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Senior Execs Pass on High Energy Costs to Customers


Oct. 1, 2008 (SmartPros) In a national survey of senior U.S. business executives by Grant Thornton LLP, 69 percent have passed increased energy costs on to customers by way of higher pricing.



A majority of those surveyed see no change in the U.S. economy in the next six months, with their hiring to remain constant. But when it came to the prospects of their own company during this same time span, 81 percent were optimistic.

The Grant Thornton Business Optimism Index, a quarterly confidence measure of U.S. business leaders, increased slightly to 57.3 in August 2008 in relation to the 56.1 index in May 2008 and the 56.3 index in February 2008.

Energy: Has the increase in energy costs caused you to increase your costs to your customers?

 Yes, we've significantly raised prices

 28%

 Yes, we've slightly raised prices

 41%

 No, it has had no affect on our business

 31%

U.S. economy: Do you feel the U.S. economy will improve/remain the same/get worse in the next six months?

 Improve

 22%

 Remain the same

 55%

 Worsen

 23%

Business growth: How optimistic are you about the growth of your own business over the next six months - very/somewhat optimistic/pessimistic?

 Very optimistic

18% 

 Somewhat optimistic

 63%

 Somewhat pessimistic

 18%

 Very pessimistic

 1%

Employment: Do you expect the number of people you employ will increase/remain the same/decrease in the next six months?

Increase

37% 

Remain the same

 54%

Decrease

 9%

The survey was conducted between August 18 and August 29, 2008. More than 350 senior executives from various industries responded to the survey.

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