Brian Klein, President of UMTMA, Offers Commentary on Release of Survey Results Forecasting Continued Economic Decline

Brian Klein, president of the Upper Midwest Chapter of the Turnaround Management Association (UMTMA) and Chair of Maslon's Financial Services Group, provided commentary with the release of UMTMA survey results forecasting continued economic decline. The March 2008 State of the Economy Survey was based on the perceptions of 175 UMTMA members of how the national economic decline is affecting the Twin Cities' and regional economy and how that decline is impacting demand for turnaround-related services. Fifty-four members responded to the survey.

According to the UMTMA survey:

• Members of UMTMA are seeing an increase in the number of companies seeking assistance in resolving financial and operational difficulties.

• 86% of respondents somewhat or highly agree that the effects of the national economic situation will be felt by the Twin Cities economy in the next three to six months.

• More than 70% of respondents said they've seen an increase in turnaround activity in the past year.

• More than 85% expect even greater demand for turnaround services in the next 12 months.

• The greatest need will be in the following industries: real estate, construction, retail, financial services and manufacturing.

• 54% of respondents also stated that they have seen a significant tightening in local credit markets.

"The Twin Cities is fortunate to have a robust and diverse business climate," Klein stated, "but we're not immune to the problems making headlines nationally. UMTMA's members have a unique perspective; they are the 'emergency room' physicians when companies hit hard times. They witness the impact of economic decline firsthand. These survey results indicate that companies need to be more diligent in managing their finances and operations to survive in a declining economy. Our hope is that local businesses are better prepared than most to weather the challenging times that lie ahead."

View the UMTMA State of the Economy Survey.
View the UMTMA Press Release.