Knoxville, Tenn. – Add “vacations without pay” to layoffs, cutbacks, no raises or bonuses, and elimination of matching 401K payments.

The latest quarterly survey of East Tennessee business leaders by Ackermann PR shows cost cutting is not yet over.  However, despite the continued economic problems, business leaders are cautiously optimistic about the future.

“While vacations without pay were occasionally mentioned in our previous surveys, this is the first time that this was named as a strategy by approximately half of our respondents,” said Cathy Ackermann, President and CEO of Ackermann PR.  “Employers are obviously looking at every available means to try to keep their businesses viable during this economic storm.”

Additionally, East Tennessee is not finished with lay-offs.  A majority of survey respondents – 70 percent – anticipate additional lay-offs at their businesses between now and the end of 2009.

However, almost 90% of the respondents expect their business outlook and revenues to improve in 2010, with most also predicting an end to the recession by December, 2010.  This reflects more optimism than was cited in the two previous Ackermann PR surveys when a substantial number of participants thought the recession would last 3-5 years.

Sent to approximately 300 business leaders in East Tennessee, the survey also listed broad areas of concern.  The top three worrisome areas were:  continuing tight credit for businesses, high unemployment and the national debt.  Lower-ranked concerns included the housing market, the stock market, and government bail outs.  This contrasts with the first-quarter survey, which listed government bail-outs as the number-one concern.

Predictions relative to business volumes/revenues for the third and fourth quarters of 2009 were as follows:

• 60 percent predict a modest increase (up from 50 percent last time)
• 15 percent predict a decrease (compared to 28 percent)
• 10 percent predict a significant increase (down from 12.5 percent)
• 15 percent predict no change from the first half of the year to the second half (compared to 9.5 percent).

“Comparing this quarter’s answers to last quarter’s, more business executives think their revenues will either stay the same or increase modestly,” said Ackermann.  “Fewer CEO’s think that their revenues will either increase dramatically or decrease.  They are tending now toward more conservative middle ground.”

About Ackermann PR
Ackermann PR is a full-service, integrated marketing and communications firm providing strategic consulting, public relations and marketing.

Media Contact
Mike Cohen
Ackermann PR
(865) 584-0550
mcohen@ackermannpr.com