Forest company CEOs see bumpy year ahead

Forest, paper & packaging (FPP) CEOs are less confident about revenue growth over the next 12 months than their peers in other sectors, but are more optimistic about their company’s revenue prospects in the next three years, according to PwC’s 16th Annual Global CEO Survey released recently in Davos, Switzerland.

The top three priorities for CEOs are “enhancing operational effectiveness; investing in innovation and R&D; and developing new business models,” says Bruce McIntyre, leader of PwC’s Forest, Paper and Packing practice in Canada.

Eighteen percent of FPP respondents report plans to cut their workforce by more than 8% this year. R&D and innovation are a top priority for 42% in the next 12 months—a full 10% higher than the overall average across the entire CEO survey.

Other key findings from the FPP CEO Survey include:

• Every FPP CEO surveyed said that customer service was a key differentiator, the only sector in the full survey where 100% reported that customers influence their strategy.
• 75% of FPP CEOs worry that energy and raw material costs could pose a threat to growth, far more than the average across the overall survey sample.
• 95% reported that supply chain partners are influencing their strategy, and the large majority of CEOs are increasing efforts to engage with them.
• Nearly three quarters (71%) of FPP CEOs plan to increase their company’s focus on reducing their environmental footprint, while 18% will continue at their current levels.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.