america’s economic engine—breaking the cycle · america’s economic engine. breaking the...

America’s economic engineBreaking the cycleAppendix: full survey resultsFebruary 2017

AcknowledgmentWe would like to thank all survey respondents and interviewees for their time and the insights they shared for this report, America’s economic engine—Breaking the cycle.

Appendix: Full suvey results

33

From November 28 to December 7, 2016, a Deloitte survey conducted by OnResearch, a market research firm, polled 525 executives at US mid-sized companies about their expectations, experiences, and plans for becoming more competitive in the current economic environment. Respondents were limited to executives at mid-market companies with annual revenues between $50 million and $1 billion.

Eighty-one percent of the companies represented were privately held; 19 percent were public. Of the private companies, 34 percent were family-owned and 33 percent were closely (non-family) held; 33 percent were private-equity or venture capital-backed or had other ownership structures.

Half of the respondents were owners, board members, or C-suite executives; the remainder included vice presidents, department or business line heads, or managers. Industries were diverse: those with the largest representation were technology; media and communications; consumer and industrial products; life sciences and health care; financial services; and energy and resources.

The full survey results are included in a separate appendix; some percentages in the charts throughout this report may not add to 100 percent due to rounding, or for questions where survey participants had the option to choose multiple responses.

About the survey

The report based on these survey findings, America’s economic engine—Breaking the cycle, can be found on our website atwww.deloitte.com/us/dges/breakingthecycle

America’s economic engine—Breaking the cycle

4

Performance and growth

9

51% - 100%

26% - 50%

11% - 25%

6% - 10%

1% - 5%

O%

Negative growth

14.0%

20.3%

25.3%

19.5%

16.3%

0.4%

2.2%

10.0%

8.1%

23.5%

21.7%

26.4%

1.6%

6.0%

13.7%

11.2%

20.1%

22.7%

22.4%

1.3%

5.6%

What would you estimate your business’ revenue growth to be over the next 12 months?

Fall 2015Fall 2016

Spring 2015

placed

8

Grow robustly: 5% or more

Grow above-trend: more than 3.5%, but less than 5%

Grow moderately: 2% to 3.5%

Grow slightly: less than 2%, but more than 0%

Show no growth: 0%

Negative growth

10.9%

27.7%

42.4%

14.1%

2.4%

2.5%

9.7%

22.4%

34.4%

28.7%

3.8%

1.0%

13.4%

22.4%

39.4%

20.0%

3.5%

1.2%

At what pace do you expect the US economy to grow over the next 12 months?

Fall 2015Fall 2016

Spring 2015

placed

Grove above-trend: more than 3.5%, but less than 5%

12

Increased productivity

Development of new products and services

Growing existing markets

Entry into new markets globally

Strategic alliances and collaborative projects

Strengthen management team

Mergers and acquisitions

Growing in new global markets

Other

19.8%

19.6%

18.1%

14.0%

11.9%

9.6%

7.1%

0.0%

0.0%

13.9%

15.6%

31.2%

10.1%

15.9%

4.3%

8.0%

0.0%

0.9%

10.9%

15.3%

36.0%

0.0%

13.2%

1.9%

11.9%

10.4%

0.3%

What is your company’s main growth strategy over the next 12 months? (Select only one.)

Fall 2015Fall 2016

Spring 2015

[This response was only offered in Spring 2015.]

placed


5

10

US interest rates

US Gross Domestic Product

Oil prices

US unemployment rate

US inflation rate

Commodity prices

US trade deficit

57.9%

50.9%

50.7%

50.2%

46.1%

45.1%

41.1%

32.0%

36.1%

36.2%

29.0%

42.4%

43.5%

38.8%

10.1%

13.0%

13.2%

21.0%

11.5%

11.3%

20.1%

What do you believe is the most likely outlook for the following over the next 12 months?

