In preparing the presentation of the Monitor’s third annual Executive Survey, one point came through loud and clear … 2011 was nothing to write home about. More than two-thirds of the respondents reported new business activity has been driven by the need to replace equipment, with only 15% noting their business activity has been in response to expanding capacity. And if we look to last year’s survey, this comes as little surprise. In 2010, only 17% of the survey participants expected 2011 to be a turnaround year, with the remaining 83% looking to a robust demand for equipment to return in 2012 and beyond. This year’s respondents seem even less optimistic as it relates to a quick recovery, with nearly 94% pushing off evidence of a full recovery to 2014 or beyond. All of this is in line with Fed Chairman Bernanke’s comments at a press conference in early November of this year.

Yet all is not gloomy. Sound business practices and client centric approaches still make a difference. Nearly 64% of the executives who participated in this year’s survey report their book of business performed better in 2011 than in 2010, continuing the trend toward improvement first noted in last year’s survey. And as we have emphasized here, business relationships still count. Thirty-three percent of the participants noted their customers are more willing to value relationships compared to 25% from the 2010 survey. So while a full recovery may still be farther off than we would all prefer, it appears the fundamentals of improving portfolios and cultivating valued relationships are firmly in place.