ChangeWave Research: 4Q 2006 / 1Q 2007 Corporate Sales Sector Analysis
ChangeWave Research Report:
4Q 2006 / 1Q 2007 Sector Analysis – Leading & Lagging Industries
Overview: As reported last week, the findings of our most recent Alliance Corporate Sales survey (12/15/06; n = 2,786) point to a modest improvement in 4th Quarter corporate sales, coupled with a major uptick in the capital spending growth rate and a further easing of inflationary pressures.
The findings also pointed to three leading sectors – Computer Hardware/Networking, Transportation/ Aerospace and Telecom – that showed the biggest quarter-to-quarter improvement of all the sectors surveyed.
Table One below presents a snapshot of the findings for each of these leading sectors – compared to the Total Survey findings for all respondents. Note that if you click on the individual sector links, you’ll go to a series of charts highlighting that sector’s survey results.
Table 1: Leading Sectors from 4Q 2006 / 1Q 2007 Corporate Sales Survey
Column A / Column B / Column C / Column DCurrent
Quarter
(4Q)
“Above Plan”
Findings / Current
Quarter
(4Q)
Green Light for Customer Spending / Next
Quarter
(1Q)
Sales Pipeline
Visibility
“Above Plan” / Next
Quarter
(1Q)
Capital Budget
Change Score
(Increase -Decrease)
Survey
Findings / Change From Previous Quarter / Survey
Findings / Change From Previous Quarter / Survey
Findings / Change From Previous Quarter / Survey
Findings / Change From Previous Quarter
TOTAL SURVEY (N=2,786) / 34% / (+2) / 65% / (+5) / 33% / (-1) / 11% / (+11)
Computer Hardware/ Networking / 49% / (+18) / 77% / (+8) / 37% / (+4) / 15% / (+15)
Transportation/Aerospace / 40% / (+11) / 66% / (+15) / 32% / (+2) / 1% / (+7)
Telecom / 32% / (+7) / 62% / (+6) / 36% / (+3) / 6% / (+15)
Lagging Sectors. On the downside, the biggest quarter-over-quarter declines have occurred in Industrial Manufacturing and Natural Gas & Oil.
Table Two below presents the findings for each of these lagging sectors – compared to the Total Survey findings for all respondents. Again, click on the individual sector links and you’ll go to a series of charts highlighting that sector’s survey results.
Table 2: Lagging Sectors from 4Q 2006 / 1Q 2007 Corporate Sales Survey
Column A / Column B / Column C / Column DCurrent
Quarter
(4Q)
“Above Plan”
Findings / Next
Quarter
(4Q)
Green Light for Customer Spending / Current
Quarter
(1Q)
Sales Pipeline
Visibility
“Above Plan” / Next
Quarter
(1Q)
Capital Budget
Change Score
(Increase -Decrease)
Survey
Findings / Change From Previous Quarter / Survey
Findings / Change From Previous Quarter / Survey
Findings / Change From Previous Quarter / Survey
Findings / Change From Previous Quarter
TOTAL SURVEY (N=2,786) / 34% / (+2) / 65% / (+5) / 33% / (-1) / 11% / (+11)
Industrial Manufacturing / 37% / (-7) / 63% / (-5) / 29% / (-12) / 13% / (+9)
Natural Gas / 43% / (-9) / 81% / (+0) / 31% / (-10) / 23% / (+15)
In Sections I and II below, we present a series of charts summarizing the survey findings for each of these Leading and Lagging sectors including:
· 4Q 2006 Sales Results and Comparison with Previous Quarterly Results
· 4Q 2006 Willingness of Existing Customers to Spend Money on Products and Services
· Pricing Pressures in the Current Marketplace
· 1Q 2007 Projected Sales Pipeline and Comparison with Previous Quarterly Results
· 1Q 2007 Capital Spending Results and Comparison with Previous Quarterly Results
In Section III, we present a Summary Chart with the results for the other sectors surveyed.
The ChangeWave Alliance is a group of 10,000 highly qualified business, technology, and medical professionals in leading companies of select industries—credentialed professionals who spend their everyday lives working on the frontline of technological change. ChangeWave surveys its Alliance members on a range of business and investment research and intelligence topics, collects feedback from them electronically, and converts the information into proprietary quantitative and qualitative reports.
