Special Questions

Texas Manufacturing Outlook Survey

Data were collected Oct. 13-21, and 63 Texas manufacturers responded to the survey.

NOTES: 63 responses.

NOTE: 63 responses.

NOTE: 63 responses.

NOTES: 25 responses. This question was only posed to those who said their cost of credit has increased over the past 12 months.

Survey respondents were given the opportunity to also provide comments, which can be found in the Comments tab above.

Texas Service Sector Outlook Survey

Data were collected Oct. 13-21, and 220 Texas business executives responded to the survey.

NOTES: 220 responses.

NOTE: 220 responses.

NOTE: 220 responses.

NOTES: 71 responses. This question was only posed to those who said their cost of credit has increased over the past 12 months.

Survey respondents were given the opportunity to also provide comments, which can be found in the Comments tab above.

Special questions comments

Survey participants are given the opportunity to submit comments. Some comments have been edited for grammar and clarity.

• We had been interested in acquiring real estate or purchasing an existing brewery to create an additional location for us. The cost of borrowing has made us pause on this.

• We just refinanced our commercial mortgage two years before it was due. We paid a 15-basis-point higher rate, but this locked in a 5-year fixed rate plus a 5-year renewal option at prime plus 25 basis points. I expect higher rates to persist, and business is good right now, so I went ahead and locked this in now rather than wait 18 months and try to refinance in a potentially higher-rate environment with unknown business conditions.

• We will increase prices and pay down debt faster because we can. We’ve also increased the top people’s wages to keep them competitive with other companies so we don’t lose our key personnel. We’ve also seen no complaints from our customers about price increases, probably because they have to do the same.

• Overall business activity has been strong. We still struggle to fill or maintain production jobs. In many cases, it takes two or three different hires until one stays. It is troublesome, especially considering we are based in a small town. We're one of the highest-paying companies in the area, but often people still cite "you don't pay enough" as their excuse for leaving.

• The problem with financing is customers’ inability to obtain it.

• We fund working capital on cards rather than a bank line; the APR is up 1.5 points to the issuer’s 29.99 percent ceiling in seven months. Appraisal fees are based upon individual bids from multiple appraisers. If I increase prices, my bids are no longer competitive. Therefore, I focus on niche assignments like expert witness work and public sector work, like city, county and state agencies.
• We have an open line of credit with a Texas-based strong regional bank and a good banking relationship. We have not considered a more fixed-rate longer-term loan.

• Our business overall has very low leverage.

• We are in growth mode, so we're having to bear the higher cost of our working line of credit. We proactively manage the exposure on the line, so we're trying to keep the borrowing costs as low as possible.

• AI use has improved productivity of small companies like ours a lot. We can fix a software coding issue in two days that used to take 14-21 days.
• We have used credit card debt due to slow payment on an invoice.
• We try to run a cash business. We do not finance much of our activities.
• Actions [taken in response to the higher cost of credit] also include increased partnership with other companies where procurement opportunities and win strategy align.

• As a pure service business that operates very conservatively, our capital needs are minimal, and our operations and growth are mostly self-financed.
• Lenders seem to be increasing requirements. We will pay down debt to help weather the storm.

• We are a debt-free, 66-year-old family-owned construction equipment dealership. Where credit affects us is in our retail credit lines available to customers that buy equipment from us. That has obviously gotten much more expensive and more restrictive.