U.S. CEOs' Top 10 Expectations, Plans for 2016 - Modern Distribution Management

U.S. CEOs’ Top 10 Expectations, Plans for 2016

Look for companies to increase M&A, focus on technology and talent.

As U.S. CEOs worry about 2016’s top issues such as the economy, regulatory environment, technology and talent, they are “working to make clear the connection between what their organizations can do better than any other with how they’re going to get it done,” according to the PwC 2016 U.S. CEO Survey.

“Expect more M&A in 2016, and a deeper focus on the hard work to fortify the technology backbone of the business,” according to the survey. “Customers and partners are looking for companies who’ve got their act together on technology and people. With few CEOs expecting a burst of global economic growth in 2016, becoming a hub that grows and adapts to an expanding network of activity is how you win.”

The top 10 findings from this year’s survey found that CEOs expect the following to occur this year:

1. U.S. market prospects to outshine in low-growth world. CEOs said they see the economy steadying in 2016, although confidence in global growth has weakened.

2. Over-regulation to continue to pose a threat to their business growth. CEOs are concerned about further regulations and the impact those will have on investment and innovation.

3. Regionalization in trade and divergence in economic models and regulatory frameworks, with threats to open Internet. The Trans-Pacific Partnership and other trade agreements help smaller economies pool their strengths yet also increases complexities of operating across borders.

4. Customers and other stakeholders will expect business to demonstrate a higher purpose over the coming years. CEOs believe that over the next five years, a greater number of customers will seek out products and services from organizations that address wider stakeholder needs.

5. Prospects improve for laying the groundwork for U.S. tax reform. Only 2 percent of CEO respondents say the U.S. has an effective tax system.

According to the survey, CEOs plan to do the following in 2016:

6. Strengthen the technology foundation to set their business apart. “U.S. CEOs continue to invest in technology as the most direct path to meaningful innovation and operational efficiency,” according to the survey.

7. Do more deals, especially domestically. Look for M&A to accelerate in 2016.

8. Hold fast in China, while recognizing the bumps along the way. Despite recent volatility in China, U.S. companies see opportunities there.

9. Anticipate the needs of future customers and other stakeholders. “Most U.S. CEOs (74 percent) believe there are more threats to their business growth today than existed three years ago. At the same time, most also believe (69 percent) that there are more growth opportunities for their company today too.”

10. Prepare the millennials for leadership roles. Now that millennials are the largest generation in the workforce, CEOs know they must understand how to motivate and retain them.

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