Forest, paper & packaging
(FPP) CEOs are less confident about revenue growth over the next 12 months than
their peers in other sectors, but are more optimistic about their company's
revenue prospects in the next three years, according to PwC's 16th Annual
Global CEO Survey released recently in Davos, Switzerland.
"CEOs have identified their
top three priorities: enhancing operational effectiveness; investing in
innovation and R&D; and developing new business models."
The
survey found 92% of sector CEOs have implemented a cost-reduction initiative in
the past 12 months.
R&D
and innovation is a top priority for 42% of FPP CEOs in the next 12 months-a
full 10% higher than the overall average across the entire CEO Survey.Half of the FPP CEOs surveyed have entered into a new strategic alliance or joint venture in the past year, 34% completed a cross-border M&A and 32% completed a domestic M&A.
Every FPP CEO surveyed said that customer service was a key differentiator, the only sector in the full survey where 100% reported that customers influence their strategy.
Seventy-five per cent of FPP CEOs worry that energy and raw material costs could pose a threat to growth, far more than the average across the overall survey sample.
Ninety-five per cent reported that supply chain partners are influencing their strategy, and the large majority of CEOs are increasing efforts to engage with them.
Nearly three quarters (71%) of FPP CEOs plan to increase their company's focus on reducing their environmental footprint, while 18% will continue at their current levels.
