September 2008 Economic Snapshot Survey - InfoComm

Comments from respondents on the current lending climate:
Commercial AV is very good.
Costs of all purchased goods are adding up. I'm not sure
the prices have finished increasing at such a rapid rate.
The further away (tech items tend to be from the Far
East) the more transportation costs affect us.
I believe that current negative economic indicators have
led to higher competitiveness, with more quotes
requested, but lower contract signature rates.
Increases in our line to fuel our growth potential are hard
to come by in this tight credit market.
Interest rates are lower on line of credit which helps fund
growth.
Lower interest rates certainly make cost of working
capital better.
My employees have felt the effects of rising costs, and
we have worked to offset that in some small ways; free
dinner packages to top performers, helping with their gas
costs, small gestures we can afford better than direct
raises or cash bonuses.
No factor for us, as we do not rely on lending for our
business. Sales are based on budgeted capital equipment
expenditures, not financed. PS Comment on number 8, I
do not want the White House or Congress involved in my
business at all - let them build roads, dams etc.
No major input yet, but we could potentially experience a
future downturn due to a currently slow real estate
development market.
Projects are going to be "green", using eco-friendly
materials.
Reduced availability of loans affects my customers'
ability to maintain proper cash levels. As a result they
cannot spend the cash needed to take advantage of
business opportunities.
Some projects cancelled or delayed due to funding
difficulties.
Some tightening by suppliers, but this is good. Some of
the less substantial companies will fail.
The home market is in the dump and the foreclosures,
short sales, and the squeeze to the consumers pocket
book is affecting overall tax base for local and regional
government spending, churches, schools, and others. I
call the problem the "Trickle Up Syndrome" While
consumers lose their homes, reduce the tax base for the
counties and local government, have less to give to their
HOW and charities then the dollars do not trickle up to
the organizations that buy from our industry.
The reluctance of the US government to act on the
education loan crisis may have a longer term affect on the
education market. Not here yet, but could be coming
soon.
US decisions and conditions do have an effect on the
local economy in Australia, but of course not as directly
as in the US itself.
We recently changed banks because the one we'd used
for years was suddenly panicking over the amount of
outstanding loans they owned and changed their policies
and repayment structures to an unreasonable level - for
legitimate healthy customers as well as their defaulting
ones. As such, we found a smaller regional bank that
actually looked at OUR finances and agreed that we were
not a risky customer. We moved all of our corporate
monies from the national bank to the regional one
(including the loan/line of credit) and have been much
happier.
We recently refinanced all long-term debt and will save
$22,000 in interest expense over two years.
InfoComm 2008 International Economic Snapshot Survey Page 19
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