Table of Contents

1a. Are you more or less optimistic about your country's economy compared to last quarter?	1
1b. Rate your optimism about your country's economy on a scale from 0-100, with 0 being the least optimistic and 100 being
the most optimistic.	2
2a. Are you more or less optimistic about the financial prospects for your own company compared to last quarter?	3
2b. Rate your optimism about the financial prospects for your own company on a scale from 0-100, with 0 being the least
optimistic and 100 being the most optimistic.	4
3a. During the past quarter, which items have been the most pressing concerns for your company's top management team?	5
3a. During the past quarter, which items have been the most pressing concerns for your company's top management team? -
Other specified	6
3b. Other than your answers to 3a, please write any new challenges or emerging risks that your firm anticipates in the next year.	7
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?
[Unweighted - Winsorized]	13
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months for:
[Unweighted - Sorted]	14
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?  [All
Companies - Winsorized - Revenue Weighted - Sorted]	15
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?  [All
Companies - Winsorized - Employee Weighted - Sorted]	16
4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?
[Public Companies - Winsorized - Revenue Weighted]	17
4b. For 2016, what is your planned change in capital spending...	18
4b. For 2016, what is your planned change in capital spending... [Winsorized - Revenue Weighted]	19
5a. What do you think is the probability that your country's economy will be in recession at the end of 2016?	20
5b. What are the key risks that might lead to recession in your country at year-end 2016?	21
5b. What are the key risks that might lead to recession in your country at year-end 2016? Other specified	22
6a. Assume that core inflation is between 0% and 1% each year for the foreseeable future. What effect would an extended low
core inflation scenario have on your firm's financial performance?	23
6b. Do you believe that an extended period of low core inflation would …	24
6b. How would the competitive balance change?	25
6c. What steps would your firm take to remain competitive in an extended low inflation environment?	27
7. Holding everything else constant, did the December 2015 increase in interest rates affect your company?	36
8. Compared to interest rates today, how much would your borrowing costs have to increase to cause your company to 'reduce
hiring plans'?	37
8. Compared to interest rates today, how much would your borrowing costs have to increase to cause your company to 'reduce
capital spending plans'?	38
8. Compared to interest rates today, how much would your borrowing costs have to increase to cause your company to 'reduce
borrowing plans'?	39
9a. Approximately what percentage of your primary workforce currently earns minimum wage? [US Headquarters Only] (mean
is an estimate)	40
9b. Among your primary workforce, how much do the lowest paid workers currently earn in hourly wages? [US Headquarters
Only] (mean is an estimate derived from category midpoints)	41
ALL RESPONDENTS: If the minimum wage were increased, would your company...	42
MANUFACTURING SECTOR: If the minimum wage were increased, would your company...	43
RETAIL/WHOLESALE SECTOR: If the minimum wage were increased, would your company...	44
LESS THAN 100 EMPLOYEES: If the minimum wage were increased, would your company...	45
100-999 EMPLOYEES: If the minimum wage were increased, would your company...	46
1000+ EMPLOYEES: If the minimum wage were increased, would your company...	47
ANSWERED ALL THREE MINIMUM WAGE BREAKPOINTS: If the minimum wage were increased, would your company...	48
10. On February 15, 2016 the annual yield on 10-yr treasury bonds was 1.7%. Please complete the following:	49
Revenue Weighted: 10. On February 15, 2016 the annual yield on 10-yr treasury bonds was 1.7%. Please complete the
following:	50
Employee Weighted: 10. On February 15, 2016 the annual yield on 10-yr treasury bonds was 1.7%. Please complete the
following:	51
Return on assets (ROA=operating earnings/assets)	52
Manufacturing capacity utilized	53
Manufacturing capacity utilized (Revenue Weighted)	54
Industry	55
Industry (Other specified)	56
Sales Revenue	58
Weighted Sales Revenue (Millions)	59
Number of Employees	60
Weighted Number of Employees	61
Where are you personally located?	62
Where are you personally located? - Other specified	63
Ownership	64
Foreign Sales	65
In what region of the world are most of your foreign sales?	66
What is your company's credit rating? 	67
Your job title (e.g., CFO, Asst. Treasurer, etc):	70

 1 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

1a. Are you more or less optimistic about your country's economy compared to last quarter?

	 	Number	Percent	95% CI
	1=More optimistic	143	22.8 %	± 3.3 %
	0=No change	187	29.9 %	± 3.6 %
	-1=Less optimistic	296	47.3 %	± 3.9 %
	Total	626	100.0 %

	Mean = -0.24
	SD = 0.80

	Missing Cases = 3
	Response Percent = 99.5 %

2 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

1b. Rate your optimism about your country's economy on a scale from 0-100, with 0 being the least optimistic and 100 being the most optimistic.

	Minimum = 0

	Maximum = 100

	Mean = 58.6

	Median = 60

	Standard Deviation (Unbiased Estimate) = 18.4

	95 Percent Confidence Interval Around The Mean = 57.1 - 60.2

Quartiles

	 1 = 50
	 2 = 60
	 3 = 75

Valid Cases =546
Missing Cases =77
Response Percent = 87.6%

3 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

2a. Are you more or less optimistic about the financial prospects for your own company compared to last quarter?

