Optimism Among Companies in Baden-Württemberg

More than 31 per cent of the companies from the IT and media sector as well as from branches using IT and media technology (user branches) evaluate their current business situation as good. Another 53 per cent report a satisfying (e. i. normal) business situation. Only 16 per cent state that the prevalent situation of their companies is poor.

These are the results of the fourth FAZIT Company Survey among more than 800 companies from Baden-Württemberg, conducted by the Centre for European Economic Research (ZEW), Mannheim in autumn/winter 2006. The positive trend in the assessment of the business situation indicated in the third FAZIT Company Survey of spring/summer 2006 has thus enhanced.

The balance of positive and negative evaluations concerning the state of business is positive in all branches examined, whereas only six months ago, most of the regarded branches were rather pessimistic. All in all, the assessment of the business situation in user branches seems more optimistic than in the IT and media sector. User branches have recorded a balance of positive and negative evaluations of 20 per cent, the IT and media sector of only nine per cent. The most optimistic sector currently is the manufacturing industry. More than 50 per cent of the companies evaluate their prevalent business situation as good and only nine per cent as poor, which results in a balance of 41 per cent. Six months ago, this balance stood at -3 per cent.

In the banking and insurance sector, which at -13 per cent, displayed the lowest balance of all branches in the last survey, the ratio of the evaluations has also turned positive. Currently, 89 per cent of the companies evaluate their prevalent state of business as normal, almost eight per cent as good and only about four per cent as poor.

As it was the case in spring/summer 2006, the satisfaction regarding the prevalent business situation increases with the size of the company. Just about seven per cent of the companies with at least 250 employees evaluate their state of business as poor, whereas approximately 17 per cent of the smaller enterprises with up to four employees are not satisfied with the current situation. Still, the overall situation of smaller companies has improved. Six months ago, only about 18 per cent stated that their companies were well. Today, this share lies at 30 per cent. The corresponding balance of positive and negative assessments given by smaller companies rose from -12 per cent in spring/summer 2006 to a current rate of 13 per cent.

The companies' expectations regarding the medium-term development of their business situation are also mainly positive in all branches except for the transport service providers. The banking and insurance sector in particular looks to the near future with optimism, in spite of the comparably restrained assessment of the current business situation. About 29 per cent of the companies in this sector expect the state of business to improve over the coming six months and just one per cent estimates a deterioration of the situation.

On balance, almost all regarded branches intend to increase their workforce. Compared to the results of spring/summer 2006, this image has significantly changed, as well. Six months ago, most of the companies planned to decrease their workforce in the course of the following 12 months, whereas today, approximately five per cent across all industries intend to increase their number of employees. Only the technical contractors have recorded a slightly negative balance regarding the development of their workforce. The banking and insurance sector shows the most ambition to increase staff numbers.

Six months ago, only those companies with at least 20 employees planned to hire more staff. Nowadays, companies of all sizes intend to create new jobs. However, the greatest employment effects can still be expected of larger companies with at least 250 employees. On balance, about 31 per cent of these companies plan to recruit new staff.

FAZIT Company Survey

The "Research Project for Current and Future IT and Media Technologies and Their Use in Baden-Württemberg" (FAZIT) is a non-profit research project fostered/promoted by the federal state of Baden-Württemberg. More than 800 firms of Baden-Württemberg from the IT and Media sector (software, data-processing service providers, IT and media hardware, telecommunications, audio-visual media, printing and publishing, advertising and market communication, content service providers), as well as from other sectors that utilize IT and media technologies (chemical industry, mechanical engineering, medical, measuring, controlling technology, car manufacture, transportation, banking and insurance sector, research and development, and technical service providers) participated in the current survey.

Contact

Dr. Bettina Müller, Phone: +49(0)621/1235-352, E-mail: bettina.mueller@zew.de

Dr. Jörg Ohnemus, Phone: +49(0)621/1235-354, E-mail: ohnemus@zew.de