Post on 15-Sep-2020
America’s economic engine: Tapping the brakes
Appendix: full survey results
A mid-market perspectives report
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AcknowledgmentWe would like to thank all survey respondents and interviewees for their time and the insights they shared for this report, America’s economic engine: Tapping the brakes.
Tapping the brakes: full survey results 3
Half of the respondents were owners, board members, or C-suite executives; the remainder included vice-presidents, department or business line heads, or managers. Industries were diverse: those with the largest representation were consumer and industrial products; technology, media and telecommunications; and, financial services. Life sciences and health care, energy and resources companies, and other industries comprised the remainder of respondents.
The full survey results are included in this document; some percentages in the charts throughout this report may not add to 100 percent due to rounding, or for questions where survey participants had the option to choose multiple responses. All changes in survey results reported are statistically significant at the 95 percent confidence level.
From October 22 to November 4, 2015, a Deloitte survey conducted by OnResearch, a market research firm, polled 522 executives at US mid-sized companies about their expectations, experiences and plans for becoming more competitive in the current economic environment. Respondents were limited to executives at mid-market companies with annual revenues between $50 million and $1 billion.
Eighty-one percent of the companies represented were privately held; 19 percent were public. Of the private companies, 33 percent were family-owned and 31 percent were closely (non-family) held; 33 percent were private-equity or VC-backed or had other ownership structures.
Tapping the brakesAbout the survey
The report based on these survey findings,
America’s economic engine: Tapping the brakes,
can be found on our website at
www.deloitte.com/us/dges/tappingthebrakes
4 America’s economic engine
At what pace do you expect the U.S. economy to grow over the next 12 months?
What would you estimate your business’ revenue growth to be over the next 12 months?
Performance and growth
8
A8 At what pace do you expect the US economy to grow over the next 12 months?
Grow robustly: 5% or more
Grow above-trend: more than 3.5%, but less than 5%
Grow moderately: 2% to 3.5%
Grow slightly: less than 2%, but more than 0%
Show no growth: 0%
Negative growth
9.7%
22.4%
34.4%
28.7%
3.8%
1.0%
13.4%
22.4%
39.4%
20.0%
3.5%
1.2%
12.4%
22.3%
34.7%
26.0%
3.1%
1.4%
Spring 2015 Fall 2015
Fall 2014
Grow robustly: 5% or more
Grow above-trend: more than 3.5%, but less than 5%
Grow moderately: 2% to 3.5%
Grow slightly: less than 2%, but more than 0%
Show no growth: 0%
Negative growth
13.4%
22.4%
39.4%
20.0%
3.5%
1.2%
12.4%
22.3%
34.7%
26.0%
3.1%
1.4%
6.2%
15.0%
39.0%
35.3%
3.1%
1.4%
Fall 2014 Spring 2015
Spring 2014
Chart on the right is from last report, just for my reference
9
A9 What would you estimate your business’ revenue growth to be over the next 12 months?
51% - 100%
26% - 50%
11% - 25%
6% - 10%
1% - 5%
O%
Negative growth
13.7%
11.2%
20.1%
22.7%
22.4%
1.3%
5.6%
10.5%
12.9%
27.5%
18.4%
22.8%
1.1%
4.0%
Fall 2014 Spring 2015
51% - 100%
26% - 50%
11% - 25%
6% - 10%
1% - 5%
O%
Negative growth
10.0%
8.1%
23.5%
21.7%
26.4%
1.6%
6.0%
13.7%
11.2%
20.1%
22.7%
22.4%
1.3%
5.6%
10.5%
12.9%
27.5%
18.4%
22.8%
1.1%
4.0%
Spring 2015 Fall 2015
Fall 2014
Chart on the right is from last report, just for my reference
Tapping the brakes: full survey results 5
10
55.6%
53.0%
54.9%
32.1%
49.8%
52.4%
52.7%
36.5%
38.7%
38.9%
37.5%
41.5%
29.9%
33.9%
7.9%
8.2%
6.2%
30.4%
8.7%
17.8%
13.4%
A10 What do you believe is the most likely outlook for the following over the next 12 months?
US interest rates
Commodity prices
US inflation rate
US unemployment rate
US Gross Domestic Product
Oil prices
US trade deficit
No change Higher
Lower
Spring 2015
US interest rates
Commodity prices
US inflation rate
US unemployment rate
49.1%
56.9%
49.1%
26.0%
44.7%
34.4%
41.1%
40.0%
6.2%
8.7%
9.8%
34.0%
No change Higher
Lower
Fall 2014
52.5%
47.3%
48.8%
29.5%
38.3%
42.4%
50.7%
37.9%
42.1%
44.8%
44.5%
48.9%
37.0%
39.2%
9.6%
10.5%
6.4%
26.0%
12.8%
20.6%
10.1%
US interest rates
Commodity prices
US inflation rate
US unemployment rate
US Gross Domestic Product
Oil prices
US trade deficit
No change Higher
Lower
Fall 2015
This is how we presented comparison last time – three separate charts
10
55.6%
53.0%
54.9%
32.1%
49.8%
52.4%
52.7%
36.5%
38.7%
38.9%
37.5%
41.5%
29.9%
33.9%
7.9%
8.2%
6.2%
30.4%
8.7%
17.8%
13.4%
A10 What do you believe is the most likely outlook for the following over the next 12 months?
US interest rates
Commodity prices
US inflation rate
US unemployment rate
US Gross Domestic Product
Oil prices
US trade deficit
No change Higher
Lower
Spring 2015
US interest rates
Commodity prices
US inflation rate
US unemployment rate
49.1%
56.9%
49.1%
26.0%
44.7%
34.4%
41.1%
40.0%
6.2%
8.7%
9.8%
34.0%
No change Higher
Lower
Fall 2014
52.5%
47.3%
48.8%
29.5%
38.3%
42.4%
50.7%
37.9%
42.1%
44.8%
44.5%
48.9%
37.0%
39.2%
9.6%
10.5%
6.4%
26.0%
12.8%
20.6%
10.1%
US interest rates
Commodity prices
US inflation rate
US unemployment rate
US Gross Domestic Product
Oil prices
US trade deficit
No change Higher
Lower
Fall 2015
This is how we presented comparison last time – three separate charts
10
55.6%
53.0%
54.9%
32.1%
49.8%
52.4%
52.7%
36.5%
38.7%
38.9%
37.5%
41.5%
29.9%
33.9%
7.9%
8.2%
6.2%
30.4%
8.7%
17.8%
13.4%
A10 What do you believe is the most likely outlook for the following over the next 12 months?
US interest rates
Commodity prices
US inflation rate
US unemployment rate
US Gross Domestic Product
Oil prices
US trade deficit
No change Higher
Lower
Spring 2015
US interest rates
Commodity prices
US inflation rate
US unemployment rate
49.1%
56.9%
49.1%
26.0%
44.7%
34.4%
41.1%
40.0%
6.2%
8.7%
9.8%
34.0%
No change Higher
Lower
Fall 2014
52.5%
47.3%
48.8%
29.5%
38.3%
42.4%
50.7%
37.9%
42.1%
44.8%
44.5%
48.9%
37.0%
39.2%
9.6%
10.5%
6.4%
26.0%
12.8%
20.6%
10.1%
US interest rates
Commodity prices
US inflation rate
US unemployment rate
US Gross Domestic Product
Oil prices
US trade deficit
No change Higher
Lower
Fall 2015
This is how we presented comparison last time – three separate charts
What do you believe is the most likely outlook for the following over the next 12 months?
6 America’s economic engine
Which of the following issues present the greatest obstacles to US growth over the next 12 months?(Please select all that apply.)
What is your company’s main growth strategy over the next 12 months? (Please select only one.)
11
A11. Which of the following issues present the greatest obstacles to US growth over the next 12 months? (Please select all that apply.)
Rising health care costs
Federal, state, and municipal budget challenges
High tax rates
Lack of consumer confidence
Rising inflation and/or rising energy and commodity prices
Rising interest rates
U.S. infrastructure needs
European economic challenges
Government austerity
Skills shortage
Weak housing market
Falling oil prices
Other
52.9%
44.9%
43.3%
38.2%
35.0%
33.4%
28.6%
27.2%
24.0%
22.8%
18.2%
0.0%
4.9%
50.4%
49.0%
43.7%
39.8%
30.4%
29.4%
33.5%
26.5%
24.0%
25.3%
22.3%
12.9%
3.1%
50.7%
52.5%
43.9%
46.6%
38.9%
28.0%
22.7%
27.0%
22.1%
25.5%
24.5%
0.0%
6.5%
[This response was only offered in Spring 2015.]
