CEOs in the United States and elsewhere are concerned about economic pressures, yet just 37% are prepared for an increase in inflation, and only 34% are prepared for a recession. That’s according to the results of a survey from The Conference Board.
Fifty-five percent of US CEOs surveyed cited “economic downturn/recession” as a high-impact issue for 2024.
“Both factors also topped the 2023 list of high-impact issues. While we believe a global recession is unlikely in 2024, we do expect slower growth in the wake of tighter monetary policy to tackle inflation,” the authors noted. “Adding to global CEOs’ concerns is that less than 30% believe their organizations are adequately prepared to navigate either a recession or inflation.”
Several leaders of senior living and care industry groups recently told McKnight’s Senior Living that they expect that operators will continue to face inflationary pressures and capital market challenges in 2024, but that some effects may lessen before the year is out.
The Conference Board survey, conducted between Oct. 24 and Nov. 24, asked 1,247 C-Suite executives, including 630 CEOs, for their views on top business threats and opportunities in 2024.
The top five external issues that could affect businesses, according to respondents, are an economic downturn / recession, inflation, global political instability, labor shortages, rapidly advancing artificial intelligence technology and higher labor costs.
“Close to 90% of CEOs see AI increasing the efficiency/productivity of labor and their firms overall. They also see gains in innovation and creativity,” according to the survey. “But there is work to be done to create an organizational culture and structure to maximize AI’s productivity. Almost 80% of CEOs say adopting AI will require new capital expenditures, and 94% say it will require new skills and training.”
Respondents said they were less concerned about the effects of industrial policy in their region, wealth or income inequality, backlash over environmental, social and governance policies, shortages of semiconductors/rare earths and shareholder activism.
Internally, the executive respondents said they mostly were concerned with attracting and retaining talent, accelerating the pace of adding AI, enhancing product and service innovation, improving customer experience, reducing costs and upskilling and reskilling talent.
Respondents said they were less concerned about focus on AI governance policy, a full-time return to offices, accelerating the shift to renewable energy sources, the increasing cost of healthcare benefits and unionization efforts.
“Amid elevated inflation and a potential downturn, CEOs’ plans to grow profits in 2024 include introducing new products/services, investing in technology, increasing sales via marketing, and entering new markets,” according to a press release issued in conjunction with the report