	 	Number	Percent	95% CI
	1=More optimistic	261	41.8 %	± 3.9 %
	0=No change	175	28.0 %	± 3.5 %
	-1=Less optimistic	189	30.2 %	± 3.6 %
	Total	625	100.0 %

	Mean = 0.12
	SD = 0.84

	Missing Cases = 4
	Response Percent = 99.4 %

4 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

2b. Rate your optimism about the financial prospects for your own company on a scale from 0-100, with 0 being the least optimistic and 100 being the most optimistic.

	Minimum = 0

	Maximum = 100

	Mean = 66.0

	Median = 70

	Standard Deviation (Unbiased Estimate) = 20.3

	95 Percent Confidence Interval Around The Mean = 64.3 - 67.7

Quartiles

	 1 = 50
	 2 = 70
	 3 = 80

Valid Cases =549
Missing Cases =76
Response Percent = 87.8%

5 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

3a. During the past quarter, which items have been the most pressing concerns for your company's top management team?

	 	Number	Percent	95% CI
	Economic uncertainty	299	49.1 %	± 4.0 %
	Cost of benefits	229	37.6 %	± 3.9 %
	Difficulty attracting / retaining qualified employees	202	33.2 %	± 3.8 %
	Regulatory requirements	187	30.7 %	± 3.7 %
	Government policies	174	28.6 %	± 3.6 %
	Weak demand for your products/services	152	25.0 %	± 3.4 %
	Data security	130	21.3 %	± 3.3 %
	Employee productivity	123	20.2 %	± 3.2 %
	Access to capital	106	17.4 %	± 3.0 %
	Employee morale	99	16.3 %	± 2.9 %
	Currency risk	72	11.8 %	± 2.6 %
	Rising wages and salaries	68	11.2 %	± 2.5 %
	Corporate tax code	47	7.7 %	± 2.1 %
	Cost of borrowing	40	6.6 %	± 2.0 %
	Geopolitical / health crises	28	4.6 %	± 1.7 %
	Rising input or commodity costs	26	4.3 %	± 1.6 %
	Deflation	21	3.4 %	± 1.5 %
	Inflation	8	1.3 %	± 0.9 %
	Other	48	7.9 %	± 2.1 %
	Total	2059

	Number of Cases = 609
	Number of Responses = 2059
	Average Number Of Responses Per Case = 3.4
	Number Of Cases With At Least One Response = 609
	Response Percent = 100.0 %

6 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

3a. During the past quarter, which items have been the most pressing concerns for your company's top management team? - Other specified

Agr, Forestry, Fishing	Over supply of our product	
Bank/Fin/Insur/Real Est	Acquisitions and Divestitures	
Bank/Fin/Insur/Real Est	Increasing Interest Rates	
Bank/Fin/Insur/Real Est	Interest Rate Curve Flattening	
Bank/Fin/Insur/Real Est	low interest rates	
Bank/Fin/Insur/Real Est	Presidential Election	
Bank/Fin/Insur/Real Est	Pressures for divestment	
Energy	Low oil price and demand	
Healthcare/Pharm	impact of Obama care/reduced reimbursement for medical care	
Healthcare/Pharm	Large demand for our services	
Healthcare/Pharm	Medicare payments to healthcare providers	
Healthcare/Pharm	Restructuring	
Healthcare/Pharm	revenue/volume growth and strategic partnerships	
Manufacturing	Ablity to keep up wiht changes	
Manufacturing	ACA	
Manufacturing	increasing competition	
Manufacturing	Large capital project completion	
Manufacturing	low metal sales prices	
Manufacturing	Manufacturing capacity	
Manufacturing	Organic Growth	
Manufacturing	Weak export markets	
Manufacturing	work capital	
Mining/Construction	Corporate policy implementation	
Other	Cost of Saving	
Other	Expenses rising faster than income	
Other	Healthcare costs and plans	
Other	Huge increase in software license costs	
Other	Low unemployment in Elkhart, Indiana and lack of qualified workers.	
Other	Maturing Market - Shrinking Industry	
Other	Portfolio Risk	
Other	public detractors	
Other	uncertain state and local financing incentives for construction projects	
Pub Admin	cadillac Tax	
Pub Admin	Collective bargaining impasse	
Retail/Wholesale	Cost Structure	
Retail/Wholesale	Increased and intense competition.	
Retail/Wholesale	Oil prices	
Retail/Wholesale	political outcome	
Services, Consulting	criminals in government	
Services, Consulting	declined demand for commodities	
Services, Consulting	Government infrastructure funding	
Services, Consulting	Managing Direct costs	
Services, Consulting	National uncertainty.  Where is US government going??!!  AND, who will lead the	
	US to wherever it IS going??!!	
Services, Consulting	Political uncertainty - presidential/congressional elections	
Services, Consulting	Price of oil, gold.  Demand for coal	
Tech [Soft/Hard/Bio]	changing competitive landscape	
Tech [Soft/Hard/Bio]	Competition stealing our technology	
Tech [Soft/Hard/Bio]	do not know	
Transp, Public Util	Inability of suppliers to meet our requirements	
Transp, Public Util	Regional construction cost escalation	

7 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

3b. Other than your answers to 3a, please write any new challenges or emerging risks that your firm anticipates in the next year. 

