Special Questions

Texas Manufacturing Outlook Survey

Data were collected April 11–19, and 81 Texas manufacturers responded to the survey.

NOTE: 80 responses.

NOTES: 47 responses. This question was only posed to those currently trying to hire or recall workers.

NOTE: 81 responses.

NOTES: 58 responses. These calculations exclude respondents that answered “Not applicable—haven’t sought credit,” which represented 33.1 percent of responses.

NOTES: 55 responses. These calculations exclude respondents that answered “Not applicable—haven’t sought credit,” which represented 30.4 percent of responses in Apr. '23, 37.9 percent of responses in Sept. '22, 35.0 percent of responses in Oct. '21, 33.3 percent of responses in Oct. '20, 39.4 percent of responses in Oct. '19, 43.5 percent of responses in Oct. '18, and 47.2 percent of responses in Oct. '17.

NOTES: 51 responses. These calculations exclude respondents that answered “Not applicable—haven’t sought credit,” which represented 36.3 percent of responses in Apr. '23, 34.5 percent of responses in Sept. '22, 29.0 percent of responses in Oct. '21, 28.9 percent of responses in Oct. '20, 36.9 percent of responses in Oct. '19, 41.7 percent of responses in Oct. '18, and 43.5 percent of responses in Oct. '17.

Texas Service Sector Outlook Survey

Data were collected April 11–19, and 289 Texas business executives responded to the survey.

NOTE: 285 responses.

NOTES: 140 responses. This question was only posed to those currently trying to hire or recall workers.

NOTE: 282 responses.

NOTES: 183 responses. These calculations exclude respondents that answered “Not applicable—haven’t sought credit,” which represented 34.9 percent of responses.

NOTES: 160 responses. These calculations exclude respondents that answered “Not applicable—haven’t sought credit,” which represented 43.1 percent of responses in Apr. '23, 49.0 percent of responses in Sept. '22, 44.3 percent of responses in Oct. '21, 49.0 percent of responses in Oct. '20, 54.3 percent of responses in Oct. '19, 52.6 percent of responses in Oct. '18, and 48.1 percent of responses in Oct. '17.

NOTES: 159 responses. These calculations exclude respondents that answered “Not applicable—haven’t sought credit,” which represented 43.4 percent of responses in Apr. '23, 47.3 percent of responses in Sept. '22, 45.9 percent of responses in Oct. '21, 47.7 percent of responses in Oct. '20, 52.3 percent of responses in Oct. '19, 47.4 percent of responses in Oct. '18, and 46.6 percent of responses in Oct. '17.

Texas Retail Outlook Survey

Data were collected April 11–19, and 59 Texas retailers responded to the survey.

NOTE: 57 responses.

NOTES: 25 responses. This question was only posed to those currently trying to hire or recall workers.

NOTE: 57 responses.

NOTES: 41 responses. These calculations exclude respondents that answered “Not applicable—haven’t sought credit,” which represented 28.1 percent of responses.

NOTES: 39 responses. These calculations exclude respondents that answered “Not applicable—haven’t sought credit,” which represented 31.6 percent of responses in Apr. '23, 41.4 percent of responses in Sept. '22, 53.2 percent of responses in Oct. '21, 45.8 percent of responses in Oct. '20, 54.5 percent of responses in Oct. '19, 48.3 percent of responses in Oct. '18, and 39.3 percent of responses in Oct. '17.

NOTES: 34 responses. These calculations exclude respondents that answered “Not applicable—haven’t sought credit,” which represented 40.4 percent of responses in Apr. '23, 36.8 percent of responses in Sept. '22, 53.2 percent of responses in Oct. '21, 41.7 percent of responses in Oct. '20, 50.0 percent of responses in Oct. '19, 44.8 percent of responses in Oct. '18, and 40.4 percent of responses in Oct. '17.

Special Questions Comments

These comments have been edited for publication.

Texas Manufacturing Outlook Survey

• We have had a $1 million line of credit established with our bank for a number of years and have not required any additional credit facility.
• No difficulty, as we go to bond markets for a modest amount of debt. We generate enough free cash flow to fund our expansion needs (which are significant right now) and have a strong cash position too, if needed.

• We are debt free and do not borrow. We do have a $1 million revolving line of credit in place.
• Credit has been challenging. We’re currently paying 10 percent per annum on a working capital line of credit.

• With this horrid economy, debt is the last thing on the list.

• Banking is not the problem. Finding customers who need to buy is. Don’t worry about the banks; worry about the coming recession.

Texas Service Sector Outlook Survey

• Economic conditions are tighter than usual since the [interest] rates have gone up.

• The higher cost of debt is having a heavier impact on our franchise owners than us directly.

• Availability of credit is still reasonable, yet the costs have increased significantly due to rising interest rates overall.

• State laws impacting local government's ability to use banks that have an environmental, social and governance (ESG) strategy will force us to attempt to find a new bank, which will be a challenge because of our business volume and required protections. We have some longer-term debt and some operational debt that will make our revenue grow slower than anticipated.

• We are not looking for financing currently.
• We are looking for help from the Small Business Administration or other government-related entities to help small business.
• We have not seen any significant slowdown in construction projects moving forward.

• The real estate markets are completely locked up now. It is imperative we return certainty via a stabilized interest rate policy.
• As a service business, we're OK, but several of our clients are starting to get desperate.

• We continue to be able to solicit term sheets and offers from equity investors and lenders (both conventional and private), but the terms are highly structured and restrictive. Overall, the environment is not transaction friendly. It took six months to raise an amount that in years past took half that time. Our company was previously rewarded for high growth rates, and our organization was designed to facilitate such growth. Today, however, those same decisions are hampering our ability to raise capital with the terms we desire. We are therefore making significant organizational changes, including reducing force by hundreds of employees, to ensure we can meet the demands of investors and lenders in this market.
• Available funds for tech companies are tighter currently.

• We are currently sitting on a substantial cash surplus, but we also have an untapped line of credit at our disposal.

• We are not your typical construction machinery dealer. We have preserved and built cash through the pandemic, so financing is not a problem.

Texas Retail Outlook Survey

• We repeatedly hire workers, then they don't show up or quit soon after they are hired. We have never had this kind of problem before.

• Interest rates are high, so [we are] trying not to use debt.

• The interest hikes are eliminating small businesses’ capacity to borrow and stay in business. The environment is extremely hostile; economic activity has diminished in our area.

• Volatility in the credit markets has raised caution amongst the regional bank managers with whom we work daily.
• We use small community banks for real estate purchases. We pay cash for all remodeling, equipment and vehicle purchases.