According to the latest IoT Analytics report, CEOs are most concerned about economic slowdown, inflation, layoffs, sustainability, raw material supply chain and Industry 4.0 in Q3 2022. Stay ahead of the curve by -know what your CEO colleagues are talking about!
In Q3 2022, 35% of CEOs talked about the recession in their conference calls with layoffs, hiring freezes, and downsizing as the main topics for most of them. Compared to Q2 2022, Industry 4.0 discussions grew by 143% in Q3 2022.
Other technology-related topics such as process automation were also key topics of discussion in Q3 2022. COVID-19, inflation, and supply chain were the three most discussed topics in all earnings calls . Discussions on hybrid work fell by 28% and that on remote work fell by half in Q3 2022.
Concerns over a possible economic slowdown
Discussions of an economic slowdown or recession have become more frequent than in Q2/2020 when the COVID-19-induced slowdown reached the point of recession. Talk of a recession reached its highest peak in Q3 2022 since 2019.
With the inflation rate already at its peak, CEOs discussed it in 71% of all earnings calls in Q3 2022. Many boardroom meetings were held to discuss layoffs due to the gloomy forecast for economic growth.
“Given the uncertain global economic outlook and the hiring progress achieved to date, as previously announced by Sundar, we intend to slow the pace of hiring. We expect our actions to in hiring will be brighter in 2023”, said Ruth Porat — Chief Financial Officer, Alphabet on 26 July 2022.
However, many companies are still trying to hire new people and the labor market seems resilient.
“There is tremendous opportunity among talented professionals who seek to build their future with ServiceNow. And as an employer, while others in the tech industry are slowing or even stopping hiring, ServiceNow is hiring. We are hiring. We will double our talent brand”, said Bill McDermot — Chief Executive Officer, ServiceNow on 26 July 2022.
Raw material supply chain
3% of CEOs spoke about copper, up 30% compared to Q2 2022, and 2% spoke about lithium up 13% compared to the previous quarter. These two are part of a long list of other raw materials that have experienced increased price volatility over the past three years, such as lumber, nickel, and cobalt.
Copper prices rose to record highs in March 2022, however, have fallen 18% over the past 6 months. The price of Lithium, important for connected devices and electric vehicles, has risen 190% in the past year.
Policymakers are trying to help businesses that are struggling to get the materials they need.
“This means GM now has binding agreements securing all battery raw materials that support our goal of 1 million units in annual capacity in North America by 2025. This includes lithium , nickel, cobalt, and the entire CAM supply. As we move forward, we will further localize our supply chain just as we have localized battery cell production”said Mary Barra — Chief Executive Officer, General Motors on 26 July 2022.
Industry 4.0
0.4% of CEOs discussed Industry 4.0 in Q3/2022 which is an increase of 113% from Q2 2022. Industry 4.0 applies to the manufacturing industry. 72% of manufacturers have partially or fully implemented a smart factory strategy to date.
Despite many problems in the past year or two, such as the pandemic, the looming recession, inflation, and global supply chain issues, manufacturers are still determined to accelerate their digital transformation projects. Some companies have already made a lot of investments in Industry 4.0 projects a few years ago, and now they are seeing the results.
“Factory automation is something we’ve been working on for a number of years. I’m thinking about the Iver facility we had at Pratt Canada that came online over five years ago, completely killing manufacturing. So, we have been making investments, I’ll call it, an industry 4.0 in all our factories. We have brought down the new project in Dallas, the new factory, automated factory that will come in there”, said Greg Hayes — Chairman and Chief Executive Officer, Raytheon Technologies on 26 July 2022.
CEOs prefer hybrid work to remote work
1.1% of CEOs discussed remote work in Q3 2022 which is a decrease of 50% compared to the previous quarter and a decrease of 94% since Q2 2020. At the same time, 2.3% of CEOs mentioned hybrid work which decreased by 28% from last quarter.
It seems that most CEOs aim to use a hybrid work setup. This means they want employees to work in the office on certain days, but they also offer more freedom than before the lockdowns happened.
“Hybrid work is just work, and requires collaborating simultaneously and asynchronously as well as remotely and in person”, said Satya Nadella — Chairman and Chief Executive Officer, Microsoft on 27 July 2022.
Maintenance becomes a necessity
21% of all CEOs discussed sustainability while 14% discussed climate and 13% discussed emissions. Although there is a decrease compared to the previous quarter, in the long run, since Q1 2019, it indicates a highly positive trend. Sustainability, climate, and emissions have gained broad boardroom importance. Most CEOs are convinced that sustainability will be beneficial for their businesses.
“We see the IoT exploding. You see all the climate activity will be a tailwind in our business because you have to connect all these industrial systems to control them”, said Chuck Robbins — Chairman and Chief Executive Officer, Cisco Systems on August 17, 2022.
Source: IoT Analytics
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