Agr, Forestry, Fishing	Poor farm economy	
Bank/Fin/Insur/Real Est	Access to Capital	
Bank/Fin/Insur/Real Est	Adverse impact of NIRP, strong USD impacting EM and companies, a possible	
	sovereign default	
Bank/Fin/Insur/Real Est	An increase in interest rates causing an economic slowdown.	
Bank/Fin/Insur/Real Est	concern of global influences on our economy	
Bank/Fin/Insur/Real Est	Credit quality of customers.	
Bank/Fin/Insur/Real Est	cyber security	
Bank/Fin/Insur/Real Est	Data security	
Bank/Fin/Insur/Real Est	data security; product diversification	
Bank/Fin/Insur/Real Est	Debt levels of most major countries.	
Bank/Fin/Insur/Real Est	difficulty attracting qualified staff, employee productivity	
Bank/Fin/Insur/Real Est	Govt turning Socialist principles	
Bank/Fin/Insur/Real Est	I see the overall global environment as a new challenge	
Bank/Fin/Insur/Real Est	impact of Chinese economy on world markets	
Bank/Fin/Insur/Real Est	Increased competition	
Bank/Fin/Insur/Real Est	Increasing supply of competing real estate product in a minority of product	
	sectors	
Bank/Fin/Insur/Real Est	Interest rates not rising	
Bank/Fin/Insur/Real Est	Irrational exuberance in commercial and multi-family trades has stagnated our deal	
	flow	
Bank/Fin/Insur/Real Est	Joint Venture Performance                Development Time Line	
Bank/Fin/Insur/Real Est	Long end of the rate curve	
Bank/Fin/Insur/Real Est	More terrorism and uncertainty from elections	
Bank/Fin/Insur/Real Est	Negative interest rates	
Bank/Fin/Insur/Real Est	Political landscape	
Bank/Fin/Insur/Real Est	Recession	
Bank/Fin/Insur/Real Est	recession	
Bank/Fin/Insur/Real Est	Regulatory changes & adverse developments	
Bank/Fin/Insur/Real Est	Replacing outdated IT infrastructure and processes that will weigh heavily on our	
	internal resources	
Bank/Fin/Insur/Real Est	Socialized medicine.	
Bank/Fin/Insur/Real Est	Staying current with technology	
Bank/Fin/Insur/Real Est	Systems challenges - cost, integration, etc.	
Bank/Fin/Insur/Real Est	the ever changing world of the Non profit sector and the pressure that it faces.	
Bank/Fin/Insur/Real Est	Very competitive environment for loan demand and loan structuring seems to be	
	weakening.	
Bank/Fin/Insur/Real Est	Volatility in oil prices	
Bank/Fin/Insur/Real Est	Well tenured Executive / Staff retirements (Succession Planning)	
Bank/Fin/Insur/Real Est	WV State economy is in the toilet.	
Communication/Media	none	
Communication/Media	Potential weakening of U.S. economy, perhaps associated with added political	
	turmoil	
Communication/Media	pricing pressure	
Communication/Media	The rising taxes in all states.	
Communication/Media	trade secret theft	
Energy	High cost of employee medical is a huge issue.	
Energy	low oil prices	
Energy	plummeting oil price, excess oil supply	
Energy	Presidential election	
Energy	Weak commodity prices	
Healthcare/Pharm	340b drug discount status	
Healthcare/Pharm	Additional cost reductions to sustain margin	
Healthcare/Pharm	Available funding through grants. As a start up question #4 and h. below does not	
	make much sense.	
Healthcare/Pharm	Continued high demand	

8 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

3b. Other than your answers to 3a, please write any new challenges or emerging risks that your firm anticipates in the next year. 

