T.E.C. (The Executive Committee) Ltd.

T.E.C. (The Executive Committee) Ltd.

July 30, 2009 19:48 ET

TEC Canada Releases Second Quarter 2009 CEO Confidence Index Results

CALGARY, ALBERTA--(Marketwire - July 30, 2009) - In Canada, CEOs expect overall economic conditions will be better or remain the same according to 176 TEC Canada CEO members who responded to the TEC Canada CEO Confidence Index survey. The small to mid-size business sector creates 75% of all new jobs and generates 50% of revenue. The views of the leaders of this sector are a clear signal of economic, market and industry trends.

The Q2 2009 quarterly Confidence Index score is 86.3, an impressive increase compared to the Q1 2009 score of 66.5. However, the Index is down just 2% when compared to 88.3, the score for the same period one year ago. Eighty percent of TEC Canada CEO members believe the economy will continue to follow this trend and expect to see further increases and improvement.

Four significant issues continue to challenge TEC Canada CEOs and business leaders: economic uncertainty, financial issues, specifically financing, cash flow and profitability, slow growth, and staffing.

Important results include: 78% predict their firm's revenues will either increase or remain the same over the next 12 months, with 77% expecting their firm's profitability to improve or remain the same. 84% are also anticipating either an increase in the number of employees in their firms or at least remain the same for the balance of 2009. And 64% surveyed believe there is a new business landscape emerging after the events of the last 12 months.

Q2 2009 CEO Confidence Index Highlights:

- 84% expect total number of employees will increase or remain the same

- 80% believe the overall economic conditions have worsened compared to a year ago

- 80% expect the overall economic conditions will either improve or remain the same over the next twelve months

- 78% anticipate an increase in their firm's sales or it will remain the same

- 77% predict their firm's profitability will either increase or remain the same over the next twelve months

- 75% are confident their firm's expenditures will increase or remain the same

- 51% plan to increase firm's total number of employees over the next 12 months

Overall there appears to be a degree of optimism for the remainder of 2009.

"The Confidence Index rose a dramatic 22 points last quarter, rebounding in one period to a near match to the Index of one year ago. Every component of the Index grew with the strongest gains in the area of expected improvement in economic condition. These results, the highest in the past 24 months, demonstrate significant optimism in the current business environment." - Catherine Osler, President, TEC Canada

For over 6 years, the TEC Canada CEO Confidence Index has forecast annual changes in the economy, including job creation and price increases. The quarterly survey continues to serve as an accurate snapshot of Canada's economic landscape.

For more information or to schedule an interview please contact Cathy Robertson, Chief Operating Officer - crobertson@tec-canada.com or Donna Chambers, EA to Chief Operating Officer-dchambers@tec-canada.com 403-262-1010 or 1-800-661-9202.

One hundred and seventy six CEOs of small to mid-size businesses took part in the survey and shared their views on current economic trends, issues affecting business and Canada as a whole.



TEC Confidence Index Component Questions

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2007 2007 2007 2008 2008 2008 2008 2009 2009

Index Score: 112.2 107.3 95.6 90.5 88.3 82.7 58.2 66.5 86.3

Current Economic
Conditions 114 102 76 54 50 27 10 5 27
Expected Economic
Conditions 100 83 72 55 63 57 30 87 117
Planned Fixed
Investment 140 139 118 115 113 109 79 85 110
Expected Revenue
Growth 171 168 158 155 150 149 113 108 133
Expected Profit Growth 149 148 137 139 132 131 100 100 123
Expected Change in
Employment 146 141 136 141 136 130 94 101 119


NOTE: All component questions are scored as the percent giving favorable replies minus the percent unfavorable plus 100. The TEC Confidence Index is the sum of the components calculated as a percentage of the level recorded in the Q2 2003 survey.

ABOUT THE CANADIAN TEC CONFIDENCE INDEX

Canadian businesses with annual sales between $1 million and $900 million represent the most vital component of the nation's economy. This small to mid-size business sector creates 75 percent of all new jobs and generates 50 percent of revenue. The opinions of these business leaders provide a clear snapshot of current economic, market and industry trends and demonstrates their plans for growth over the next 12 months. These insights provide a leading indicator for employment, capital expenditure, sales and revenue trends.

ABOUT TEC CANADA

T.E.C. (The Executive Committee) Ltd. is a part of an international organization for chief executives (CEOs), presidents, managing directors, business owners and bottom line decision makers offering confidential business advisory sessions and professional support. Established in 1985, TEC Canada currently has over 750 members across the country, coast to coast. TEC members constitute 80 plus think-tank/peer groups. Each group is led by a specially trained TEC Chair (generally a former CEO or President) who is committed to helping members enhance their leadership skills, find new intellectual capital, grow their business and achieve better work-life balance. Every group, which is composed of non-competing peers, meets in a monthly one day session. Additionally, TEC Chairs hold strategic individual one-to-one coaching sessions with their members designed to address their individual needs. For more information, visit www.tec-canada.com or call (800) 661-9209.

ABOUT VISTAGE INTERNATIONAL (FORMERLY KNOWN AS TEC INTERNATIONAL)

Vistage International Inc., formerly known as TEC International, helps companies solve business problems, achieve better results and outperform the competition. Since 1957, only Vistage members have had access to a comprehensive suite of services that includes peer-group sessions, one-to-one executive coaching, best practices from recognized experts and the collective wisdom of more than 14,000 business leaders. Vistage member companies grow, on average, at a rate 2.5 times faster than they did prior to joining (source: D & B 1998-2003). For more information, visit www.vistage.com.



