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

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

June 06, 2007 19:33 ET

T.E.C. (The Executive Committee) Ltd.: CEOs And Business Leaders Look Forward to Continued Growth

while keeping an eye on environmental responsibilities and the challenges of finding skilled staff

CALGARY, ALBERTA--(Marketwire - June 6, 2007) - T.E.C. (The Executive Committee) Ltd.: The CEO Index score is on the rise, inching upwards with the second quarter results measuring 112.2 points, up 2.6 points from the last quarter results that stood at 109.6. This level is very close to the 2005 third quarter level of 112.1. CEOs and business leaders continue to project economic conditions in Canada to remain about the same over the next 12 months. 79% of those surveyed indicated that overall economic conditions in Canada would remain about the same or improve over the next 12 months, while there was an almost equally divided projection as to whether things would improve (20%) or worsen (21%) over the same period.

During this period of projected stable economic conditions, a holding steady outlook continues with 88% of respondents indicating that they will either maintain the same or increase their total number of employees with 38% saying they would do so steadily over the next 12 month period. In addition, 94% say they anticipate their sales revenues to increase or stay the same over the next 12 months with 85% indicating that profitability will improve or remain the same over the same period, and 85% forecasting the Canadian dollar to remain the same or gain strength against the US dollar within the same timeframe. Business owners and leaders continue to anticipate they will be making money in 2007.

When asked what factors had the most significant impact on hiring over the past five months, the two most often cited factors were lack of qualified employees at 34% and a booming economy in western Canada at 26%. These results are reflected in the response to the most significant business issue currently facing CEOs and business leaders-that of staffing. Staffing ranked as the number one response at 43%, followed by growth at 25%, and financial issues at 15%. The outlook on the staffing situation is that it will remain the same or become more difficult over the next 12 months to find qualified employees as indicated by the responses of a notable 90% of the respondents. In addition, business leaders and CEOs were asked to respond to a question that set out to identify the one thing CEOs and business leaders would like to know more about in order to better run their businesses - 36% were related to or posed around the subject matter, staffing. Just slightly more than one third of the responses identified staffing related items are in front of our CEOs and business leaders in the months ahead.

The results of the CEO Index also indicated a movement towards more environmentally friendly workplaces. 56% indicated they are currently making the workplace more environmentally friendly with 17% indicating intentions to do so. When asked to identify what they were doing towards this end, 48% indicated they are encouraging environmentally friendly practices such as turning off monitors and any unnecessary lights, etc. in the workplace, 40% indicated reducing paper usage, 28% are changing their operations towards less environmental impact and others are redesigning products or services towards less environmental impact (20%). These numbers indicate that environmental considerations are on the minds of our business leaders.

It appears that over the next quarter, while staffing continues to present some challenges, our CEOs and business leaders are moving towards more environmentally friendly practices, and they remain confident that the economy will hold steady and allow for increased sales revenues and profitability.

For over four 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.

Almost 200 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

Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007

Index Score: 112.1 121.9 122.4 117.6 118.5 108.8 109.6 112.2

Current
Economic
Conditions 125 136 134 142 134 94 98 114
Expected
Economic
Conditions 102 109 119 110 106 80 94 100
Planned Fixed
Investment 130 149 146 144 147 149 176 146
Planned
Revenue
Growth 166 176 181 167 177 173 156 140
Expected
Profit
Growth 146 159 155 143 147 148 135 171
Expected
Change in
Employment 148 159 158 151 154 150 141 149

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 Q2 2007 TEC Confidence Index is a compilation of responses from almost 200 Canadian CEOs of small to mid-sized companies, surveyed Friday, May 18, 2007 - Monday, May 28, 2007. The TEC Confidence Index is the only comprehensive report of their opinions and projections. TEC Canada conducts the TEC Confidence Index quarterly.

ABOUT TEC CANADA

T.E.C. (The Executive Committee) Ltd. is a part of an international organization for chief executives (CEOs), 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 800 members across the country, coast to coast.

