The Manufacturers Association of Israel's Index of Small and Mid-Sized Enterprises for the fourth quarter of 2010 indicates concerns of stagnation in the first quarter of 2011.
Manufacturers Association president Shraga Brosh said, "The picture emerging is bleak. Before raising taxes and the price of energy, we should think: it's true that the government will see higher revenues in the very short term, but it will be in trouble in the mid and long term. People who lose their jobs do not pay taxes, investment in the economy will fall, and Israel's competitive capacity in the world will continue to erode."
Manufacturers Association Economics Division director Ruby Ginel told "Globes", "Not only does the latest index expect no substantial growth in the small and mid-sized manufacturing sector in the coming months, the reports we've collated actually indicate a decline, which increases concerns of a contraction next year."
Ginel added, "Small and mid-sized manufacturers have not emerged from the crisis, and they are acutely affected by exchange rates and the shekel's appreciation, because of their low turnover compared with big manufacturers. Their ability to absorb these changes is low. This ought to alarm all us."
Published by Globes [online], Israel business news - www.globes-online.com - on December 28, 2010
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