by Ken Esch, Trendsetter Partner Sponsor, Private Company Services
As Americans settle into summer and embrace the warmer weather, private company CEOs anticipate still brighter days ahead.
Business leaders are confident that, economically, the worst is behind them, and their optimism toward the U.S. economy has strengthened. The result? A shift toward growth that is rooted in expansion and hiring plans. Here are three reasons for significant growth:
1. Positive outlook
What we’re seeing among private company leaders is that their positive outlook is leading to action. After a retreat from mergers and acquisitions and related new business activity in 2013, that quiet period seems to be ending. More than half (52 percent) of private companies are planning a business expansion initiative within the next 12 months; nearly a quarter (24 percent) plan to enter into new strategic alliances. And these businesses are confident the bet will pay off: Companies pursuing expansion initiatives expect double-digit growth this year.
Taking on new employees is a key measure of growth and economic strength. Business leaders and economists closely track the U.S. Bureau of Labor Statistics Employment Situation, or “jobs report,” as an important indicator of momentum in the economy. For private company leaders, hiring is a priority, with two-thirds of CEOs surveyed planning to add new employees over the next 12 months – the highest level in three years. Yet it’s relatively opportunistic, with the net workforce increase estimated at a modest two percent. What does this mean for private companies? Companies are looking for the right workers to help them achieve key business objectives.
Companies are also looking for a fast turnaround on their investment, expecting new employees to contribute to the business quickly and effectively. For example, there has been an increase in the demand for sales and marketing professionals, as these employees are critical to driving growth and new business for companies in expansion mode.
Over the next 12 months, we expect that private companies’ positive outlook will further propel their plans for growth. There are a few important considerations CEOs should be thinking about now to continue to drive their business forward…
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