CEOs Expect To Grow And Hire But Not To Invest

May 10, 2005
At privately held, fast growing U.S. product and service companies , CEOs seem more economically upbeat than the population generally. Eighty percent of the 341 chief executives PricewaterhouseCoopers interviewed last month are optimistic about the U.S. ...

At privately held, fast growing U.S. product and service companies , CEOs seem more economically upbeat than the population generally. Eighty percent of the 341 chief executives PricewaterhouseCoopers interviewed last month are optimistic about the U.S. economy's prospects for the next 12 months; 78%, a five-year high, are optimistic about the global economy.

The surveyed companies project 12-month revenue gains averaging 22.3%, and 79% expect a net addition of jobs during the next year. Capital investment is another story, however. Just 41% of the CEOs plan major new investments during the next 12 months, down from 48% three months ago.

Among the otherwise sanguine group, that decline may be attributable to several lingering economic and financial concerns. Fifty-one percent of the CEOs worry about weakening market demand, 38% cite a scarcity of qualified workers, 31% worry about decreasing profitability, and 31% are concerned with legislative and regulatory pressures. Twenty-five percent are concerned about rising wage demands.

The companies surveyed range from about $5 million to about $150 million in sales or revenues.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!