Rising health care costs
Federal, state, and municipal budget challenges
High tax rates
Lack of consumer confidence
US infrastructure needs
Rising inflation and/or rising energy and commodity prices
Rising interest rates
European economic challenges
Skills shortage
Government austerity
Weak housing market
Falling oil prices
Other
50.4%
49.0%
43.7%
39.8%
33.5%
30.4%
29.4%
26.5%
25.3%
24.0%
22.3%
12.9%
3.1%
50.7%
52.5%
43.9%
46.6%
22.7%
38.9%
28.0%
27.0%
25.5%
22.1%
24.5%
0.0%
6.5%
62.9%
54.6%
45.0%
44.7%
25.6%
35.7%
28.6%
22.5%
24.5%
21.9%
16.1%
0.0%
7.8%
Fall 2014 Spring 2015
Spring 2014
[This response was not offered in prior surveys.]
Spring 2015 Fall 2015
Fall 2014
Chart on the right is from last report, just for my reference
11
A11. Which of the following issues present the greatest obstacles to US growth over the next 12 months? (Please select all that apply.)
Rising health care costs
Federal, state, and municipal budget challenges
High tax rates
Lack of consumer confidence
Rising inflation and/or rising energy and commodity prices
Rising interest rates
U.S. infrastructure needs
European economic challenges
Government austerity
Skills shortage
Weak housing market
Falling oil prices
Other
52.9%
44.9%
43.3%
38.2%
35.0%
33.4%
28.6%
27.2%
24.0%
22.8%
18.2%
0.0%
4.9%
50.4%
49.0%
43.7%
39.8%
30.4%
29.4%
33.5%
26.5%
24.0%
25.3%
22.3%
12.9%
3.1%
50.7%
52.5%
43.9%
46.6%
38.9%
28.0%
22.7%
27.0%
22.1%
25.5%
24.5%
0.0%
6.5%
[This response was only offered in Spring 2015.]
Rising health care costs
Federal, state, and municipal budget challenges
High tax rates
Lack of consumer confidence
US infrastructure needs
Rising inflation and/or rising energy and commodity prices
Rising interest rates
European economic challenges
Skills shortage
Government austerity
Weak housing market
Falling oil prices
Other
50.4%
49.0%
43.7%
39.8%
33.5%
30.4%
29.4%
26.5%
25.3%
24.0%
22.3%
12.9%
3.1%
50.7%
52.5%
43.9%
46.6%
22.7%
38.9%
28.0%
27.0%
25.5%
22.1%
24.5%
0.0%
6.5%
62.9%
54.6%
45.0%
44.7%
25.6%
35.7%
28.6%
22.5%
24.5%
21.9%
16.1%
0.0%
7.8%
Fall 2014 Spring 2015
Spring 2014
[This response was not offered in prior surveys.]
Spring 2015 Fall 2015
Fall 2014
Chart on the right is from last report, just for my reference
11
A11. Which of the following issues present the greatest obstacles to US growth over the next 12 months? (Please select all that apply.)
Rising health care costs
Federal, state, and municipal budget challenges
High tax rates
Lack of consumer confidence
Rising inflation and/or rising energy and commodity prices
Rising interest rates
U.S. infrastructure needs
European economic challenges
Government austerity
Skills shortage
Weak housing market
Falling oil prices
Other
52.9%
44.9%
43.3%
38.2%
35.0%
33.4%
28.6%
27.2%
24.0%
22.8%
18.2%
0.0%
4.9%
50.4%
49.0%
43.7%
39.8%
30.4%
29.4%
33.5%
26.5%
24.0%
25.3%
22.3%
12.9%
3.1%
50.7%
52.5%
43.9%
46.6%
38.9%
28.0%
22.7%
27.0%
22.1%
25.5%
24.5%
0.0%
6.5%
[This response was only offered in Spring 2015.]
Rising health care costs
Federal, state, and municipal budget challenges
High tax rates
Lack of consumer confidence
US infrastructure needs
Rising inflation and/or rising energy and commodity prices
Rising interest rates
European economic challenges
Skills shortage
Government austerity
Weak housing market
Falling oil prices
Other
50.4%
49.0%
43.7%
39.8%
33.5%
30.4%
29.4%
26.5%
25.3%
24.0%
22.3%
12.9%
3.1%
50.7%
52.5%
43.9%
46.6%
22.7%
38.9%
28.0%
27.0%
25.5%
22.1%
24.5%
0.0%
6.5%
62.9%
54.6%
45.0%
44.7%
25.6%
35.7%
28.6%
22.5%
24.5%
21.9%
16.1%
0.0%
7.8%
Fall 2014 Spring 2015
Spring 2014
[This response was not offered in prior surveys.]
Spring 2015 Fall 2015
Fall 2014
Chart on the right is from last report, just for my reference
12
A12 What is your company’s main growth strategy over the next 12 months? (Please select only one.)
Growing existing markets
Strategic alliances and collaborative projects
Development of new products and services
Increased productivity
Entry into new markets globally
Mergers and acquisitions
Strengthen management team
Growing organically in new markets
Other
31.2%
15.9%
15.6%
13.9%
10.1%
8.0%
4.3%
0.0%
0.9%
36.0%
13.2%
15.3%
10.9%
0.0%
11.9%
1.9%
10.4%
0.3%
34.3%
15.8%
16.0%
7.4%
0.0%
9.6%
2.2%
13.9%
0.8%
Growing existing markets organically
Development of new products and services
Strategic alliances and collaborative projects
Mergers and acquisitions
Increased productivity
Growing in new global markets
Strengthen management team
Other
36.0%
15.3%
13.2%
11.9%
10.9%
10.4%
1.9%
0.3%
34.3%
16.0%
15.8%
9.6%
7.4%
13.9%
2.2%
0.8%
38.6%
9.7%
7.4%
12.8%
9.2%
12.0%
3.9%
6.5%
Fall 2014 Spring 2015
Spring 2014
Spring 2015 Fall 2015
Fall 2014
[This response was only offered in Fall 2015.]
[This response was not offered in Fall 2015.]
Chart on the right is from last report, just for my reference
Performance and growth (continued)
Tapping the brakes: full survey results 7
14
A14 Which of the following measures by the US government would most help US mid-sized businesses to grow in the next year? (Please choose up to two.)
Reducing corporate tax rates
Keeping interest rates low
Rolling back health care reform
Supporting increased infrastructure investment
Easing bank lending practices
Subsidizing vocational and other skills training and develop
Easing immigration restrictions
Passing currently pending free trade agreements
Relaxing export/import regulations
Stimulating private consumption
Protecting U.S. firms better from global competition
Other
37.8%
37.4%
32.4%
24.4%
17.6%
13.6%
8.0%
6.8%
5.2%
0.7%
33.1%
33.8%
26.4%
21.8%
13.2%
8.9%
5.8%
4.8%
4.3%
18.3%
16.1%
1.7%
40.5%
36.3%
26.1%
17.2%
14.2%
7.1%
5.2%
2.4%
2.4%
18.9%
14.4%
0.9%
Keeping interest rates low
Reducing corporate tax rates
Rolling back health care reform
Supporting increased infrastructure investment
Stimulating private consumption
Protecting US firms better from global competition
Easing bank lending practices
Subsidizing vocational and other skills training and development
Easing immigration restrictions
Passing currently pending free trade agreements
Relaxing export/import regulations
Other
33.8%
33.1%
26.4%
21.8%
18.3%
16.1%
13.2%
8.9%
5.8%
4.8%
4.3%
1.7%
36.3%
40.5%
26.1%
17.2%
18.9%
14.4%
14.2%
7.1%
5.2%
2.4%
2.4%
0.9%
29.2%
37.5%
39.1%
15.5%
16.4%
10.5%
13.0%
7.7%
5.2%
1.8%
2.9%
3.0%
Fall 2014 Spring 2015
Spring 2014 Spring 2015 Fall 2015
Fall 2014
[This response was not offered in Fall 2015.]
[This response was not offered in Fall 2015.]
Chart on the right is from last report, just for my reference
What are your company’s main obstacles to growth? (Please choose up to three.)
Which of the following measures by the US government would most help US mid-sized businesses to grow in the next year? (Please choose up to two.)
13
A13 What are your company's main obstacles to growth? (Please choose up to three.)
