PwC Survey: Nearly 40% of CEOs Think Their Companies Will Be NOT Economically Viable in a Decade if on Current Path
Posted on 01/16/2023
As central banks increase interest rates to alleviate decades-high inflation, some businesses may not make it. Many businesses were able to proliferate from decades of low costs of funding.
PwC’s 26th Annual Global CEO Survey polled 4,410 CEOs in 105 countries and territories in October and November 2022. The outlook in the survey has turned bleak. In 2021 and 2022, more than three-quarters (76% and 77%, respectively) thought economic growth would improve.
According to the press release, “In addition to a challenging environment, nearly 40% of CEOs think their organisations will not be economically viable in a decade if they continue on their current path. The pattern is consistent across a range of sectors, including telecommunications (46%), manufacturing (43%), healthcare (42%) and technology (41%). CEO confidence in their own company’s growth prospects also declined dramatically since last year (-26%), the biggest drop since the 2008-2009 financial crisis when a 58% decline was recorded.”
Many of these CEOs plan on cutting costs, but they are trying to put people in the forefront and retain talent in the wake of the past, “Great Resignation”.
The release adds, “In response to the current economic climate, CEOs are looking to cut costs and spur revenue growth. 52% of CEOs report reducing operating costs, while 51% report raising prices and 48% diversifying product and service offerings. However, more than half – 60% – say they do not plan to reduce the size of their workforce in the next 12 months. A vast majority – 80% – indicate they do not plan to reduce staff remuneration in order to retain talent and mitigate workforce attrition rates.”
