Private Firms Expect Productivity Increase

ByJohn S. McClenahen Some 60% of 364 CEOs of fast-growing, privately-held U.S. companies surveyed by PricewaterhouseCoopers predict productivity will increase during the next 12 months, with the gain averaging 14.2%. Better performing workforces, IT technology improvements, cautious hiring, and limiting expensive or risky new ventures were cited as factors for the expected productivity advances. For all surveyed companies--including the 37% expecting productivity to stay the same and the 2% anticipating productivity will be somewhat lower together with the 21% expecting much greater growth and the 39% anticipating somewhat better growth--productivity growth is expected to average 8.3%.