Uncertain economic outlook
Health care costs
Increased regulatory compliance
Weak market demand
Cost of keeping up with technological advances
Cost of raw materials and other input costs (incl. energy)
Skills shortage
Budget cuts by government (federal, state, municipal)
Availability and/or cost of credit
Falling oil prices
Other
40.8%
34.0%
31.9%
29.1%
27.0%
26.8%
17.7%
15.2%
10.3%
0.0%
2.7%
38.0%
24.9%
23.0%
34.5%
26.0%
27.0%
18.3%
18.8%
9.6%
4.4%
2.8%
39.5%
24.4%
21.5%
32.0%
23.5%
23.8%
19.1%
20.5%
9.3%
0.0%
4.2%
Uncertain economic outlook
Weak market demand
Cost of raw materials and other input costs (incl. energy)
Cost of keeping up with technological advances
Health care costs
Increased regulatory compliance
Budget cuts by government (federal, state, municipal)
Skills shortage
Availability and/or cost of credit
Falling oil prices
Other
38.0%
34.5%
27.0%
26.0%
24.9%
23.0%
18.8%
18.3%
9.6%
4.4%
2.8%
39.5%
32.0%
23.8%
23.5%
24.4%
21.5%
20.5%
19.1%
9.3%
0.0%
4.2%
40.8%
31.2%
21.5%
13.2%
30.0%
27.5%
13.3%
18.5%
5.8%
0.0%
4.5%
Fall 2014 Spring 2015
Spring 2014
[This response was not offered in prior surveys.]
Spring 2015 Fall 2015
Fall 2014
[This response was not offered in Fall 2015.]
[This response was not offered in Fall 2014.]
Chart on the right is from last report, just for my reference
14
A14 Which of the following measures by the US government would most help US mid-sized businesses to grow in the next year? (Please choose up to two.)
Reducing corporate tax rates
Keeping interest rates low
Rolling back health care reform
Supporting increased infrastructure investment
Easing bank lending practices
Subsidizing vocational and other skills training and develop
Easing immigration restrictions
Passing currently pending free trade agreements
Relaxing export/import regulations
Stimulating private consumption
Protecting U.S. firms better from global competition
Other
37.8%
37.4%
32.4%
24.4%
17.6%
13.6%
8.0%
6.8%
5.2%
0.7%
33.1%
33.8%
26.4%
21.8%
13.2%
8.9%
5.8%
4.8%
4.3%
18.3%
16.1%
1.7%
40.5%
36.3%
26.1%
17.2%
14.2%
7.1%
5.2%
2.4%
2.4%
18.9%
14.4%
0.9%
Keeping interest rates low
Reducing corporate tax rates
Rolling back health care reform
Supporting increased infrastructure investment
Stimulating private consumption
Protecting US firms better from global competition
Easing bank lending practices
Subsidizing vocational and other skills training and development
Easing immigration restrictions
Passing currently pending free trade agreements
Relaxing export/import regulations
Other
33.8%
33.1%
26.4%
21.8%
18.3%
16.1%
13.2%
8.9%
5.8%
4.8%
4.3%
1.7%
36.3%
40.5%
26.1%
17.2%
18.9%
14.4%
14.2%
7.1%
5.2%
2.4%
2.4%
0.9%
29.2%
37.5%
39.1%
15.5%
16.4%
10.5%
13.0%
7.7%
5.2%
1.8%
2.9%
3.0%
Fall 2014 Spring 2015
Spring 2014 Spring 2015 Fall 2015
Fall 2014
[This response was not offered in Fall 2015.]
[This response was not offered in Fall 2015.]
Chart on the right is from last report, just for my reference
14
A14 Which of the following measures by the US government would most help US mid-sized businesses to grow in the next year? (Please choose up to two.)
Reducing corporate tax rates
Keeping interest rates low
Rolling back health care reform
Supporting increased infrastructure investment
Easing bank lending practices
Subsidizing vocational and other skills training and develop
Easing immigration restrictions
Passing currently pending free trade agreements
Relaxing export/import regulations
Stimulating private consumption
Protecting U.S. firms better from global competition
Other
37.8%
37.4%
32.4%
24.4%
17.6%
13.6%
8.0%
6.8%
5.2%
0.7%
33.1%
33.8%
26.4%
21.8%
13.2%
8.9%
5.8%
4.8%
4.3%
18.3%
16.1%
1.7%
40.5%
36.3%
26.1%
17.2%
14.2%
7.1%
5.2%
2.4%
2.4%
18.9%
14.4%
0.9%
Keeping interest rates low
Reducing corporate tax rates
Rolling back health care reform
Supporting increased infrastructure investment
Stimulating private consumption
Protecting US firms better from global competition
Easing bank lending practices
Subsidizing vocational and other skills training and development
Easing immigration restrictions
Passing currently pending free trade agreements
Relaxing export/import regulations
Other
33.8%
33.1%
26.4%
21.8%
18.3%
16.1%
13.2%
8.9%
5.8%
4.8%
4.3%
1.7%
36.3%
40.5%
26.1%
17.2%
18.9%
14.4%
14.2%
7.1%
5.2%
2.4%
2.4%
0.9%
29.2%
37.5%
39.1%
15.5%
16.4%
10.5%
13.0%
7.7%
5.2%
1.8%
2.9%
3.0%
Fall 2014 Spring 2015
Spring 2014 Spring 2015 Fall 2015
Fall 2014
[This response was not offered in Fall 2015.]
[This response was not offered in Fall 2015.]
Chart on the right is from last report, just for my reference
14
A14 Which of the following measures by the US government would most help US mid-sized businesses to grow in the next year? (Please choose up to two.)
Reducing corporate tax rates
Keeping interest rates low
Rolling back health care reform
Supporting increased infrastructure investment
Easing bank lending practices
Subsidizing vocational and other skills training and develop
Easing immigration restrictions
Passing currently pending free trade agreements
Relaxing export/import regulations
Stimulating private consumption
Protecting U.S. firms better from global competition
Other
37.8%
37.4%
32.4%
24.4%
17.6%
13.6%
8.0%
6.8%
5.2%
0.7%
33.1%
33.8%
26.4%
21.8%
13.2%
8.9%
5.8%
4.8%
4.3%
18.3%
16.1%
1.7%
40.5%
36.3%
26.1%
17.2%
14.2%
7.1%
5.2%
2.4%
2.4%
18.9%
14.4%
0.9%
Keeping interest rates low
Reducing corporate tax rates
Rolling back health care reform
Supporting increased infrastructure investment
Stimulating private consumption
Protecting US firms better from global competition
Easing bank lending practices
Subsidizing vocational and other skills training and development
Easing immigration restrictions
Passing currently pending free trade agreements
Relaxing export/import regulations
Other
33.8%
33.1%
26.4%
21.8%
18.3%
16.1%
13.2%
8.9%
5.8%
4.8%
4.3%
1.7%
36.3%
40.5%
26.1%
17.2%
18.9%
14.4%
14.2%
7.1%
5.2%
2.4%
2.4%
0.9%
29.2%
37.5%
39.1%
15.5%
16.4%
10.5%
13.0%
7.7%
5.2%
1.8%
2.9%
3.0%
Fall 2014 Spring 2015
Spring 2014 Spring 2015 Fall 2015
Fall 2014
[This response was not offered in Fall 2015.]
[This response was not offered in Fall 2015.]
Chart on the right is from last report, just for my reference
14
A14 Which of the following measures by the US government would most help US mid-sized businesses to grow in the next year? (Please choose up to two.)
Reducing corporate tax rates
Keeping interest rates low
Rolling back health care reform
Supporting increased infrastructure investment
Easing bank lending practices
Subsidizing vocational and other skills training and develop
Easing immigration restrictions
Passing currently pending free trade agreements
Relaxing export/import regulations
Stimulating private consumption
Protecting U.S. firms better from global competition
Other
37.8%
37.4%
32.4%
24.4%
17.6%
13.6%
8.0%
6.8%
5.2%
0.7%
33.1%
33.8%
26.4%
21.8%
13.2%
8.9%
5.8%
4.8%
4.3%
18.3%
16.1%
1.7%
40.5%
36.3%
26.1%
17.2%
14.2%
7.1%
5.2%
2.4%
2.4%
18.9%
14.4%
0.9%
Keeping interest rates low
Reducing corporate tax rates
Rolling back health care reform
Supporting increased infrastructure investment
Stimulating private consumption
Protecting US firms better from global competition
Easing bank lending practices
Subsidizing vocational and other skills training and development
Easing immigration restrictions
Passing currently pending free trade agreements
Relaxing export/import regulations
Other
33.8%
33.1%
26.4%
21.8%
18.3%
16.1%
13.2%
8.9%
5.8%
4.8%
4.3%
1.7%
36.3%
40.5%
26.1%
17.2%
18.9%
14.4%
14.2%
7.1%
5.2%
2.4%
2.4%
0.9%
29.2%
37.5%
39.1%
15.5%
16.4%
10.5%
13.0%
7.7%
5.2%
1.8%
2.9%
3.0%
Fall 2014 Spring 2015
Spring 2014 Spring 2015 Fall 2015
Fall 2014
[This response was not offered in Fall 2015.]