Healthcare/Pharm	Continued integration of two companies merging per a transaction in late 2014	
	and an IPO in 2015.	
Healthcare/Pharm	Data security and technology	
Healthcare/Pharm	Every increasing administrative burdens placed on companies in order to carry out	
	social mandates	
Healthcare/Pharm	Executive orders issued by this Administration	
Healthcare/Pharm	Financing	
Healthcare/Pharm	Healthcare legislation impacts and changes/uncertainty	
Healthcare/Pharm	inability to increase market share	
Healthcare/Pharm	Increasing rents	
Healthcare/Pharm	IRS penalties on ObamaCare taxpayers who will have large tax penalties and risk	
	dropping health care	
Healthcare/Pharm	Lack of available talent in our industry to back fill the number of people exiting	
	the industry	
Healthcare/Pharm	na	
Healthcare/Pharm	Overall employee 'quality'	
Healthcare/Pharm	presidential election	
Healthcare/Pharm	Reversal of lower fuel costs; increased health benefit costs; access to professional	
	talent	
Healthcare/Pharm	Stock market volitility	
Healthcare/Pharm	Uncertain federal policy regarding healthcare as we attempt to adapt to the future	
	state.	
Healthcare/Pharm	Uncertainties related to a material investment in an acquisition currently in play.	
Healthcare/Pharm	Uncertainty in petroleum market	
Healthcare/Pharm	Upgrading/replacing software.	
Manufacturing	Ability to keep up with changes	
Manufacturing	AR risk for global sales - non-U.S. , currency for peso and Canadian dollar.	
Manufacturing	Attracting qualified employees	
Manufacturing	Competition from chipper labor countries (Mexico, some central American	
	countries	
Manufacturing	Concern about our customers reducing capital investments and deferring repair	
	and replacement of equ	
Manufacturing	customers market volatility: specifically agriculture and oil	
Manufacturing	Function leaders implementing best practices to obtain cost-effective, benchmark	
	productivity.	
Manufacturing	Global Economy - Brazil, India, China	
Manufacturing	Growing revenue via new business and/or price increases has been very difficult.	
Manufacturing	Increase health care costs with new wave of Obamacare Law.	
Manufacturing	Increased bureaucracy with Canadian business.	
Manufacturing	Increasing local/global socioeconomic unrest	
Manufacturing	Increasing throughput - decreasing lead times	
Manufacturing	Keeping up with demand for products.	
Manufacturing	Lack of coherent energy policy.	
Manufacturing	Lack of residential housing rebound	
Manufacturing	launching new MRP software	
Manufacturing	Low oil prices will continue to hinder our business.	
Manufacturing	none	
Manufacturing	none	
Manufacturing	Orders-down turn in the US economy	
Manufacturing	Overall economic softening along with strengthening US Dollar (making exports	
	too expensive)	
Manufacturing	price of oil	
Manufacturing	Reduced published pricing for our products, upon which our prices are	
	determined.	
Manufacturing	restructure of the company and subsequent separation of operation units into 3	
	independent companies	

9 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

3b. Other than your answers to 3a, please write any new challenges or emerging risks that your firm anticipates in the next year. 

Manufacturing	Shift in demand for commodity industry capital spending.	
Manufacturing	Skilled workers	
Manufacturing	Strength of the dollar is weakening our position vs. foreign goods.	
Manufacturing	Technology around LED's and channel shift towards e-commerce.	
Manufacturing	Uncertainty in global economy and cyclical industries	
Manufacturing	Uncertainty to related to US presidential election	
Manufacturing	US Aerospace/Defense budgets	
Manufacturing	Watching wages and shift premiums to attract employees.  Impact on low prices	
	on countries capital b	
Manufacturing	Weakening demand for our products due to overall weakening consumer demand.	
Mining/Construction	Chaos and irrational reactions to energy prices and costs	
Mining/Construction	Continued Growth at 10% to 20% annually stretches the structure of our	
	organization	
Mining/Construction	EPA requiring 3 year testing for our refrigerant licenses. Just another money grab,	
	tax.	
Mining/Construction	None	
Mining/Construction	Our firm anticipates a slow down in business due to the upcoming presidential	
	election.	
Mining/Construction	Recession	
Mining/Construction	There are data security concerns and the economic uncertainty has lowered	
	employee morale.	
Mining/Construction	uncertainty of China projects moving ahead	
Mining/Construction	Well, even though, January '16 looked bad, I'm optimistic that in the Americas	
	hemisphere things wil	
Other	Ability to add more people as we grow	
Other	access to markets with the changing internet marketing challenges	
Other	Addressing affordability of higher education in general and my university	
	specifically.	
Other	As a higher education entity we are not subject to the normal market risks.	
Other	Changing environment in government defense contracting. Greater compliance	
	requirements.	
Other	Communications and PR Issues	
Other	Consumer behavior changing as a result of public reports of economic slowing.	
Other	continuing to grow and to integrate that growth into the organization in a	
	profitable way	
Other	Controlling discounting.	
Other	export / import controls	
Other	Flat student tuition	
Other	General public's perception that the economy is doing much worse than the	
	indicators show.	
Other	home mortgage interest rates	
Other	Implementing the necessary technology	
Other	Increased difficulty in complying with conflicting regulations and rules.	
Other	increased competition	
Other	Keeping up with latest technology	
Other	LACK OF NEW BUSINESSES TO AREA SERVED	
Other	long term contract renewal	
Other	Negative interest rates, coming financial crash among many world powers, less	
	consumer expend income	
Other	none	
Other	Overtime/exempt wages	
Other	Philanthropic Environment as affected by market and other risk	
Other	political stability of the USA	
Other	Prolonged downturn in the market	
Other	Recession will start a new cycle, this time coming from China along with the	
	Middle E. crisis	

10 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

3b. Other than your answers to 3a, please write any new challenges or emerging risks that your firm anticipates in the next year. 

