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New perspectives - PwC CEO Pulse Survey 2011
The 2011 CEO Pulse survey provides a snapshot of the views of over 180 business leaders on Irelandís business environment and the challenges and opportunities for corporate Ireland.
The survey shows that, despite continuing challenges in the Irish economy, business leaders are looking to capitalise on plans for growth. With costs, margins and talent management high on the corporate agenda, we are likely to see a revitalised business landscape emerge, albeit slowly.
Other key findings in the survey include:
- While businesses are positioning themselves for growth, through new products and markets, weak consumer demand in the home market and pressure on margins are proving challenging;
- MNC CEOs remain positive about investment in Ireland with the retention of the 12.5% corporation tax and cost competitiveness identified as critical;
- The implementation of a robust national recovery plan and Public Sector Reform are seen as top priorities for Government;
- Business confidence has dropped from 29% being favourable about the outlook for Ireland's economy in 2010 compared to 16% in 2011. This is due to the overall state of the economy, weak consumer demand and a lack of available finance.The majority do not expect the economy to return to growth until 2012 or later;
- Developing/motivating and retaining key talent is a top priority in the year ahead;
- Nearly three-quarters of survey respondents plan to hold pay at similar levels to last year with only a quarter planning a pay increase;
- Innovation is now high on the corporate agenda with CEOs confident that it will promote competitive advantage; and
- Climate change initiatives have not yet gained traction.
By accepting the reality of the economic environment and by restructuring their cost base and operating structures accordingly, Irish businesses have demonstrated their resilience. Those businesses which are further advanced in their response are now beginning to focus on planning for, and achieving, growth.