For many growth companies, the economic recovery is more than a mirage. In a late-1992 survey of 300 growth companies (with revenues of $1 million to $50 million) by Coopers & Lybrand, CEOs reported sizable increases in their investment plans. On average, companies planned to invest 11.8% of their revenues, up from 10.5% in 1991. (The intended source of the capital: both internal funds and money from outside sources.) Manufacturers planned far bigger increases than service firms did. The survey asked CEOs what they intended to boost spending on in the coming year.
Percent of respondents
1991 1992
Sales promotion 31% 45%
New-product development 35 44
Information technology 27 43
Geographic expansion 32 37
Facility expansion 31 34
Research and development 27 33
Acquisitions 14 23
Source: "Coopers & Lybrand Trendsetter Barometer," New York City, 1992.