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

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

December 11, 2008 15:50 ET

TEC Canada Releases Fourth Quarter 2008 CEO Index Results

CEOs Will Take Pay Cut And Do Not Support Auto Industry Bailout

CALGARY, ALBERTA--(Marketwire - Dec. 11, 2008) - Over 90% of Canadian CEOs and business leaders are predicting that the economic conditions will worsen but over 70% are confident their company sales will either increase or remain the same. The fourth quarter CEO Confidence Index results have produced another significant drop in confidence when compared to the same period in 2007 (39.1% slide).

With an index score of 58.2 this quarter when compared to a year ago, when the index was at 95.6, the fourth quarter 2008 represents a 37.4 difference. The confidence level of Canadian CEOs and business leaders began to decline in the third quarter of 2007 and it appears this trend will continue. The Q4 2008 score represents another record low since the inception of the Index in the second quarter of 2003. Interestingly enough, Canadian CEOs are predicting another year of higher sales revenues and increased profits.

Over 37% of TEC Canada CEOs and business leaders will lead by example and take a compensation cut in 2009 and over 70% are not in favour of the automotive industry bailout by the federal government.

Here is a quick summary and snapshot of the other key indicators for the Q4 2008 Index:

- 91% believe the overall economic conditions have worsened

- 77% expect the overall economic conditions will be worse over the next twelve months

- 62% predict their firm's expenditures will increase or remain the same

- 71% are confident their firm's sales revenues will increase or remain the same

- 66% are anticipating improved profitability or at least the same over the next twelve months

- 25% expect an increase in the number of employees over the next twelve months

- 51% consider "economic uncertainty" as their primary concern going into 2009

- 73% have an economic contingency plan in place

There are three significant issues Canadian CEOs and business leaders are concerned with: economic uncertainty (51%), financial issues (18% - finance, cash flow and profitability) and staffing (13%).

Most Canadian CEOs predict another growth year in sales and profits even though the majority is very concerned about what the future holds.

For over five 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 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

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2006 2007 2007 2007 2007 2008 2008 2008 2008

Index Score: 108.8 109.6 112.2 107.3 95.6 90.5 88.3 82.7 58.2

Current Economic
Conditions 94 98 114 102 76 54 50 27 10
Expected Economic
Conditions 80 94 100 83 72 55 63 57 30
Planned Fixed
Investment 149 176 140 139 118 115 113 109 79
Planned Revenue
Growth 173 156 171 168 158 155 150 149 113
Expected Profit
Growth 148 135 149 148 137 139 132 131 100
Expected Change in
Employment 150 141 146 141 136 141 136 130 94

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 demonstrate their plans for growth over the next 12 months. These insights provide a leading indicator for employment, capital expenditure, sales and revenue trends.

The Q4 2008 TEC Confidence Index is a compilation of responses from 256 Canadian CEOs of small to mid-sized companies, surveyed Thursday, November 20 to Friday, December 5, 2008. The TEC Confidence Index is the only comprehensive report of their opinions and projections. TEC Canada conducts the TEC Confidence Index quarterly.

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

To view a chart of the Canadian TEC Confidence Index, click the following link: http://media3.marketwire.com/docs/CEO%20Index%202.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 840 members across the country, coast to coast.

TEC members constitute 70 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
Q4 2008

256 Respondents - 45% Response Rate
Margin of Error +/- 6.1%
Thursday, November 20 - Friday, December 5, 2008


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 2 1%
Remained the same 21 8%
Worsened 233 91%
Total Respondents 256

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 18 7%
About the same 40 16%
Worse 198 77%
Total Respondents 256

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 43 17%
Remain about the same 115 45%
Decrease 98 38%
Total Respondents 256

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 41%
Remain about the same 78 30%
Decrease 73 29%
Total Respondents 256

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 85 33%
Remain about the same 85 33%
Worsen 86 34%
Total Respondents 256

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

Response Response
Total Percent

Increase 61 24%
Remain about the same 137 54%
Decrease 58 23%
Total Respondents 256

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 63 25%
Remain about the same 115 45%
Decrease 78 30%
Total Respondents 256

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

Response Response
Total Percent

Q4 2008 26 10%
Q1 2009 14 5%
Q2 2009 13 5%
Steadily throughout the next 12 months 123 48%
I do not plan to increase my total number
of employees over the next 12 months 43 17%
Total Respondents 256

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

Response Response
Total Percent

Financial issues (finance, cash flow,
profitability, access to credit, price of credit) 47 18%
Rising healthcare costs 1 0%
Staffing (finding, hiring, retaining, and training) 33 13%
Growth (growing too slowly) 19 7%
Growth (growing too quickly) 8 3%
Economic uncertainty (concern for local and national
economy, budget deficit, housing market) 130 51%
Other, (please specify); 18 7%
Total Respondents 256

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

Response Response
Total Percent

better than 2008 73 29%
worse than 2008 105 41%
the same as 2008 78 30%
Total Respondents 256

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

Response Response
Total Percent

Yes 64 25%
No 165 64%
No, but I plan to soon 27 11%
Total Respondents 256

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 161 63%
up to 10% 24 9%
up to 25% 35 14%
up to 40% 14 5%
up to and over 50% 22 9%
Total Respondents 256

13. Do you have a contingency plan for our current economic situation?

Response Response
Total Percent

Yes 186 73%
No 70 27%
Total Respondents 256

14. Do you support the concept of automotive bailouts by the Canadian
government?

Response Response
Total Percent

Yes 73 29%
No 183 71%
Total Respondents 256



Contact Information

  • T.E.C. (The Executive Committee) Ltd.
    Michael Palmer
    Director of Marketing
    (403) 262-1010
    Email: mpalmer@tec-canada.com
    or
    T.E.C. (The Executive Committee) Ltd.
    Liam Christie
    TEC Chair (group leader)
    (403) 874-1965
    Email: liamtec@shaw.ca