Other	The government is killing businesses when given the chance	
Other	turnover at key positions	
Other	US elections will create uncertainty	
Other	We have a large amount of capital that needs to be raised late in 2016	
Pub Admin	Excess demand for our funds-we are an authority that manages community	
	development funds.	
Pub Admin	financial management	
Pub Admin	Low returns on investments and higher risk on investments due to ecomony	
Pub Admin	Low unemployment rate.	
Pub Admin	n/a	
Pub Admin	political risk in US is increasing.  How do we pay for all the promises being made.	
Pub Admin	Rising healthcare costs	
Pub Admin	We are going to try a new approach to sales, which has reached a critical point.	
Retail/Wholesale	Competition and squeezing margin because of it.	
Retail/Wholesale	Competition within our sector - Threat from Amazon and Staples into Jan-San	
	sector	
Retail/Wholesale	compliance with SEC reporting rules/regs	
Retail/Wholesale	consumer uncertainty about the economy	
Retail/Wholesale	Declining wages that support the economy.	
Retail/Wholesale	eCommerce	
Retail/Wholesale	Economic bubbles created by government and the Fed.	
Retail/Wholesale	employee morale	
Retail/Wholesale	Excessive regulatory/environmental policies make doing business in California	
	increasingly difficult	
Retail/Wholesale	Government's increasing level of reporting and compliance not balanced with	
	value.	
Retail/Wholesale	healthcare costs	
Retail/Wholesale	increasing employee wages, increasing costs of goods, regulatory uncertainty	
Retail/Wholesale	None	
Retail/Wholesale	possible global or national recession	
Retail/Wholesale	Pricing pressure from customers	
Retail/Wholesale	REVENUE GROWTH	
Retail/Wholesale	Sales growth	
Retail/Wholesale	slowing growth	
Retail/Wholesale	Too many regulations and taxes plus a slow economy	
Retail/Wholesale	Very large players, e.g. McDonalds invading our space.	
Retail/Wholesale	Weak Global economic activity and strong US dollar	
Services, Consulting	?	
Services, Consulting	Bad debt on the books of the US banks due to low oil prices and the problem it	
	creates for Frackers.	
Services, Consulting	Bankruptcy of Energy Company customers.	
Services, Consulting	Billing rate resistance	
Services, Consulting	Cash Flow	
Services, Consulting	Cash Flow Management	
Services, Consulting	Cash flow and demand for services as a small firm.	
Services, Consulting	Changing and evolving industry	
Services, Consulting	Changing consumer demands from less informed and little care for the welfare of	
	producers	
Services, Consulting	Clients scared to spend1	
Services, Consulting	Collections and late payments from customers	
Services, Consulting	Consistent financial growth.	
Services, Consulting	Continued control of hiring from the HR sector who are out of touch	
Services, Consulting	Continuing mergers in all industries simply to survive	
Services, Consulting	Crumbling infrastructur	
Services, Consulting	Developing automated systems that make the company capable of its growth	
	potential.	

11 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

3b. Other than your answers to 3a, please write any new challenges or emerging risks that your firm anticipates in the next year. 

Services, Consulting	Election - no candidates that I have confidence in	
Services, Consulting	Fascist TPP takeover	
Services, Consulting	FLSA wage increase requirements	
Services, Consulting	General slow down of the economy	
Services, Consulting	Generating new ckients	
Services, Consulting	Getting new customers & retaining employees	
Services, Consulting	Governments role in business	
Services, Consulting	I am a Financial Consultant for School Districts.  As they continue to suffer	
	losses, I lose $.	
Services, Consulting	Income disparity will at some point reduce our markets. I think this is a big	
	looming problem.	
Services, Consulting	Increased competition	
Services, Consulting	Instability and chaos created by GOP in United states is scaring the businesses	
	and U S interests.	
Services, Consulting	International stability especially in the Middle East	
Services, Consulting	Marketing a new cyber security service	
Services, Consulting	na	
Services, Consulting	New, elevated Government Regulations levels will make business ever more	
	difficult for our clients.	
Services, Consulting	Offshoring.	
Services, Consulting	Response to new service offerings	
Services, Consulting	Retail clients closing stores due to lagging sales environment.	
Services, Consulting	Sales growth to meet targets	
Services, Consulting	Slow growth with rising wages due to low unemployment but massive under-	
	employment	
Services, Consulting	Stagnate or no decision making during an election year	
Services, Consulting	Succession Implementation	
Services, Consulting	Taking new products to market	
Services, Consulting	technology cost	
Services, Consulting	Terrorism	
Services, Consulting	The Continuation of the Affordable Care Act.	
Services, Consulting	the expectations for, and cost of, compliance is a growing threat	
Services, Consulting	The way customers buy and the constant undermining of small business via	
	regulation and taxation.	
Services, Consulting	Uncertainty about political climate.  Bad news if a Democrat wins the Presidential	
	election.	
Services, Consulting	Uncertainty of the political climate	
Services, Consulting	We export to China and we are concerned about political changes with China.	
Services, Consulting	We need a pro business environment in the U.S.	
Services, Consulting	Weakening of the capitol goods market and risk of increasingly intrusive	
	government policies	
Services, Consulting	Weakness in steering of companies by their Board of Directors	
Tech [Soft/Hard/Bio]	Across the globe we are seeing increasing patterns of instability, economic and	
	political.  Politics	
Tech [Soft/Hard/Bio]	Continuing monetary risk in foreign markets.	
Tech [Soft/Hard/Bio]	currency exchange rates	
Tech [Soft/Hard/Bio]	Developing the operations structure for the production of new products and	
	servicing existing client	
Tech [Soft/Hard/Bio]	fiscal policy direction and consumer behaviour	
Tech [Soft/Hard/Bio]	Getting more clients.	
Tech [Soft/Hard/Bio]	government confiscation of employee assets in 401ks	
Tech [Soft/Hard/Bio]	increased sales with existing clientle	
Tech [Soft/Hard/Bio]	Longer time to collect receivables; Maintaining sales velocity during an uncertain	
	economy	
Tech [Soft/Hard/Bio]	Low interest rates impacting our clients (Financial Services)	
Tech [Soft/Hard/Bio]	NA	

