New PriceWaterhouse Coopers Survey Addresses Cost Containment

While companies are growing more optimistic about their prospects, they are unlikely to unleash significant new capital spending any time soon, a new survey finds.

Of nearly 1,200 respondents to PricewaterhouseCooper's 13th annual global CEO Survey, 31 percent said they were very confident about their companies' prospects for revenue growth over the next 12 months, up from 21 percent last year. But they remain hesitant to spend their cash.

Of 100 US CEOs surveyed, 98 percent implemented a cost-reduction initiative in 2009, and 65 percent expect to do so again in 2010.The survey also finds companies aren't rushing to restore spending; they are keen to sustain their efforts and improve their margins with smaller but more productive workforces. Sixty nine percent said their companies' experienced a decrease in headcount, a trend 28 percent expect to continue this year. Over the next three years, 75 percent of CEOs will increase focus on initiatives to realize cost efficiencies, while less than half are planning to increase investments in areas like R&D and new product innovation (48 percent), and advertising and brand building (40 percent).


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