[This response was not offered in Fall 2015.]
Chart on the right is from last report, just for my reference
and development
8 America’s economic engine
Are the following key metrics of your business up, about the same, or down over the last 12 months?
Do you expect these same key metrics of your business to go up, stay the same, or go down over the next 12 months?
Performance and growth (continued)
15
A15 Are the following key metrics of your business up, about the same, or down over the last 12 months?
About the same over the last 12 months Up over the last 12 months
Down over the last 12 months
Capital investment
Cash balances
Debt ratios
Full-time headcount
Input prices
Prices you charged for goods/services
Productivity
Profits
Gross profit margin
Revenues
45.4%
36.6%
17.8%
36.5%
27.0%
31.2%
43.6%
42.2%
38.4%
48.0%
50.1%
52.8%
60.0%
49.7%
63.9%
59.0%
49.2%
43.0%
48.3%
42.0%
4.6%
10.6%
22.2%
13.8%
9.1%
9.8%
7.2%
14.8%
13.3%
10.0%
16
A16 Do you expect these same key metrics of your business to go up, stay the same or go down over the next 12 months?
Capital investment
Cash balances
Debt ratios
Full-time headcount
Input prices
Prices you charged for goods/services
Productivity
Profits
Gross profit margin
Revenues
42.8%
36.4%
14.9%
35.9%
26.5%
34.6%
46.2%
46.5%
48.9%
51.7%
52.1%
57.2%
66.8%
54.6%
67.5%
59.1%
48.5%
46.2%
44.9%
42.1%
5.1%
6.5%
18.4%
9.5%
6.0%
6.3%
5.3%
7.3%
6.2%
6.2%
About the same over the next 12 months Up over the next 12 months
Down over the next 12 months
17
A17 The level of uncertainty in terms of factors that drive future business prospects (e.g., taxes, regulations, credit availability, and the economic outlook) is:
Much higher than one year ago
Higher than one year ago
About the same as one year ago
Lower than one year ago
Much lower than one year ago
8.1%
36.4%
45.2%
8.9%
1.5%
13.0%
32.2%
44.2%
9.5%
1.1%
10.4%
37.5%
42.7%
9.2%
0.2%
Much higher than one year ago
Higher than one year ago
About the same as one year ago
Lower than one year ago
Much lower than one year ago
13.0%
32.2%
44.2%
9.5%
1.1%
10.4%
37.5%
42.7%
9.2%
0.2%
10.2%
33.4%
47.5%
8.3%
0.6%
Fall 2014 Spring 2015
Spring 2014 Spring 2015 Fall 2015
Fall 2014
Chart on the right is from last report, just for my reference
The level of uncertainty in terms of factors that drive future business prospects (e.g., taxes, regulations, credit availability, and the economic outlook) is:
Tapping the brakes: full survey results 9
26
A26 Which investment(s) in technology is your company most likely to make in the next 12 months? Please choose up to THREE.
Cloud computing/Software as a Service
Data analytics/business intelligence
Automation of business processes
Enterprise application suites
CRM
Robotics
Additive manufacturing (3D printing)
Other
Don’t know
45.2%
45.0%
33.8%
23.6%
23.5%
15.5%
8.9%
1.5%
9.5%
57.7%
53.2%
43.3%
40.8%
28.2%
20.0%
11.2%
2.1%
14.5%
46.4%
39.8%
23.7%
27.1%
27.7%
11.2%
0.0%
0.9%
15.2%
[This response was not offered in Fall 2014.]
Cloud computing/Software as a Service
Data analytics/business intelligence
Automation of business processes
Enterprise application suites
CRM
Robotics
Additive manufacturing (3D printing)
Other
Don’t know
57.7%
53.2%
43.3%
40.8%
28.2%
20.0%
11.2%
2.1%
14.5%
46.4%
39.8%
23.7%
27.1%
27.7%
11.2%
0.0%
0.9%
15.2%
37.0%
32.8%
35.9%
25.1%
19.5%
6.1%
0.0%
0.7%
19.0%
Fall 2014 Spring 2015
Spring 2014
[This response was not offered in prior surveys.]
Spring 2015 Fall 2015
Fall 2014
Chart on the right is from last report, just for my reference
27
27 Please rank (in order of importance) your top three priorities for the next 12 months in terms of business strategies.
Second Top
Third
Increasing sales in existing markets
Marketing / advertising
Technology
Product development
New market expansion
Partnerships / alliances / joint ventures
Mergers and acquisitions
Staff training / development
Hiring
Plant, property, equipment
Supply chain management
31.6%
11.7%
10.6%
10.4%
8.8%
7.2%
6.6%
4.6%
4.4%
3.0%
1.0%
14.4%
8.6%
9.7%
13.4%
11.8%
7.5%
7.0%
9.6%
11.2%
4.3%
2.6%
13.4%
8.8%
14.1%
8.2%
13.0%
5.2%
8.2%
13.2%
7.3%
3.8%
4.7%
39
A39 What are your company's top two investment priorities in the next 12 months? Please select TWO.
Hiring and training
Development of new products and services
Tech: implementation of new systems
Capital expenditures
Tech: upgrading existing systems
M&A
Other
43.5%
43.0%
36.8%
31.4%
29.0%
15.3%
1.0%
40.4%
47.0%
39.8%
32.4%
24.4%
14.9%
1.0%
Spring 2015 Fall 2015
Which investment(s) in technology is your company most likely to make in the next 12 months? (Please choose up to three.)
Please rank (in order of importance) your top three priorities for the next 12 months in terms of business strategies.
What are your company’s top two investmentpriorities in the next 12 months? (Please select two.)
10 America’s economic engine
What is your level of confidence that the US economy will continue to improve over the next 24 months?
What is your level of confidence in the success of your company (based on revenue, profitability, and growth) over the next 24 months?
Please indicate your level of agreement with this statement: “We are deferring major investments due to the uncertainty in the current business environment.”
Performance and growth (continued)
34
34 What is your level of confidence that the US economy will continue to improve over the next 24 months?
Extremely confident
Very confident
Confident
Somewhat confident
Not confident
9.8%
24.4%
30.6%
24.7%
10.5%
17.9%
25.2%
23.0%
22.2%
11.7%
19.6%
24.9%
21.9%
19.3%
14.3%
Spring 2015 Fall 2015
Fall 2014
35
35 What is your level of confidence in the success of your company (based on revenue, profitability, and growth) over the next 24 months?
Extremely confident
Very confident
Confident
Somewhat confident
Not confident
17.4%
36.5%
32.6%
10.8%
2.7%
21.0%
35.9%
29.8%
10.5%
2.7%
26.3%
33.4%
25.6%
12.4%
2.3%
Extremely confident
Very confident
Confident
Somewhat confident
Not confident
21.0%
35.9%
29.8%
10.5%
2.7%
26.3%
33.4%
25.6%
12.4%
2.3%
9.5%
23.2%
34.5%
28.8%
4.0%
Fall 2014 Spring 2015
Spring 2014 Spring 2015 Fall 2015
Fall 2014
Chart on the right is from last report, just for my reference
40
40 Please indicate your level of agreement with this statement: “We are deferring major investments due to the uncertainty in the current business environment.”
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
11.4%
28.3%
30.6%
24.7%
4.9%
16.6%
26.3%
28.0%
26.2%
2.8%
14.1%
22.5%
30.9%
27.7%
4.7%
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
16.6%
26.3%
28.0%
26.2%
2.8%
14.1%
22.5%
30.9%
27.7%
4.7%
5.2%
17.6%
36.6%
29.8%
10.8%
Fall 2014 Spring 2015
Spring 2014 Spring 2015 Fall 2015
Fall 2014
Chart on the right is from last report, just for my reference
Tapping the brakes: full survey results 11
Please specify which geographic markets were the top contributors to your company’s growth over the last 12 months, and which will be in the next 12 months.
Please specify the proportion of your revenues that come from outside the United States, now and in the next 12 months.
Global and emerging markets
19
19 Please specify the proportion of your revenues that come from outside the United States, now and in the next 12 months.
None
Up to 25%
26% to 40%
41% to 55%
56% to 70%
71% to 85%
86% to 100%
Don't know / not sure
32.2%
35.9%
11.5%
8.2%
4.7%
3.5%
2.5%
1.4%
29.3%
30.7%
14.6%
9.8%
6.3%
5.7%
2.3%
1.3%
In the next 12 months Now
20
20 Please specify which geographic markets were the top contributors to your company's growth over the last 12 months, and which will be in the next 12 months.