12 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

3b. Other than your answers to 3a, please write any new challenges or emerging risks that your firm anticipates in the next year. 

Tech [Soft/Hard/Bio]	Product innovation	
Tech [Soft/Hard/Bio]	Productivity of the marketing and sales personnel	
Tech [Soft/Hard/Bio]	regulatory overhead:need to invest in non-productive costs,impedes growth and	
	prevents new jobs	
Tech [Soft/Hard/Bio]	Sector consolidation	
Tech [Soft/Hard/Bio]	The velocity of technology change and related customer requirements.	
Tech [Soft/Hard/Bio]	Training staff quickly in a dynamic business in order to meet strategic needs.	
Tech [Soft/Hard/Bio]	Uncertain global economic risk	
Tech [Soft/Hard/Bio]	world economy	
Transp, Public Util	Acquiring new assets and Establishing new services	
Transp, Public Util	Gas prices and the need for natural gas.	
Transp, Public Util	increasing portion of our workforce eligible to retire.	
Transp, Public Util	It being a Presidential campaign year, I expect little support from law makers in	
	Washington, D.C.	
Transp, Public Util	Most challenges center around regulator requirements and government policies.	
Transp, Public Util	Uncertainty in the global container shipping business.	
Transp, Public Util	We are seeing a softening in the market for trucking services.  Capacity exceeds	
	demand.	
Unspecified Industry	Hiring qualified professionals.	
Unspecified Industry	M&A integration	
Unspecified Industry	Thanks	

13 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months? [Unweighted - Winsorized] 

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

Health care costs	8.63	7.32	7.98 - 9.29	8	-10.20	29.41	465

Revenue	6.85	14.91	5.54 - 8.17	5	-29.10	46.24	420

Technology spending	6.04	9.48	5.01 - 7.06	4	-20.10	35.45	51

Earnings	5.56	16.17	4.01 - 7.11	3	-31.80	44.80	419

Marketing/advertising spending	4.33	10.05	3.31 - 5.36	2	-23.20	33.43	475

Number of domestic full-time employees	4.01	9.37	3.14 - 4.87	2	-21.30	31.47	370

Research and development spending	3.83	8.65	2.78 - 4.88	0	-19.80	28.96	451

Wages/Salaries	3.74	4.26	3.35 - 4.13	3	-10.10	18.85	292

Productivity (output per hour worked)	3.00	4.86	2.45 - 3.55	2	-9.46	16.29	188

Capital spending	2.97	17.85	1.35 - 4.60	1	-41	47.61	381

Cash on the balance sheet	2.47	16.32	0.91 - 4.03	0	-37.60	44.39	299

Prices of your products	1.32	4.77	0.84 - 1.80	1	-12.50	14.45	259

Share repurchases	1.09	5.70	0.22 - 1.96	0	-21.40	26.57	491

Number of offshore outsourced employees	0.95	4.12	0.36 - 1.54	0	-13.70	15.65	164

Number of domestic temporary employees	0.80	6.77	0.02 - 1.57	0	-20.70	23.07	330

Dividends	0.52	9.57	-2.10 - 3.15	0	-28.10	26.96	469

14 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months for:   [Unweighted - Sorted]

(N=629)

	Mean & SD	Positive	Zero	Negative
	  	1	0	-1	
	0.89	435	29	11
Health care costs	0.38	91.6%	6.1%	2.3%

