Political uncertainty ranks as a leading concern for 45.3% of CEOs this year, according to the results of a survey by national accounting and advisory firm Marcum and Hofstra University’s Frank G. Zarb School of Business. It was the concern that was cited by the highest percentage of respondents, followed by worries about interest rates and the cost of capital, (cited by 44.6%) and the threat of an economic slowdown (44.1%).
“The ability to adapt and remain agile in the face of political and economic headwinds is what defines successful leadership today,” Marcum Chairman and CEO Jeffrey Weiner said.
The survey demonstrates the pressure of politics on business stability and growth, according to the authors of the report. “Moreover, CEOs continue to grapple with managing interest rates and the cost of capital while preparing for the potential repercussions of an economic downturn,” the report stated.
Other concerns cited by the leaders were issues such as responding to evolving customer expectations, integrating innovative technologies and reinforcing supply chain robustness.
Optimism among the executives increased among several sectors since the previous survey to an average of 42.6%, with gains in healthcare (56% in the latest survey compared with 25% in the previous one), construction (57% versus 33%), professional services (38% compared with 20%), retail (62% versus 24%) and technology (13% compared with 58%). Optimism declined, however, in financial services (37% versus 44%) and manufacturing (31% compared with 48%).
Economic headwinds still concern CEOs, according to the survey findings, although fewer of the respondents listed the economy among their top three concerns. Staffing shortages remain challenging across the board, the leaders said.
“Despite persisting uncertainties, most CEOs (80.1%) are poised to sustain or increase staffing numbers, with only 11.3% anticipating cutbacks and 8.6% adopting a cautious approach to hiring for the forthcoming year,” according to the survey report.
The Marcum-Hofstra CEO Survey is a periodic gauge of mid-market CEOs’ outlook and priorities for the next 12 months. The survey polled the leaders of companies with revenues ranging from $5 million to more than $1 billion and was conducted the week of Feb. 19; 256 mid-market CEOs participated.
