As corporates in the U.S. are feeling confident about their markets and the overall economy, forecasts for revenue growth are muted, the hiring climate is tough and security threats loom. Organizations have always felt the pressure to remain on the cutting edge of technology, but CEOs are now prioritizing that strategy to stay on top and address the lofty challenges of growing, retaining talent and safeguarding data, according to the latest report from KPMG.
The auditing firm published its “Growing Pains 2018 U.S. CEO Outlook” report this week, analyzing how business executives approach technological disruption. Lynne Doughtie, KPMG U.S. chairman and CEO, says CEOs’ pressures today aren’t necessarily new, but technology presents them with novel ways of tackling them.
“The need for disruption has intensified further, and technology has emerged as the only driver of transformation for a majority of U.S. CEOs,” she wrote in the report’s introduction. “These developments have brought up some ‘old’ issues, but with a decidedly new twist.”
Confidence in the national economy is high, KPMG’s survey found, and that optimism is reflecting in CEOs’ expectations for their own firms: 94 percent of the executives surveyed said they are confident about the growth trajectory of their companies. KPMG Chief Economist Constance Hunter said in a statement that the Federal Reserve’s predictions for gradual increases in interest rates, coupled with a worldwide trend of economic growth, has CEOs looking up. However, revenue expectations remain muted, with 49 percent of CEOs saying their revenue increase will be at least 2 percent, below long-term averages of 3.8 percent growth.