A report by KPMG annually shows CEOs in Canada being increasingly concerned about economic growth in the subsequent years. A study of corporate leaders throughout the country revealed many factors behind the growing negativity in the CEO outlook on the future of the Canadian economy.
This report suggests that geopolitical instability, increasing inflation rates, and disruption to supply chains all feature at the top of business leaders' concerns across Canada. These are factors listed as the main causes of their economically conservative projections. Given such a climate of growing global tensions and more unpredictable market dynamics, these concerns are hardly surprising.
Among the key findings from the KPMG report, CEOs are afraid of not just short-term fluctuations but even far-reaching structural changes. A total of 82% of the executives interviewed showed concern that the continuous problems in supply chains may have long-lasting effects on their businesses. Another 70% worry about possible economic drag due to sustained high inflation rates eventually debilitating purchasing power and consumer demand.
It also gives insight into how Canadian companies will sail through these turbulent waters. The study reveals that many CEOs plan to invest more in technology and innovation as an insurance against economic uncertainties. For example, 67% of the respondents indicated their company will increase investment in digital transformation initiatives over the next three years. It reflects that Canadian firms have attached a high degree of priority to improving their operation efficiencies and finding new sources of revenue through technological innovations.
Going back to the KPMG report, another key finding is that talent retention and development will remain paramount. In the case of a labor market tightening up, about 76% of the CEOs are focused on initiatives that will help them attract and retain skilled workers; such a workforce is seen as being vital for competitive advantage in an increasingly specialized-skills-and-innovation-intensive landscape.
What comes out of the report is a picture of a corporate sector bracing for stormy times. Clear challenges lie ahead, but Canadian CEOs appear solution-focused, adjusting business strategies to minimize risks and maximize new opportunities that may arise. Growing investments in technology and human capital further undergird a forward-looking approach to resilience and growth in the face of economic adversity.
For the more exacting review of the outcome of this survey and the detailed strategies being pursued by Canadian businesses, a thorough read of the complete KPMG report gives plenty of insight and data-driven analysis.
As the global economy continues to struggle through a multitude of challenges to work its way out, the sentiments reflected within KPMG's report offer an important lens in which to understand how leading executives navigate their respective companies through a multitude of complexities in today's dynamic marketplace.
This report provides a wide-ranging view of leading thoughts from corporate leadership in Canada through a showcase of concerns and proactive measures being taken, hence serving as an indispensable resource to stakeholders across various sectors.
Watch this space as we monitor the development and fallout of these unfolding trends in the wider economic environment.
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Author: Daniel Foster
