Staffing is most significant issue facing CEOs at small and mid-sized companies in central Virginia

The fourth quarter 2013 CEO Economic Outlook survey by the University of Richmond’s Robins School of Business and the Virginia Council of CEOs finds staffing (finding, hiring, retaining and training) to be the most significant business issue executives are currently facing.

Among the executives of small and mid-sized companies participating in the survey, 35.9 percent said staffing is the most important business issue, a slight decrease from the 39.4 percent Q3 2013 findings. Economic uncertainty increased with 20.3 percent of executives agreeing it is the most significant issue, up from last quarter’s 19.7 percent.

When asked how their company’s U.S. employment will change in the next six months, more than 55 percent of executives said they expected higher or significantly higher compared to only 50 percent responding higher last quarter.

“We see in these data a bit of a decrease in optimism. Indications are more neutral (no change expected) with regards to sales in the next six months by a greater number of CEOs, 25 percent relative to last quarter’s 21 percent—though still a large majority, 68.8 percent, anticipate sales increasing,” said Jeff Pollack, assistant professor of management at the Robins School. “Views about capital spending are more pessimistic at 15 percent relative to last quarter’s 9 percent, though a majority anticipates no changes. For capital spending, we saw an 8 percent shift out of the neutral area where 4 percent more of these CEOs anticipate increases but 4 percent more anticipate a decrease. Staffing issues, slow growth and economic uncertainty are the top three areas of concerns noted by the current sample of CEOs.”

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.

Pollack adapted the survey from the Business Roundtable, an association of CEOs of American companies that conducts a similar survey nationally.

The following survey results from the second and fourth quarter of 2013 show projections for the next six months for sales, spending and employment:

The council and the Robins School collected responses from 126 CEOs in central Virginia. The average annual revenue year-to-date for CEOs responding was $37.9 million. The data were compared to the third quarter of 2013 responses of 80 participants. Multiple industries are represented in the sample (for example, construction, manufacturing, finance and insurance, and retail). The average employment of member companies for this survey was 49.

The results also provide an overall economic outlook index, which is based on businesses’ projected six-month sales, spending and employment figures.

Economic Outlook Index

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.

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.

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.

# # #