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Brian Hamilton, Sageworks CEO, on the struggles private companies are having due to economic uncertainty.
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A privately held companies have been shrinking sales growth recently.
-- have a significant impact on job creation and GDP growth.
Joining -- of the -- is facing private companies is the co-founder and CEO of -- works incorporated.
Brian Hamilton Brian it's good to have you back I think one thing that a lot of us -- I sure did was that private companies drive 50% of GDP the world is up about publicly.
Take at least 226 million companies but only 5000 of which are publicly traded so.
The vast amount of energy is generated by these private companies and job growth 65% of job growth comes from privately held on at least and here's the thing for the past two years you know this who've been on before write these companies have been growing very well but they're rate of growth is down by 50% in the past six months.
So -- get a little bit concerned this script is still at five point 4% but they're saying that it says slower amount of growth -- there expect no question remember last year was 89% the year before about 10% so.
When it goes down by that much we get really concerned about next year in jobs obviously OK so what will what's the reason what are they concerned about will look.
It's not -- they're concerned they're always concerned when their sales were going down these are main -- companies and when they have less money coming in the front door.
That's an issue means their customers are buying less right now by about 50%.
Usually this -- it is a precursor asked what's gonna happen in the future.
So that's what -- got you the data because really it's the first time it's aboriginal data where.
Over the past two years we give -- good news right now but in the last six months it's not so hot so.
The trend is more important than the number and you're seeing the trend is down way down so why what's the what are -- reasons they're telling you okay.
No one -- all right but remember word about.
36 months of recovery right I mean the news has been good not great on the GDP front but going operate.
But we've had a recovery.
The average expansionary cycles about four years -- to 37 months what we're concerned about we don't know but is does this mean that.
A recession is wrong -- corner we don't know yet.
But we don't like that re.
Of growth going down in its way down.
It's it it's just -- things the right still nervous about the future New -- -- the uncertainty.
Interestingly it can't corresponds with this.
-- FIB's small business optimism index as well they have the same concerns run.
Well they've had those for a while they certainly have here's the thing -- Fundamentally these companies have done very well for about.
Two years things are going well they're going down now like -- Fundamentally -- doing well that the finances are good sales are going on profit margins are good so we look to the government and here's the issue.
The government needs to know that they need a really cohesive.
Policy coherent policy.
Just to give these businesses warning as to what's coming down the road so that's the one thing -- worry about you see these businesses are adapted they can change.
There are very good they're -- but they need to know what these policies are going to be so that's the big issue right now.
Washington is gonna get its act together and tell these people so they can plan even a bad policy.
If these businesses have enough -- is okay.
Then on no doubt I'm mom -- we hear this from companies large and small -- thanks so much for bringing this stuff to us Brian Hamilton CEO's seat works.
