After a gloomy few years, sentiment among business executives continues to improve, according to an annual survey conducted by The Economist Intelligence Unit, sponsored by Accenture. 51% of respondents believe that business conditions will be better for their company in 2015, compared with 49% in 2014. The proportion believing conditions will worsen has fallen to just 10%. The results from the survey appear in Industries in 2015 report, which brings together analysis and forecasts for six industries in the coming year.
- 51% of executives expect business conditions for their company to improve
- Healthcare executives are the most optimistic; retailers are the least
- Asian executives are the most optimistic; Eastern Europeans are the least, reflecting Russia’s downturn
The report highlights key trends for 2015:
- Global auto sales will rise by 5%, but a rebalancing of global demand has eased the pressure on automotive companies to relocate production to developing markets.
- The shift to m-commerce continues to transform the consumer goods and retail sectors, where some companies will see margins fall sharply. 19% of retail executives expect conditions to worsen for their company in 2015.
- Unconventional sources of energy will continue to push down global oil prices. That will hurt revenues for oil-producers and for oil-producing nations such as Russia, but should benefit the global economy.
- The financial services industry has survived the imposition of a tougher regulatory regime, and is now free to focus on globalisation. Incumbents remain in a strong position, with upstarts struggling to make a mark.
- The healthcare sector has seen the biggest turnaround in sentiment, from the least optimistic in 2014 to the most optimistic in 2015. Patent expiries and cost controls continue to bite, but a recovery in health spending should allow most to thrive in 2015.
- Telecoms companies will need to respond to consumers’ demand for more and faster data provision. But as they roll out 4G networks, smart devices could disrupt the market further.
Globalisation is back on the agenda for most companies, with real GDP expected to rise by 2.8%. Although China will remain among the fastest-growing markets, India is once again coming to the forefront for its long-term promise, along with Indonesia. There is a renewed interest in developed markets, particularly the US, while its southern neighbour Mexico is attracting much of the attention previously reserved for Brazil. But 53% of executives cite market and economic risks as a major concern, while 44% cite political risks and 35% are concerned by the battle for skills and talent.
|Business conditions for your company will be…||
|Better than current conditions||
|Same as current conditions||
|Worse than current conditions||
|Source: Economist Intelligence Unit|
Business Trends that will dominate in 2015
More devices will be linked together using the internet and Uber will keep continue to thrive. Here are some more trends that the business world will see in 2015.