At the threshold of 2018, most CEOs we talk with share two outlooks: a conviction that the U.S. economy will continue to grow and even strengthen, tempered by concerns about what’s going to come out of Washington. More than anything they want tax cuts.
Based on Chief Executive’s interviews with 20 CEOs of large and mid-sized U.S. companies, the C-Suite has returned to an assumption of growth after the Great Recession and eight years spent wincing at most things the Obama administration did. They foresee the continuation of gains that the U.S. economy began consolidating in 2017 as President Donald Trump rolled back regulations and demonstrated his trust in CEOs to stoke the economy with capital investments and job creation and grow their companies through mergers and acquisitions.
Interest rates and inflation are simmering just enough. Housing values and construction keep rising. Tightening labor markets have begun creating an updraft in household income and consumer confidence.
Even the economic devastation wrought by hurricanes hitting Texas, Florida and Puerto Rico in September has an upside, as massive rebuilding efforts in 2018 will help offset the retardation of activity in the fall of 2017.
“We see an engaged consumer, a healthy consumer and a very buoyant credit market.”
“We’re expecting continued GDP growth, in the two- to three-percent range,” says John Schlifske, CEO of Northwestern Mutual Insurance. “We’re not talking about breakout growth, but all the measures we track are neutral to positive” for 2018. “They’re not signaling anything that has me alarmed.”
As Jim Peck, CEO of TransUnion, the $1.7 billion credit-monitoring giant, puts it, “We just see an engaged consumer, a healthy consumer and a very buoyant credit market.”
Businesses “are doing reasonably or very well on the whole and economic growth is picking up some steam, and I think that will translate well in the new year,” says Steve Steinour, CEO of Huntington Bank, a major regional player.
“I’m traveling the country doing town hall meetings with our employees, and there are cranes in every city and development going on,” reports Steve Jones, CEO of Allied Universal, a $5 billion provider of security services, “So I look at that and ignore a lot of other metrics.”
For the first time in many years, CEOs have also built in benign economic assumptions about the rest of the world, with sustainable growth taking hold at strong levels in China and the European economy finally getting it together. “If you look at the last 30 to 50 years of globalization, the whole global economy is a lot more resilient than many people think, and everything in general is improving,” says Matt Rizai, CEO of business-software provider Workiva. “I’m very optimistic.”
To be sure, there are caveats aplenty. U.S. auto sales—still one of the economy’s biggest engines—leveled off in 2017 after a seven-year boom, and carmakers idled plants for weeks at a time. “We expect to see some continued softening of the market in 2018,” says Jim Lentz, CEO of Toyota North America. “But we still anticipate robust sales overall.”
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
