Commentary
CEOs Support Government and Plan For Growth
- by Jack Loechner , Staff Writer @mp_research, March 22, 2003
TEC International, a world organization of CEOs, released a quarterly survey of chief executives who are cautious but determined to make 2003 a better year despite the economy and the turbulent world environment.
According to the Q1 TEC Index, 63 percent of CEOs expect a mild negative impact on their businesses if the United States goes to war with Iraq; 60 percent support war with Iraq even if the United States is not granted full support from the United Nations and its allies.
Brian Beaulieu, chief economist, TEC International, says "...decision makers of the economy are determined to do what is necessary to effectively compete in the global market. Driving down operating costs remains a major objective..."
Sales revenue predictions for the next 12 months continue to be on a slow rise with 33 percent predicting an increase by less than 10.0 percent. On the whole, 77 percent of CEOs surveyed report sales revenues will increase from 1.0 to more than 20.0 percent in 2003.
| Selected Questions: | ||
| How has the current state of the economy affected your business plans for the next 12 months? | Freq. | Percent |
| Reduced capital expenditures | 399 | 37% |
| Increased capital expenditures | 126 | 12% |
| Reduced operating expenses | 486 | 45% |
| Increased operating expenses | 122 | 11% |
| Modified business strategy | 559 | 51% |
| Delayed new product/service offerings | 133 | 12% |
| No effect | 173 | 16% |
| Do you plan to increase or decrease capital expenditures over the next 12 months? | Freq. | Percent |
| Increase by 1 - 10 percent | 304 | 29% |
| Increase by more than 10 percent | 122 | 11% |
| Decrease by 1 - 10 percent | 178 | 17% |
| Decrease by more than 10 percent | 95 | 9% |
| No change | 362 | 34% |
| What are your total sales revenue projections for the next 12 months? | Freq. | Percent |
| Increase by less than 10 percent | 354 | 33% |
| Increase by 10-20 percent | 293 | 27% |
| Increase by more than 20 percent | 172 | 16% |
| Decrease by less than 10 percent | 86 | 8% |
| Decrease by 10-20 percent | 46 | 4% |
| Decrease by more than 20 percent | 21 | 2% |
| No change | 94 | 9% |
| What is the most important business strategy that you need to implement in the next 6 months to help your company grow long-term? | Freq. | Percent |
| Retrench | 146 | 13% |
| Reposition company to accelerate growth | 506 | 46% |
| Increase expenditures to accelerate growth | 149 | 14% |
| Decrease expenditures to ensure viability | 198 | 18% |
| Recruit and hire top talent | 449 | 41% |
| Pursue a liquidity event-M&A of IPO | 54 | 5% |
| Other | 76 | 7% |
| How would war against Iraq impact your business? | Freq. | Percent |
| Not at all | 45 | 5% |
| Expect a mild negative impact | 607 | 63% |
| Expect a mild positive impact | 177 | 18% |
| Expect a strong negative impact | 100 | 10% |
| Expect a strong positive impact | 33 | 3% |
| In your opinion, which industry will rebound the fastest in 2003? | Freq. | Percent |
| Information Technology | 337 | 31% |
| Telecommunications | 120 | 11% |
| Biotechnology | 303 | 28% |
| Automotive | 29 | 3% |
| Manufacturing | 267 | 24% |
| Retail | 172 | 16% |
| Professional Services | 246 | 23% |
| Other, please specify | 52 | 5% |
2003 TEC USA INDEX SURVEY
#
of respondents: 1090
# of surveys sent: 4714
Response rate: 23%
Margin of Error:
W/ 95% confidence interval = 3.0%
W/99%
Confidence Interval = 3.9%
For more information: Jennifer Culter Townsend Inc. for TEC 858.457.4888 Ext. 156 jculter@townsendinc.com
Jack Loechner is the Editor of The Center for Media Research's daily Research Brief. You can reach him at jack@mediapost.com.