No changeHigher

Lower

Fall 2016

US interest rates


Oil prices


US inflation rate

Commodity prices

US trade deficit

52.5%

38.3%

42.4%

29.5%

48.8%

47.3%

50.7%

37.9%

48.9%

37.0%

44.5%

44.8%

42.1%

39.2%

9.6%

12.8%

20.6%

26.0%

6.4%

10.5%

10.1%

No changeHigher

Lower

Fall 2015

US interest rates


Oil prices


US inflation rate

Commodity prices

US trade deficit

55.6%

49.8%

52.4%

32.1%

54.9%

53.0%

52.7%

36.5%

41.5%

29.9%

37.5%

38.9%

38.7%

33.9%

7.9%

8.7%

17.8%

30.4%

6.2%

8.2%

13.4%

No changeHigher

Lower

Spring 2015

placed

Performance and growth (continued)


6

11

Rising health care costs

High tax rates

Trade policies

U.S. infrastructure needs

Federal, state, and municipal budget challenges

Rising interest rates

Rising inflation and/or rising energy and commodity prices

Skills shortage

Lack of consumer confidence

Government austerity

European economic challenges

Weak housing market

Falling oil prices

Other

49.8%

44.9%

43.4%

38.2%

37.7%

36.7%

36.3%

32.7%

30.8%

30.1%

28.8%

21.0%

0.0%

1.2%

52.9%

43.3%

0.0%

28.6%

44.9%

33.4%

35.0%

22.8%

38.2%

24.0%

27.2%

18.2%

0.0%

4.9%

50.4%

43.7%

0.0%

33.5%

49.0%

29.4%

30.4%

25.3%

39.8%

24.0%

26.5%

22.4%

12.9%

3.1%

Which of the following issues present the greatest obstacles to US growth over the next 12 months? (Select all that apply.)

Fall 2015Fall 2016

Spring 2015


[This response was only offered in Fall 2016.]

placed

11


High tax rates

Trade policies





Skills shortage




Weak housing market

Falling oil prices

Other

49.8%

44.9%

43.4%

38.2%

37.7%

36.7%

36.3%

32.7%

30.8%

30.1%

28.8%

21.0%

0.0%

1.2%

52.9%

43.3%

0.0%

28.6%

44.9%

33.4%

35.0%

22.8%

38.2%

24.0%

27.2%

18.2%

0.0%

4.9%

50.4%

43.7%

0.0%

33.5%

49.0%

29.4%

30.4%

25.3%

39.8%

24.0%

26.5%

22.4%

12.9%

3.1%


Fall 2015Fall 2016

Spring 2015



placed

11


High tax rates

Trade policies





Skills shortage




Weak housing market

Falling oil prices

Other

49.8%

44.9%

43.4%

38.2%

37.7%

36.7%

36.3%

32.7%

30.8%

30.1%

28.8%

21.0%

0.0%

1.2%

52.9%

43.3%

0.0%

28.6%

44.9%

33.4%

35.0%

22.8%

38.2%

24.0%

27.2%

18.2%

0.0%

4.9%

50.4%

43.7%

0.0%

33.5%

49.0%

29.4%

30.4%

25.3%

39.8%

24.0%

26.5%

22.4%

12.9%

3.1%


Fall 2015Fall 2016

Spring 2015



placed



7

13

Increased regulatory compliance

Cost of keeping up with technological advances

Health care costs

Cost of raw materials and other input costs (incl. energy)

Uncertain economic outlook

Skills shortage

Weak market demand

Budget cuts by government (federal, state, municipal)

Availability and/or cost of credit

Falling oil prices

Other

33.3%

32.9%

31.7%

30.1%

27.9%

26.7%

26.3%

22.3%

21.8%

0.0%

0.7%

31.9%

27.0%

34.0%

26.8%

40.8%

17.7%

29.1%

15.2%

10.3%

0.0%

2.7%

23.0%

26.0%

24.9%

27.0%

38.0%

18.3%

34.5%

18.8%

9.6%

4.4%

2.8%

What are your company's main obstacles to growth? (Select up to three.)

