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

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

April 14, 2009 16:39 ET

TEC Canada Releases First Quarter 2009 CEO Index Results

CEOs See Light At The End Of The Tunnel?

CALGARY, ALBERTA--(Marketwire - April 14, 2009) - There appears to be a degree of optimism with TEC Canada CEOs as 67% predict their firm's revenues will either increase or remain the same over the next twelve months. 70% 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. 66% surveyed would characterize investment opportunities for 2009 as either excellent or good.

The Q1 2009 quarterly Index score is 66.5 which relates to a slight increase compared to the Q4 2008 Index score of 58.2. The Index is still down considerably when compared to the same period one year ago (-29.1). 96% of TEC Canada CEOs also believe the economy worsened over the past year but are hopeful the economy will continue to climb and improve.

Over 34% of TEC Canada CEOs surveyed feel there is an opportunity for their firms to benefit from the government stimulus package.

Q1 2009 CEO Index highlights:

- 96% believe the overall economic conditions have worsened compared to a year ago

- 62% expect the overall economic conditions will either improve or remain the same over the next twelve months

- 61% are confident their firm's expenditures will increase or remain the same

- 67% anticipate an increase in their firm's sales or it will remain the same

- 63% predict their firm's profitability will either increase or remain the same over the next twelve months

- 46% of CEOs expect to take pay cuts to help their companies through hard times

There are four significant issues TEC Canada CEOs and business leaders are concerned with: economic uncertainty, financial issues (finance, cash flow, and profitability), growth (growing too slowly) and staffing.

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

For over six years, the TEC Confidence Index has forecasted 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.

Two hundred and fifty three 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
------------------------------------------

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

Index Score: 109.6 112.2 107.3 95.6 90.5 88.3 82.7 58.2 66.5

Current Economic Conditions 98 114 102 76 54 50 27 10 5
Expected Economic
Conditions 94 100 83 72 55 63 57 30 87
Planned Fixed Investment 176 140 139 118 115 113 109 79 85
Planned Revenue Growth 156 171 168 158 155 150 149 113 108
Expected Profit Growth 135 149 148 137 139 132 131 100 100
Expected Change in
Employment 141 146 141 136 141 136 130 94 101

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.

To view a chart of the TEC Canada Confidence Index Components, click the following link: http://media3.marketwire.com/docs/414tec_index1.jpg

To view a chart of the Canadian TEC Confidence Index, click the following link: http://media3.marketwire.com/docs/414tec_index2.jpg

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 780 members across the country, coast to coast. TEC members constitute 75 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
Q1 2009

253 Respondents - 44% Response Rate
Margin of Error +/- 6.2%
Tuesday, March 24 to Tuesday, April 7, 2009

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

Response Response
Total Percent
Improved 3 1%
Remained the same 7 3%
Worsened 243 96%
Total Respondents 253

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 61 24%
About the same 97 38%
Worse 95 38%
Total Respondents 253

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 62 25%
Remain about the same 90 36%
Decrease 101 40%
Total Respondents 253

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 105 42%
Remain about the same 62 25%
Decrease 86 34%
Total Respondents 253

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 93 37%
Remain about the same 66 26%
Worsen 94 37%
Total Respondents 253

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 52 21%
Remain about the same 123 49%
Decrease 78 31%
Total Respondents 253

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 79 31%
Remain about the same 98 39%
Decrease 76 30%
Total Respondents 253

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

Response Response
Total Percent
Q2 2009 23 9%
Q3 2009 22 9%
Q4 2009 23 9%
Steadily throughout the next 12 months 46 18%
I do not plan to increase my total number of
employees over the next 12 months 95 38%
I plan to decrease my total number of
employees in the next 12 months 44 17%
Total Respondents 253

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

Response Response
Total Percent
Access to credit 24 9%
Price of credit 10 4%
Staffing (finding, hiring, retaining, and training) 57 23%
Rising healthcare costs 1 0%
Growth (growing too slowly) 80 32%
Growth (growing too quickly) 21 8%
Financial issues (finance, cash, flow,
profitability) 108 43%
Economic uncertainty (concern for local and
national economy, budget deficit, housing market) 166 66%
Other, (please specify); 39 15%
Total Respondents 253

10. What level of confidence do you have in your own business for 2009?

Response Response
Total Percent
Better than 2008 76 30%
Worse than 2008 99 39%
The same as 2008 81 32%
Total Respondents 253

11. Have you had to layoff any employees this year because of the
softening economy?

Response Response
Total Percent
Yes 107 42%
No 125 49%
No, but I plan to soon 21 8%
Total Respondents 253

12. How much of a full-year pay cut will you take this year to help your
company through hard times?

Response Response
Total Percent
None 137 54%
Up to 10% 36 14%
Up to 25% 51 20%
Up to 40% 14 6%
Up to and over 50% 15 6%
Total Respondents 253

13. Is there an opportunity for your company to benefit from the
government's stimulus package?

Response Response
Total Percent
Yes 87 34%
No 95 38%
I don't know 71 28%
Total Respondents 253

14. How would you characterize investment opportunities in 2009 compared
to 2008?

Response Response
Total Percent
Excellent 48 19%
Good 118 47%
Bad 41 16%
The same 46 18%
Total Respondents 253


Contact Information

  • T.E.C. (The Executive Committee) Ltd.
    Cathy Robertson
    Executive Vice President
    (403) 262-1010
    Email: crobertson@tec-canada.com
    or
    T.E.C. (The Executive Committee) Ltd.
    Liam Christie
    TEC Chair (group leader)
    (403) 874-1965
    Email: liamtec@shaw.ca