Contact: Paul Greeley, Jr., CAE
American Chamber of Commerce Executives
703/998-3553
Jim Haynes
Behavior Research Center
602/258-4554
BIG BUSINESS MERGER TREND HURTS THEIR COMMUNITIES, CHAMBER LEADERS SAY
Alexandria, VA, January 5, 2000 - In an inaugural survey of Chamber of Commerce chief executive officers across the nation, an early warning sign of what many chamber executives see as another threat to the fabric of communities has been sounded: the seemingly irresistible business trend of mergers and acquisitions during the 80s and 90s is said to be having a negative impact on the nation's cities and towns. Six of ten Chamber CEOs indicate the trend has not been good for their communities.
Discussions with individual Chamber leaders finds them pointing to several areas of concern: loss of high level business leadership to participate in community issues or economic development; lower levels of giving to civic and charitable institutions; and loss of jobs, especially in the executive and managerial ranks.
Belief that the merger and acquisition trend has hurt communities is found across the nation, but is most pronounced in the Northeast where an astonishing 73 percent classify the trend as locally injurious. Chamber leaders in large metropolitan cities are noticeably more likely than those in suburban or rural communities to say their cities have been negatively impacted by the trend.
Chamber executives are generally bullish on both the national and their local economies with a whopping 96 percent rating the U.S. economy as "good" and 84 percent saying the same about their local economy. Only a few see economic conditions at either level as "bad." On the other hand, their expectations of how the economy will fare six months hence reveal a distinctly stronger optimism at the local level. This 40 percent predict improvement at the local level, but only 18 percent forecast the same for the national economy.
These findings are from the ACCE/BRC BusinessTRACKTM Poll, a quarterly study of Chamber of Commerce chief executive officers sponsored by the American Chamber of Commerce Executives, a national association based in Alexandria, VA, and the Behavior Research Center, a national marketing and opinion research firm based in Phoenix, AZ. The study was conducted electronically and had a response rate of 45 percent. It has an estimated margin of error of +/- 4.7 percent.
These studies will also explore and track the views of Chamber executives on economic trends both in their own communities and in the nation as a whole. This first study will provide the baseline reading against which future studies will be measured. Additionally, an Index on Executive Confidence in the Economy will be created and tracked in subsequent surveys.
"The negative effect of mergers and acquisitions is attributable to several factors," said Jim Haynes, project director at Behavior Research Center. "Chamber leaders we talked to following up on this study tell us that when a major employer in a community is acquired by another company, the community suffers a loss of local identity, of local leadership, of local commitment, and usually of jobs."
Paul Greeley, President of ACCE, explains, "We track these trends so we can help our members cope with these issues when they come up. The loss of local leadership and commitment is felt throughout the community, but especially in the non-profit, community service sector where the leadership and the financial support are especially critical."
The mission of the American Chamber of Commerce Executives is to enhance the effectiveness and the personal well being of chamber professionals. Toward this end, ACCE offers products and services that allow executives to develop the professional skills, knowledge and relationships necessary to be successful leaders of their organizations and communities.
ACCE encourages participation by a broad spectrum of members in the association. For more information on ACCE, its leadership or its programs, please contact ACCE, 4232 King Street, Alexandria, Virginia 22302-1507, 800/394-2223, visit ACCE at http://www.acce.org or e-mail your request to [email protected].
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EDITOR'S NOTE: This report is based on an e-mail survey of CEO members of ACCE across the country and accurately reflects their distribution by state and region. A total of 236 responded, a 45 percent response rate. Data was collected during the first week of December, 1999, through the Behavior Research Center E-Mail Survey Division in Phoenix, Arizona.
This statement conforms to the principles of disclosure of the National Council on Public Polls.
Attached: Statistical tables.
STATISTICAL DATA Behavior Research Center
"How would you rate current general business conditions in the United States: good, normal or bad?"
"How would you rate current general business conditions in you community: good, normal or bad?"
Good Normal BadU.S. Community U.S. Community U.S. Community
Total 96% 84% 3% 12% 1% 4%
REGION
Northeast 100 77 0 23 0 0
South 98 84 1 11 1 5
Midwest 97 91 3 8 0 1
West 90 72 7 21 3 7
"Looking ahead six months from now, do you think general business conditions in the U.S. will improve, remain about the same, or get worse?"
"Looking ahead six months from now, do you think general business conditions in your community will improve, remain about the same, or get worse?"
Improve Remain The Same Get WorseU.S. Community U.S. Community U.S. Community
Total 18% 40% 79% 58% 3% 2%
REGION
Northeast 15 27 85 73 0 0
South 20 45 79 53 1 2
Midwest 17 36 79 62 4 2
West 14 41 83 55 3 4
"Has the trend in mergers and acquisitions in the business community in recent years had a generally positive effect, no effect, or a negative effect on your community?"
Positive No Effect Negative
Total 9% 31% 60%REGION
Northeast 4 23 73
South 12 32 56
Midwest 8 40 52
West 7 31 62
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