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www.ChangeWave.com
Table of Contents
Section I: Leading Sectors
Computer Hardware/Networking 4
Transportation/Aerospace 10
Telecom 16
Section II: Lagging Sectors
Industrial Manufacturing 22
Natural Gas & Oil 28
Section III. 4Q 2006 / 1Q 2007 Corporate Sales Survey Sector Results 34
ChangeWave Research Methodology 35
About ChangeWave Research 36
Section I: Leading Sectors
Alliance Corporate Sales Survey Results
November 28, 2006 – December 6, 2006
Computer Hardware/Networking Sector
TABLE OF CONTENTS
Chart One: 4Q 2006 Sales: Last 8 Surveys Comparison – Alliance Computer Hardware/Networking Sector Survey Results
Chart Two: 4Q 2006 Willingness of Existing Customers to Spend Money on your Company’s Products and Services: Last 8 Surveys Comparison – Alliance Computer Hardware/Networking Sector Survey Results
Chart Three: Pricing Pressures – Alliance Computer Hardware/Networking Sector Survey Results
Chart Four: 1Q 2007 Projected Sales Pipeline: Last 3 Surveys Comparison – Alliance Computer Hardware/Networking Sector Survey Results
Chart Five: 1Q 2007 Capital Spending: Last 3 Surveys Comparison – Alliance Computer Hardware/Networking Sector Survey Results
Chart One
Alliance Computer Hardware/Networking Sector Survey Results –
Quarterly Sales Last 8 Surveys Comparison
Chart Two
Alliance Computer Hardware/Networking Sector Survey Results – Willingness of Existing Customers to Spend Money on your Company’s Products and Services
Chart Three
Alliance Computer Hardware/Networking Sector Survey Results – Price Pressures
*Note that a total of 51% currently report their company’s prices are holding firm in the marketplace.
Chart Four
Alliance Computer Hardware/Networking Sector Survey Results –
3Q 2006 Projected Sales Pipeline (Previous Survey – June ‘06) vs.
4Q 2006 Projected Sales Pipeline (Previous Survey – September ‘06) vs.
1Q 2007 Projected Sales Pipeline (Current Survey – December ‘06)
*Note: 4Q 2006 Projected Sales Pipeline results are taken from the September 2006 Alliance Quarterly Sales Survey.
*Note: 3Q 2006 Projected Sales Pipeline results are taken from the June 2006 Alliance Quarterly Sales Survey.
Chart Five
Alliance Computer Hardware/Networking Sector Survey Results –
3Q 2006 Capital Spending (Previous Survey – June 2006) vs.
4Q 2006 Capital Spending (Previous Survey – September 2006) vs.
1Q 2007 Capital Spending (Current Survey – December 2006)
*Note: 4Q 2006 Capital Spending results are taken from the September 2006 Alliance Quarterly Sales Survey.
*Note: 3Q 2006 Capital Spending results are taken from the June 2006 Alliance Quarterly Sales Survey
Alliance Corporate Sales Survey Results
November 28, 2006 – December 6, 2006
Transportation/Aerospace Sector
TABLE OF CONTENTS
Chart One: 4Q 2006 Sales: Last 8 Surveys Comparison – Alliance Transportation/Aerospace Sector Survey Results
Chart Two: 4Q 2006 Willingness of Existing Customers to Spend Money on your Company’s Products and Services: Last 8 Surveys Comparison – Alliance Transportation/Aerospace Survey Results
Chart Three: Pricing Pressures – Alliance Transportation/Aerospace Sector Survey Results
Chart Four: 1Q 2007 Projected Sales Pipeline: Last 3 Surveys Comparison – Transportation/Aerospace Sector Survey Results
Chart Five: 1Q 2007 Capital Spending: Last 3 Surveys Comparison – Alliance Transportation/Aerospace Sector Survey Results
Chart One
Alliance Transportation/Aerospace Sector Survey Results –
Quarterly Sales Last 8 Surveys Comparison
Chart Two
Alliance Transportation/Aerospace Sector Survey Results – Willingness of Existing Customers to Spend Money on your Company’s Products and Services
Chart Three
Alliance Transportation/Aerospace Sector Survey Results – Price Pressures
*Note that a total of 56% currently report their company’s prices are holding firm in the marketplace.
