The survey also showed that finding and retaining talent was regarded as a significant issue by 43 percent of local CEOs, double the level of concern with international business heads. Photo: 123RF
New Zealand company bosses are in a better frame of mind and more optimistic about the near term outlook than their overseas counterparts, according to a new survey.
Business consultancy KPMG's global chief executives' survey shows 53 percent of New Zealand respondents were confident in their sector's resilience over the next six months, double the global confidence level.
The survey also showed 60 percent of local chief executives expect annual earnings growth of more than 5 percent over the next three years, and were less concerned about a recession than their overseas counterparts.
KPMG New Zealand chief executive Godfrey Boyce put the optimism down to the country's lifting of Covid-19 restrictions and the reopening of borders.
"With borders being open there's a belief that some of the industries which have been dormant such as tourism, hospitality, and education will get a chance to get moving and feed into the broader economy."
"But there's also a belief in New Zealand that if there is a recession next year it's going to be reasonably mild but nobody underestimates the global effects because they certainly understand the impact on earnings were a recession to get imported into our own economy."
The threat from disruptive technologies was a major concern for 20 percent of local chief executives, and the survey suggested that many companies would look to takeover competitors to boost their capacity and would start exploring or investing in new technologies to help them stay competitive.
The survey also showed that finding and retaining talent was regarded as a significant issue by 43 percent of local chief executives, especially given rising cost of living and open borders making it easier for staff to pursue foreign opportunities. That was double the level of concern with international business heads.
"Nurturing the talent you've got has become mission critical, there's a recognition of the things that are important for our people," Boyce said.
One area that local business leaders were struggling with compared with their counterparts was getting to grips with environmental, social, and governance (ESG) issues, which 87 percent said loom as a threat to their businesses' long term growth and value.
KPMG specialist sustainability business head Simon Wilkins said local firms seemed to be playing catch-up.
"They are struggling with telling their ESG story and demonstrating impact. New Zealand's organisations should be focused on fully integrating ESG into core operations and increasing capability around identifying, measuring, and analysing the right data to demonstrate their ESG progress with confidence."
The survey of 1325 chief executives, of which 30 were from New Zealand, was done between July and August in a dozen countries in Europe, Asia and North America.