According to socalTECH.com Survey, Most See Corporate Spending – Not Government Stimulus – As Driver
WESTLAKE VILLAGE, Calif. – In a recent survey of Southern California technology executives, most believe it will take another six months to a year before business conditions will improve, with private company executives slightly more bullish than public companies’ executives.
These are part of the results of a non-scientific survey conducted using the socalTECH.com database of technology executives from Jan. 19 to Jan. 30.
The survey, conducted by The David James Agency, garnered responses from 150 respondents ranging from San Diego County to Los Angeles County to Santa Barbara County. Respondents covered the full spectrum of SoCal tech industries, including aerospace, communications equipment and service providers, to name a few.
When asked when will business improve, 40% of those surveyed said it would take longer than one year, while another 32% said it would be more than six months before a turnaround would begin.
While the government is working to generate stimulus packages to aid businesses, only 4% of respondents believe the government stimulus will be the main impetus for business improvement. Improved corporate spending seems to be the biggest potential driver for the technology companies, with 46% of respondents noting this at this main impetus for business improvement.
“Despite the reports of a down economy, local technology companies remain optimistic,” said Ben Kuo, socalTECH founder. “I think the companies that are able to quickly adapt to the current economic situation will be able to ride out this downturn.”
Southern California technology executives are feeling the impact of the status of the economy, with 65% of respondents impacted by some level of sales decline. Adapting to the situation, 71% of technology companies have implemented one or more solutions as a way to cut costs. Some of the ways these companies have cut costs include implementing hiring freezes, holiday shut down or reducing salaries.
Even with sales declines, technology companies are working to keep as many employees on staff as possible. According to the survey, 67% of respondents have not yet laid off employees.
Most respondents would recommend Southern California to a colleague to relocate their technology business, but their biggest drawback to working here is the cost of doing business.
Editor’s Note: Data is available for Los Angeles County, Ventura County/Santa Barbara County and Orange County/San Diego County.
socalTECH.com provides up to date news and information about high tech companies in Southern California, including interviews, a calendar of local events, and a database of technology firms in the region. socalTECH.com has been dedicated to promoting the technology industry in Southern California since 1998, and provides the most in-depth, up-to-date, and focused view of high tech in the Southern California area.
About The David James Agency
The David James Agency LLC specializes in public relations and marketing communications for start-up and emerging technology companies. Founded in 2003, DJA currently services clients in a variety of high-tech industries, including semiconductors, telecom and wireless services and infrastructure, networking, clean power and energy, and enterprise software. More information about The David James Agency LLC is available at www.davidjamesagency.com.