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2014 CEO Pulse Survey
Presentation to the Dublin
Chamber of Commerce
Ann O’Connell, Partner, PwC
2014 CEO Pulse Survey
• 9th year of the Survey
• 256 Irish CEOs participated
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2014 CEO Pulse Survey
• Business confidence higher than 2007 and pre-recessionary times
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2014 CEO Pulse Survey
The pendulum has swung
• 77% of business leaders expect revenue growth compared to 71% in 2008
• 69% of business leaders expect profit growth compared to 60% in 2008
• 58% expect to grow the workforce compared to 54% in 2008
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2014 CEO Pulse Survey
Some of the
economic and
policy threats…
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2014 CEO Pulse Survey
Some of the
business threats…
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2014 CEO Pulse Survey
Business growth
opportunities –
sticking to what
they know best
60% to target
existing markets
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2014 CEO Pulse Survey
Focus on exports
66% plan to increase
export volumes in the
next 3-5 years
Of this, 32% plan to
increase export volumes
more than 10%
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2014 CEO Pulse Survey
Focus on exports
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2014 CEO Pulse Survey
FDI
• 92% confirmed their investment in Ireland is a success
• 88% will increase or maintain investment in Ireland,
up from 84% last year;
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Survey
Factors critical to
maintaining and/or
increasing Ireland’s
attractiveness as a
location of choice
for FDI
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2014 CEO Pulse Survey
Talent – 69% said
availability of key skills is
an issue for growth, up
from 60% last year
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2014 CEO Pulse Survey
Over a quarter reported talent constraints significantly
impacted their company’s performance over the last year
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2014 CEO Pulse Survey
Room for improvement regarding
certain talent related benchmarks
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2014 CEO Pulse Survey
Government priorities
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2014 CEO Pulse Survey
Managing global change
– the megatrends and
Ireland’s opportunity
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Megatrend 1: Demographic shifts
Explosive population growth in some
areas against declines in others
contributes to everything from shifts
in economic power to resource scarcity
to the changes in societal norms.
Asia
Pac
Asia
Pac
2009
$21.3 trillion
Annual population growth rate 2010 – 2050 (medium variant)
Source: UN Department of Economic and Social Affairs
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2030
$55.7 trillion
Spending of the
Global Middle Class
in 2005 US$ PPP
Source: Data taken from OECD
Development Centre
Working Paper number 285,
“The Emerging Middle
Class in Developing Countries,
January 2010.
Proportion of the world population aged 60 years or more
Source: UN report World Population Ageing 1950 - 2050
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Megatrend 2: Shift in global economic power
The focus of global growth has shifted.
Western economic dominance is a
relatively recent phenomenon and the
developments we see are essentially
a rebalancing of the global economies.
Economic centre of
gravity; 1965 – 2050
GDP, market
exchange rates
Note: Orange indicates earlier
years, Maroon indicates later years.
Source: Data taken from OECD
Development Centre Working Paper
number 285, “The Emerging Middle
Class In Developing Countries,”
January 2010.
Western economic dominance is a recent development
GDP of G7 and E7 countries at US$ PPP
Source: PwC Analysis
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Megatrend 3: Accelerating urbanisation
In the 1950s, less than 30% of the world’s
population lived in cities. Currently, that
proportion has risen to 50% and, by 2030,
the UN projects that some 4.9 billion people
will be urban dwellers. By 2015, the UN
estimates that there will be 22 mega-cities –
those with population of 10 million or more
– with 17 located in developing economies.
World urban
population by
major region
Source: World Urbanization
Prospects: 2011 Revision,
Produced by the UN
Department of Economic
and Social Affairs
2010
$3.8 billion
2030
$4.9 billion
Percentage of population in urban areas, 2030
World urban population
Source: UN
Department of
Economic and
Social Affairs
Source: World Urbanization Prospects: 2011 Revision, Produced by the UN
Department of Economic and Social Affairs
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Megatrend 4: Climate change and resource scarcity
Scarcity of resources and the impact of
climate change are of growing economic
concern. Demand for energy is forecast to
increase by as much as 50% by 2030, and
water withdrawals by 40%.
The Food/ Water/Energy Nexus
It takes 1,200 l of
water to produce
1 kg of grain
Water
7% of global energy
consumption is used
for delivering water.
Food
Energy
1-2% of cropland
is needed to produce biofuels
With a population of 8.3 billion people by 2030 we’ll need…
Projected water
scarcity in 2025
Source: International
Water Management
Institute
50%
40%
35%
more
energy
more
water
more
food
Note: Orange indicates earlier years, Maroon indicates later years.
Source: OECD; Dan Hammer, Center for Global Development
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Megatrend 5: Technological breakthroughs
Breakthroughs in nanotechnology
and other frontiers of research and
development are increasing productive
potential and opening up new investment
opportunities.
Venture capital and private equity attractiveness index
Source: The Global
Venture Capital and
Private Equity Country
Attractiveness Index,
IESE Business
School, 2013
The beginning of the “internet of things”
Source: Cisco Internet Business Solutions Group, April 2011
“SMAC”
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Summary
•
Economy is turning the corner
•
Confidence is somewhat restored
•
Most companies are going for growth (revenues, profits,
employment)
•
FDI flow continues; Exports on the increase
•
But, concerns around talent and increasing cost base
•
Ability to attract, retain and reward talent is critical for growth
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Thank you
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for consultation with professional advisors.
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