TEC members constitute 60 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 individual one-to-one 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 13,000 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 2007

194 Respondents - 36% Response Rate
Margin of Error +/- 7.0%
Friday, May 18, 2007 - Monday, May 28, 2007

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

Response Total Response Percent
a. Improved 64 33%
b. About the same 93 48%
c. Worsened 37 19%
Total Responses 194

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 Total Response Percent
a. Better 39 20%
b. About the same 115 59%
c. Worse 40 21%
Total Responses 194

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

Response Total Response Percent
a. Increase 112 58%
b. About the same 59 30%
c. Decrease 23 12%
Total Responses 194

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

Response Total Response Percent
a. Increase 97 50%
b. About the same 77 40%
c. Decrease 20 10%
Total Responses 194

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

Response Total Response Percent
a. Increase 151 78%
b. About the same 29 15%
c. Decrease 14 7%
Total Responses 194

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

Response Total Response Percent
a. Improve 124 64%
b. About the same 40 21%
c. Worsen 30 15%
Total Responses 194


7. Do you expect the value of the Canadian dollar, compared with the U.S.
dollar, to be stronger, about the same, or weaker during the next 12
months?

Response Total Response Percent
a. Stronger 111 57%
b. About the same 55 28%
c. Weaker 28 14%
Total Responses 194

8. 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 Total Response Percent
a. Increase 88 46%
b. About the same 91 47%
c. Decrease 14 7%
d. Skipped 1
Total Responses 193

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

Response Total Response Percent
a. Q2 2007 13 7%
b. Q3 2007 31 16%
c. Q4 2007 18 9%
d. Steadily throughout the next 12
months 74 38%
e. I do not plan to increase my total number
of employees over the next 12 months 58 30%
Total Responses 194

10. Which of the following factors has had the most significant impact on
hiring in the last five months?

Response Total Response Percent
a. Oil/energy prices 7 4%
b. Healthcare costs 0 0%
c. Lack of qualified candidates 66 34%
d. Rise of the Canadian dollar 17 9%
e. Uncertainty of the growth rate of the
overall economy 7 4%
f. Offshoring (outsourcing outside of
Canada) 8 4%
g. Booming economy in western Canada 51 26%
h. None of the above has impacted hiring
in the last five months 28 14%
i. Other 10 5%
Total Responses 194

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

Response Total Response Percent
a. Energy costs 8 4%
b. Healthcare costs 0 0%
c. Staffing (finding, hiring, retaining,
and training) 82 43%
d. Growth (growing too slowly or growing
too quickly) 47 25%
e. Financial issues (financing, cash
flow, profitability) 28 15%
f. Economic uncertainty (concern for
local and national economy, budget deficit,
housing market) 22 12%
g. Political uncertainty (i.e. crisis in
the Middle East) 0 0%
f. Other 4 2%
g. Skipped 3
Total Responses 191

12. Over the past 12 months, do you expect that finding qualified employees
for our business will become easier, remain the same, or become more
difficult?

Response Total Response Percent
a. Become easier 19 10%
b. Remain the same 105 54%
c. Become more difficult 69 36%
d. Skipped 1
Total Responses 193

13. Do you have a succession plan in place for yourself?

Response Total Response Percent
a. Yes, I have already identified my
successor 30 16%
b. Yes, I plan to find a successor 33 17%
c. Yes, I plan to promote from within 33 17%
d. No, I am not worried about it at
this time 96 50%
e. Skipped 2
Total Responses 192

14. Who will take your place when you leave your business?

Response Total Response Percent
a. Family member 16 8%
b. Direct report 74 39%
c. Outside recruit 46 24%
d. Have not given any thought to this 53 28%
e. Skipped 5
Total Responses 189

15. Are you making your business more environmentally friendly?

Response Total Response Percent
a. Yes 106 56%
b. No, but I plan to 33 17%
c. No, no plans 51 27%
d. Skipped 4
Total Responses 190

16. What are you doing to make your business more environmentally friendly?

Response Total Response Percent
a. Providing incentives for employees to
adopt environmentally-friendly
behaviour (carpooling, buying hybrids) 7 4%
b. Redesigning my product or service to
have less environmental impact 36 20%
c. Buying hybrid fleet cars 3 2%
d. Working with "green" vendors 29 16%
e. Changing my office or manufacturing
operations to have less
environmental impact 52 28%
f. Encouraging energy efficiency in
workplace (i.e. turning off monitors,
lights in unused offices, etc.) 89 48%
g. Reducing paper usage 74 40%
h. Nothing 40 22%
i. Skipped 10
Total Responses 184


Two related graphs are available via the link: http://www.ccnmatthews.com/docs/606TEC.pdf

Contact Information

  • T.E.C. (The Executive Committee) Ltd.
    Toll Free: 1-800-661-9209
    Website: www.tec-canada.com