United States
Canada
Western Europe
China
Asia-Pacific (excl. China, India)
Mexico
Latin/South America (excl. Brazil, Mexico)
Eastern Europe (excl. Russia)
India
Brazil
Middle East (incl. North Africa)
Russia
Sub-Saharan Africa
South Africa
91.8%
26.8%
21.3%
16.4%
15.3%
12.8%
9.0%
6.4%
5.7%
5.2%
4.4%
3.4%
1.9%
1.4%
91.8%
28.9%
21.6%
16.6%
18.1%
14.4%
10.8%
6.5%
8.8%
9.3%
5.1%
5.1%
1.8%
1.4%
In the next 12 months In the last 12 months
12 America’s economic engine
Please specify the percentage of your workforce based outside the United States, now and in the next 12 months.
Talent
18
18 Please specify the percentage of your workforce based outside the United States, now and in the next 12 months.
None
Up to 5%
6% to 10%
11% to 20%
21% to 30%
31% to 40%
41% to 55%
56% to 70%
Over 70%
Don't know / not sure
41.0%
16.5%
11.9%
7.7%
6.3%
5.5%
4.1%
1.9%
3.9%
1.1%
37.0%
13.6%
12.5%
11.7%
7.5%
3.8%
6.4%
3.6%
2.7%
1.1%
In the next 12 months Now
21
A21 Which investments offer the greatest potential for increasing productivity at your company? Please select all that apply.
Technology
Talent
Plant and equipment
R&D
Patents, brands, or other intangibles
Other
66.0%
50.9%
31.1%
29.4%
0.0%
0.8%
65.6%
50.1%
33.6%
37.3%
0.0%
0.6%
65.3%
55.6%
31.0%
33.7%
22.6%
1.3%
[This response not offered in Fall 2015 and Spring 2015 surveys.
Technology
Talent
R&D
Plant and equipment
Patents, brands, or other intangibles
Other
65.6%
50.1%
37.3%
33.6%
0.0%
0.6%
65.3%
55.6%
33.7%
31.0%
22.6%
1.3%
55.2%
52.4%
23.6%
26.9%
9.3%
2.8%
Fall 2014 Spring 2015
Spring 2014
[This response not offered in 2015.]
Spring 2015 Fall 2015
Fall 2014
Chart on the right is from last report, just for my reference
22
22 Please indicate your level of agreement with this statement: “It is difficult for us to find new employees with the skills and education to meet the needs of our business.”
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
17.1%
46.5%
21.2%
13.5%
1.6%
21.7%
44.9%
15.1%
15.9%
2.5%
24.0%
39.6%
19.0%
16.0%
1.0%
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
21.7%
44.9%
15.1%
15.9%
2.5%
24.0%
39.6%
19.0%
16.0%
1.0%
12.0%
40.0%
26.0%
18.0%
5.1%
Fall 2014 Spring 2015
Spring 2014 Spring 2015 Fall 2015
Fall 2014
Chart on the right is from last report, just for my reference
Which investments offer the greatest potential for increasing productivity at your company? (Please select all that apply.)
Please indicate your level of agreement with this statement: “It is difficult for us to find new employees with the skills and education to meet the needs of our business.”
Tapping the brakes: full survey results 13
23
23 How has the size of your full-time domestic workforce changed over the last 12 months, and what do you expect in the next 12 months?
More than 10% bigger
Bigger by between 5% and 10%
Bigger by less than 5%
No change
Smaller by less than 5%
Smaller by between 5% and 10%
More than 10% smaller
9.0%
21.9%
25.1%
30.2%
7.6%
4.4%
1.8%
8.9%
23.1%
29.5%
26.9%
6.9%
2.8%
2.1%
In the next 12 months Now
24
24 Approximately how many full-time staff are employed by your business?
Fewer than 50
50 – 99
100 – 199
200 – 499
500 – 999
1,000 – 2,999
3,000 or more
3.9%
5.4%
12.0%
22.1%
22.1%
20.8%
13.8%
25
25 Which investment(s) in talent is your company most likely to make in the next 12 months? (Please select up to two.)
Training
Increase in full-time employees
Increase in compensation
Increase in part-time workers
More hours from existing employees
Other
Don’t know / not sure
51.6%
45.4%
32.3%
19.6%
17.0%
1.3%
3.4%
51.6%
44.7%
31.8%
20.8%
17.5%
1.5%
3.6%
54.4%
53.7%
22.8%
17.3%
17.6%
1.3%
3.2%
Spring 2015 Fall 2015
Fall 2014
Training
Increase in full-time employees
Increase in compensation
Increase in part-time workers
More hours from existing employees
Other
Don’t know / not sure
51.6%
44.7%
31.8%
20.8%
17.5%
1.5%
3.6%
54.4%
53.7%
22.8%
17.3%
17.6%
1.3%
3.2%
48.9%
42.5%
25.2%
16.7%
20.5%
0.8%
6.7%
Fall 2014 Spring 2015
Spring 2014
Chart on the right is from last report, just for my reference
How has the size of your full-time domestic workforce changed over the last 12 months, and what do you expect in the next 12 months?
Approximately how many full-time staff are employed by your business?
Which investment(s) in talent is your company most likely to make in the next 12 months? (Please select up to two.)
14 America’s economic engine
28
28 What types of financing do you expect your company to pursue in the next year?
Asset-based financing (e.g., working capital lines)
Cash-flow financing
Private sources (e.g., private equity)
Secured loans
Internal sources
Leasing
Public (e.g., stock offering)
Unsecured loans
Other
We do not expect to use financing
33.8%
31.2%
29.6%
26.5%
24.9%
13.9%
13.5%
6.7%
0.8%
18.2%
32.0%
32.6%
27.7%
25.1%
32.5%
17.6%
15.1%
7.8%
0.4%
19.3%
34.0%
33.2%
30.0%
24.3%
27.9%
14.6%
13.4%
8.0%
0.5%
21.6%
Cash-flow financing
Internal sources
Asset-based financing (e.g., working capital lines)
Private sources (e.g., private equity)
Secured loans
Leasing
Public (e.g., stock offering)
Unsecured loans
Other
We do not expect to use financing
32.6%
32.5%
32.0%
27.7%
25.1%
17.6%
15.1%
7.8%
0.4%
19.3%
33.2%
27.9%
34.0%
30.0%
24.3%
14.6%
13.4%
8.0%
0.5%
21.6%
22.4%
23.4%
28.4%
21.0%
16.2%
9.4%
3.9%
3.9%
0.6%
26.6%
Fall 2014 Spring 2015
Spring 2014 Spring 2015 Fall 2015
Fall 2014
Chart on the right is from last report, just for my reference
What types of financing do you expect your company to pursue in the next year? (Please select all that apply.)
Financing
Tapping the brakes: full survey results 15
36
36 Which of the following best describes your company’s ownership status?
Privately held, but likely to go public within the next 12 months: 14.6%
Privately held, and unlikely to go public within the next 12 months: 60.2%
Public, but held by a small number of owners: 8.9%
Privately held, but likely to go public sometime after the next 12 months: 9.4%
Public and broadly held: 6.8%
Which of the following best describes your company’s ownership status?
Public vs. private
What factors influence your company’s decision to remain private for now? Please select all that apply.
What factors influence your company’s decision to be or go public? Please select all that apply.
