Mhlnews 3954 Good Economy 1

Next 3 Years Economy Positive Say CEOs

Aug. 14, 2015
In the U.S., where the recovery is well underway, 19% of CEOs interviewed are more confident than a year ago. And global CEOs share the optimism with 62% expressing confidence in the economy’s potential.

There’s a good feeling among CEOs according to KMPG’s recent Global CEO Outlook Survey.

In the U.S., where the recovery is well underway, 19% are more confident than a year ago with another 46% expressing the same level of confidence about their prospects for growth.

Global CEOs share the optimism and in fact 62% expressed confidence in the economy’s potential for the next 3 years, while 54% are confident in the growth of their businesses.

The survey finds that it’s not just the conservative growth that would be expected in a recovery period; 37% of CEOs categorize their growth strategy as very aggressive, while an additional 52% say it’s moderately aggressive.

Risk appetite appears to be growing as well, with 30% of CEOs suggesting they aren’t taking enough risk as it relates to their growth strategy. 

As always there are challenges. Among the issues keeping them up at night: Customer loyalty (86%); new entrants disrupting their business model (74%); and keeping current with new technologies (72%). 

Given this sunny outlook companies are now looking to focus both on future growth and operational efficiencies..

Other key findings of the survey include:

78% are expecting to be in hiring mode through mid-2018

37% categorize their growth strategies as very aggressive and 52% as moderately aggressive

74% are concerned about new entrants disrupting their business model and 68% said that they are concerned about their competitors’ ability to take business away.

30% feel that they are not taking enough risk as it relates to their growth strategy. 65% said they are taking the right amount of risk, with only 5% stating that they are taking too much risk.

86% are concerned about the loyalty of their customers. At the same time, technology is driving change in the way organizations interact with their clients. Two-thirds (66%) are concerned about the relevance of their products and services and 72% are struggling to keep up with new technologies.

48% expect an acquisition will change their firms’ capital structure in the next three years.

47% will devote significant capital to expanding into foreign markets