GE Capital over the weekend released the results of a national survey of c-suite executives from medium sized companies in the food and beverage industry, concluding that respondents are generally upbeat about the future, "with nearly three quarters (71 percent) predicting revenue growth over the next year and only 2 percent experiencing a decrease in their new order pipeline compared to this time last year."
The executives all work for companies generating between $10 million and $1 billion in annual sales.
Some specifics from the survey:
• "Food and beverage executives saw their firms’ performance improve over the past year at a higher rate (72 percent) than those in the broader middle market (60 percent)." These same firms "exhibited revenue growth last year at a slightly higher rate (68 percent) than the broader middle market (64 percent)." In addition, 71 percent of the industry executives "expect their company’s revenues to increase this year compared to last year, compared to only 59 percent of middle market executives generally."
• "The vast majority of executives think the food and beverage industry will grow or stay roughly the same size next year, with only 4 percent expecting a decrease, this compares to 14 percent of middle market executives’ views on their respective sectors."
• "Employment is robust in the food and beverage space with over half of executives (55 percent) forecasting increased employment over the next year and notably fewer firms in the sector decreasing employment over the past year (5 percent) than in the broader middle market (13 percent)."
• "Mergers and Acquisitions will be driven by opportunities to create efficiencies through consolidation according to a third (33 percent) of food and beverage executives, this compares to only 16 percent of middle market executives generally."
The executives all work for companies generating between $10 million and $1 billion in annual sales.
Some specifics from the survey:
• "Food and beverage executives saw their firms’ performance improve over the past year at a higher rate (72 percent) than those in the broader middle market (60 percent)." These same firms "exhibited revenue growth last year at a slightly higher rate (68 percent) than the broader middle market (64 percent)." In addition, 71 percent of the industry executives "expect their company’s revenues to increase this year compared to last year, compared to only 59 percent of middle market executives generally."
• "The vast majority of executives think the food and beverage industry will grow or stay roughly the same size next year, with only 4 percent expecting a decrease, this compares to 14 percent of middle market executives’ views on their respective sectors."
• "Employment is robust in the food and beverage space with over half of executives (55 percent) forecasting increased employment over the next year and notably fewer firms in the sector decreasing employment over the past year (5 percent) than in the broader middle market (13 percent)."
• "Mergers and Acquisitions will be driven by opportunities to create efficiencies through consolidation according to a third (33 percent) of food and beverage executives, this compares to only 16 percent of middle market executives generally."
- KC's View:
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Lots of positive signs in terms of the economy. Not to say there aren't some potential problems, and one does have the sense that it remains a fragile recovery. But I do sort of think that there is stuff about which we can be hopeful.
