Good morning.
By the end of 2023, CFOs said they were less optimistic about the economy and more cautious heading into 2024, but that they remained confident in their ability to capitalize on long-term growth opportunities—and technology will play a big role.
Deloitte’s CFO Signals survey for Q4 2023—the respondents were 124 finance chiefs with the majority at public firms that reported at least $1 billion in annual revenue—came out this morning. Among the findings: CFOs are expecting a tougher 12-month span in North America, Europe, China, and other parts of Asia compared with their Q3 outlooks, and pessimism over their own companies’ prospects rose to 27% from 19%. CFOs lowered their year-over-year growth expectations for revenue, dividends, earnings, capital investment, and domestic hiring, but raised them for domestic wages, according to Deloitte.
“It’s continued uncertainty,” Steve Gallucci, Deloitte’s global and U.S. CFO program leader, told me. Interest rates, the macroeconomic economy, and geopolitics—whether that be in the Middle East, Ukraine, or China—are CFOs’ top three concerns.
“Politics and geopolitics will be big business stories,” Fortune CEO Alan Murray wrote in the Jan. 2 edition of CEO Daily. “Wars are already raging in two important regions of the world, and contentious elections are scheduled this year covering more than 40% of the world’s population.”
Sixty-two percent of CFOs said now isn’t a good time to take risks, according to the survey, although many did express hope for growth.
Their top three priorities for 2024 are financial performance (53%), organic and inorganic growth (43%), and cost management (36%). Thirty-seven percent of CFOs said M&A will be a substantial portion of their growth strategy, even though they see capital markets as a continued challenge. Regarding organic growth, half of finance chiefs surveyed said they expect to raise prices for a substantial portion of their products and services to offset inflation, while 67% said they would allocate or reallocate capital to new business investments.
That said, Gallucci told me, there still are some “bright spots” when it comes to investing in digital technology, which “is certainly going to be a big factor.”
Deloitte found that 76% of CFOs expect digital transformation and technologies to play a greater role in 2024. Some 80% are expecting their companies to automate more operations, with roughly as many (81%) making plans to harness the talents of those freed-up workers for higher-value tasks.
“The more value-added types of activities could be with upskilling and rescaling,” Gallucci explained, “but it also could be with bringing a different type of skill set into an organization.”
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Adrian Downes will step down as CFO at The Greenbrier Companies, Inc. (NYSE: GBX) on or around March 31. Downes continues as Greenbrier's principal financial officer until he transitions to serve the company as a senior advisor to the CEO through March 2025. Greenbrier, an international supplier of equipment and services to global freight transportation markets, has begun a national search for its next CFO.
Jackie Marks was named CFO at AllianceBernstein L.P. ("AB"), a global investment firm, effective March 1. Marks will be responsible for leading AB's finance team and managing the financial oversight of firm strategy. She will succeed interim CFO Bill Siemers, who will remain with the firm as a senior advisor. Marks joins AB with more than 20 years of experience, most recently serving as CFO at Condé Nast Publications. Marks' role will be based in Nashville with the firm's finance team.
Big deal
Tech industry employment experienced a net increase of 12,922 new positions in December, the largest monthly gain since April 2023, according to CompTIA's analysis of U.S. Bureau of Labor Statistics Jobs Report data. Jobs were added in four of the five primary sub-sectors, led by technology services and software development (+8,500) and cloud infrastructure and related positions (+4,400), the analysis found. However, the unemployment rate for tech occupations increased to 2.3%, according to CompTIA. But that's lower than the national unemployment rate that stands at 3.7%.
The analysis also found that companies are looking for those with experience in artificial intelligence. Employer hiring for AI job roles and specialized skills continues to exceed the 10% threshold as a percentage of all tech job postings, according to the analysis.
Courtesy of CompTIA
Going deeper
When it comes to goals and New Year’s resolutions, is it okay to have a cheat day? That's a question Wharton’s Marissa Sharif answers in Wharton's podcast, Ripple Effect. Sharif explains why goal-setting is easier when you build in some cheat days, referred to as “emergency reserves.”
Overheard
"For nearly 35 years—both at British Airways and here at JetBlue—I’ve loved working in this industry. However, the extraordinary challenges and pressure of this job have taken their toll, and on the advice of my doctor and after talking to my wife, it’s time I put more focus on my health and well-being."
—Robin Hayes, chief executive officer at JetBlue Airways, said in a statement on Monday that he's retiring from the company. Joanna Geraghty, currently the president and COO, will succeed Hayes as CEO, effective Feb. 12.
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