Area Development Magazine released the results of its Annual Corporate Survey. The majority of the respondents were decision-makers with Manufacturing companies. These executives do not see the economy improving until late 2010 or 2011. Many companies reviewed their operations and real estate to look for cost saving potential. Twenty One percent responded that they reduced the number of facilities. This was an increase over last years results when only 12% reduced the number of facilities they had. The reasons for reducing their facilities:
70% Consolidating Operations
76% Decrease In Product Sales
76% Need to Lower Operating and/or Labor Costs
The respondents also said they were putting some new facility plans on hold( 25%) and or deferring hiring plans. 30 % percent said they needed to defer capital spending.
The survey has a wealth of information about corporation plans to expand and manage their facilities. The survey is included in the January/February Issue of Area Development. For more information please visit their website www.areadevelopment.com
Sponsor- Fortune 500 companies have turned to Cambridge Consulting Group to help reduce real estate expenses and free up capital. For the past 20 years , Cambridge Consulting Group has successfully saved corporations millions of dollars through commercial real estate lease terminations and negotiated buyout strategies. For more information please visit their website www.commercialleaseterminations.com
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