Nyenta.com - Middle-Market CEOs Sound Alarm on Tariff Impacts and Tax Policy Uncertainty

Trending...

CLEVELAND, Jan. 8, 2025 ~ In the latest CBIZ-Hofstra University CEO Survey, middle-market CEOs are facing pressing concerns as they navigate the dual challenges of proposed tariffs and uncertainty surrounding U.S. tax policies. The survey, conducted by Zarb School MBA students in partnership with CBIZ, sheds light on how these factors are shaping business strategies in a shifting economic environment.

One of the dominant issues highlighted in the survey is tariffs, with 53.2% of CEOs expressing strong concern over their financial impact. In response, many companies are preparing for significant operational changes. This includes 80.9% considering relocating production to mitigate tariff-related costs, 75.4% potentially reducing their workforce, and 72.3% planning to delay investments.

Additionally, 66.4% of CEOs are exploring new supplier options and 50% are contemplating price increases in response to tariffs. "Our findings highlight the profound ripple effect that even the discussion of tariffs is having on the middle market," said Jerry Grisko, President and Chief Executive Officer of CBIZ. "These economic factors compel businesses to be more agile, re-evaluate their operational frameworks, and seek innovative solutions to maintain resilience and competitiveness."

More on Nyenta.com

The survey also reveals divided perspectives on the benefits of recent and proposed tax reforms among CEOs. While 42.6% reported moderate benefits from the Tax Cuts and Jobs Act (TCJA), including reduced corporate tax rates and bonus depreciation, 51.9% anticipate positive effects if TCJA provisions are extended.

However, nearly half (47.7%) reported no tangible gains from the Inflation Reduction Act (IRA). "While tax reforms have provided relief for many, the overall impact remains uneven across industries," said Bill Smith, National Director of Tax Technical Services at CBIZ.

Beyond policy concerns, the survey also highlights broader trends influencing CEO decision-making. Economic concerns remain at the top of the list for CEOs with 55.1% citing it as their top issue. Talent availability is also a significant factor, ranking among the top three influences for 37.5% of CEOs, reflecting persistent hiring challenges.

Cybersecurity concerns are also growing in importance, increasing by 6.7% since September. Despite these challenges, optimism among CEOs rebounded in December with 45% rating their outlook as highly positive, up from 34.5% in September.

More on Nyenta.com

"The data from our latest survey underscores the heightened sensitivity of middle-market CEOs to both tariffs and tax policy uncertainties," shared Dr. Andrew Forman, associate professor of international business and marketing at Zarb School of Business. "As such, businesses are making difficult but necessary decisions to safeguard their profitability and maintain competitiveness."

Janet A. Lenaghan, Dean of the Zarb School of Business, emphasized the importance of adapting and adjusting during uncertain times for business students. "Embracing change with a growth mindset empowers leaders to transform challenges into opportunities, drive innovation, solve problems effectively, and strategically position their businesses for long-term success."

In conclusion, the CBIZ-Hofstra CEO Survey highlights the pressing concerns for middle-market CEOs as they navigate tariffs and tax policy uncertainties. The survey also sheds light on how these factors are shaping business strategies in a shifting economic environment and emphasizes the need for agility and tailored solutions to maintain competitiveness in these challenging times.

Filed Under: Business

0 Comments

Latest on Nyenta.com