Key findings of the PwC 21st CEO survey show that despite political and social conflict, CEOs in the Transportation and Logistics industry see their sector steadily growing and evolving.
Confidence and Optimism
A striking finding from PwC’s 2018 survey is the high degree of confidence about growth. 60% of Transportation and Logistics CEOs believe global economic growth will improve in the next year. And 45% said they’re “very confident” that their companies will grow in the next 12 months. This is up from 2017 when only 32% said they were very confident their companies would grow in the next year.
One reason behind this optimistic outlook is good economic conditions in the US, China, and Germany– the industry’s three most important markets.
Over-regulation is perceived as less of a threat to business growth. This year, only 33% of CEOs said they were extremely concerned that over-regulation would prevent their growth, down from 39% last year. Terrorism has become the new biggest perceived threat, with 45% of CEOs saying terrorism threatens their companies’ growth outlooks.
An increasing number of CEOs now view environmental damage and climate change as significant dangers. 41% of CEOs said they were extremely concerned about the issue in this year’s survey. This is likely tied to pressure from investors to reduce the environmental impact of operations.
Cyber threats are a growing concern. CEOs in the transportation and logistics sector recognize that their legacy systems are more weak to cyber-attacks than newer technologies. Those in the passenger transport sector know that a single attack could cripple their business, and are taking the lead in modernizing their technology.
Complicating these modernization efforts is a lack of digital talent. 78% report that they’re concerned about the availability of digital skills for their own workforces and for the industry as a whole and 58% say they have difficulty attracting digital talent. Because of this, many transportation and logistics companies are updating their working environments and setting up more flexible ways of working.