Fewer vehicle dealers are preparing for expansion, SBRB study indicates

Dec. 1, 2007
Fewer owners and managers of small automotive and other vehicle dealerships indicated during the third quarter of 2007 that they are planning for expansion

Fewer owners and managers of small automotive and other vehicle dealerships indicated during the third quarter of 2007 that they are planning for expansion during the next 12 to 24 months, according to the latest Small Business Research Board (SBRB) study.

Of the owners and managers responding to the nationwide quarterly SBRB poll co-sponsored by International Profit Associates, 24% said they plan to expand their businesses in the next 12 to 24 months. This was a decrease of 5 points from the 29% who said during the second quarter that they were planning to expand their businesses.

Prospective facilities-based activities — expansion at current locations and the addition of new locations — were noted by 40% of the respondents intending to expand as their primary methods for growing their businesses. Addition of new locations topped the rankings with 24% of the vote, while expansion at current locations was mentioned by 16%. Enhancing customer services capabilities had 19% of the vote.

Providing more services was cited by 16% of the companies and the addition of new products was cited by 14% during the third quarter as being their leading method for assisting in their business expansion in the coming months.

The latest information about the SBRB can be found at www.ipasbrb.com.