•Industry’s
sales will be flat for two years in a row—unprecedented
–Rule of thumb: Open territory sales represent 50% of
market and have grown steadily
in most years
•Factors
influencing spending in open territory
–School’s fixed expenses are consuming larger shares of
annual budgets, leaving less
for discretionary items
–Instructional materials are discretionary items in the
open territory
•States do not provide separate funding for instructional
materials
•Housing recession may be additional factor in state
funding
•On average, state and local budgets expected to finish
this year in balance;
some will face deficits in 2008