specialreport
BY JAMES A. COOKE, EDITOR AT LARGE
Respondents to our 2011 Outlook Survey
remain cautiously optimistic about the
economy. But they’re not ready to throttle
down their cost-cutting efforts just yet.
Muted hopes
for recovery
WHAT’S ON TAP FOR 2011? THE LEADING PROFESSIONAL ASSOCIATION
for business forecasters—The National Association for Business Economics—
expects moderate growth for the year overall, with gross domestic product inching up 2. 6 percent. Most DC VELOCITY readers apparently see things much the
same way, expressing guarded optimism about the year ahead.
Our annual Outlook survey of readers found that 52 percent were optimistic
that economic conditions will improve. Just 22 percent said they remained pes-
simistic about the nation’s economic future, while 26 percent said they were
unsure what 2011 would hold.
The online poll was conducted in early November just after the mid-term elections. A total of 193 readers took part in the survey. The majority of the respondents said they worked for manufacturers ( 33 percent) or distributors ( 27 percent). The remainder worked for logistics service providers ( 20 percent), retailers
( 11 percent), or other types of businesses ( 9 percent).
Although survey respondents were generally hopeful about the future, only a
handful expect the economy to come roaring back. Just 15 percent said they
thought the U.S. economy would see strong growth in 2011. Another 48 percent
predicted weak growth, and 34 percent said business would be flat. Three percent
declined to speculate.
When it came to their own company’s revenue prospects for 2011, respondents
were more bullish than they were about the overall economy. Thirty-seven percent
foresaw strong sales growth for their companies, and 22 percent said they expected at least weak growth. Another 35 percent predicted sales would be flat, while 6
percent said they were unsure how their companies would fare in the coming year.
BRACING FOR HIGHER FUEL COSTS
Despite their optimism, the survey respondents clearly plan to hold the line on
spending this year. When asked about their 2011 spending plans for logistics and
related products and services, 48 percent of respondents said they expected their
expenditures to remain at 2010 levels. Only 36 percent said they thought their
companies would boost their spending. Another 8 percent expect a drop in company spending, while the same percentage said they were unsure about their
