2005 — CEOs Paint a Rosy Picture
In a recent survey of CEOs done by TEC (The Executive Committee, a CEO membership group), prognostications for 2005 took on a rosy glow. Most CEOs indicated a more positive attitude about 2005, with the TEC index rising from 11.4 in third quarter to 11.8 in fourth quarter of 2004. CEOs reported that:
- Economic conditions are better than a year ago, according to more than two thirds of the CEOs
- 58 percent expect economic conditions to be even better in 2005
- Most CEOs expect to expand their workforce and increase their investment spending
- Higher total revenues are expected by 83 percent of all CEOs
- Higher profits are anticipated by 70 percent of these CEOs
- 49 percent expect to raise their prices during this year
In addition to growth, CEOs have some heavy issues on their minds:
- Fully half of all CEOs noted that they are passing higher health care costs to employees, while 20 percent will cut back on options available
- Oil and energy costs are impacting business, with nearly 40 percent passing higher costs to their customers
- Reducing taxes and enacting healthcare and insurance reform are the two key policy issues for CEOs
Overall, the report gives a positive outlook from the participating TEC CEOs. Our job as Marketers is to help these CEOs raise the revenue and increase the profit. In the past few years, so much overhead has been squeezed out between the top line and the bottom line, that healthy companies can’t cost-cut their way to profit anymore. Now is the time to focus on increasing the revenue, using marketing and sales tools effectively and taking a bigger share of the market.
For more information, go to www.northstar-m.com or e-mail Kae Groshong at kgwagner@northstar-m.com or call (717) 392-6982.
