GLOBAL BUSINESS CONFIDENCE REPORT 4th Qtr. 2017 GLOBAL BUSINESS CONFIDENCE REPORT 4th Quarter 2017 www.tradecouncil.org www.itcapproved.org International Trade Council www.tradecouncil.org Page 1 GLOBAL BUSINESS CONFIDENCE REPORT 4th Qtr. 2017 Table of Contents Welcome Letter .........................................................................................................................................................4 Executive Summary .................................................................................................................................................7 About the Survey ........................................................................................................................................................ 7 12 Months Performance in Review.......................................................................................................................... 8 The Business Year Ahead .......................................................................................................................................... 9 Future Challenges .................................................................................................................................................... 11 Drivers of Organizational Growth .......................................................................................................................... 12 Government Impact on Business........................................................................................................................... 13 Respondent Demographics ..................................................................................................................................15 Responses by Sector ................................................................................................................................................ 16 Responses by Industry .............................................................................................................................................. 18 Responses by Number of Employees ................................................................................................................... 19 Responses by Years in Business .............................................................................................................................. 21 Exporters vs Domestic Sales .................................................................................................................................... 22 Business Confidence ..............................................................................................................................................27 Perception of Local Economy for Previous 12 Months ...................................................................................... 27 Confidence in Local Economy for Coming 12 Months ..................................................................................... 29 Confidence in Own Domestic Sales Growth ...................................................................................................... 31 Confidence in Own International Sales Growth ................................................................................................ 34 Upcoming Challenges ...........................................................................................................................................37 Access to Raw Materials ......................................................................................................................................... 37 Attracting and Retaining Qualified Workers ....................................................................................................... 40 Competition from Foreign Sources ....................................................................................................................... 43 Costs of Employee Healthcare and other Benefits ............................................................................................ 46 Cost of Employee Salaries ...................................................................................................................................... 49 Global Political Uncertainty .................................................................................................................................... 52 Environmental / Ecological Issues ......................................................................................................................... 55 General Political Climate ........................................................................................................................................ 58 Government Policies and Regulations ................................................................................................................. 61 Demand for Respondent Product(s) and/or Service(s) .................................................................................... 64 Managing Information Technology and/or Cyber Security Issues ................................................................. 67 International Trade Council www.tradecouncil.org Page 2 GLOBAL BUSINESS CONFIDENCE REPORT th 4 Qtr. 2017 Managing Supply Chain Relationships ................................................................................................................. 70 Shipping and Logistics of Getting Products to Market ...................................................................................... 73 Drivers of Organizational Growth .........................................................................................................................76 Accessing New Sources of Funding ...................................................................................................................... 76 Acquiring New Customers ...................................................................................................................................... 79 Automation of Existing Processes .......................................................................................................................... 82 Market Awareness / Perception of Respondent Industry ................................................................................. 85 Developing More Partnerships ............................................................................................................................... 88 Employee Skill Development .................................................................................................................................. 91 Improving Customer Experience ........................................................................................................................... 94 Improving Supply Chain Relationships ................................................................................................................. 97 Improving Trust and Transparency ..................................................................................................................... 100 Increasing Digital and Technology Capabilities ............................................................................................. 103 Innovation of Products / Services / Processes ................................................................................................. 106 Navigating Risk and Regulation ......................................................................................................................... 109 Quality Certification .............................................................................................................................................. 112 Government Impact ........................................................................................................................................... 115 Advocating for the Interests of Industry of Respondent ................................................................................ 115 Enforcement of Existing Rules and Regulations ............................................................................................... 118 Improving Infrastructure, Government Services or Public Goods ................................................................ 123 Passing New Laws / Regulations ......................................................................................................................... 126 Providing Access to New Markets Abroad Through International Trade Promotion Activities .............. 130 Providing Greater Industry Protection ............................................................................................................... 133 Reducing Cost of Capital by Offering Loans and/or Loan Guarantees .................................................... 136 Appendix .............................................................................................................................................................. 139 Questions Asked .................................................................................................................................................... 139 Survey Sponsors & Supporting Partners ............................................................................................................. 142 Recommended Corporate Members of the International Trade Council ................................................ 152 International Trade Council www.tradecouncil.org Page 3 GLOBAL BUSINESS CONFIDENCE REPORT 4th Qtr. 2017 Welcome Letter Dear Reader, Thank you very much for taking