Fall 2015Fall 2016

Spring 2015


placed


17

Much higher than one year ago

Higher than one year ago

About the same as one year ago

Lower than one year ago

Much lower than one year ago

16.5%

52.7%

23.3%

6.4%

1.1%

8.1%

36.4%

45.2%

8.9%

1.5%

13.0%

32.2%

44.2%

9.5%

1.1%

The level of uncertainty in terms of factors that drive future business prospects (e.g., taxes, regulations, credit availability, and the economic outlook) is:

Fall 2015Fall 2016

Spring 2015

placed


8


14

Reducing corporate tax rates

Keeping interest rates low

Rolling back health care reform

Supporting increased infrastructure investment

Relaxing export/import regulations

Easing bank lending practices

Subsidizing vocational and other skills training and development

Passing currently pending free trade agreements

Tightening export/import regulations

Tightening immigration restrictions

Easing immigration restrictions

Stimulating private consumption

Protecting U.S. firms better from global competition

Rejecting currently pending free trade agreements

Other

23.6%

22.5%

22.0%

21.6%

16.6%

15.4%

13.7%

12.7%

12.5%

11.5%

10.9%

10.7%

0.0%

0.0%

0.6%

37.8%

37.4%

32.4%

24.4%

5.2%

17.6%

13.6%

6.8%

0.0%

0.0%

8.0%

0.0%

0.0%

0.0%

0.7%

33.1%

33.8%

26.4%

21.8%

4.3%

13.2%

8.9%

4.8%

0.0%

0.0%

5.8%

0.0%

18.3%

16.1%

1.7%

Which of the following measures by the US government would most help US mid-sized businesses to grow in the next 12 months? (Select up to two.)





placed


14

Reducing corporate tax rates

Keeping interest rates low

Rolling back health care reform

Supporting increased infrastructure investment

Relaxing export/import regulations

Easing bank lending practices

Subsidizing vocational and other skills training and development

Passing currently pending free trade agreements

Tightening export/import regulations

Tightening immigration restrictions

Easing immigration restrictions

Stimulating private consumption

Protecting U.S. firms better from global competition

Rejecting currently pending free trade agreements

Other

23.6%

22.5%

22.0%

21.6%

16.6%

15.4%

13.7%

12.7%

12.5%

11.5%

10.9%

10.7%

0.0%

0.0%

0.6%

37.8%

37.4%

32.4%

24.4%

5.2%

17.6%

13.6%

6.8%

0.0%

0.0%

8.0%

0.0%

0.0%

0.0%

0.7%

33.1%

33.8%

26.4%

21.8%

4.3%

13.2%

8.9%

4.8%

0.0%

0.0%

5.8%

0.0%

18.3%

16.1%

1.7%

Which of the following measures by the US government would most help US mid-sized businesses to grow in the next 12 months? (Select up to two.)





placed


13

Increased regulatory compliance

Cost of keeping up with technological advances

Health care costs

Cost of raw materials and other input costs (incl. energy)

Uncertain economic outlook

Skills shortage

Weak market demand

Budget cuts by government (federal, state, municipal)

Availability and/or cost of credit

Falling oil prices

Other

33.3%

32.9%

31.7%

30.1%

27.9%

26.7%

26.3%

22.3%

21.8%

0.0%

0.7%

31.9%

27.0%

34.0%

26.8%

40.8%

17.7%

29.1%

15.2%

10.3%

0.0%

2.7%

23.0%

26.0%

24.9%

27.0%

38.0%

18.3%

34.5%

18.8%

9.6%

4.4%

2.8%

What are your company's main obstacles to growth? (Select up to three.)

Fall 2015Fall 2016

Spring 2015


placed


9

15

Capital investment

Cash balances

Debt ratios

Full-time headcount

Input prices

Prices you charged for goods/services

Productivity

Profits

Gross profit margin

Revenues

56.1%

35.5%

28.0%

37.7%

36.1%

40.2%

47.3%

49.8%

44.7%

45.6%

37.4%

54.2%

52.8%

45.0%

55.8%

51.2%

43.2%

39.0%

43.7%

45.8%

6.6%

10.3%

19.2%

17.3%

8.2%

8.6%

9.5%

11.3%

11.6%

8.7%

Are the following key metrics of your business up, about the same, or down over the last 12 months?

