Robins School of Business / Virginia Council of CEOs survey index hits highest level ever
Read the Richmond Times Dispatch coverage of this story
Each quarter the Virginia Council of CEOs (VACEOs) and University of Richmond’s Robins School of Business partner to take the pulse of top executives in the region.
The survey results provide a snap shot of the overall economic outlook index for various companies within the region and help central Virginia companies anticipate business decisions and plan for growth.
Overall, the first quarter 2016 CEO Economic Outlook survey by the University of Richmond’s Robins School of Business and the Virginia Council of CEOs (VACEOs) reflects increased optimism among chief executives in central Virginia. The survey’s index, which measures executives’ views on projected hiring, capital spending and sales over the next six months, increased sharply from its Q4 2015 level to reach the highest level ever recorded. The survey has been administered quarterly since 2010.
“When the index dipped in the 4th quarter, many of us attributed it to an overly optimistic outlook in the 3rd quarter, as the fourth quarter number was back within its normal range,” said Randy Raggio, associate dean at the Robins School. “But looking further into the numbers, for five quarters, more than 70% of CEOs had reported that they expected higher sales, while over that same period fewer than 40% indicated that capital spending would increase. This quarter’s result seems to indicate that companies need to increase both capital expenditures and hiring to meet their expectations for growing sales. That trifecta has pushed the index to its all-time high.”
Says Scot McRoberts, executive director of the Virginia Council of CEOs, “I expected the numbers to be up this quarter, so I’m not surprised by the positive results. The CEOs I work with seem more confident. One indication, registration for our annual Retreat is up, and the number of CEOs choosing to play golf is too – by 33%! My gut tells me this jump in what I call “the Golf Index,” combined with the optimism I hear on the street, shows in the Index this quarter.”
Sales Outlook Holding Steady, Capital Spending Expectations Jump 10 Points
The executives’ outlook on sales remained strong, with 72 percent of respondents expecting an increase over the next six months, nearly identical to the 73 percent that projected an increase when surveyed a quarter ago. More than 40% of respondents expect capital spending to increase over the same period, a roughly 10 percentage point jump from the 31 percent reported in the fourth quarter of 2015. More than 60% of respondents expect employment to increase, up from roughly 57% who expected an increase a quarter ago. (Request full report.)
Economic Outlook Index
The results also provide an overall economic outlook index, which is based on businesses’ projected six-month sales, spending and employment figures.
About the 2016, First Quarter Robins School of Business / VACEOs Economic Survey
The Virginia Council of CEOs and the Robins School jointly conduct the quarterly survey, which helps central Virginia companies anticipate business decisions and plan for growth. The Robins School adapted the survey from the Business Roundtable, an association of CEOs of American companies that conducts a similar survey nationally. Randy Raggio, associate dean at the Robins School, administers the survey and collects the responses each quarter.
The Virginia Council of CEOs is a nonprofit organization whose mission is to connect the CEOs of second-stage companies. The Council is led by a board of directors, which is comprised of 18 members and the executive director. Currently, there are 190 CEO members. For responding CEOs on this survey, the average member company had roughly $13 million in revenue for the most recent 12-month period. Multiple industries are represented in the sample, including construction, manufacturing, finance & insurance and retail. The average employment of member companies for this survey was 51.
Request Results
The council continues to expand the survey beyond its members, offering any area business owners whose companies gross at least $1 million in annual revenue the opportunity to participate. If enough businesses participate, the council will provide survey results by industry. Participation is free, and all participants will receive copies of the survey data.
Business owners and CEOs who would like to participate in the next survey should contact Scot McRoberts at smcroberts@vaceos.org.
About the Virginia Council of CEOs
The Virginia Council of CEOs is a nonprofit organization, whose mission is to connect the CEOs of second-stage companies so they can learn from each other and grow their businesses. Learn more at www.vaceos.org.
About the Robins School of Business
The Robins School of Business is the only fully accredited, top-ranked undergraduate business school that also is part of a top-ranked liberal arts university. Bloomberg Businessweek ranks both the Robins School’s undergraduate and part-time MBA programs among the top 25 in the country in their respective categories. The school’s executive education division offers open enrollment courses and customized leadership development programs for individuals and businesses.
