Cost Cutting Drives Business: CEOs

August 7, 2001 ( - It won't come as a surprise to many hard-pressed managers to find that over half (55%) of the CEOs at fast growing US companies see cost containment as the key driver of their businesses.

And as many as 50% of the respondents to a new survey by PricewaterhouseCoopers see strategies for surviving the economic slowdown as the main driver, according to the group’s Trendsetter Barometer.

Worker shortages managed to gain the attention of 39% of the CEO respondents.   In addition, other growth drivers were:

  • actions of the Federal Reserve Board, cited by 28%,
  • electronic commerce and the Internet, noted by 22%,
  • intellectual asset management, by 21%,
  • mergers and acquisitions, by 18%,
  • globalization, 14%, and
  • federal tax cuts for individuals, cited by 12% of the sample

 In addition, the survey found that CEOs of product sector companies saw tax cuts for individuals and the actions of the Federal Reserve Board as drivers, while their counterparts at service companies were more concerned with intellectual asset management, e-commerce and the Internet.