TEC Confidence Index
Q2 2009

176 Respondents - 32% Response Rate
Margin of Error +/- 7.4%
Thursday, July 9 to Thursday, July 23, 2009


1. Compared with a year ago, do you believe the overall economic conditions
in Canada improved, remainedthe same, or worsened?

Response Response
Total Percent
Improved 12 7%
Remained the same 24 14%
Worsened 140 80%
Total Respondents 176

2. During the next 12 months, do you expect the overall economic conditions
in Canada will be better, about the same, or worse than now?

Response Response
Total Percent
Better 64 36%
About the same 78 44%
Worse 34 19%
Total Respondents 176

3. Are your firm's total fixed investment expenditures likely to increase,
remain about the same, or decrease during the next 12 months?

Response Response
Total Percent
Increase 60 34%
Remain about the same 73 41%
Decrease 43 24%
Total Respondents 176

4. Do you anticipate that your firm's sales revenues will increase, remain
about the same, or decrease for the next 12 months?

Response Response
Total Percent
Increase 97 55%
Remain about the same 40 23%
Decrease 39 22%
Total Respondents 176

5. Do you expect your firm's profitability to improve, remain about the
same, or worsen during the next 12 months?

Response Response
Total Percent
Improve 82 47%
Remain about the same 53 30%
Worsen 41 23%
Total Respondents 176

6. Do you expect prices for your product(s) or service(s) to increase,
remain about the same, or decrease during the next 12 months?

Response Response
Total Percent
Increase 35 20%
Remain about the same 104 59%
Decrease 37 21%
Total Respondents 176

7. Do you expect your firm's total number of employees will increase, remain
about the same, or decrease during the next 12 months?

Response Response
Total Percent
Increase 62 35%
Remain about the same 86 49%
Decrease 28 16%
Total Respondents 176

8. When do you plan to increase your firm's total number of employees over
the next 12 months?

Response Response
Total Percent
Q3 2009 10 6%
Q4 2009 22 12%
Q1 2010 21 12%
Steadily throughout the next 12 months 37 21%
I do not plan to increase my total number of
employees over the next 12 months 86 49%
Total Respondents 176

9. What is the most significant business issue that you are currently
facing?

Response Response
Total Percent
Rising energy costs 0 0%
Rising healthcare costs 2 1%
Staffing (finding, hiring, retaining, and training) 28 16%
Growth (growing too slowly) 24 14%
Growth (growing too quickly) 4 2%
Financial issues (finance, cash flow, profitability) 45 26%
Economic uncertainty (concern for local and
national economy, budget deficit, housing market) 53 30%
Other 20 11%
Total Respondents 176

10. What is the biggest challenge your business is specifically facing now?
(check all that apply)

Response Response
Total Percent
Cash, liquidity, receivables 36 20%
Paying loans and/or accessing credit 23 13%
Customer retention and/or lead generation 54 31%
Managing costs and/or 50 28%
Cutting staff 9 5%
My business is not facing any extraordinary
challenges 23 13%
Other 33 19%
Total Respondents 228

11. How does your 2nd Quarter 2009 revenue compare to your 2nd Quarter 2008
revenue?

Response Response
Total Percent
Up by 1-10% 46 26%
Up by more than 10% 34 19%
Down by 1-5% 19 11%
Down by 5-10% 25 14%
Down by 10-20% 24 14%
Down by more than 20% 28 16%
Total Respondents 176

12. How does your projected 2009 year-end revenue compare to your actual
2008 revenue?

Response Response
Total Percent
Up by 1-10% 43 24%
Up by more than 10% 43 24%
Down by 1-5% 20 11%
Down by 5-10% 21 12%
Down by 10-20% 30 17%
Down by more than 20% 19 11%
Total Respondents 176

13. Are you finding it easier to obtain credit for your business now than
you did six months ago?

Response Response
Total Percent
Yes 20 12%
No 74 43%
Not applicable 79 46%
Total Respondents 173
Skipped This Question 3

14. Do you believe there is a new business landscape emerging after the
events of the last 12 months?

Response Response
Total Percent
Yes 112 64%
No 19 11%
Don't know 46 26%
Total Respondents 176

15. Are you using online social networks (Twitter, LinkedIn, etc.) to
publicize and/or market your business, product or service?

Response Response
Total Percent
Yes 29 16%
No, but I plan to in the next six months 40 23%
No 107 61%
Total Respondents 176

16. Does your COMPANY use the following social media sites? (check all that
apply)

Response Response
Total Percent
Facebook 22 12%
Twitter 17 10%
LinkedIn 32 18%
No 129 73%
Other 1 1%
Total Respondents 201

17. Do you plan to work or bid on any federal stimulus projects or contracts
in the next quarter?

Response Response
Total Percent
Yes 46 26%
No 125 71%
I have already put in bids 9 5%
Total Respondents 176


To view a chart of the TEC Canada Confidence Index Components, click the following link: http://media3.marketwire.com/docs/730CEO%20Index%201.jpg.

To view a chart of the Canadian TEC Confidence Index, click the following link: http://media3.marketwire.com/docs/730CEO%20Index%202.jpg.

Contact Information

  • T.E.C. (The Executive Committee) Ltd.
    Cathy Robertson
    Chief Operating Officer
    (403) 262-1010 or 1-800-661-9202
    or
    T.E.C. (The Executive Committee) Ltd.
    Donna Chambers
    EA to Chief Operating Officer
    (403) 262-1010 or 1-800-661-9202
    Website: www.tec-canada.com