Virginia CEOs Report Economic Outlook for Next Six Months
>> KEY TAKEAWAY: University of Richmond Robins School of Business, Virginia Council of CEOs survey remains positive, sales likely to increase.
Each quarter the Virginia Council of CEOs (VACEOs) and University of Richmond’s Robins School of Business partner to take the pulse of top executives in the region. The survey results provide a snap shot of the overall economic outlook index for various companies within the region and help central Virginia companies anticipate business decisions and plan for growth.
The results for the fourth quarter 2015 CEO Economic Outlook survey by the University of Richmond’s Robins School of Business and the Virginia Council of CEOs continues to show optimism among chief executives in central Virginia with 73 percent of respondents expecting sales to increase over the next six months. Approximately a third of respondents expect capital spending to increase.
The survey’s index, which measures executives’ views on projected hiring, capital spending and sales, fell sharply from its third quarter level, which was the highest ever recorded, to its lowest level since the second quarter of 2014. The survey has been administered quarterly for more than five years.
Says Scot McRoberts, executive director of the Virginia Council of CEOs, “With last quarter’s record high in the economic outlook index, I had hoped for continued optimism this quarter. The index still reflects a generally positive outlook. The small business CEOs I work with remain somewhat wary, which is reflected in the decline in the index.”
“Will An Interest Rate Hike Affect Your Business?”
The 2015 fourth quarter survey also asked CEOs to indicate how the Fed’s decision to raise interest rates would affect their business in the next six months. Eighty-two percent report that they expect no impact. This number has risen significantly compared to the 54.7 percent in Q2 and 52.8 in Q1 of 2015 who expected no impact. Seven percent believe it will increase profits. This number represents a slight increase from prior surveys, where 3.8 percent of Q2 respondents and 1.9 percent of Q1 respondents expected a favorable impact. Currently only 10 percent believe it will decrease profits. This number has drastically decreased compared to Q2, where 41.5 percent, and Q1, where 45.3 percent of CEOs believed it would decrease profits.
“The CEOs see very little change in profits because of the Federal Reserve raising interest rates, beginning in December 2015,” said Dean Croushore, economics department chair at the Robins School. “That is, in part, because the rise in interest rates is expected to be very gradual. Interest rates will remain very low by historical standards, and the increase in interest rates has been expected for some time.”
Survey Results
The following survey results from the third and fourth quarters of 2015 show projections for the next six months for sales, spending and employment:
Economic Outlook Index
The results also provide an overall economic outlook index, which is based on businesses’ projected six-month sales, spending and employment figures.
About the 2015, Fourth Quarter Robins School of Business / VACEOs Economic Survey
The Virginia Council of CEOs and the Robins School jointly conduct the quarterly survey, which helps central Virginia companies anticipate business decisions and plan for growth. The Robins School adapted the survey from the Business Roundtable, an association of CEOs of American companies that conducts a similar survey nationally. Randy Raggio, associate dean at the Robins School, administers the survey and collects the responses each quarter.
The Virginia Council of CEOs is a nonprofit organization whose mission is to connect the CEOs of second-stage companies. The Council is led by a board of directors, which is comprised of 18 members and the executive director. Currently, there are 126 CEO members. For responding CEOs on this survey, the average member company had roughly $9.5 million in revenue for the most recent 12-month period. Multiple industries are represented in the sample, including construction, manufacturing, finance & insurance and retail. The average employment of member companies for this survey was 42.
Request Results
The council continues to expand the survey beyond its members, offering any area business owners whose companies gross at least $1 million in annual revenue the opportunity to participate. If enough businesses participate, the council will provide survey results by industry. Participation is free, and all participants will receive copies of the survey data. Business owners and CEOs who would like to participate in the next survey should contact Scot McRoberts.
About the Virginia Council of CEOs
The Virginia Council of CEOs is a nonprofit organization, whose mission is to connect the CEOs of second-stage companies so they can learn from each other and grow their businesses. Learn more at www.vaceos.org.
