According to the just released KPMG U.S. CEO Outlook 2018, there has been a significant jump in confidence of American CEOs for the growth prospects of their companies over the next three years. Seventy-seven percent are now “very confident” about business growth, compared to 46 percent a year ago. This is one of the findings of an in-depth survey of 400 U.S. CEOs conducted by KPMG LLP.
Growth isn’t without challenges. CEOS identified cyber security (33%) and disruptive technology (20%) posing the greatest threats to their organizations’ growth. 77% believe they are adequately prepared for a cyber-attack, while 68% soberly recognize that an attack will very likely occur.
In a press statement KPMG U.S. Chairman and CEO Lynne Doughtie describes the areas of potential growth for companies, stating, “Riding the tailwinds of tax reform and regulatory relief, U.S. CEOs are primed to aggressively pursue growth through M&A activity, overseas expansion, and investments in innovation and collaboration.”
Survey results include:
- 23% of CEOs planning to pursue mergers and acquisitions
- 46% anticipate setting up accelerator or incubator programs for startup firms
- 43% plan to make products and services available via online providers
- 42% will explore partnering with third-party providers, and
- 22% see organic growth as an important strategy
It was also found that artificial intelligence is well on its way in major firms with 49% of CEO’s indicating they have started some implementation of AI for specific processes, and 31 percent having already implemented it to automate multiple processes. It is a close split between those CEOs who feel that more jobs will be created by AI (52 percent) than will be eliminated, specifically in their companies over the next three years.
White the survey revealed the high confidence that CEO’s now have about growth, 51% expect top-line revenue growth to be less than 2 percent over the next three years with 49 percent expecting growth in the 2 to 5 percent range.
