
3. Gained Access to a Larger Pool of Talent for Recruiting There is more talent available for hire. After seeing growth greater than 10% every year from ‘04-’07, sales have been flat for employment services firms in ‘08 and ‘09. This suggests that, as we know, companies are hiring less and when they do hire, they are more easily able to find talented prospective employees on their own. 
4. Negotiated Better Deals from Suppliers Unlike many other sectors, wholesalers have seen decreased profit margins, suggesting that they aren’t making as much off of every dollar sold. Declining prices may have something to do with it. 
*Source: Sageworks, Inc. Sageworks is a financial information company.