37
37 What factors influence your company’s decision to remain private for now? Please select all that apply.
Desire for control and/or flexibility in decision-making
Desire to keep financial information private
We are too small to consider going public
Burden of regulatory requirements (e.g., Sarbanes-Oxley, disclosure rules)
We would prefer to tap private funding sources (e.g., private equity, venture capital)
Operational requirements of the shift are burdensome (e.g., might need additional staff to deal with analysts and shareholders)
Other
75.5%
39.6%
25.2%
23.8%
19.4%
17.0%
4.4%
75.6%
43.8%
24.2%
23.6%
14.5%
15.7%
3.7%
81.3%
39.8%
22.0%
27.0%
16.2%
19.9%
3.6%
Spring 2015 Fall 2015
Fall 2014
37
37 What factors influence your company’s decision to remain private for now? Please select all that apply.
Desire for control and/or flexibility in decision-making
Desire to keep financial information private
We are too small to consider going public
Burden of regulatory requirements (e.g., Sarbanes-Oxley, disclosure rules)
We would prefer to tap private funding sources (e.g., private equity, venture capital)
Operational requirements of the shift are burdensome (e.g., might need additional staff to deal with analysts and shareholders)
Other
75.5%
39.6%
25.2%
23.8%
19.4%
17.0%
4.4%
75.6%
43.8%
24.2%
23.6%
14.5%
15.7%
3.7%
81.3%
39.8%
22.0%
27.0%
16.2%
19.9%
3.6%
Spring 2015 Fall 2015
Fall 2014
37
37 What factors influence your company’s decision to remain private for now? Please select all that apply.
Desire for control and/or flexibility in decision-making
Desire to keep financial information private
We are too small to consider going public
Burden of regulatory requirements (e.g., Sarbanes-Oxley, disclosure rules)
We would prefer to tap private funding sources (e.g., private equity, venture capital)
Operational requirements of the shift are burdensome (e.g., might need additional staff to deal with analysts and shareholders)
Other
75.5%
39.6%
25.2%
23.8%
19.4%
17.0%
4.4%
75.6%
43.8%
24.2%
23.6%
14.5%
15.7%
3.7%
81.3%
39.8%
22.0%
27.0%
16.2%
19.9%
3.6%
Spring 2015 Fall 2015
Fall 2014
37
37 What factors influence your company’s decision to remain private for now? Please select all that apply.
Desire for control and/or flexibility in decision-making
Desire to keep financial information private
We are too small to consider going public
Burden of regulatory requirements (e.g., Sarbanes-Oxley, disclosure rules)
We would prefer to tap private funding sources (e.g., private equity, venture capital)
Operational requirements of the shift are burdensome (e.g., might need additional staff to deal with analysts and shareholders)
Other
75.5%
39.6%
25.2%
23.8%
19.4%
17.0%
4.4%
75.6%
43.8%
24.2%
23.6%
14.5%
15.7%
3.7%
81.3%
39.8%
22.0%
27.0%
16.2%
19.9%
3.6%
Spring 2015 Fall 2015
Fall 2014
Burden of regulatory requirements (e.g., Sarbanes-Oxley, disclosure rules)
We would prefer to tap private funding sources (e.g., private equity, venture capital)
Operational requirements of the shift are burdensome (e.g., might need additional staff to deal with analysts and shareholders)
38
38 What factors influence your company’s decision to be or go public? Please select all that apply.
Need capital to fuel growth
Cost-effectiveness of equity capital
Desire to provide liquidity for owners
Being public can broaden the exposure of our brand and products
Investment banking relationship
Looking to cash out
Other
42.1%
41.0%
40.4%
39.8%
22.1%
8.1%
3.0%
42.9%
44.2%
38.5%
42.1%
23.3%
9.0%
1.8%
45.5%
43.7%
39.4%
42.3%
23.2%
11.4%
4.3%
Cost-effectiveness of equity capital
Need capital to fuel growth
Being public can broaden the exposure of our brand and products
Desire to provide liquidity for owners
Investment banking relationship
Looking to cash out
Other
44.2%
42.9%
42.1%
38.5%
23.3%
9.0%
1.8%
43.7%
45.5%
42.3%
39.4%
23.2%
11.4%
4.3%
34.7%
32.8%
35.7%
34.0%
14.4%
6.3%
4.8%
Fall 2014 Spring 2015
Spring 2014 Spring 2015 Fall 2015
Fall 2014
Chart on the right is from last report, just for my reference
38
38 What factors influence your company’s decision to be or go public? Please select all that apply.
Need capital to fuel growth
Cost-effectiveness of equity capital
Desire to provide liquidity for owners
Being public can broaden the exposure of our brand and products
Investment banking relationship
Looking to cash out
Other
42.1%
41.0%
40.4%
39.8%
22.1%
8.1%
3.0%
42.9%
44.2%
38.5%
42.1%
23.3%
9.0%
1.8%
45.5%
43.7%
39.4%
42.3%
23.2%
11.4%
4.3%
Cost-effectiveness of equity capital
Need capital to fuel growth
Being public can broaden the exposure of our brand and products
Desire to provide liquidity for owners
Investment banking relationship
Looking to cash out
Other
44.2%
42.9%
42.1%
38.5%
23.3%
9.0%
1.8%
43.7%
45.5%
42.3%
39.4%
23.2%
11.4%
4.3%
34.7%
32.8%
35.7%
34.0%
14.4%
6.3%
4.8%
Fall 2014 Spring 2015
Spring 2014 Spring 2015 Fall 2015
Fall 2014
Chart on the right is from last report, just for my reference
Being public can broaden the exposure of our brand and products
16 America’s economic engine
In the past 12 months, have you completed any mergers or acquisitions?
How many?
Mergers and acquisitions
29
29 In the past 12 months, have you completed any mergers or acquisitions?
No: 72.2% Yes: 27.8%
30
30 how many?
Two: 35.7% One: 42.6%
More than three: 4.9% Three: 16.8%
Spring 2014 Relates to 29
Two: 29.7% One: 34.8%
More than three: 14.6% Three: 20.9%
Fall 2015
Two: 36.0% One: 26.6%
More than three: 11.7% Three: 25.7%
Fall 2014
Two: 31.6% One: 24.9%
More than three: 14.5% Three: 28.9%
Spring 2015
Tapping the brakes: full survey results 17
How likely is it that your company will participate in a merger or acquisition in the next 12 months…
31
31 How likely is it that your company will participate in a merger or acquisition in the next 12 months…
…as an acquirer? …as a merger target?
Very likely
Quite likely
We are not looking, but would consider a deal
Not likely
Highly unlikely
Don’t know
14.9%
24.1%
24.2%
16.9%
17.9%
2.1%
22.4%
21.7%
21.6%
15.5%
15.7%
3.0%
22.2%
23.6%
20.2%
14.0%
18.0%
2.0%
Very likely
Quite likely
We are not looking, but would consider a deal
Not likely
Highly unlikely
Don’t know
9.0%
12.4%
21.2%
21.5%
33.0%
2.8%
9.1%
15.5%
21.1%
20.9%
29.8%
3.7%
8.3%
20.1%
18.4%
20.9%
29.8%
2.5%
…as an acquirer? …as a merger target?
Very likely
Quite likely
We are not looking, but would consider a deal
Not likely
Highly unlikely
Don’t know
22.4%
21.7%
21.6%
15.5%
15.7%
3.0%
22.2%
23.6%
20.2%
14.0%
18.0%
2.0%
14.5%
16.3%
24.1%
18.8%
23.6%
2.7%
Very likely
Quite likely
We are not looking, but would consider a deal
Not likely
Highly unlikely
Don’t know
9.1%
15.5%
21.1%
20.9%
29.8%
3.7%
8.3%
20.1%
18.4%
20.9%
29.8%
2.5%
6.3%
7.2%
17.0%
25.9%
41.2%
2.4%
Fall 2014 Spring 2015
Spring 2014 Fall 2014 Spring 2015
Spring 2014 Spring 2015 Fall 2015
Fall 2014 Spring 2015 Fall 2015
Fall 2014
Charts on the right is from last report, just for my reference
18 America’s economic engine
Mergers and acquisitions (continued)
What will be the main drivers of merger activity in your company’s industry over the next 12 months? (Please choose up to two.)
33
33 What will be the main drivers of merger activity in your company's industry over the next 12 months? (Please choose up to two.)
Consolidation to expand/diversify customer base
Consolidation to capture scale efficiencies
Increased availability of capital
Bargain-hunting for underpriced assets
Renewed confidence in the economy
Renewed risk appetite among investors
Pent-up demand among investors
Other
42.1%
34.0%
26.9%
26.2%
20.1%
5.1%
4.7%
4.2%
47.2%
38.1%
22.5%
27.5%
24.0%
3.8%
5.7%
2.7%
46.6%
38.4%
19.6%
23.2%
21.3%
4.5%
5.8%
3.9%
Consolidation to expand/diversify customer base
Consolidation to capture scale efficiencies
Bargain-hunting for underpriced assets
Renewed confidence in the economy
Increased availability of capital
Pent-up demand among investors
Renewed risk appetite among investors
Other
47.2%
38.1%
27.5%
24.0%
22.5%
5.7%
3.8%
2.7%
46.6%
38.4%
23.2%
21.3%
19.6%
5.8%
4.5%
3.9%
49.6%
37.8%
25.0%
13.6%
10.4%
3.8%
3.9%
4.2%
Fall 2014 Spring 2015
Spring 2014 Spring 2015 Fall 2015
Fall 2014
Chart on the right is from last report, just for my reference
If you participate in a merger or acquisition, which of the following entities is most likely to be the counter-party? (Please choose up to two.)