About the Robins School of Business
The Robins School of Business is the only fully accredited, top-ranked undergraduate business school that also is part of a top-ranked liberal arts university. Bloomberg Businessweek ranks both the Robins School’s undergraduate and part-time MBA programs among the top 25 in the country in their respective categories. The school’s executive education division offers open enrollment courses and customized leadership development programs for individuals and businesses.
Robins School of Business – VACEOs survey reflects strong optimism among chief executive in Virginia
Each quarter the Virginia Council of CEOs (VACEOs) and University of Richmond’s Robins School of Business partner to take the pulse of top executives in the region.
The survey results provided by Richard Coughlan, Senior Associate Dean at the Robins School of Business, provide a snap shot of the overall economic outlook index for various companies within the region and help central Virginia companies anticipate business decisions and plan for growth. For the first time, the survey asked respondents about the composition of their executive suites.
The third quarter 2015 CEO Economic Outlook survey shows considerable optimism among chief executives in central Virginia. The survey’s index, which measures executives’ views on projected hiring, capital spending and sales, reached its highest level ever in the third quarter of 2015. The survey has been administered for more than five years.
Says Scot McRoberts, executive director of the Virginia Council of CEOs, “It’s not surprising that the index is up. The small business CEOs I work with are uniformly busy, and dealing with growth issues like acquiring talent.”
HIRING EXPECTATIONS JUMP 26 POINTS
Among the 60 CEOs of small and mid-sized companies participating in the survey this quarter, there was a very large increase (from 36.8 percent to 63.2 percent) in the percentage of CEOs who expect to enlarge their workforce over the next six months. No respondent indicated that his or her company would have a smaller number of employees over the next six months.
The executives’ outlook on sales remained strong, with 73.2 percent of respondents expecting an increase over the next six months, nearly identical to the 73.1 percent that projected an increase when surveyed a quarter ago. More than a third of respondents expect capital spending to increase, down slightly from the 37 percent reported in the second quarter of 2015.
NEARLY HALF OF VIRGINIA CEOS ACT AS FINANCIAL OFFICER FOR THE BUSINESS
For the first time, the survey asked respondents about the composition of their executive suites. While 37 percent of respondents indicated that the CEO handles the duties of a chief operations officer, 22 percent of executives indicated that they have a full-time COO. When asked about the presence of finance executives, 46 percent of CEOs said they handle the duties of a chief financial officer, while 10 percent employ a full-time CFO and another 13.6 percent employ a CFO on a fractional basis. The remaining respondents have finance managers who are not part of the executive team.
Survey Results
The following survey results from the second and third quarters of 2015 show projections for the next six months for sales, spending and employment:
Economic Outlook Index
The results also provide an overall economic outlook index, which is based on businesses’ projected six-month sales, spending and employment figures.
About the 2015, 3rd Quarter Robins School of Business / VACEOs Economic Survey
The Virginia Council of CEOs and the Robins School jointly conduct the quarterly survey, which helps central Virginia companies anticipate business decisions and plan for growth. The Robins School adapted the survey from the Business Roundtable, an association of CEOs of American companies that conducts a similar survey nationally. Richard Coughlan, senior associate dean at the Robins School, administers the survey and collects the responses each quarter.
The Council and the Robins School collected responses from 60 CEOs in central Virginia. The median annual company revenue for CEOs responding was $3.6 million. Multiple industries are represented in the sample (for example, construction, manufacturing, finance and insurance, and retail). The median number of full-time employees for responding companies in this survey was 20.
Request Results
The council continues to expand the survey beyond its members, offering any area business owners whose companies gross at least $1 million in annual revenue the opportunity to participate. If enough businesses participate, the council will provide survey results by industry. Participation is free, and all participants will receive copies of the survey data.
Business owners and CEOs who would like to participate in the next survey should contact Scot McRoberts at smcroberts@vaceos.org.
About the Virginia Council of CEOs
The Virginia Council of CEOs is a nonprofit organization, whose mission is to connect the CEOs of second-stage companies so they can learn from each other and grow their businesses. Learn more at www.vaceos.org.
