Semper International's First Quarter Insight Survey continues to see a marked deterioration in positives. In fact, of the many data points we gathered, we only found one rising result. It appears our industry is not immune from this downward trend with profits reducing, lay-offs planned, and a slow start to sales in the New Year. Despite the pressures, a majority in the industry are forecasting an increase in sales for the First Quarter 2016, and capital investment and diversification efforts are still ongoing
Here are some interesting insights from the report:
- Industry sales have slowed, with firms experiencing increased recent sales dropped from 42% to 28%
- The cost of labor has increased, with a 100% rise in firms reporting base pay increases this quarter up to 45%
- Net revenues declined significantly, with 60% of reporting companies indicating margins below 5%
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