KPMG survey reveals bullish outlook
There’s a bullishness pervading Canada’s business leaders and it’s making them more confident than their global peers in several areas.
A survey by KMPG shows that Canadian CEOs are more confident in domestic growth (94% Canadian vs 74% globally), in planning to be a disrupter rather than disrupted (96% vs 54%), and that AI will create more jobs than it eliminates (66% vs 62%).
"Despite much debate about the potential trade headwinds facing the country, Canadian CEOs have a positive outlook for their own businesses and our economy as a whole," says Benjie Thomas, Canadian Managing Partner, Advisory Services for KPMG in Canada. "In fact, business leaders in Canada are feeling an unprecedented level of confidence that has them aggressively ready to take on the challenges and opportunities facing their companies."
Getting ready to grow
On the prospects for the Canadian economy, 94% of business leaders believe it will grow over the next 3 years and 96% believe their business will grow with it.
"Canadian companies have, for the most part, enjoyed strong earnings and profits over the past few years and are looking to deploy the large pools of capital they have stored up," says Thomas. "While many will invest in organic growth, most CEOs say they are looking outside of the organization for new opportunities."
Thomas says that global M&A will see strong growth and Canada will be part of that. The survey shows that 82% of Canadian CEOs expect to make an acquisition in the next 3 years; and some of those deals could be sizeable.
"The fact that Canadian CEOs are bullish about growth and looking outward for investment opportunities is great. But Canadian CEOs aren't the only ones that think Canada's fundamentals and open borders offer strong opportunities for growth. There are a number of strategic and financial investors seeking a foothold in Canada. So those CEOs who've been driving great business results should expect a knock on their door from a global investor looking for a piece of the action," Thomas adds.
Canadian businesses are tech focused
Almost all of the respondents said that they are building artificial intelligence (AI) into their operations, 22% have already fully integrated it and another 56% have some AI functions.
But business leaders are confident that the use of technology is helpin their business disrupt their industry.
"Canadian companies don't just feel they are embracing disruption, they feel they are creating it," says Jonathan Kallner, KPMG in Canada's Managing Partner, Clients and Markets. "In fact, 96% of Canadian CEOs say that rather than waiting to be disrupted by their competitors they are actively disrupting the sector in which they operate. It is clear that Canadian CEOs have no plans to sit back and wait for startups to reshape their industries - our leaders plan to leverage technology to be the aggressor."