About the same over the last 12 monthsUp over the last 12 months

Down over the last 12 months

placed

16

Capital investment

Cash balances

Debt ratios

Full-time headcount

Input prices

Prices you charged for goods/services

Productivity

Profits

Gross profit margin

Revenues

46.5%

43.2%

26.3%

46.1%

39.3%

41.9%

54.1%

56.2%

47.9%

56.6%

45.2%

47.2%

56.0%

43.3%

53.1%

51.5%

40.1%

34.7%

44.3%

37.4%

8.3%

9.6%

17.8%

10.6%

7.6%

6.6%

5.8%

9.1%

7.9%

6.0%

Do you expect these same key metrics of your business to go up, stay the same, or go down over the next 12 months?

About the same over the last 12 monthsUp over the last 12 months

Down over the last 12 months

placed



10


29

Technology

Increasing sales in existing markets

New market expansion

Product development

Staff training / development

Marketing / advertising

Partnerships / alliances / joint ventures

Supply chain management

Hiring

Mergers and acquisitions

Plant, property, equipment

47.4%

39.5%

35.3%

31.4%

31.1%

23.0%

20.9%

20.6%

19.7%

17.1%

14.0%

34.5%

59.4%

33.6%

31.9%

27.5%

29.1%

19.9%

8.3%

22.9%

21.9%

11.1%

29.2%

57.7%

35.0%

36.0%

26.1%

32.4%

21.4%

9.1%

23.2%

21.8%

8.0%

Rank in order of importance your management's top three strategic priorities for the next 12 months. [Top selection shown.]

Fall 2015Fall 2016

Spring 2015

placed

30

Cash-flow financing

Private sources (e.g., private equity)

Secured loans

Internal sources

Asset-based financing (e.g., working capital lines)

Public (e.g., stock offering)

Leasing

Unsecured loans

Other

We do not expect to use financing

39.5%

35.3%

34.9%

33.2%

30.1%

28.2%

22.7%

17.6%

0.2%

10.5%

31.2%

29.6%

26.5%

24.9%

33.9%

13.5%

13.9%

6.7%

0.8%

18.2%

32.6%

27.7%

25.1%

32.5%

32.0%

15.1%

17.6%

7.8%

0.4%

19.3%

What types of financing do you expect your company to pursue in the next year?

Fall 2015Fall 2016

Spring 2015

placed

36

Extremely confident

Very confident

Confident

Somewhat confident

Not confident

20.7%

41.9%

19.9%

10.5%

7.0%

9.8%

24.4%

30.6%

24.7%

10.5%

17.9%

25.2%

23.0%

22.2%

11.7%

What is your level of confidence that the US economy will continue to improve over the next 24 months?

Fall 2015Fall 2016

Spring 2015

placed


11

37

Extremely confident

Very confident

Confident

Somewhat confident

Not confident

26.5%

40.4%

23.9%

8.2%

1.0%

17.4%

36.5%

32.6%

10.8%

2.7%

21.0%

35.9%

29.8%

10.5%

2.8%

What is your level of confidence in the success of your company over the next 24 months?

Fall 2015Fall 2016

Spring 2015

placed

41

Tech: upgrading existing systems

Tech: implementation of new systems

Development of new products and services

Employee training

Capital expenditures

M&A

Hiring and training

Other

46.0%

45.8%

38.7%

35.1%

26.0%

8.5%

0.0%

0.0%

29.0%

36.8%

43.0%

0.0%

31.4%

15.3%

43.5%

1.0%

24.4%

39.8%

47.0%

0.0%

32.4%

14.9%

40.4%

1.0%

What are your company's top two investment priorities in the next 12 months? (Select up to two.)

Fall 2015Fall 2016

Spring 2015


[This response was not offered in Fall 2016.]

placed

42

Strongly agree

Agree

Neither agree nor disagree

Disagree

Strongly disagree

20.4%

42.9%

17.2%

16.3%

3.3%

11.4%

28.3%

30.6%

24.7%

4.9%

16.6%

26.3%

28.0%

26.2%

2.8%

Please indicate your level of agreement with this statement: “We are deferring major investments due to the uncertainty in the current business environment.”

Fall 2015Fall 2016

Spring 2015

placed



12

Talent

18

None

Up to 5%

6% to 10%

11% to 20%

21% to 30%

31% to 40%

41% to 55%

56% to 70%

Over 70%

Don't know / not sure

19.8%

14.2%

22.3%

14.6%

10.4%

6.3%

3.3%

3.3%

4.8%

1.1%

19.0%

8.8%

12.0%

21.9%

12.8%

8.4%

7.2%

5.1%

3.3%

1.5%

Please specify the percentage of your workforce based outside the United States, now and in the next 12 months.

