Middle-market execs see stability on the horizon

The majority of executives at middle-market firms expect the financial crisis will bottom out within the next year, according to a survey released today by CIT Group Inc., a financial advisory services firm. Fifty-two percent of the 150 senior executives surveyed in December and January by Forbes Insights on behalf of CIT Group said they expected the market downturn will bottom out in the next six to 12 months. Another 28% of respondents said it would happen within six months. Survey participants work at companies with annual revenues between $25 million and $1 billion. Most expect stability at their companies in the coming months as well. A full 41% of participants said they expected revenue to grow and 23% said they expected stable revenue. But 36% predicted revenue will decline. Containing costs was an issue for most firms. Thirty-six percent of respondents said they planned to cut capital expenditures this year, and another 36% said they would maintain the same level this year as last year. Just 28% said they planned to spend more. More than half of the respondents said they expected to cut staff. Most executives said they are delaying long-term plans for their firms, with 21% reporting they’ve shelved plant and equipment investments, and 16% said they weren’t going to invest in new technology. Middle-market companies account for more than $6 trillion in annual sales and employ nearly 32 million people, the firm reported. Forbes Insights is the research unit of Forbes of New York.