	0.87	419	39	11
Wages/Salaries	0.40	89.3%	8.3%	2.3%

	0.65	236	74	20
Technology spending	0.59	71.5%	22.4%	6.1%

	0.56	373	22	96
Revenue	0.80	76.0%	4.5%	19.6%

	0.56	190	87	22
Productivity (output per hour worked)	0.63	63.5%	29.1%	7.4%

	0.48	221	107	42
Marketing/advertising spending	0.69	59.7%	28.9%	11.4%

	0.44	273	102	76
Number of domestic full-time employees	0.76	60.5%	22.6%	16.9%

	0.40	126	111	22
Research and development spending	0.64	48.6%	42.9%	8.5%

	0.40	264	57	98
Earnings	0.84	63.0%	13.6%	23.4%

	0.38	204	118	59
Prices of your products	0.74	53.5%	31.0%	15.5%

	0.31	243	124	98
Capital spending	0.80	52.3%	26.7%	21.1%

	0.23	200	116	104
Cash on the balance sheet	0.82	47.6%	27.6%	24.8%

Number of domestic temporary	0.22	94	167	31
employees	0.62	32.2%	57.2%	10.6%

	0.16	13	33	5
Dividends	0.58	25.5%	64.7%	9.8%

Number of offshore outsourced	0.12	28	155	5
employees	0.40	14.9%	82.4%	2.7%

	0.10	20	141	3
Share repurchases	0.36	12.2%	86.0%	1.8%

15 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?  [All Companies - Winsorized - Revenue Weighted - Sorted] 

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

Technology spending	4.28	8.48	3.40 - 5.15	3	-20.10	35.45	388

Earnings	3.85	15.71	2.31 - 5.40	4	-31.80	44.80	271

Revenue	3.67	12.48	2.54 - 4.80	4	-29.10	46.24	469

Cash on the balance sheet	2.91	13.98	1.55 - 4.27	0	-37.60	44.39	498

Marketing/advertising spending	2.77	7.60	2.00 - 3.54	2	-23.20	33.43	375

Capital spending	1.99	14.79	0.70 - 3.29	1	-41	47.61	399

Research and development spending	1.20	7.50	0.31 - 2.09	0	-19.80	28.96	404

Share repurchases	1.15	4.06	0.59 - 1.72	0	-21.40	26.57	135

Prices of your products	0.77	4.93	0.28 - 1.26	1	-12.50	14.45	202

Dividends	0.39	7.16	-0.82 - 1.60	0	-28.10	26.96	360

16 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?  [All Companies - Winsorized - Employee Weighted - Sorted]

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

Health care costs	7.14	6.28	6.57 - 7.70	7	-10.20	29.41	321

Wages/Salaries	3.21	3.32	2.90 - 3.51	3	-10.10	18.85	452

Productivity (output per hour worked)	2.61	3.87	2.18 - 3.03	2	-9.46	16.29	309

Number of domestic full-time employees	2.04	8.13	1.29 - 2.79	1	-21.30	31.47	207

Number of offshore outsourced employees	1.11	3.96	0.57 - 1.65	0	-13.70	15.65	449

Number of domestic temporary employees	-0.27	6.69	-1.01 - 0.48	0	-20.70	23.07	470

17 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

4. Relative to the previous 12 months, what will be your company's PERCENTAGE CHANGE during the next 12 months?  [Public Companies - Winsorized - Revenue Weighted] 

	Mean	SD	95% CI	Median	Minimum	Maximum

Cash on the balance sheet	3.16	15.23	0.70 - 5.62	1	-37.60	44.39

Share repurchases	2.13	3.97	1.36 - 2.89	0	0	20

Earnings	1.63	16.27	-0.87 - 4.13	5	-31.80	44.80

Dividends	0.37	7.47	-0.97 - 1.71	0	-28.10	25

Revenue	-1.64	11.30	-3.33 - 0.04	3	-29.10	40

18 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

4b. For 2016, what is your planned change in capital spending...

N=629		Total		Ownership		Foreign Sales	
				Public	Private		0%	1-24%	25-50%	>50%	
				A	B		A	B	C	D	
											
Number		629		78	416		330	205	51	30	
Percent		100.0%		15.8%	84.2%		53.6%	33.3%	8.3%	4.9%	
											
Within the US	
											
N		588		76	388		310	188	51	29	
Mean		92.6		79.0	94.2		99.0	93.0	74.0	54.8	
SD		19.0		27.9	16.7		8.2	15.1	27.6	34.9	
Median		100.0		95.0	100.0		100.0	100.0	77.5	50.0	
				B	A		BCD	ACD	ABD	ABC	
											
Outside the US	
											
N		588		76	388		310	188	51	29	
Mean		7.4		21.0	5.8		1.0	7.0	26.0	45.2	
SD		19.0		27.9	16.7		8.2	15.1	27.6	34.9	
Median		0.0		5.0	0.0		0.0	0.0	20.0	50.0	
				B	A		BCD	ACD	ABD	ABC	

Significance Tests Between Columns:   Lower case: p<.05   Upper case: p<.01

19 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

4b. For 2016, what is your planned change in capital spending... [Winsorized - Revenue Weighted] 

N=629		Total		Ownership		Foreign Sales	
				Public	Private		0%	1-24%	25-50%	>50%	
				A	B		A	B	C	D	
											
Number		479		247	232		222	222	95	69	
Percent		100.1%		51.6%	48.5%		36.6%	36.5%	15.6%	11.3%	
											
