IACA 2014 Industry Attitudinal Survey - page 11

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of the industry. Nearly half of the respondents have no feeling one way or another on the
subject.
Outlook and Thoughts
2014
2013
Feel Business Will Grow
55%
53%
Will Not Add Employees
69%
63%
Federal Govt Not
Supportive
33%
32%
Federal Govt Supportive
2%
13%
Cost of Business and Actions Taken
Over 65% of respondents have felt the costs of business increase over the previous 12
months, which is the same as reported in the 2012 market survey
2013
2012
Costs Have Increased
67%
65%
The major contributors to the increase business costs are
inventory costs – 68%
marketing – 52%
materials and supplies – 42%
travel and expenses – 32%
The economic pressures have forced respondents to take a number of actions to offset the
expense increases, including:
Reducing travel – 45%
Price reduction – 42%
Reduce marketing budget – 39%
Reduce stock on hand – 36%
Change product offerings – 36%
Marketing the Business
Overall, 47% of reporting businesses invest less 5%, or less of their annual sales into
marketing and advertising. Nearly 40% however, invest over 5% of their annual sales
into marketing and advertising, with 5% reporting marketing and advertising expenses to
exceed 15% of annual sales.
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