Only 22% of transportation companies plan to increase hiring in next six months and more than half plan to reduce bonuses
More than one-third of those surveyed believe U.S. economy will improve during same time period
CHICAGO, November 4, 2009 - In a survey of transportation CFOs and senior comptrollers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd, only 22 percent say their company will increase hiring in the next six months and more than half (59%) plan to reduce bonuses. At the same time, 38 percent believe the U.S. economy will improve during the same time period, making transportation more pessimistic than other industries.
One-third (32%) are reducing health care benefits and nearly a quarter (21%) are reducing 401(k) matches. In terms of pricing pressure, they are most concerned about the cost of employee benefits (69%), such as health care and pension costs; and they are equally concerned about the cost of energy and insurance (41%).
|
Over the next six months, do you expect the U.S. economy to: |
||
|
|
Transportation |
National |
|
Improve |
38% |
49% |
|
Remain the same |
53% |
41% |
|
Get worse |
9% |
10% |
|
Over the next six months, do you expect your company's financial prospects to: |
||
|
|
Transportation |
National |
|
Improve |
50% |
45% |
|
Remain the same |
41% |
43% |
|
Get worse |
9% |
13% |
|
Over the next six months, do you expect prices or fees charged by your company to: |
||
|
|
Transportation |
National |
|
Increase |
25% |
22% |
|
Remain the same |
69% |
67% |
|
Decrease |
6% |
11% |
|
Over the next six months, do you expect your headcount to: |
||
|
|
Transportation |
National |
|
Increase |
22% |
24% |
|
Remain the same |
63% |
54% |
|
Decrease |
16% |
22% |
|
When do you believe the U.S. economy will come out of the recession? |
||
|
|
Transportation |
National |
|
By the end of 2009 |
13% |
15% |
|
First half of 2010 |
34% |
27% |
|
Second half of 2010 |
41% |
35% |
|
2011 |
6% |
17% |
|
Later |
6% |
7% |
|
About which type(s) of pricing pressure are you most concerned? (Check all that apply.) |
||
|
|
Transportation |
National |
|
Employee benefits (e.g., health care, pensions) |
69% |
77% |
|
Energy |
41% |
30% |
|
Insurance |
41% |
31% |
|
Raw materials (e.g., food, metals) |
19% |
30% |
|
Other |
28% |
14% |
|
Is your company reducing average costs per employee in any of these employee benefit and compensation areas? (Check as many that apply.) |
||||
|
Transportation |
National |
|||
|
Increasing |
Reducing |
Increasing |
Reducing |
|
|
401(k) match |
3% |
21% |
3% |
26% |
|
Bonuses |
13% |
59% |
7% |
55% |
|
Disability benefits |
4% |
14% |
3% |
10% |
|
Health care benefits |
7% |
32% |
7% |
33% |
|
Life insurance benefits |
7% |
17% |
2% |
11% |
|
Salary raises |
10% |
45% |
9% |
42% |
|
Stock options and other forms of equity-based compensation |
0% |
36% |
6% |
34% |
* Percentages may not total 100 due to rounding.
- ends -
About the Survey
Grant Thornton LLP conducted the biannual national survey from Sept. 21 through Oct. 2, 2009, with 846 CFOs and senior comptrollers from public and private companies, of which 32 were from transportation companies.
About Grant Thornton LLP
The people in the independent firms of Grant Thornton International Ltd provide personalized attention and the highest quality service to public and private clients in more than 100 countries. Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd, one of the six global audit, tax and advisory organizations. Grant Thornton International Ltd and its member firms are not a worldwide partnership, as each member firm is a separate and distinct legal entity.
In the U.S., visit Grant Thornton LLP at www.GrantThornton.com.
