Canadian CEOs are more confident in their ability to master technology and create domestic growth than their global peers, according to KPMG’s Global CEO Outlook, published on Tuesday.
The annual survey asks 1,300 CEOs from around the world the biggest risks challenging their business and the strategies they have in place to face them and drive growth.
“Despite much debate about the potential trade headwinds facing the country, Canadian CEOs have a positive outlook for their own businesses and our economy as a whole,” says Benjie Thomas, Canadian managing partner of advisory services for KPMG, in a statement.
“In fact, business leaders in Canada are feeling an unprecedented level of confidence that has them aggressively ready to take on the challenges and opportunities facing their companies.”
For example, Canadian CEOs have high expectations about domestic growth over the next three years, much more so than the global outlook (94% vs. 74%).
“Canadian companies have, for the most part, enjoyed strong earnings and profits over the past few years and are looking to deploy the large pools of capital they have stored up,” says Thomas. “While many will invest in organic growth, most CEOs say they are looking outside of the organization for new opportunities.”
Thomas predicts that 2018 will bring an influx of mergers and acquisitions across the globe and within Canada.
“Eighty-two percent of Canadian CEOS say they will make an acquisition over the next three years. More than a third of those expect the acquisition to have a significant impact on their overall organization, suggesting some deals will be sizable,” Thomas says.
Canadian CEOs aren’t the only ones with increasing confidence in the country’s economic growth, he adds. A significant number of investors are hoping to gain traction in Canada.
Recently, Canada ranked third as an attractive destination for investment, according to the Capital Confidence Barometer report published by Ernst & Young Global Ltd. Canada only fell behind the U.S. and Brazil.
Creating digital solutions
KPMG’s report also discovered that Canada CEOs are keen to adapt to technological advancements that are disrupting many industries.
“Canadian companies don’t just feel they are embracing disruption, they feel they are creating it,” says Jonathan Kallner, managing partner of clients and markets at KPMG, in a statement.
Specifically, 96% of Canadians CEOs say they are trying to disrupt their industry sector compared to 54% of CEOs worldwide.
Nearly all Canadian CEOs are in the process of building artificial intelligence (AI) into their operations with almost one-quarter (22%) having already implemented AI and another 56% using it in limited applications.
“While the benefit of many of these applications is to drive costs out of the business, Canadian CEOs also see technology as key in growing their businesses,” says Kallner. “Nearly two-thirds believe that investments in AI and robotics will create more jobs than they eliminate, slightly higher than the global view.”