High-tech CEOs see rosy future: Survey

Global Technology ^ | Tuesday, May. 6, 2003 | JACK KAPICA

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High-tech CEOs have seen the future, and it is rosy, a survey says.
Despite the continued economic downturn, the CEOs of North America's fastest-growing technology companies remain confident their companies will maintain the record-high growth rates they have enjoyed over the past five years, the 2003 Deloitte Touche's Technology Fast 500 report reported.
The survey of more than 200 CEOs included 16 chief executives of Canadian companies.

Of the respondents, 59 per cent said they are very or extremely confident their companies will maintain their high levels of growth. Companies in the Fast 500 posted an average growth rate of 6,772 per cent over a five-year period (1997 to 2001).

Nearly a quarter (24 per cent) of CEOs surveyed say they are somewhat confident about maintaining their growth rates, while 17 per cent indicate they are not very confident or pessimistic.

Despite the brash confidence, however, 88 per cent of CEOs reported that the key to economic recovery was regaining investor confidence in corporate executives in the post-Enron era.

Decreased confidence in equity markets has made raising capital substantially more difficult, Calgary-based Impact Blue Inc. CEO Ryan McDonald said. His company was at number 170 on the 2002 Fast 500 list.

To help their vision become a reality, CEOs are continuing to slash costs. More than half the CEOs surveyed (53 per cent) said they are containing administrative and travel costs as a way to boost the bottom line, up significantly from 27 per cent last year.

CEOs Canadian ones especially see the biggest opportunities for growth at home. Almost two-thirds (65 per cent) of CEOs say they are focusing on North American markets, up from 59 per cent last year and more than twice as many as two years ago (30 per cent in 2001).

Among Canadian CEOs, 75 per cent (12 of the 16 included in the survey) cited North American markets as being most important for growth, up from 72 per cent last year.

The Asia-Pacific market is still the focus of 19 per cent of CEOs, while only 14 per cent are looking to Europe, the Middle East and Africa.

The CEOs also credited their employees as the primary reason for success, although the labour situation makes finding and retaining good people not as much of a challenge as it once was. The survey reported that 34 per cent of CEOs attribute their successes to their employees, up from 30 per cent the year before. The figure, however, is still less than in past surveys, down from 49 per cent in 2001 and 39 per cent in 2000.

The Technology Fast 500 CEO Survey is an annual poll administered to CEOs of companies ranked on Deloitte Touche's Technology Fast 500 by Deloitte Touche's TMT Group. More than 200 CEOs responded to the 2003 survey.

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IT Forecast threads on FR have been very hot lately....

[Centurion2000]

Well I hope that's the case ... get rid of the H1B's and hire back some of that laid off labor force.

Of course I hope that the laid off guys have been keeping their education going.

[commandante_zero]

"High Tech CEOs see rosy future: Survey"

High Tech CEOs don't learn from history: Reality

[Ed_in_NJ]

CEOs are continuing to slash costs

Sending more jobs overseas.

[AdmSmith]

Unfortunately this was completed before the full effect of the SARS epidemia was known. Many electronics, telecom and computer companies have production in China and new construction there will approach zero in a few months if not the Chinese government will control the spread of the virus.

I anticipate that they not will be able to stop the spread and no sane company manager will allow the life of their star designers to be in jeopardy (mortality of SARS 10 %). The result is negative growth in China 2003 and problems for the industry.

It will take about 2 -3 years until there is a vaccine.

Sorry, but NASDAQ will go down.