In the next 12 monthsNow

placed

22

Strongly agree

Agree

Neither agree nor disagree

Disagree

Strongly disagree

23.2%

49.5%

14.3%

10.6%

2.4%

17.1%

46.5%

21.3%

13.6%

1.6%

21.7%

44.9%

15.1%

15.9%

2.5%

Please indicate your level of agreement with this statement: “It is difficult for us to find new employees with the skills and education to meet the needs of our business.”

Fall 2015Fall 2016

Spring 2015

placed

23

More than 10% bigger

Bigger by between 5% and 10%

Bigger by less than 5%

No change

Smaller by less than 5%

Smaller by between 5% and 10%

More than 10% smaller

10.6%

28.5%

28.2%

18.3%

9.2%

4.1%

1.1%

10.2%

23.6%

31.3%

20.8%

10.5%

2.6%

1.1%

How has the size of your full-time domestic workforce changed over the last 12 months, and what do you expect in the next 12 months?

In the next 12 monthsIn the last 12 months

placed


13

Talent (continued)

24

Training

Increase in full-time employees

Increase in compensation

Increase in part-time workers

More hours from existing employees

Other

Don’t know / not sure

47.0%

44.5%

33.2%

27.8%

26.7%

0.2%

1.9%

51.6%

45.4%

32.3%

19.6%

17.0%

1.3%

3.4%

51.6%

44.7%

31.8%

20.8%

17.5%

1.5%

3.6%

Which investment(s) in talent is your company most likely to make in the next 12 months? (Select up to two.)

Fall 2015Fall 2016

Spring 2015

placed


14

Technology

25

Cloud computing/Software as a Service

Data analytics/business intelligence

CRM

Automation of business processes

Internet of Things (IoT)

Enterprise application suites

Robotics

Augmented reality/Virtual reality

Additive manufacturing (3D printing)

Blockchain (distributed ledger)

Other

Don’t know

41.5%

40.1%

33.8%

31.2%

29.8%

21.3%

19.0%

14.1%

13.9%

10.0%

0.4%

2.2%

45.2%

45.0%

23.5%

33.8%

0.0%

23.6%

15.5%

0.0%

8.9%

0.0%

1.5%

9.5%

57.7%

53.2%

28.2%

43.3%

0.0%

40.8%

20.0%

0.0%

11.2%

0.0%

2.1%

14.5%

Which investment(s) in technology is your company most likely to make in the next 12 months? (Select up to three.)

Fall 2015Fall 2016

Spring 2015




placed

25



CRM




Robotics




Other

Don’t know

41.5%

40.1%

33.8%

31.2%

29.8%

21.3%

19.0%

14.1%

13.9%

10.0%

0.4%

2.2%

45.2%

45.0%

23.5%

33.8%

0.0%

23.6%

15.5%

0.0%

8.9%

0.0%

1.5%

9.5%

57.7%

53.2%

28.2%

43.3%

0.0%

40.8%

20.0%

0.0%

11.2%

0.0%

2.1%

14.5%


Fall 2015Fall 2016

Spring 2015




placed

25



CRM




Robotics




Other

Don’t know

41.5%

40.1%

33.8%

31.2%

29.8%

21.3%

19.0%

14.1%

13.9%

10.0%

0.4%

2.2%

45.2%

45.0%

23.5%

33.8%

0.0%

23.6%

15.5%

0.0%

8.9%

0.0%

1.5%

9.5%

57.7%

53.2%

28.2%

43.3%

0.0%

40.8%

20.0%

0.0%

11.2%

0.0%

2.1%

14.5%


Fall 2015Fall 2016

Spring 2015




placed


15

Technology (continued)

26

Significant use

Moderate use

Limited use

Exploring options

Not at all

31.7%

53.5%

8.8%

4.4%

1.6%

To what level is your company using emerging digital technologies to transform your organization?

