Company execs see financial improvement ahead
By Kevin Smith, Staff Writer© Pasadena Star-News, April 10, 2010
A new survey of California CFOs and senior comptrollers reveals that 38 percent expect to boost their work force over the next six months, while 40 percent say staffing will remain flat.
Another 22 percent predict a decrease in payrolls.
The survey, conducted by Grant Thornton LLP, also predicts that prices or fees charged by companies will remain mostly the same (62 percent), although 24 percent expect an increase and 15 percent plan on a decrease.
The poll also illustrates that most of the company representatives expect economic conditions to get better.
Fifty-seven percent expect their company's financial prospects to improve over the next six months, 30 percent says conditions will likely stay the same, and 12 percent expect things to get worse.
That optimism runs a little weaker regarding the national economy. Fifty-four percent say conditions will remain the same, 36 expect an uptick and 11 percent figure economic conditions will deteriorate further.
Most (46 percent) predict the U.S. will emerge from recession next year, and 29 percent say it will be later than 2011. Another 21 percent think a recovery will occur during the second half of 2010, and 4 percent believe that will happen during the first half of this year.
Mark Charvat just might be among the latter group.
"Actually, I'm real optimistic about things," said Charvat, CEO of The Outlet by E.L.S., a discount outlet store in Monrovia that sells clothing, electronics, and other items. "We've added three employees this year and I'll probably add another five to eight by the end of the year - that's about 10 percent of my work force."
Things have also picked up for Gary Kaplan, president of Gary Kaplan & Associates, an executive search firm in Pasadena.
"Our business year-to-date is up 47 percent from last year," he said. "But bear in mind, the bar couldn't have been lower last year. We were at the bottom of the barrel in March of last year."
Still, Kaplan said he welcomes the uptick.
"This is a very decent improvement," he said. "I would not describe business as great, but at least I'm not spending most of my days dealing with paranoia like I did last year, wondering if this is it."
Kaplan said things also appear to be improving for many of the companies he deals with.
"I'm hearing from most of my sources that there is cautious optimism," he said. "There's been a gradual increase in hiring in a lot of sectors."
Michael O'Lee, marketing manager for Eleca International Inc., a Walnut-based maker of guitars, amplifiers, effect pedals, and other musical gear, said his industry is looking better this year.
"It looks like things will pick up this year," he said. "Last year was tough. The toughest part was planning. You have to try to forecast nine months ahead of time, but we couldn't plan anything."