Chart Four
Alliance Transportation/Aerospace Sector Survey Results –
3Q 2006 Projected Sales Pipeline (Previous Survey – June ‘06) vs.
4Q 2006 Projected Sales Pipeline (Previous Survey – September ‘06) vs.
1Q 2007 Projected Sales Pipeline (Current Survey – December ’06)
*Note: 4Q 2006 Projected Sales Pipeline results are taken from the September 2006 Alliance Quarterly Sales Survey.
*Note: 3Q 2006 Projected Sales Pipeline results are taken from the June 2006 Alliance Quarterly Sales Survey.
Chart Five
Alliance Transportation/Aerospace Sector Survey Results –
3Q 2006 Capital Spending (Previous Survey – June 2006) vs.
4Q 2006 Capital Spending (Previous Survey – September 2006) vs.
1Q 2007 Capital Spending (Current Survey – December 2006)
*Note: 4Q 2006 Capital Spending results are taken from the September 2006 Alliance Quarterly Sales Survey.
*Note: 3Q 2006 Capital Spending results are taken from the June 2006 Alliance Quarterly Sales Survey
Alliance Corporate Sales Survey Results
November 28, 2006 – December 6, 2006
Telecom Sector
TABLE OF CONTENTS
Chart One: 4Q 2006 Sales: Last 8 Surveys Comparison – Alliance Telecom Sector Survey Results
Chart Two: 4Q 2006 Willingness of Existing Customers to Spend Money on your Company’s Products and Services: Last 8 Surveys Comparison – Alliance Telecom Sector Survey Results
Chart Three: Pricing Pressures – Alliance Telecom Sector Survey Results
Chart Four: 1Q 2007 Projected Sales Pipeline: Last 3 Surveys Comparison – Alliance Telecom Sector Survey Results
Chart Five: 1Q 2007 Capital Spending: Last 3 Surveys Comparison – Alliance Telecom Sector Survey Results
Chart One
Alliance Telecom Sector Survey Results –
Quarterly Sales Last 8 Surveys Comparison
Chart Two
Alliance Telecom Sector Survey Results – Willingness of Existing Customers to Spend Money on your Company’s Products and Services
Chart Three
Alliance Telecom Sector Survey Results – Price Pressures
*Note that a total of 58% currently report their company’s prices are holding firm in the marketplace.
Chart Four
Alliance Telecom Sector Survey Results –
3Q 2006 Projected Sales Pipeline (Previous Survey – June ‘06) vs.
4Q 2006 Projected Sales Pipeline (Previous Survey – September ‘06) vs.
1Q 2007 Projected Sales Pipeline (Current Survey – December ’06)
*Note: 4Q 2006 Projected Sales Pipeline results are taken from the September 2006 Alliance Quarterly Sales Survey.
*Note: 3Q 2006 Projected Sales Pipeline results are taken from the June 2006 Alliance Quarterly Sales Survey.
Chart Five
Alliance Telecom Sector Survey Results –
3Q 2006 Capital Spending (Previous Survey – June 2006) vs.
4Q 2006 Capital Spending (Previous Survey – September 2006) vs.
1Q 2007 Capital Spending (Current Survey – December 2006)
*Note: 4Q 2006 Capital Spending results are taken from the September 2006 Alliance Quarterly Sales Survey.
