Confidence in reaching profit growth this year is so high for top San Diego-area executives that no layoffs are planned, most plan to hire and their biggest concern is recruiting and retaining talent. At the same time, they express little concern about the controversial immigration and tariff policies of the Trump presidency.
These are key findings of a comprehensive survey of 67 Chief Executive Officers whose companies in San Diego and Orange counties employ more than 8,000 workers and generate more than $5 billion in annual revenue. The survey, which is a key barometer of the health of the Southern California economy, was commissioned by Sage Executive Group, a peer advisory organization for business leaders. The CEOs, who are Sage members, run a wide swath of businesses in technology, real estate, insurance, law, wealth management and hospitality.
“I am pleased to note that Sage member CEOs are focused on profitability as compared to revenue growth, said Sage Executive Group CEO Jerry Rollins. “Too many companies these days think top-line growth is the most important factor, but Thomas J Watson, the founder of IBM, stated, “business is built on net income” and those principles are true nearly 100 years later.
The survey found that two-thirds of the CEOs polled are highly confident of achieving profit growth this year, and the remainder are moderately confident. For eight out of 10, “creating a success-driven company culture” is a top priority, but only half express confidence in being able to achieve this goal.
Ninety percent of the CEOs indicated that increasing profitable sales is still their most important challenge and fewer than half were confident they could achieve profit expectations. They said their major obstacles are recruiting, cultivating, and retaining leadership talent and raising the capital needed for expansion.
Only 12 percent of those polled said the last year’s federal tax overhaul was “extremely” beneficial to their business and a large majority, 70 percent, rated it as “moderately” beneficial.
Two of the least important issues were immigration and new tariffs. Almost three-quarters of the CEOs consider “navigating new immigration regulations” as their least important concern, and almost that many rate “navigating increases in tariffs” as a less-important concern.
Sage Executive Group provides top executives in the San Diego and Orange County areas an opportunity to meet monthly in peer advisory groups to address and solve the most critical issues impacting their business and personal lives.
For more information, contact Sage Executive Group at (800) 648-1063 or visit www.sageexecutivegroup.com.