placed

27

Customer service

Marketing

Social media

Product/service delivery

Finance/accounting options

Sales

Supply chain

Talent management

Purchasing

R&D

Other

48.7%

44.5%

43.2%

41.8%

39.6%

38.8%

37.5%

36.0%

34.6%

31.2%

0.8%

In which operational areas is your company using digital technologies? (Select all that apply.)

placed

28

Business process improvement

Employee productivity

Customer engagement

Reduction of operational cost

Connectivity to business partners

Other

26.0%

19.7%

19.0%

18.3%

16.8%

0.3%

Where is your company seeing the greatest value in its digital technology investment? (Select one.)

placed


39

Desire for control and/or flexibility in decision-making

We would prefer to tap private funding sources (e.g., private equity, venture capital)

Desire to keep financial information private

Operational requirements of the shift are burdensome (e.g., might need additional staff to deal with analysts and shareholders)

Burden of regulatory requirements (e.g., Sarbanes-Oxley, disclosure rules)

We are too small to consider going public

Other

59.8%

39.8%

38.2%

26.2%

24.1%

23.6%

0.3%

75.5%

19.4%

39.6%

17.0%

23.8%

25.2%

4.4%

75.6%

14.5%

43.8%

15.7%

23.6%

24.2%

3.7%

What factors influence your company’s decision to remain private for now? (Select all that apply.)

Fall 2015Fall 2016

Spring 2015

Related to 38

placed

16

Public vs. private

38

Which of the following best describes your company’s ownership status?

Survey respondent demographics;No comparatives needed

Related to 39 and 40

Privately held, but likely to go publicwithin the next 12 months: 27.9%

Privately held, and unlikely to go publicwithin the next 12 months: 45.1%

Public, but held by a small numberof owners: 7.3%

Privately held, but likely to go publicsometime after the next 12 months: 11.1%

Public and broadly held: 8.6%

placed

39

Desire for control and/or flexibility in decision-making

We would prefer to tap private funding sources (e.g., private equity, venture capital)

Desire to keep financial information private


Burden of regulatory requirements (e.g., Sarbanes-Oxley, disclosure rules)

We are too small to consider going public

Other

59.8%

39.8%

38.2%

26.2%

24.1%

23.6%

0.3%

75.5%

19.4%

39.6%

17.0%

23.8%

25.2%

4.4%

75.6%

14.5%

43.8%

15.7%

23.6%

24.2%

3.7%

What factors influence your company’s decision to remain private for now? (Select all that apply.)

Fall 2015Fall 2016

Spring 2015

Related to 38

placed



17

Public vs. private (continued)

40

Being public can broaden the exposure of our brand and products

Cost-effectiveness of equity capital

Need capital to fuel growth

Investment banking relationship

Desire to provide liquidity for owners

Looking to cash out

Other

46.6%

38.1%

37.4%

35.5%

33.0%

30.9%

0.8%

39.8%

41.0%

42.1%

22.1%

40.4%

8.1%

3.0%

42.1%

44.2%

42.9%

23.3%

38.5%

9.0%

1.8%

What factors influence your company’s decision to be or go public? (Select all that apply.)

Fall 2015Fall 2016

Spring 2015

Related to 38

placed


18


31

In the past 12 months, have you completed any mergers or acquisitions?

No: 59.2%Yes: 40.8%

Fall 2016 Fall 2015 Spring 2015

No: 72.2%Yes: 27.8%

No: 68.4%Yes: 31.6%

This relates to 32

placed

32

How many?

Fall 2016

Two: 31.9%One: 30.1%

More than three: 13.2%Three: 24.9%

Fall 2015 Spring 2015

Two: 29.7%One: 34.8%

More than three: 14.6%Three:20.9%

Two: 31.6%One: 24.9%

More than three: 14.5%Three: 28.9%

This relates to 31

placed


19


33

Very likely

Likely

We are not looking, but would consider a deal

Not likely

Highly unlikely

Don’t know

19.1%

34.4%

23.6%

13.6%

7.9%

1.4%

14.9%

24.1%

24.2%

16.9%

17.9%

2.1%

22.4%

21.7%

21.6%

15.5%

15.7%

3.0%

How likely is it that your company will participate in a merger or acquisition in the next 12 months…

Fall 2015Fall 2016

Spring 2015

…as an acquirer?