*Note: 3Q 2006 Capital Spending results are taken from the June 2006 Alliance Quarterly Sales Survey
Section II: Lagging Sectors
Alliance Corporate Sales Survey Results
November 28, 2006 – December 6, 2006
Industrial Manufacturing Sector
TABLE OF CONTENTS
Chart One: 4Q 2006 Sales: Last 5 Surveys Comparison – Alliance Industrial Manufacturing Sector Survey Results
Chart Two: 4Q 2006 Willingness of Existing Customers to Spend Money on your Company’s Products and Services: Last 5 Surveys Comparison – Alliance Industrial Manufacturing Sector Survey Results
Chart Three: Pricing Pressures – Alliance Industrial Manufacturing Sector Survey Results
Chart Four: 1Q 2007 Projected Sales Pipeline: Last 3 Surveys Comparison – Alliance Industrial Manufacturing Sector Survey Results
Chart Five: 1Q 2007 Capital Spending: Last 3 Surveys Comparison – Alliance Industrial Manufacturing Sector Survey Results
Chart One
Alliance Industrial Manufacturing Sector Survey Results –
Quarterly Sales Last 5 Surveys Comparison
Chart Two
Alliance Industrial Manufacturing Sector Survey Results –Willingness of Existing Customers to Spend Money on your Company’s Products and Services
Chart Three
Alliance Industrial Manufacturing Sector Survey Results – Price Pressures
*Note that a total of 52% currently report their company’s prices are holding firm in the marketplace.
Chart Four
Alliance Industrial Manufacturing Sector Survey Results –
3Q 2006 Projected Sales Pipeline (Previous Survey – June ‘06) vs.
4Q 2006 Projected Sales Pipeline (Previous Survey – September ‘06) vs.
1Q 2007 Projected Sales Pipeline (Current Survey – December ’06)
*Note: 4Q 2006 Projected Sales Pipeline results are taken from the September 2006 Alliance Quarterly Sales Survey.
*Note: 3Q 2006 Projected Sales Pipeline results are taken from the June 2006 Alliance Quarterly Sales Survey.
Chart Five
Alliance Industrial Manufacturing Sector Survey Results –
3Q 2006 Capital Spending (Previous Survey – June 2006) vs.
4Q 2006 Capital Spending (Previous Survey – September 2006) vs.
1Q 2007 Capital Spending (Current Survey – December 2006)
*Note: 4Q 2006 Capital Spending results are taken from the September 2006 Alliance Quarterly Sales Survey.
*Note: 3Q 2006 Capital Spending results are taken from the June 2006 Alliance Quarterly Sales Survey
Alliance Corporate Sales Survey Results
November 28, 2006 – December 6, 2006
Natural Gas and Oil Sector
TABLE OF CONTENTS
Chart One: 4Q 2006 Sales: Last 8 Surveys Comparison – Alliance Natural Gas and Oil Sector Survey Results
Chart Two: 4Q 2006 Willingness of Existing Customers to Spend Money on your Company’s Products and Services: Last 8 Surveys Comparison – Alliance Natural Gas and Oil Sector Survey Results
Chart Three: Pricing Pressures – Alliance Natural Gas and Oil Sector Survey Results
Chart Four: 1Q 2007 Projected Sales Pipeline: Last 3 Surveys Comparison – Alliance Natural Gas and Oil Sector Survey Results
Chart Five: 1Q 2007 Capital Spending: Last 3 Surveys Comparison – Alliance Natural Gas and Oil Sector Survey Results
Chart One
Alliance Natural Gas and Oil Sector Survey Results –
Quarterly Sales Last 8 Surveys Comparison
Chart Two
Alliance Natural Gas and Oil Sector Survey Results –Willingness of Existing Customers to Spend Money on your Company’s Products and Services
Chart Three
Alliance Natural Gas and Oil Sector Survey Results – Price Pressures
*Note that a total of 56% currently report their company’s prices are holding firm in the marketplace.
Chart Four
Alliance Natural Gas and Oil Sector Survey Results –
3Q 2006 Projected Sales Pipeline (Previous Survey – June ‘06) vs.
4Q 2006 Projected Sales Pipeline (Previous Survey – September ‘06) vs.
1Q 2007 Projected Sales Pipeline (Current Survey – December ’06)
*Note: 4Q 2006 Projected Sales Pipeline results are taken from the September 2006 Alliance Quarterly Sales Survey.
*Note: 3Q 2006 Projected Sales Pipeline results are taken from the June 2006 Alliance Quarterly Sales Survey.
Chart Five
Alliance Natural Gas and Oil Sector Survey Results –
3Q 2006 Capital Spending (Previous Survey – June 2006) vs.
4Q 2006 Capital Spending (Previous Survey – September 2006) vs.
1Q 2007 Capital Spending (Current Survey – December 2006)