2012 was a year of a great deal of uncertainty for businesses, the financial market, the economy and everyone who lives in the US. This includes the CFOs who at every company are responsible for making the right financial decisions for their respective companies.
After the election and the recent fiscal cliff deal, a lot of the uncertainty that has been paralyzing markets and companies has begun to fade in 2013. A report from American Express provides good news for CFOs and their plans for 2013.
What CFOs are Planning On in 2013
One of the most encouraging pieces of information from the report is the fact that “a majority of senior finance executives in the US plan to invest in their companies to drive growth and expect to achieve higher revenues and profits next year.” This represents a shift in CFO activity that had slowed after the 2008 financial crisis. The report even states that CFOs are shifting “from a defensive posture toward making smart, savvy investments” to drive competition and growth in their industries.
The most enticing areas to invest in for CFOs according to the article are: new technology, product and service development, and market expansion. Don’t let 2013 be the year that your competitors catch up or exceed your company’s capabilities in any of these areas. There are ample opportunities and a wide selection of products to improve in all three of these investment opportunities.
The Global Picture
Globally, CFOs may want to demonstrate caution, especially in the Eurozone. There are many problems remaining in fixing the financial issues with the Euro and countries like Greece, Spain, and Italy. However, outside of Europe, much of the developing world like Brazil, China, and India are expected to grow alongside the US in 2013. For CFOs working with multinational corporations, global investment and expansion might be something you want on your agenda for 2013.
As you ponder plans for 2013, rest assured that other CFOs are not sitting on their haunches. Plans are being drawn up, deals are being made, and investments and expansions are going to go through in 2013, which is good for everyone. But make sure to keep an eye on the competition and prevent your company from getting behind the curve this year.
Are you planning for your company to expand and make investments in 2013?