The country’s top executives see dark days ahead
by investor on 23/02/09 at 7:28 pm
Canadian executives are digging in for a prolonged economic siege by trimming their spending, hiring and marketing as they brace for a recession that could be long and deep.
The latest quarterly C-Suite survey reveals a growing pessimism about the economy, and shows that executives now feel the initial measures they’ve taken may not be enough to deal with the deepening downturn.
The survey was conducted in late January and early February for Report on Business and Business News Network by the Gandalf Group. Top executives from 150 companies responded.
Those in the corner office are more negative about the economy than they were just three months earlier. Now almost 90 per cent expect the economy to decline, either moderately or strongly, in the next 12 months. Half think it will be more than a year before growth returns.
The mood is turning pessimistic among Canada’s top executivesRelated Articles
As a result, almost 40 per cent of those surveyed said their companies will be cutting staff levels in the next year.
“We’re in pretty dark days, really,” said Steven Ranson, chief executive officer of Toronto-based Home Equity Income Trust. Mr. Ranson’s firm, which sells reverse mortgage products, has recently trimmed close to 10 per cent of its staff, and it is taking other actions such as restricting advertising spending.
The tough times now look like they will last considerably longer than expected, Mr. Ranson said.
Last October, Home Equity determined that it needed enough liquidity to carry it through to November, 2009. “Now I’m not sure that that’s long enough.”
Like other businesses, the company is being extremely cautious about spending.
Recent Comments