East TN business leaders bearish on economy
Submitted by R. Neal on Wed, 2008/12/10 - 8:50am

Ackermann PR surveyed 300 East Tennessee business leaders about the economy, and the general outlook is gloomy.

According to Ackermann, "most said they are adjusting their business strategies primarily by reducing expenses and inventory, including lay-offs and delaying capital expenditures. A majority of respondents also mentioned the need to conserve cash and carefully manage their cash flow."

The outlook:

• 45% expect a downturn in their business for 2009
• 50% expect the recession to last through at least 2009
• 40% expect it to last through 2010, 10% through 2011

Some see better times in 2009, with 30% expecting business to remain about the same and 25% expecting a 5% to 25% increase.

Concerns cited include:

• High unemployment
• The national debt crisis and fear of inflation
• The "rampant irresponsibility" of the financial services industry
• Declining corporate and investment valuations

They also feel people are paralyzed by fear of the unknown and waiting to see "where the bottom really is."

They also take a dim view of government bailouts and put their faith in free markets and fiscal responsibility, with one saying we are on the "verge of socialism." [Ed. note: We find this attitude ironic here in East Tennessee, where the economy depends largely on federal, state, and local government spending and employment.]

Survey respondents say the way out is to create new jobs, make credit available, and reduce the housing inventory, among other things.

Here's the full report.

(Thanks to Rick Laney and Mike Cohen at Ackermann PR for bringing this to our attention.)

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Ragsdale2010's picture

Rampant Irresponsibility of Financial Services Industry (Banks)

Submitted by Ragsdale2010 (not verified) on Wed, 2008/12/10 - 10:59am.

Hmmmmmmmmmmmmmmmmmmm

We've got two local board member on the big board of First Tennessee's parent company, who should have been in a position to watch the practices being exhibited by their various departments/divisions which report to the board. If you count Brad Martin, who is a regular here in East Tennessee and in Walland generally, we've got three.

Nobody has said much lately about some federal subpoenas regarding gasoline prices in Florida associated with this summer's hurricane's in Louisiana.

I guess the Ackermann clients have rather short memories or perhaps selective memories all the way around.

Mike Cohen's picture

Banks post

Submitted by Mike Cohen on Wed, 2008/12/10 - 11:36am.

R2010:

First off, I'm sorry you have to go through life always believing there are monsters under the bed and that the monsters are probably out to get you.

That aside, the survey was to 300 business leaders, not just our clients. It covered a variety of business and industries. It is a snapshot of how these folks feel right now.

It has little value for placing blame. Unless, of course, that's what you want to do with damn near everything.

KC's picture

“East Tennessee business

Submitted by KC on Wed, 2008/12/10 - 12:52pm.

“East Tennessee business leaders seem to agree that free market principles, decreased government involvement, and responsible consumer and corporate spending are key to improving the health of the current ailing economy,”

And I'm sure when the Obama Administration begins taking Oak Ridge apart and allocating its responsibilities to other states (e.g.- the Mouse House to North Carolina), that these same leaders are going to applaud the decrease of "government involvement" in this region.

Even a good deal of "private industry" in this area finds that up to 90% of its "business" is from government contracts.

East Tennessee business leaders should be careful about what they're hoping for, because they might just get it this time.

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