Nearly half (48%) of the 1,258 CEOs polled worldwide believe the global economy will decline even further in the next 12 months, according to PwC’s 15th Annual Global CEO Survey. Just 15% said the global economy will improve during 2012.
PwC also released a sector summary of the CEO survey geared to the forest, paper and packaging (FPP) sector. The data is based on interviews with 49 forest, paper and packaging CEOs in 23 countries.
FPP CEOs are markedly more likely to keep a tight rein on costs than their counterparts in other sectors. Eighty-four percent have implemented a cost reduction strategy over the past 12 months, and almost as many (82%) expect to trim any remaining fat in the next 12 months, says the PwC report. Only 66% of CEOs in the total sample plan to make cost cuts.
The survey also notes that 37% of FPP CEOs intend to reduce their company’s staffing over the next 12 months.
CEOs in the forest, paper and packaging sector are also twice as likely as their fellow CEOs to be planning to make major divestments or exit from significant markets in the coming year. As well, 63% anticipate changing their corporate strategy this year.
Another notable difference is that FPP CEOs are more focused on developing new products and services than the overall sample (37% vs. 28%).
PwC is a global organization with expertise is assurance, tax and advisory services.