32
32 If you participate in a merger or acquisition, which of the following entities is most likely to be the counter-party? (Please choose up to two.)
Direct competitor from the United States
Domestic business partner
Private equity firm
Direct competitor from overseas
Domestic company seeking to enter our business
Foreign business partner
Other private investor
Foreign company seeking to enter our business
Other
We do not expect to be involved in a merger
39.1%
24.0%
18.9%
17.2%
14.7%
9.3%
4.7%
4.5%
0.3%
18.4%
41.3%
33.6%
16.2%
18.7%
14.1%
9.2%
4.8%
3.5%
0.3%
16.1%
39.7%
28.3%
19.9%
13.4%
11.8%
8.3%
2.9%
5.2%
0.0%
21.2%
Direct competitor from the United States
Domestic business partner
Direct competitor from overseas
Private equity firm
Domestic company seeking to enter our business
Foreign business partner
Other private investor
Foreign company seeking to enter our business
Other
We do not expect to be involved in a merger
41.3%
33.6%
18.7%
16.2%
14.1%
9.2%
4.8%
3.5%
0.3%
16.1%
39.7%
28.3%
13.4%
19.9%
11.8%
8.3%
2.9%
5.2%
0.0%
21.2%
47.5%
17.5%
13.3%
12.1%
9.4%
5.0%
3.2%
3.4%
1.1%
24.1%
Fall 2014 Spring 2015
Spring 2014 Spring 2015 Fall 2015
Fall 2014
Chart on the right is from last report, just for my reference
Tapping the brakes: full survey results 19
Trust
42
42 Among the general public, how would you define the level of trust in business (in general) compared to 24 months ago?
Substantially more trust
Slightly more trust
About the same level of trust
Slightly less trust
Significantly less trust
12.2%
30.4%
37.5%
17.1%
2.9%
12.4%
32.6%
37.6%
14.9%
2.4%
Spring 2015 Fall 2015
Among the general public, how would you define the level of trust in business (in general) compared to 24 months ago?
43
A43 Please select the level of trust you believe each of the following stakeholder groups has in your organization:
Customers Employees Investors / owners Vendors, suppliers, other business partners
Very high
High
Moderate
Low
Very low
None
25.5%
46.3%
22.6%
2.2%
2.3%
1.1%
34.9%
41.0%
22.3%
1.4%
0.3%
0.1%
Spring 2015 Fall 2015
Very high
High
Moderate
Low
Very low
None
22.4%
41.8%
26.3%
6.9%
1.8%
1.0%
27.2%
40.8%
25.5%
5.3%
1.2%
0.0%
Very high
High
Moderate
Low
Very low
None
26.0%
44.2%
23.7%
2.4%
1.3%
2.3%
31.2%
41.8%
23.2%
2.9%
0.1%
0.9%
Very high
High
Moderate
Low
Very low
None
17.0%
47.0%
29.2%
4.5%
0.7%
1.6%
23.6%
45.7%
25.5%
4.3%
0.4%
0.5%
Spring 2015 Fall 2015
Spring 2015 Fall 2015
Spring 2015 Fall 2015
Please select the level of trust you believe each of the following stakeholder groups has in your organization:
20 America’s economic engine
Trust (continued)
What are the most important actions an organization must take to build trust with employees? (Please choose up to three.)
What are the most important actions an organization must take to build trust with customers? (Please choose up to three.)
44
44a What are the most important actions an organization must take to build trust with employees? Please choose up to THREE.
Grant employees a level of autonomy
Provide access to company leaders
Communicate regularly about values and the state of the business
Align values and company strategy
Have well regarded leadership
Ensure ethical business practices
Make business practices transparent
Model expected business behavior
Provide high-quality products or services
Promote innovation
Engage in social initiatives
Provide exemplary customer service
Demonstrate proficiency in crisis management
35.9%
31.5%
27.6%
24.2%
23.7%
22.8%
22.6%
17.2%
14.4%
13.4%
12.6%
9.8%
6.1%
This had twice as many categories as last year – couldn’t compare
44
44a What are the most important actions an organization must take to build trust with employees? Please choose up to THREE.
Grant employees a level of autonomy
Provide access to company leaders
Communicate regularly about values and the state of the business
Align values and company strategy
Have well regarded leadership
Ensure ethical business practices
Make business practices transparent
Model expected business behavior
Provide high-quality products or services
Promote innovation
Engage in social initiatives
Provide exemplary customer service
Demonstrate proficiency in crisis management
35.9%
31.5%
27.6%
24.2%
23.7%
22.8%
22.6%
17.2%
14.4%
13.4%
12.6%
9.8%
6.1%
This had twice as many categories as last year – couldn’t compare
Communicate regularly about values and the state of the business
45
44b What are the most important actions an organization must take to build trust with customers? Please choose up to THREE.
Same order as 44a – keep together
Grant employees a level of autonomy
Provide access to company leaders
Communicate regularly about values and the state of the business
Align values and company strategy
Have well regarded leadership
Ensure ethical business practices
Make business practices transparent
Model expected business behavior
Provide high-quality products or services
Promote innovation
Engage in social initiatives
Provide exemplary customer service
Demonstrate proficiency in crisis management
10.1%
31.1%
14.4%
17.6%
9.6%
28.6%
19.7%
15.6%
39.8%
10.0%
12.0%
43.3%
6.5%
Communicate regularly about values and the state of the business
45
44b What are the most important actions an organization must take to build trust with customers? Please choose up to THREE.
Same order as 44a – keep together
Grant employees a level of autonomy
Provide access to company leaders
Communicate regularly about values and the state of the business
Align values and company strategy
Have well regarded leadership
Ensure ethical business practices
Make business practices transparent
Model expected business behavior
Provide high-quality products or services
Promote innovation
Engage in social initiatives
Provide exemplary customer service
Demonstrate proficiency in crisis management
10.1%
31.1%
14.4%
17.6%
9.6%
28.6%
19.7%
15.6%
39.8%
10.0%
12.0%
43.3%
6.5%
What are the most important actions an organization must take to build trust with other stakeholders (investors, suppliers, the general community, etc.)? (Please choose up to three.)
Communicate regularly about values and the state of the business
46
44c What are the most important actions an organization must take to build trust with stakeholders? Please choose up to THREE.
Same order as 44a – keep together
Grant employees a level of autonomy
Provide access to company leaders
Communicate regularly about values and the state of the business
Align values and company strategy
Have well regarded leadership
Ensure ethical business practices
Make business practices transparent
Model expected business behavior
Provide high-quality products or services
Promote innovation
Engage in social initiatives
Provide exemplary customer service
Demonstrate proficiency in crisis management
12.1%
20.7%
23.6%
21.7%
24.2%
26.9%
23.7%
15.0%
18.0%
11.6%
14.7%
14.2%
13.5%
46
44c What are the most important actions an organization must take to build trust with stakeholders? Please choose up to THREE.
Same order as 44a – keep together
Grant employees a level of autonomy
Provide access to company leaders
Communicate regularly about values and the state of the business
Align values and company strategy
Have well regarded leadership
Ensure ethical business practices
Make business practices transparent
Model expected business behavior
Provide high-quality products or services
Promote innovation
Engage in social initiatives
Provide exemplary customer service
Demonstrate proficiency in crisis management
12.1%
20.7%
23.6%
21.7%
24.2%
26.9%
23.7%
15.0%
18.0%
11.6%
14.7%
14.2%
13.5%
Tapping the brakes: full survey results 21
What percentage of your company’s executive leadership positions (C-suite or senior management) are held by women and/or minorities?
What percentage of your total employee headcount represents women and/or minorities?
If your company has a board of directors, what percentage is made up of women and/or minorities?
47
A46 What percentage of your company's executive leadership positions (C-suite or senior management) are held by women and/or minorities?
Under 5%
5% to 10%
11% to 20%
21% to 30%
31% to 50%
More than 50%
Don’t know / Not sure
19.3%
18.0%
22.6%
19.2%
12.5%
5.0%
3.5%
48
A47 What percentage of your total employee headcount represents women and/or minorities?
Under 5%
5% to 10%
11% to 20%
21% to 30%
31% to 50%
More than 50%
Don’t know / Not sure
3.8%
9.3%
21.1%
19.8%
27.8%
14.2%
4.1%
49
A48 If your company has a board of directors, what percentage is made up of women and/or minorities?
Under 25%
25% to 50%
51% to 75%
More than 75%
No board / Not applicable
Don’t know / Not sure
36.5%
23.5%
14.6%
4.6%
15.5%
5.3%
Women and minorities / diversity and inclusion
22 America’s economic engine
Women and minorities / diversity and inclusion (continued)
Is your company certified as a minority and/or woman-owned business (MWBE)?
