Balancing short- and long-term concerns
Many metals CEOs are currently operating in survival mode, with conservation of cash the top priority. But although the immediate need to survive may be taking precedence right now, metals executives face a difficult balancing act. They must also ensure that they build durable businesses that are well placed to capitalise on the recovery when it occurs.
Climate change vs. carbon-based energy
Only one-fifth of metals CEOs view climate change as a major threat to their businesses, yet nearly one half are concerned that the world's dependency on carbon-based energy sources could have a negative impact on their companies.
Is the scarcity of natural resources a threat?
Eighty percent of CEOs believe that the pressure on natural resources will increase, yet only 36 percent see that as a commercial threat. This is surprising, given that the prices of many key raw materials are locked in by contract and are unlikely to fall in line with metal prices.
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M&As or joint ventures?
Twenty-four percent of metals CEOs intend to complete a cross-border merger or acquisition over the next 12 months, but most are pessimistic about the extent to which these transactions will improve their companies' short-term profitability. On the flip side, 76 percent expect to participate in an increasing number of collaborative business arrangements over the next three years.
Downsize and survive, or retain talent and potentially prosper?
The human factor has slipped down the agenda for many CEOs, as the short-term demands of survival have become more urgent. Approximately one third of metals CEOs are somewhat or extremely concerned that the lack of people with the skills they need will have a negative impact on their companies' growth.
Related research from PricewaterhouseCoopers
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