10-12-12

10B — October 12 - 25, 2012 — New Jersey — Mid Atlantic Real Estate Journal

www.marejournal.com

s outherN N ew J ersey

Third annual business sentiment survey MER’s Business Sentiment Survey 2012 Southern New Jersey Small Business report

T

he Mangan, Ernst & Rankin Wealth Management Group

MER’s founding partners, notes they were fortunate to speak to many of the same business owners in 2010, 2011,

and again this year – three crucial years in an uncertain economy. “It has been very in- teresting to see how the senti-

ment of small business owners has changed against the back- drop of some rather volatile macroeconomics,” Mangan said. “To us, it is compelling to see such a distinct disconnect in what would typically be a correlated sentiment situa- tion – how business owners feel relative to the economic data. Usually the two are cor- related – i.e., a good economy translates typically into good feelings.” SouthernNew Jersey’s small businesses have adapted to the economy, through creativity,

aggressive cost cutting, harder and smarter work practices and the pure determination by the owners – to survive. The U.S. economy is “better” today than 2010, yet MER’s research indicates business owners’ confidence has not risen, nor has hiring or capi- tal spending. In terms of the actual macro U.S. economic health, from a metrics stand- point or number of consecutive quarters above the recession line, the economy has been more stable over the survey’s timeframe than it was prior to MER’s first survey year (2010). Interesting to note – business owners are more pessimistic today about the future of the U.S. economy than they have been previously. Nearly 67% of those surveyed this year have a pessimistic outlook of our economy vs. 43% three years ago. Lack of economic and politi- cal predictability continues to plague decision makers. Only 31% of businesses plan to in- crease capital spending this year in stark contrast to the 61% that increased capital spending in 2011. MER con- cluded that the lack of capital expansion is not because of in- ability to access financing, but rather concern over the lack of long-term tax policy, uncer- tainty with the U.S. political system, continued high unem- ployment, increased business regulatory issues and the fear that Europe’s woes will drag our economy down farther – these are what continue to keep business owners from taking on additional risk. While the quantitative sur- vey results do not point to robust growth in the near fu- ture, the qualitative sentiment results indicate that a pick up could be on the horizon. “Sim- ply put, if the primarily politi- cally induced hurdles clear in the near future, business own- ers will begin to be more com- fortable psychologically taking risk,” said Mangan. Based on the qualitative results, or sentiment indicators of the MER survey, their opinion is that in spite of the broader macro-economic issues plagu- ing small businesses, if there is the slightest change in policy and regulations at the political level, MER believes next year’s results and out- look will be stronger than this year’s. n

of Janney Montgomery Scott (MER) recently con- ducted its third annual busi- ness sentiment survey focus- ing on southern New Jersey’s small businesses. More than 85 small businesses, creating approximately half a trillion dollars in annual sales and employing more than 2,000 employees were strategical- ly selected to participate in MER’s survey. Clark Mangan , one of

Southern New Jersey’s small businesses have adapted to the economy, through creativity, aggressive cost cutting, harder and smarter work practices and the pure determination by the owners – to survive.

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Industrial

Type: Sq Ft:

Industrial

Industrial

Type: Sq Ft:

Type: Sq Ft:

68,130/0 ofc

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Flex/Office

Industrial

Industrial

Type: Sq Ft:

Type: Sq Ft:

Type: Sq Ft:

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49,100/3,444 ofc

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Industrial

Flex/Office

Office

Type: Sq Ft:

Type: Sq Ft:

Type: Sq Ft:

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Suites Vary Features: Class A offices,

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