Responses regarding cash flow may correlate with increased willingness to spend. A majority (54%) of surveyed executives plan to increase capital expenditures in technology. Other top areas of expected capital deployment include:
- Improvements to existing facilities (34%)
- Hiring (26%)
- Construction of new facilities (24%)
- Office equipment (20%)
- Expansion via merger/acquisition (18%)
Notably, 24% of respondents from companies with revenues over
responded they may likely use cash reserves for expansion via merger and acquisition.
"The climb to a sustained corporate recovery has been a long one, but our survey results and recent work with customers indicate the environment is progressing," said
, Head of Regional Commercial, Government and Small Business Banking, and U.S. Treasury Management Services, at TD Bank. "The cautious optimism hinted at in last year's survey has begun to take hold within our footprint, and we're seeing customers capitalize on the low interest rates through M&A and self-investment, positioning themselves for a recovery in the market."
The Challenges of a Being a CFO
Though more optimistic, finance executives continue to be affected by the unstable economy and the duties of their position. In reporting the most challenging aspect of the job as a financial decision-maker, 25% cited the ability to forecast results, with managing and training staff (16%) and acting as a strategic advisor to their CEO (14%) as other significant challenges.
Aside from the U.S. economic climate, about which executives are largely optimistic, respondents are concerned about the government's potentially negative impact on their company finances. Thirty percent of those polled cited political gridlock over the U.S. budget deficit and tax policy, and 24% cited government regulation, as substantial sources of anxiety. While overall uncertainty regarding the global economy remains an issue for 15% of respondents, the sovereign debt crises in
are less of a concern, cited by only 3% of those surveyed.
About TD Bank's Survey
TD Bank polled finance executives, including CFOs, comptrollers, treasurers and directors of finance, across the nation to understand their companies' current financial health, as well as their thoughts on the overall economy and their future business plans and expectations. The survey was conducted in November and
by ORC International, and surveyed a total of 303 executives, half at companies with annual sales of
to less than
(middle-market) and half at companies with annual sales greater than
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SOURCE TD Bank