Very likely

Likely

We are not looking, but would consider a deal

Not likely

Highly unlikely

Don’t know

20.2%

24.8%

19.0%

19.4%

15.3%

1.0%

9.0%

12.4%

21.2%

21.5%

33.0%

2.8%

9.1%

15.5%

21.1%

20.9%

29.8%

3.7%

Fall 2015Fall 2016

Spring 2015

…as a merger target?

placed


20


34

Direct competitor from the United States

Private equity firm

Domestic company seeking to enter our business

Domestic business partner

Foreign business partner

Direct competitor from overseas

Foreign company seeking to enter our business

Other private investor

Other

We do not expect to be involved in a merger

33.2%

24.3%

22.5%

22.2%

19.9%

18.9%

17.4%

3.4%

0.0%

9.5%

39.1%

18.9%

14.7%

24.0%

9.3%

17.2%

4.5%

4.7%

0.3%

18.4%

41.3%

16.2%

14.1%

33.6%

9.2%

18.7%

3.5%

4.8%

0.3%

16.1%

If you participate in a merger or acquisition, which of the following entities is most likely to be the counter-party? (Select up to two.)

Fall 2015Fall 2016

Spring 2015

placed

35

Increased availability of capital

Consolidation to expand/diversify customer base

Renewed confidence in the economy

Consolidation to capture scale efficiencies

Bargain-hunting for underpriced assets

Renewed risk appetite among investors

Pent-up demand among investors

Other

34.2%

31.9%

28.6%

25.0%

21.7%

20.7%

18.1%

1.2%

26.9%

42.1%

20.1%

34.0%

26.2%

5.1%

4.7%

4.2%

22.5%

47.2%

24.0%

38.1%

27.5%

3.8%

5.7%

2.7%

What will be the main drivers of merger activity in your company's industry over the next 12 months? (Select up to two.)

Fall 2015Fall 2016

Spring 2015

placed


21

19

None

Up to 25%

26% to 40%

41% to 55%

56% to 70%

71% to 85%

86% to 100%

Don't know / not sure

16.7%

39.2%

18.9%

11.6%

4.4%

4.9%

2.9%

1.3%

13.1%

23.6%

29.2%

14.1%

9.8%

5.4%

3.0%

1.9%

Please specify the proportion of your revenues that come from outside the United States, now and in the next 12 months.

In the next 12 monthsNow

placed

20

United States

Canada

Western Europe

Mexico

China

Asia-Pacific (excl. China, India)

Latin/South America (excl. Brazil, Mexico)

Brazil

India

Eastern Europe (excl. Russia)

Russia

Middle East (incl. North Africa)

Sub-Saharan Africa

South Africa

90.6%

40.7%

27.1%

18.8%

18.4%

17.2%

14.1%

13.1%

13.0%

11.0%

10.2%

7.2%

3.9%

3.2%

73.4%

42.5%

29.2%

19.4%

18.4%

21.2%

16.0%

14.0%

17.2%

12.9%

11.3%

8.5%

4.4%

3.2%

Please specify which geographic markets were the top contributors to your company's growth over the last 12 months, and which will be in the next 12 months.

In the next 12 monthsIn the last 12 months

placed

21

Extremely important

Very important

Important

Somewhat important

Not important

28.1%

42.6%

13.3%

7.9%

8.1%

How important is global trade to your supply chain?

placed

Global and emerging markets


22

The US election

43

Very positive

Somewhat positive

Little or no impact

Somewhat negative

Very negative

26.0%

42.6%

19.7%

9.2%

2.5%

What impact do you believe the US election results will have on your company's operations?

placed

44

Significant boost

Modest boost

Little or no impact

Moderate decline

Significant decline

21.0%

44.9%

19.1%

10.7%

4.4%

What impact do you believe the US election results will have on the US economy?

placed

45

Did your company defer any strategic plans pending the outcome of the recent US election?

No: 61.2%Yes: 38.8%

placed

46

Is your company now prepared to implement any plans you deferred?

No: 20.9%Yes: 79.1%%

placed

47

Hiring

R&D plans

Global expansion

Financing

M&A activity

61.7%

50.5%

38.4%

35.7%

35.1%

35.2%

43.8%

56.7%

58.2%

60.0%

3.1%

5.8%

4.9%

6.1%

5.0%

Will your company change strategic direction in any of the following areas as a result of the US election?