What benefits, if any, has your company received as a result of being certified as a MWBE (Minority or Women’s Business Enterprise)? Please select all that apply.
What are the primary challenges your company faces as a minority and/or woman-owned business enterprise (MWBE)? Please select your TOP TWO.
50
A49 Is your company certified as a minority and/or woman-owned business (MWBE)?
No: 71.2% Yes: 17.5%
Don’t know / Not sure: 11..3%
52
51 What are the primary challenges your company faces as a minority and/or woman-owned business enterprise (MWBE)? Please select your TOP TWO.
Financing
Business development
Developing a leadership pipeline
Succession planning
Other
Don’t know/ Not sure
49.8%
39.1%
36.5%
33.4%
0.9%
8.0%
51
A50 - What benefits, if any, has your company received as a result of being certified as a MWBE (Minority or Women's Business Enterprise)? Please select all that apply.
Greater consideration when bidding to supply large corporations
Greater consideration when bidding to supply governments/government agencies
Greater consideration when bidding to supply non-governmental organizations that are not corporations
Our company has experienced limited benefits from becoming certified
Our company has experienced no benefits from becoming certified
Other
Don’t know/ Not sure
50.9%
41.0%
33.4%
36.8%
37.3%
0.7%
5.1%
51
A50 - What benefits, if any, has your company received as a result of being certified as a MWBE (Minority or Women's Business Enterprise)? Please select all that apply.
Greater consideration when bidding to supply large corporations
Greater consideration when bidding to supply governments/government agencies
Greater consideration when bidding to supply non-governmental organizations that are not corporations
Our company has experienced limited benefits from becoming certified
Our company has experienced no benefits from becoming certified
Other
Don’t know/ Not sure
50.9%
41.0%
33.4%
36.8%
37.3%
0.7%
5.1%
51
A50 - What benefits, if any, has your company received as a result of being certified as a MWBE (Minority or Women's Business Enterprise)? Please select all that apply.
Greater consideration when bidding to supply large corporations
Greater consideration when bidding to supply governments/government agencies
Greater consideration when bidding to supply non-governmental organizations that are not corporations
Our company has experienced limited benefits from becoming certified
Our company has experienced no benefits from becoming certified
Other
Don’t know/ Not sure
50.9%
41.0%
33.4%
36.8%
37.3%
0.7%
5.1%
51
A50 - What benefits, if any, has your company received as a result of being certified as a MWBE (Minority or Women's Business Enterprise)? Please select all that apply.
Greater consideration when bidding to supply large corporations
Greater consideration when bidding to supply governments/government agencies
Greater consideration when bidding to supply non-governmental organizations that are not corporations
Our company has experienced limited benefits from becoming certified
Our company has experienced no benefits from becoming certified
Other
Don’t know/ Not sure
50.9%
41.0%
33.4%
36.8%
37.3%
0.7%
5.1%
51
A50 - What benefits, if any, has your company received as a result of being certified as a MWBE (Minority or Women's Business Enterprise)? Please select all that apply.
Greater consideration when bidding to supply large corporations
Greater consideration when bidding to supply governments/government agencies
Greater consideration when bidding to supply non-governmental organizations that are not corporations
Our company has experienced limited benefits from becoming certified
Our company has experienced no benefits from becoming certified
Other
Don’t know/ Not sure
50.9%
41.0%
33.4%
36.8%
37.3%
0.7%
5.1%
Greater consideration when bidding to supply large corporations
Greater consideration when bidding to supply governments/government agencies
Greater consideration when bidding to supply non-governmental organizations that are not corporations
Our company has experienced limited benefits from becoming certified
Our company has experienced no benefits from becoming certified
Tapping the brakes: full survey results 23
Please select the one response that most closely describes how your company fosters diversity and inclusion.
What are the primary ways your company attracts women and/or minority candidates when recruiting new employees? Please select all that apply.
53
We are in the process of developing programs that focus on building a diverse and inclusive culture and workforce: 20.8% We have a demonstrated commitment, with established programs in place (e.g., leadership development, mentoring, targeted recruiting and retention): 41.8%
Don't know / Not sure: 6.3% We comply with regulatory requirements, but don’t have dedicated programs at this time. 31.0%
52 Please select the one response that most closely describes how your company fosters diversity and inclusion.
54
53 What are the primary ways your company attracts women and/or minority candidates when recruiting new employees? Please select all that apply.
Use online job websites
Use traditional online application process on our company's website
Leverage existing employee contacts/networks
Use college/university career websites
Tap into diverse talent networks
Hire external recruitment firms
Build relationships with candidates early
Posts on social networks
Does not apply
Don't know / Not sure
38.5%
38.4%
33.6%
31.2%
29.7%
28.2%
26.7%
23.5%
6.2%
8.0%
24 America’s economic engine
Survey respondent demographics
What was your company’s 2014 annual revenue in U.S. dollars?
Which of the following best describes your title? What is your main functional role?
1
Between $50 million and $99.99 million
Between $100 million and $199.99 million
Between $200 million and $499.99 million
Between $500 million and $1 billion
26.1%
25.3%
25.5%
23.2%
Survey respondent demographics; No comparatives needed
A1 What was your company’s 2014 annual revenue in US dollars?
2
A2 Which of the following best describes your title?
Owner/partner
Board member
CEO
President
CFO
CIO / CTO
COO
Other C-level
Senior vice president/vice president
Head of business unit
Head of department
Controller
Senior director/director
Senior manager/manager
10.0%
1.9%
10.0%
3.6%
7.7%
10.2%
2.7%
3.6%
12.5%
3.1%
7.5%
2.3%
6.1%
19.0%
Survey respondent demographics; No comparatives needed
3
A3 What is your main functional role?
Customer service
Finance
General management
Human resources
Information and research
Information technology
Marketing and sales
Operations and production
Procurement
Research and development
Risk
Strategy and business development
Supply-chain management
Other
5.7%
14.5%
8.2%
3.9%
3.5%
17.4%
13.1%
12.1%
2.5%
3.2%
3.2%
7.4%
1.8%
3.5%
Survey respondent demographics; No comparatives needed
Tapping the brakes: full survey results 25
Is your company public or private? If private, which category best describes your company?
In which sector does your company operate?
In which state is your company’s headquarters located? (Number of respondents shown.)
6
A6 In which sector does your company operate?
Survey respondent demographics; No comparatives needed
Consumer & Industrial Products
Energy & Resources
Financial Services
Life Sciences & Health Care
Technology, Media & Telecommunications
Other
35.2%
8.2%
14.4%
8.8%
15.3%
18.0%
4
A4 Is your company public or private?
Survey respondent demographics; No comparatives needed Private: 80.8%
Public: 19.2%
7
A7 In which state is your company’s headquarters located? (Number of respondents shown.)
AZ 8
CA 64
CO 3
CT 8
FL 45
GA 15
IN 10
IL 40
IA 3
KS 5
KY 3
MA 17
MI 12
MN 8
MO 11
NC 19
NJ 18
NV 5
NY 48
OH 22
OR 6
PA 26
SC 5
TN 11
TX 32
UT 2
VA 14
WA 10
WI 9
AL 8
MD 10
OK 5
RI 1
DC 4
NM 1
Survey respondent demographics; No comparatives needed
AK 1
LA 6
ND 1
AK 1
ME 1
DE 1
NH 2
SD 1
5
A5 If private, which category best describes your company?
Survey respondent demographics; No comparatives needed
Relates to 4
Closely held (excl. family-owned): 32.9% Family-owned: 33.6%
Venture capital backed: 3.6% Private equity owned: 27.7%
Other: 2.1%
26 America’s economic engine
Perspectives
This report is just one example of Deloitte research on topics of interest to mid-market private companies. Presented by Deloitte Growth Enterprise Services, Perspectives is a multifaceted program that utilizes live events, signature reports, research publications, webcasts, newsletters, and other vehicles to deliver tailored and relevant insights in an integrated fashion.
Please visit our Perspectives library on the Deloitte Growth Enterprise Services website (http://www.deloitte.com/us/perspectives/dges) to view additional material on issues facing mid-market private companies.
Contacts
Roger NanneyNational Managing PartnerDeloitte Growth Enterprise ServicesDeloitte LLPrnanney@deloitte.com
Bob RosoneDirectorDeloitte Growth Enterprise ServicesDeloitte LLPrrosone@deloitte.com
Research and editorial leadJanet HastieSenior Marketing ManagerDeloitte Services LP
Report designIsaac Brynjegard-BialikSenior ManagerDeloitte LLP
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