Toronto, ON — Up 9% from last year’s findings, six in 10 CEOs in Canada say their workforce is likely to expand over the next two years, according to the Tenth Annual Canada’s Most Respected Corporations Survey for 2004.
Further, 68% of CEOs are also confident that their company performance is likely to improve in 2005, outperforming their 2004 financial results, while 55% of CEOs plan to increase business spending in the coming year.
“The Most Respected Corporation Survey results over the past number of years have clearly demonstrated that CEOs have their fingers on the pulse of the economy. Their confidence in expanding their employment ranks is a harbinger of a strong economy in 2005,” says Bill Dillabough, managing partner, markets, KPMG, the Toronto consulting firm that sponsored the survey.
On the downside, Canada’s CEOs expressed concern, with four out of 10 (40%) indicating that they expect the rate of inflation in Canada to “increase” in 2005, up 24% from the 16% who voiced this as a concern last year. However, 58% of those surveyed said they thought inflation would “remain about the same,” while the remaining 2% believe that inflation will “decrease” during 2005.
Other highlights include:
Similar to last year’s results, the majority of CEOs agree that globalization and international competitiveness are the most serious issues facing Canadian companies today.
Also, similar to last year’s results, taxation and corporate taxation issues were seen as also having a huge impact on Canadian companies in 2005.
The next four most important issues were: the value of the Canadian dollar; hiring an educated and skilled workforce; productivity; and the fluctuation in the value of the currency.
The survey was conducted by Ipsos-Reid.