No changeYes – increase focus

Yes – decrease focus

placed


23

Survey respondent demographics

1

Between $50 million and $99.99 million



Between $500 million and $1 billion

26.1%

24.4%

24.8%

24.8%


What was your company’s 2015 annual revenue in US dollars?

placed

2

Owner/partner

Board member

CEO

President

CFO

CIO / CTO

COO

Other C-level

Senior vice president/vice president

Head of business unit

Head of department

Controller

Senior director/director

Senior manager/manager

6.7%

1.5%

14.1%

3.2%

6.5%

12.6%

3.6%

1.7%

8.6%

2.5%

10.3%

1.7%

11.6%

15.4%


Which of the following best describes your title?

placed

3

Customer service

Finance

General management

Human resources

Information and research

Information technology

Legal

Marketing and sales

Operations and production

Procurement

Research and development

Strategy and business development

Supply-chain management

Other

4.8%

6.6%

6.6%

3.3%

1.5%

48.5%

1.1%

4.4%

12.9%

2.2%

1.8%

3.3%

1.1%

1.8%


What is your main functional role?

placed

6

Consumer & Industrial Products

Energy & Resources

Financial Services

Life Sciences & Health Care

Technology, Media & Telecommunications

Other

18.0%

12.0%

14.1%

16.6%

38.5%

1.0%


In which sector does your company operate?

placed


24

Survey respondent demographics (continued)

7

In which state is your company’s headquarters located? (Number of respondents shown.)


AZ13

CA66

CO11

CT2

FL36

GA19

IN5

IL36

IA3

KS5

KY2

MA17

MI17

MN5

MO8

NC8

NV8

NY60

OH13

OR4

PA18

SC6

TN5

TX36

UT3

VA17

WA15

WI6

AL4

DC1

OK7

RI7

MD5NM

1

AK3

LA4

ND2

AK8

ME1

DE2

NH3

SD2

HI6

ID1

MS2

MT2

NE5

VT1

WV2

WY2

NJ10

placed


25

4


Is your company public or private?

Private: 81.0%Public: 19.0%

placed

5


If private, which category best describes your company?

Closely held (excluding family-owned): 33.2%Family-owned: 33.7%

Venture capital backed: 5.2%Private equity owned: 28.0%

placed

Survey respondent demographics


PerspectivesThis report is just one example of Deloitte research on topics of interest to privately held and mid-market companies. Presented by Deloitte Growth Enterprise Services, Perspectives is a multifaceted program that utilizes live events, signature reports, research publications, webcasts, newsletters, and other vehicles to deliver tailored and relevant insights in an integrated fashion.

Please visit our Perspectives library on the Deloitte Growth Enterprise Services website (http://www.deloitte.com/us/perspectives/dges) to view additional material on issues facing mid-market private companies.


27

Research and editorial leadJanet HastieSenior Marketing ManagerDeloitte Services LP

Report designIsaac Brynjegard-BialikSenior ManagerDeloitte LLP

Roger NanneyNational Managing Partner Deloitte Growth Enterprise Services Deloitte [email protected]

Bob RosoneManaging DirectorDeloitte Growth Enterprise Services Deloitte [email protected]

Research and editorial leadJanet HastieSenior Marketing ManagerDeloitte Services LP

Report designIsaac Brynjegard-BialikSenior ManagerDeloitte LLP

FinancingJamie LewinPrincipalDeloitte Corporate Finance [email protected]

Global EconomyIra KalishChief Global EconomistDeloitte Touche Tohmatsu [email protected]

M&AMark GarayChief of Staff, M&A ServicesDeloitte & Touche [email protected]

Tax PolicyJonathan TraubManaging PrincipalDeloitte Tax [email protected]

TechnologyDoug BeaudoinPrincipalDeloitte Consulting [email protected]

Contacts

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2017 Deloitte Development LLC. All rights reserved.Member of Deloitte Touche Tohmatsu Limited

america’s economic engine—breaking the cycle · america’s economic engine. breaking the...

Documents