About the Robins School of Business
The Robins School of Business is the only fully accredited, top-ranked undergraduate business school that also is part of a top-ranked liberal arts university. Bloomberg Businessweek ranks both the Robins School’s undergraduate and part-time MBA programs among the top 25 in the country in their respective categories. The school’s executive education division offers open enrollment courses and customized leadership development programs for individuals and businesses.
Virginia CEOs Report Economic Outlook in 2015 2nd Quarter Survey
Robins School of Business – Virginia Council of CEOs survey remains positive
>> Richmond Times Dispatch coverage of this story here.
Each quarter the Virginia Council of CEOs (VACEOs) and University of Richmond’s Robins School of Business partner to take the pulse of top executives in the region.
The survey results provided by Richard Coughlan, Senior Associate Dean at the Robins School of Business, provide a snap shot of the overall economic outlook index for various companies within the region and help central Virginia companies anticipate business decisions and plan for growth.
Overall, the Economic Outlook Index for the second quarter dropped slightly from 93.90 to 93.42, yet CEOs remain optimistic about sales and capital spending. In fact, nearly three-quarters of respondents expecting sales to increase over the next six months. Only 5.8 percent expect sales to decrease.
Among the 54 CEOs of small and mid-sized companies participating in the survey this quarter, there was a small increase (from 35.9 percent to 37 percent) in the percentage of CEOs planning to increase capital spending. That was accompanied by a sizeable decrease (from 47.2 percent to 38.9 percent) in the percentage of executives expecting to increase the number of domestic employees. Another 59.3 percent of executives expect no change in hiring during the next six months.
Says Scot McRoberts, executive director of the Virginia Council of CEOs, “Steady as she goes! Hiring seems to be on a hiatus for the summer, but the survey’s overall index remains positive. In spite of some weakness appearing in national small business outlook indices, area CEOs are bullish on increasing sales in the next two quarters.”
“WILL AN INTEREST RATE HIKE AFFECT YOUR BUSINESS?”
For the second consecutive quarter, the survey asked CEOs about the impact of a possible interest rate hike by the Federal Reserve Bank. A slight majority of executives (54.7 percent) indicated such a move would not make much difference in their business. Another 41.5 percent indicated it would have an unfavorable impact while only two of the 53 respondents indicated the impact would be favorable.
Survey Results
The following survey results from the second quarter of 2015 show projections for the next six months for sales, spending and employment:
Economic Outlook Index
The results also provide an overall economic outlook index, which is based on businesses’ projected six-month sales, spending and employment figures.
About the 2015, Second Quarter Robins School of Business / VACEOs Economic Survey
The Virginia Council of CEOs and the Robins School jointly conduct the quarterly survey, which helps central Virginia companies anticipate business decisions and plan for growth. The Robins School adapted the survey from the Business Roundtable, an association of CEOs of American companies that conducts a similar survey nationally. Richard Coughlan, senior associate dean at the Robins School, administers the survey and collects the responses each quarter.
The council and the Robins School collected responses from 54 CEOs in central Virginia. The average annual revenue year-to-date for CEOs responding was $4 million. Multiple industries are represented in the sample (for example, construction, manufacturing, finance and insurance, and retail). The median number of full-time employees for responding companies in this survey was 22.5.
Request Results
The council continues to expand the survey beyond its members, offering any area business owners whose companies gross at least $1 million in annual revenue the opportunity to participate. If enough businesses participate, the council will provide survey results by industry. Participation is free, and all participants will receive copies of the survey data.
Business owners and CEOs who would like to participate in the next survey should contact Scot McRoberts at smcroberts@vaceos.org.
About the Virginia Council of CEOs
The Virginia Council of CEOs is a nonprofit organization, whose mission is to connect the CEOs of second-stage companies so they can learn from each other and grow their businesses. Learn more at www.vaceos.org.
