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Entrex PCI Indicates a Subset of Companies Growing Against Current Economic and Historical Trends
Chicago, IL – Aug. 22, 2008 – The Entrex Private Company Index (PCI) saw a 2.2 percent jump based on analysis of July over June revenue data. This news goes against both PCI historical trends for the period and conventional thinking about the effects of the U.S. and Canadian economies continuing a downward slope.
PCI analysts point out that the Index’s increase represents the first July in three years that saw revenue growth over June. In both 2006 and 2007 this period was expressed by an Index fall of 8.6 percent and 5.8 percent, respectively.
Although positive news for this subset of North American private companies, the PCI climb is counter-intuitive to other commonly followed economic indicators. For example, Bloomberg reports that jobless claims (four week average) hit a seven-year high. However, the PCI group represents companies that—in aggregate—are producing ever greater revenues and purportedly maintaining or increasing their staffs to do so.
Leaders of PCI member companies, across the board and regardless of industry, indicate that they are preparing for an impending growth spurt—potentially beginning as soon as Q3 or Q4 2008.
Patrick Whittaker, CEO of Ottawa based Reset Electronics Inc. explains that his company is preparing to start sales in September to capture a portion of the expanding green market share. “We invested time developing our strategy. Our solution is fast, simple to install and will save up to 60% of the energy used by fluorescent lamps.”
Other CEOs are taking advantage of industry downturn to prepare for re-emergence with a different style. Matt Landauer of Denver based ProWorks Flooring says, quite candidly, “This quarter stinks! Cost to acquire business has tripled over this period last year, resulting in revenues that are less than half. We laid-off 70% of our workforce. On the bright side, we are lean and mean. When the economy comes back, we will scale up more slowly with emphasis on higher profit margins.”
About the Entrex Private Company Index (PCI):
Published monthly, the Entrex Private Company Index (PCI) is a proprietary benchmarking tool that measures revenue performance in the sector of private companies with $250 million or less in annual revenue. The PCI is recognized by Investment Professionals and financial media as a leading and authoritative source on private company revenue performance.
The PCI provides the financial markets with the ability to objectively measure private business activity—allowing for historical analysis, comparison and predictive forecasting.
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