Northeast Ohio Business Executives Optimistic on Performance, Expect Increased Hiring Ahead: KPMG Survey

CLEVELAND, Jan. 19, 2012 /PRNewswire/ -- Northeast Ohio executives are confident about business prospects in 2012 and expect to increase hiring, according to a survey conducted by KPMG LLP, the audit, tax and advisory firm.  Despite the increasing confidence and capital investments and tech spending plans revealed in the survey findings, these business execs express anxiety about the direction of the national economy and their ability to navigate another recession.

In the KPMG survey, 15 percent of the 100 executives surveyed expect much better company performance in the year ahead, with 45 percent expecting somewhat better performance.  Only 7 percent are anticipating a decline in performance. 

"Though they still are very apprehensive about the direction of the economy, Northeast Ohio business leaders are much more focused today on growing their businesses and investing in the future," said John MacIntosh, managing partner of KPMG's Northeast Ohio office.  "While waiting for demand to pick up, they are intent on funneling money into capital expenditures, such as information technology and acquisitions."

In fact, 53 percent of the execs surveyed said that their CEOs are most focused on business expansion, followed by 23 percent who said the greatest focus is on seeking to further reduce costs and expenses. 

MacIntosh says the "prevailing optimism we're seeing is business leaders looking ahead, fully understanding the economy and market dynamics, but recognizing that success lies in investing in organic growth and in improving operation processes and related technology."

Higher confidence levels among Northeast Ohio executives are reflected in the survey findings that a good number of executives plan to add employees and boost capital improvements/tech investments in 2012.  Forty-one percent intend to add jobs in the next 12 months, with only 7 percent indicating a decrease.  Furthermore, 43 percent will boost capital improvements and tech investments, with 7 percent expecting to lower investments.

While business leaders chart the way forward, they are apprehensive about the direction of the national economy and are more positive about the state of the economy in Northeast Ohio.  Fifty-six percent of the respondents believe another recession is likely.  Furthermore, 63 percent are either more concerned or equally concerned about their company's ability to weather the current economic climate. 

In the KPMG survey 30 percent think that the national economy will improve next year, with 22 percent expecting it to be worse, while 42 percent see improvement in the local Northeast Ohio economy next year with 13 percent foreseeing a decline.  "Business leaders by nature are optimists and we have a lot of optimists in our ranks in Northeast Ohio," said KPMG's MacIntosh, who notes KPMG's own plans to expand in Northeast Ohio, in the process of adding 20-25 senior level experienced resources.   

As to their views on doing business in Northeast Ohio, an overwhelming majority, 79 percent, have no plans to move and, of those considering a move, a great majority, 88 percent, intend to look at other locations in Northeast Ohio.

According to MacIntosh, market potential is not lost on the executives.  Eighty-four percent see that retaining and developing business in Northeast Ohio is important to their businesses, and 71 percent believe that Northeast Ohio is an attractive place to conduct business.  As to industry growth, 59 percent said healthcare will experience the most significant growth, followed by services, at 12 percent.

About KPMG LLP

KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the U.S. member firm of KPMG International Cooperative ("KPMG International.") KPMG International's member firms have 145,000 people, including more than 8,000 partners, in 152 countries.

Contact: Tim Connolly/Megan Dubrowski
KPMG LLP
201-201-307-8393/201-307-8237
[email protected]/[email protected]

SOURCE KPMG LLP