About the Robins School of Business
The Robins School of Business is the only fully accredited, top-ranked undergraduate business school that also is part of a top-ranked liberal arts university. Bloomberg Businessweek ranks both the Robins School’s undergraduate and part-time MBA programs among the top 25 in the country in their respective categories. The school’s executive education division offers open enrollment courses and customized leadership development programs for individuals and businesses.
Virginia CEOs Report Economic Outlook in 2015 1st Quarter Survey
Robins School of Business – Virginia Council of CEOs survey shows CEOs remain positive.
Each quarter the Virginia Council of CEOs (VACEOs) and University of Richmond’s Robins School of Business partner to take the pulse of top executives in the region.
The survey results provided by Richard Coughlan, Senior Associate Dean at the Robins School of Business, provide a snap shot of the overall economic outlook index for various companies within the region and help central Virginia companies anticipate business decisions and plan for growth.
Overall the first quarter 2015 CEO Economic Outlook survey shows positive views prevailing among chief executives in central Virginia.
“Small business owners are finding firmer ground these days,” said Scot McRoberts, executive director of the Virginia Council of CEOs. “For the first time in its five-year history, the Economic Outlook Index has strung together three quarters above 90. As always, innovators are winning. There is no longer any ‘business as usual.’ ”
CEOs EXPECT REVENUES TO GROW IN 2015
Among the 53 CEOs of small and mid-sized companies participating in the survey this quarter, 70% expect their revenues to grow over the next six months, with 32.1% of respondents expecting revenues to climb by 11% or more. Several executives noted that their current customers had begun to spend more in the early part of 2015.
There was a small increase this quarter (from 33.9% to 35.9%) in the percentage of CEOs planning to increase capital spending. That was accompanied by a small decrease (from 53.2% to 47.2%) in the percentage of executives expecting to increase the number of domestic employees. Approximately half of those surveyed expect no change in hiring or capital spending during the next six months.
“WILL AN INTEREST RATE HIKE AFFECT YOUR BUSINESS?”
For the first time, the survey asked CEOs about the impact of a possible interest rate hike by the Federal Reserve Bank. A slight majority of executives (52.8%) indicated such a move would not make much difference in their business. Another 45.3% indicated it would have an unfavorable impact while only one of the 53 respondents indicated the impact would be favorable.
Survey Results
The following survey results from the first quarter of 2015 and last quarter of 2014 show projections for the next six months for sales, spending and employment:
Economic Outlook Index
The results also provide an overall economic outlook index, which is based on businesses’ projected six-month sales, spending and employment figures.
About the 2015, First Quarter Robins School of Business / VACEOs Economic Survey
The Virginia Council of CEOs and the Robins School jointly conduct the quarterly survey, which helps central Virginia companies anticipate business decisions and plan for growth. The Robins School adapted the survey from the Business Roundtable, an association of CEOs of American companies that conducts a similar survey nationally. Richard Coughlan, senior associate dean at the Robins School, administers the survey and collects the responses each quarter.
The Council and the Robins School collected responses from 53 CEOs in central Virginia. The median annual company revenue for CEOs responding was $3 million. Multiple industries are represented in the sample (for example, construction, manufacturing, finance and insurance, and retail). The median number of full-time employees for responding companies in this survey was 20.
Request Results
The council continues to expand the survey beyond its members, offering any area business owners whose companies gross at least $1 million in annual revenue the opportunity to participate. If enough businesses participate, the council will provide survey results by industry. Participation is free, and all participants will receive copies of the survey data. Business owners and CEOs who would like to participate in the next survey should contact Scot McRoberts at smcroberts@vaceos.org.
About the Virginia Council of CEOs
The Virginia Council of CEOs is a nonprofit organization, whose mission is to connect the CEOs of second-stage companies so they can learn from each other and grow their businesses. Learn more at www.vaceos.org.
About the Robins School of Business
The Robins School of Business is the only fully accredited, top-ranked undergraduate business school that also is part of a top-ranked liberal arts university. Bloomberg Businessweek ranks both the Robins School’s undergraduate and part-time MBA programs among the top 25 in the country in their respective categories. The school’s executive education division offers open enrollment courses and customized leadership development programs for individuals and businesses.
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