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Survey of Chicago Area Business Leaders, November 2008

Executive Summary

The purpose of this survey was to gain feedback from a wide variety of business leaders in the Chicago metropolitan area regarding the current economic condition and their forecast of the U.S. and Chicago business climates.

Blackman Kallick clients and network contacts have been asking us to provide some insight into what is really occurring in the Chicago market. Our clients were concerned that the national media might have been overly focused on the stock market, New York, automotive news and the politics of the moment, which might not have accurately captured the business environment of the Chicago metropolitan area. The goal of this survey was to offset what might be assumptive information with objective input, as well as provide a local snapshot to compare against national surveys or other city- and industry-focused polls.

Our survey, conducted October 27–31, targeted a diverse group of companies and business leaders. We focused mainly on C-level leaders and are grateful that so many executives were willing to share their business plans and insight.

We encourage all leaders and business advisors to compare their own experiences and assumptions against what is found in this survey. While we will not draw conclusions or offer any specific advice based on the responses, we will identify interesting trends that might be worthy of particular attention.

If you do not see the specific details you require to help analyze your own business goals and assumptions, please feel free to contact us directly, and we will share any information we believe has statistical value. In addition, Blackman Kallick is planning a follow-on survey to help gauge the changing economic mood and trends. If you have any suggestions or would like to receive details on the follow-on survey, please let us know.

Interesting Observations

Surprise Forecast for Chicago Area Businesses

Over half of survey responders are forecasting steady-to-increased profits for their own businesses during the next 12 months, while at the same time overwhelmingly believing that the U.S. economy is in a recession. An explanation of this paradox can be found, perhaps, in their confidence in the strength of the Chicago economy versus that of the overall U.S. economy.

Chicago Area Head Count Better than the National Headlines

The survey results indicate that more than half of Chicago area businesses are planning to maintain their current head count or expand their work force over the next 12 months. Those who said they were expecting a reduced head count were predominantly planning to rely on normal attrition, such as not filling open positions. Only 14% say they are considering layoffs.

Credit and Capital for the Next 12 Months

Our survey provides a welcome counterpoint to the highly publicized credit crunch for middle market businesses. More than 75% of responders can be viewed as secure in their belief that their business has adequate sources of debt and capital for at least the next 12 months. However, it should concern all Chicago businesses that 21% of responders anticipate having a problem obtaining new debt or other sources of capital in the next 12 months.

If you have any comments or questions about this survey, please contact Stuart Baum at 312-980-3211 or sbaum@BlackmanKallick.com.

View survey results as PDF or right click on this link to download PDF
Contact us for a hard copy of the survey results

Sign up to take part in the follow-on survey or to receive the results only 

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.