2008 was a lackluster year and Florida's CEOs project 2009 will be similar or worse.
The annual statewide survey has tracked changes in CEO perceptions, plans and actions since 2000, and findings from this year’s survey offer insights into how Florida’s CEOs are dealing with deteriorating economic conditions.
See Florida CEO Tends - Survey Results and Viewpoints for detailed survey responses and viewpoints from 16 of the state’s top executives.
2008 earnings disappoint; predictions for 2009 pessimistic
| Florida CEOs ...
» Anticipate slowdown in the U.S. economy
» Expect housing values in Florida to stabilize
» See Florida’s economy hampered by soft housing market, credit squeeze and national recession
| Multiyear Trends
» Rising healthcare costs
» Increasing emphasis on the Florida market
» Incremental growth in international trade
| Emergent Issues
» The economic outlook
» Coping with high energy costs
As they approach the end of 2008, many of Florida’s CEOs report disappointing earnings. Almost half (48%) of the survey’s respondents say they will fall short of their revenue goals for 2008. This figure is up from 30% in 2007 and 16% in 2006. In fact, it is the highest percentage of CEOs to report disappointing earnings in any Florida CEO Trends survey. The overall trend suggests that Florida’s economy began to decelerate two years ago.
Revenue shortfalls are being experienced across a wide spectrum of Florida’s economy. Doubting they will meet their revenue goals for 2008 are majorities of CEOs in agribusiness, business associations, business services, construction, education, energy, entertainment, hospitality, human resources, media, real estate, restaurants, retail trade, wholesale trade and transportation. The industries in which organizations are on track to meet their goals are limited to government, healthcare, insurance and manufacturing.
Many CEOs are also pessimistic about their organizations’ anticipated earnings in 2009. Over half (55%) predict that their organization’s performance in the upcoming year will be either about the same (37%) or worse (18%) than in 2008. The percentage expecting to do worse is the highest ever in the Florida CEO Trends survey.
Projections for earnings in 2009 vary widely across economic sectors. Predicting that their organization’s performance in the upcoming year will be better than in 2008 are majorities of CEOs in business services, business associations, education, finance, government, healthcare, hospitality, human resources, insurance and transportation. On the other hand, worse performance in 2009 relative to 2008 is anticipated by at least 20% of CEOs in construction, education, energy, entertainment, manufacturing, real estate, restaurants and wholesale trade.