A survey recently published by KPMG Certified Public Accountants revealed that rising raw material costs, a turbulent competitive environment and the prospects for a global economic woes have caused global chemical company chiefs to worry more about the economic outlook. However, this has not weakened its investment determination. They plan to continue to engage in strategic mergers and acquisitions and new product development with abundant cash, in order to stimulate the company's business growth and ensure that the company continues to grow. This is the conclusion of KPMG’s survey of 156 chemical company heads in the United States, Europe and Asia Pacific. According to KPMG's report, although the chemical company executives under investigation all stated that they will commit themselves to business growth and expansion, the macroeconomic concerns have increased much more than the same period of last year. Of the chemical industry executives surveyed this year, only 68% of respondents expect that the company's revenue will increase next year, which is far lower than the 85% that was surveyed last year. Among them, the executives of American chemical companies are most optimistic about the company’s revenue expectations, and 73% of respondents believe that the company’s revenue will increase next year, slightly lower than the ratio of 77% in the survey last year. The executives of chemical companies in the Asia Pacific region and Europe are more pessimistic about the expectation of revenue increase. Only 69% of respondents in the Asia-Pacific region believe that there will be growth, up from 96% last year; 60% of European respondents It believes that there will be growth. This figure was as high as 82% last year. Paul Hanik, chief operating officer of KPMG's global chemical and performance technology business, said: “The challenges of the business environment, such as the prolongation of the economic downturn, the large fluctuations in raw material costs, and the increase in pricing pressure on products, have inhibited executives of chemical companies. Future expectations. Chemical industry executives have also declined their optimism about the employment prospects. Only 65% ​​of respondents believe that employment will increase next year, and 73% of respondents in the 2011 survey believe that they will increase. Among the respondents in the Asia-Pacific region, the most optimistic, 77% believe that their companies will increase the number, followed by Europe (58%), and the final ranking is the United States (56%). Hanik said that balancing the potential risks of the global economy and expanding new products to seize market growth opportunities will be the key to success. The survey shows that in the eyes of global chemical company executives, the most preferred investment options are new products (accounting for 35% of the surveyed population) and business acquisitions (33%). Among the senior executives of the US chemical companies surveyed, 45% believe that the company’s most preferred investment option is to conduct business acquisitions, and 42% believe that it is the development of new products and services; 26% of senior executives of chemical companies in the Asia Pacific region choose to develop new ones. Products and services, 23% of people choose business acquisitions; 36% of European chemical company executives choose to develop new products and services, and 32% choose business acquisitions. According to the survey, the chiefs of chemical companies also regard technology R&D and capacity expansion as the company's major investment choices. 29% of respondents choose technology research and development, and 27% of respondents choose to expand energy. Among them, 42% of respondents in the Asia-Pacific region will invest in technology development, which is the highest in all regions. Mike Sharon, head of global chemical and performance technology business at KPMG, said: “Despite the economic weakness, global chemical business has achieved good results in the past year. The increase in cash flow will allow chemical companies to adopt more Confident measures to stimulate business growth and innovation." According to the survey, 72% of respondents stated that their company has sufficient cash, compared with only 70% in the 2011 survey. 51% of respondents stated that their company’s current cash ownership increased from last year. At the same time, 63% of respondents stated that they plan to increase their investment next year, of which 81% in the Asia Pacific region, 48% in the United States, and 58% in Europe. The report pointed out that 90% of respondents indicated that they may participate in mergers and acquisitions in the next two years; in the 2011 survey, only 83% of respondents thought so. Among them, American corporate leaders are more positive, with 48% of US companies expecting to become buyers in the M&A market; European corporate leaders are more passive, and 52% of European companies will become sellers in the M&A market. In the survey of investment-preferred regions, heads of global chemical companies have taken China, the United States, and Europe as the main investment regions. Among them, the executives of chemical companies in the United States and Europe are more inclined to invest in China, and China is still the investment-optimized area for chemical executives in all three regions. Sharon said: “In short, most of the heads of chemical companies intend to increase investment and strengthen their core business. The unfavorable economic environment will certainly make it difficult for chemical manufacturers to grow their business. The reason why chemical companies are constantly expanding Emerging market operations, active mergers and acquisitions, and the implementation of innovative product strategies are all geared toward gaining leadership.†Cnc Mill,Small Cnc Milling Machine,Boring Machine,Desktop Cnc Milling Machine WEISS MACHINERY CO., LTD. , https://www.weissmachinery.com
Global entrepreneurs’ investment enthusiasm has not diminished