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After two quarters of declining optimism, small-business CEOs are reporting increased confidence in their outlooks, both nationally and in New Jersey.
The quarterly Vistage International CEO Confidence Index released its 2011 fourth quarter findings earlier this week, showing the same executives who thought the economy was no better than two years ago in September now report expectations for increase profits and hiring.
Nationally, 55 percent of the respondents said they were planning to increase hiring in 2012. In New Jersey, while the sample size was much smaller, 87 percent of participants indicated increased work forces.
New Jersey executives also showed more confidence than their national counterparts when responding to questions about profitability. Sixty percent of New Jersey CEOs anticipate increased profitability in the coming 12 months, while 55 percent of national CEOs are on track to increase profits. Both numbers, though, are well below the peak in profit confidence — 2003's fourth quarter, when 74 percent of respondents indicated profit growth.
Joseph Royal, president of HM Royal Inc., in Trenton, participated in the survey and said his business is expected to increase its work force, but mostly with sales agents in the Midwest, rather than at corporate headquarters.
Royal said due to increased costs, the company is projecting flat profits for 2012, despite increased revenue. HM Royal is a sales agent and distributor of raw materials for manufacturers.
Royal said he's optimistic that, especially by the middle of the year, the national economic picture will have picked up.
"We certainly follow the macro trends, and through Vistage — and talking with other executives and talking with our customers — I put a lot of faith in how they're talking, because they're the feet on the street. If they see things improving, that certainly gives me the feeling it's going to improve overall," Royal said. "Talking directly to other executives or other people we deal with is a much better barometer."
Vistage reported the number of CEOs confident in their business or the economic environment improved in every category. More than 1,600 CEOs participated in the survey, which was conducted in mid-December.
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