12th Annual Global CEO Survey
PricewaterhouseCoopers began tracking CEOs' forecasts in 2003. At present, CEO confidence is at an all-time low. Worldwide, just 21 percent of CEOs say that they are very confident about revenue growth in the next 12 months, down from 50 percent in last year's Global Annual Survey.
Pessimism prevails across all geographic regions, business sectors and levels of economic development.
Nearly 70 percent of CEOs say that their companies will be affected by the credit crisis. Of those, nearly 80 percent say that they face higher financing costs, and nearly 70 percent say that they will delay planned investments as a result. Companies in the banking, utilities, construction, entertainment and automotive sectors are most likely to be affected.
|
Only 15 percent of CEOs in North America and 15 percent in Western Europe express confidence about their growth prospects for the next 12 months. This compares with 21 percent in the emerging economies of Central and Eastern Europe, 31 percent in Asia Pacific, and 21 percent in Latin America. Most CEOs around the world are planning for a slow recovery. |
CEOs want leadership and consistency from government.
CEOs want more government action, particularly in areas where regulation enables business, such as climate change. More than 80 percent of CEOs favour clear, consistent government policies to address climate change. Fifty-seven percent believe that governments should drive the convergence of global tax and regulatory frameworks.
However, CEOs remain wary of regulatory overreach. Fifty-five percent of CEOs are concerned about overregulation as an obstacle to growth.
Cross-border JVs will overtake M&A as a growth strategy.
The percentage of CEOs who believe that joint ventures will play a greater role than M&A in cross-border growth has surged, particularly in Western Europe and Latin America.
Energy and talent remain long-term challenges.
Buffeted by the recession, along with volatile commodity and energy costs, more than 80 percent of CEOs are taking steps to reduce energy costs by finding efficiencies in their operations, and more than half are seeking alternative sources of energy.
Finding and retaining top talent also remains a major priority for CEOs. Nearly 70 percent of respondents say that a shortage of candidates with essential skills is a key challenge.
Better information is needed urgently, particularly for managing global risks.
Sixty-one percent of CEOs say that the dependence on carbon-based energy will have an impact on the long-term success of their businesses. Fifty-six percent say the same about climate change, 55 percent about overpopulation, and 50 percent about a scarcity of fresh water.
There is, however, a huge gap in the information required to identify, assess and respond to the effects of these global trends. While 92 percent of CEOs say that information about risk is important, only 23 percent say that they receive comprehensive information about it.
