On average just under half (45.7%) of U.S. small businesses expect
international trade conditions to improve in 2016, according to
research conducted by Western Union Business Solutions, a division
of the Western Union Company (NYSE:WU).
The findings are a result of independent interviews with nearly
2,200 randomly selected larger, medium, and micro-sized businesses
(SMBs) across the nation.
Larger SMEs are most optimistic. The survey found that 68
percent of larger SMBs ($20-100 million in annual revenue) expect
international trade conditions to improve, while 43 percent of
mid-sized SMBs ($5-20 million in annual revenues) and 38.1 percent
of micro SMBs ($1-5 million in annual revenue) expect
improvement.
The survey also found that U.S. SMBs are sharply divided in how
prepared they are to deal with the effects of a stronger U.S.
dollar (USD). Of the larger SMBs surveyed, 42 percent already have
existing structures in place to leverage the strength of the USD,
with a further 47 percent planning to put them in place. In
contrast, only 4.3 percent of mid-sized SMEs ($5-20 million in
annual revenues) have a defined plan to address the strength of the
USD with another 16 percent ready to install a strategy that
prepares to promote their international growth strategy.
Additionally the survey found:
- An average of 56 percent surveyed believe business costs have
fallen compared to one year ago.
- Two-thirds (67 percent) of all businesses surveyed believe
falling energy costs have greatly or somewhat helped their
international trade.
- Over 90 percent of businesses surveyed said the strength of the
USD has affected their business.
“Our survey found that while small businesses are reporting a
strong tailwind from falling energy costs and lower business costs,
almost all are also contending with the effects of a strong
dollar,” said Scott Smith, North American Managing Director,
Western Union Business Solutions. “These currency conditions are a
fundamental aspect of business planning to manage exposures to both
large economies, like China and India, or smaller ones, such as
Greece. Small businesses’ sensitivity to commodity pricing
highlights the delicate nature of this segment’s profitability,
which can be offset by payment strategies such as currency
hedging.”
2016 Spending
The survey found that technology investment is a top priority
for SMBs in the U.S over the next six months. On average, the
survey found that 74 percent of the larger SMBs is making a
technology investment during this period, while 63 percent of
mid-sized SMBs say they will be doing so, and just under half
percent of micro SMBs said they would.
Of the U.S. importers and exporters with active plans to grow
their business investment, 30.8 percent report that expansion is
focused on technology support, with larger SMBs (37%) and micro
SMBs (31.6%) most focused on technology investment.
Online sales channels and Internet marketing represent the bulk
of the remaining intended investment in the first half of 2016 (24
percent of all SMBs), followed by increased export market
development (14.2%), and new product releases (13.7%).
“Effectively used, technology remains the most powerful tool a
global small business can deploy,” continued Smith. “These
businesses are making powerful technology investments to cut time
and expense from their businesses, and shorten the sourcing and
delivery of their products and services to global markets.”
Operating in a Volatile World
The survey found that larger SMBs spend an average of 26.4 hours
per week on payment issues compared to an average of 8 hours weekly
for medium-sized SMBs and 4 hours weekly for micro SMBs. It is
Western Union’s general experience that smaller SMBs have fewer
employees, so the burden of payment issues is likely much greater
in smaller businesses.
Smith added, “Since compressed margins are the biggest current
challenge facing U.S. business owners, this emerges as a key focus
area for FX providers. Providing dedicated support, education and
guidance on the costs of hedging and risk management are vitally
important for less sophisticated SMEs and micro businesses who are
clearly exposed to a strengthening USD. The smaller the business,
the less time, planning and strategic direction they have to plan
and manage their currency exposure. They are unlikely to devote
time to foreign currency management and invoice tracking.”
In fact, cash flow is a major challenge for many SMBs. Nearly 60
percent of both Larger SMBs and Micro SMBs report squeezed margins
as the leading challenge. Mid-sized SMBs say their leading
cash-flow-related challenges are falling sales revenue (37.4%)
along with squeezed margins (32.9%).
Cash flow is all the more important for SMBs when we look at the
financing they report using. Fewer firms are using equity to
finance their business (37.2 percent), instead predominantly opting
to source working capital solutions (82 percent) or secured debt
lines (77 percent).
The survey was conducted in October and November, 2015, by East
& Partners and included 2,196 U.S. companies engaged in
international trade. Of the companies surveyed, nearly half (43%)
of the participants surveyed are business owners or CEOs, while the
others are either CFOs, finance directors, or treasurers.
Participating companies hailed from a variety of industry sectors,
including property and business services (13%), retail (11%),
construction (10%), manufacturing (10%), transport and storage
(8%), and wholesale (6%). About 42% of survey respondents are from
businesses based in New York and other parts of the East Coast,
while 27% are California or West Coast-based, and 31% from the
Midwest and other regions. The margin of error associated with this
level of reporting is +/- 2.0% at a 95% confidence level.
Western Union Business Solutions enables companies of all
sizes to send and receive international payments and manage global
cash flow, creating unique solutions tailored to suit their
individual needs. It is a business unit of the Western Union
Company (NYSE:WU), a leading nonbank provider of cross border
payments, which offers Business Solutions services in over 30
countries. Clients are supported by a network of trading
offices, strategic banking relationships and a global clearing
network and can send cross-border foreign exchange payments in more
than 135 currencies.
About Western UnionThe Western Union Company
(NYSE:WU) is a leader in global payment services. Together with its
Vigo, Orlandi Valuta, Pago Facil and Western Union Business
Solutions branded payment services, Western Union provides
consumers and businesses with fast, reliable and convenient ways to
send and receive money around the world, to send payments and to
purchase money orders. As of December 31, 2015, the Western Union,
Vigo and Orlandi Valuta branded services were offered through a
combined network of over 500,000 agent locations in 200 countries
and territories and over 100,000 ATMs and kiosks, and included the
capability to send money to over one billion accounts. In 2015, The
Western Union Company completed 262 million consumer-to-consumer
transactions worldwide, moving $82 billion of principal between
consumers, and 508 million business payments. For more information,
visit www.westernunion.com.
Media Contacts:
Liesl Smith
Western Union Business Solutions
+44 (0) 208 563-6347
Liesl.Smith@westernunion.com
John McInerney
Makovsky
T: +1 212-508-9628
M: +1 646-291-7024
jmcinerney@makovsky.com
Western Union (NYSE:WU)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Western Union (NYSE:WU)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024