CEO DATELINE - More associations report negative economic impact, pessimism
CEO DATELINE - More associations report negative economic impact, pessimism
- April 28, 2016 |
- WILLIAM EHART
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The percentage of associations reporting worse-than-expected economic conditions in their industries is the highest in five years, according to a study by McKinley Advisors.
The consulting firm's 2016 Economic Impact on Associations Report shows that 13 percent of responding associations said their groups were being more negatively affected by the economy than expected.
That is the most since 16 percent responded the same way in 2011. By contrast, 28 percent of responding groups reported that situation in 2010.
Thirty-two percent reported better-than-expected impact—the lowest of the seven years covered by the study—and 55 percent said the economy affected their associations as expected.
Similarly, pessimism for the upcoming year rose. Thirteen percent reported they were "very pessimistic" about the next year—again the highest since 2011 and well above the 8 percent recorded last year. Yet the number saying they were very optimistic—28 percent—remained much stronger than in 2012 and 2013 and just a notch below the 29 percent recorded in 2015.
The pessimism is not reflected in hiring and expected hiring. Sixty-nine percent of respondents said they added positions in 2015, and the same number indicated they expect to add more staff this year. Both figures were the highest since McKinley first started asking the question in 2011. In 2015, 67 percent said they had added staff and the same percentage said they planned to add more. By contrast, only 48 percent answered yes to those questions in 2011.
The report was based on an online survey completed in January and February by 277 association executives.
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