Within the US	
											
N		466		242	224		217	212	95	68	
Mean		86.9		81.2	93.0		99.8	93.2	70.9	64.6	
SD		16.4		16.8	13.5		2.4	11.1	12.7	8.5	
Median		100.0		80.0	100.0		100.0	100.0	61.3	61.3	
				B	A		BCD	ACD	ABD	ABC	
											
Outside the US	
											
N		466		242	224		217	212	95	68	
Mean		13.1		18.8	7.0		0.2	6.8	29.1	35.4	
SD		16.4		16.8	13.5		2.4	11.1	12.7	8.5	
Median		0.0		15.0	0.0		0.0	0.0	38.7	38.7	
				B	A		BCD	ACD	ABD	ABC	

Significance Tests Between Columns:   Lower case: p<.05   Upper case: p<.01

20 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

5a. What do you think is the probability that your country's economy will be in recession at the end of 2016?

	 	Number	Percent	Cumulative
	0	38	6.2 %	6.2 %
	1-10	97	15.8 %	22.0 %
	11-20	104	16.9 %	38.9 %
	21-30	103	16.7 %	55.6 %
	31-40	77	12.5 %	68.1 %
	41-50	82	13.3 %	81.5 %
	51-60	33	5.4 %	86.8 %
	61-70	21	3.4 %	90.2 %
	71-80	35	5.7 %	95.9 %
	81-90	10	1.6 %	97.6 %
	91-99	3	0.5 %	98.0 %
	100	12	2.0 %	100.0 %
	Total	615	100.0 %	100.0 %

	Mean = 31.1
	SD = 24.2

	Missing Cases = 14
	Response Percent = 97.8 %

21 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

5b. What are the key risks that might lead to recession in your country at year-end 2016?

	 	Number	Percent	95% CI
	Slowdown in China	369	58.7 %	± 3.9 %
	Political risk	331	52.6 %	± 3.9 %
	Stock market decline	313	49.8 %	± 3.9 %
	Budget Deficit	258	41.0 %	± 3.9 %
	Price of oil	251	39.9 %	± 3.8 %
	Slowdown in Europe	245	39.0 %	± 3.8 %
	New regulations	191	30.4 %	± 3.6 %
	Slowdown in emerging economies other than China	185	29.4 %	± 3.6 %
	Terrorism	153	24.3 %	± 3.4 %
	Currency valuation	150	23.8 %	± 3.3 %
	Interest rates	100	15.9 %	± 2.9 %
	Health crises	90	14.3 %	± 2.7 %
	Corruption	64	10.2 %	± 2.4 %
	Price of non-oil commodities	59	9.4 %	± 2.3 %
	Low Inflation	56	8.9 %	± 2.2 %
	Infrastructure	50	7.9 %	± 2.1 %
	High inflation	42	6.7 %	± 2.0 %
	Workforce disruptions	29	4.6 %	± 1.6 %
	Other	38	6.0 %	± 1.9 %
	Total	2974

	Number of Cases = 629
	Number of Responses = 2974
	Average Number Of Responses Per Case = 4.7
	Number Of Cases With At Least One Response = 623
	Response Percent = 99.0 %

22 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

5b. What are the key risks that might lead to recession in your country at year-end 2016? Other specified

Bank/Fin/Insur/Real Est	Monetary Policy	
Bank/Fin/Insur/Real Est	Changes in the housing industry detrimental to the rental housing sector	
Energy	election	
Healthcare/Pharm	U.S. elections	
Healthcare/Pharm	Credit contraction and failure of QE	
Healthcare/Pharm	Hillary or Bernie	
Healthcare/Pharm	republicans elected	
Healthcare/Pharm	New President & Administration	
Manufacturing	National Debt	
Manufacturing	Lower consumer spending	
Manufacturing	Corporate Management	
Manufacturing	too little government spending	
Manufacturing	Election stagnation	
Manufacturing	minimum wage	
Manufacturing	Democratic presidential victory	
Manufacturing	Consumer spending /Consumer Debt	
Mining/Construction	Donal Trump or HIllary Clinton	
Other	Congressional bickering	
Other	high taxes	
Other	An indecisive government with no foreward looking policies	
Other	Election results	
Other	Political Stale Mate	
Other	lack of federal government support	
Retail/Wholesale	Deflation	
Retail/Wholesale	Donald Trump elected president	
Services, Consulting	Oil & Gas exposure on Bank Balance Sheets	
Services, Consulting	Bad debt  on the books of Chnia's banks.	
Services, Consulting	Consumer confidence	
Services, Consulting	Too many young people on government disability who should be working.An	
	infrastructure work program	
Services, Consulting	Income disparity and reduced markets	
Services, Consulting	Political Chaos	
Services, Consulting	UNCERTAINTY AND MALAISE OF BUSINESS COMMUNITY	
Services, Consulting	Substantial Regulatory Regulations elevations.	
Services, Consulting	We are in a depression now	
Tech [Soft/Hard/Bio]	all the above?	
Tech [Soft/Hard/Bio]	Risk of new President in the US	
Transp, Public Util	Consumer confidence	
Unspecified Industry	Election	

23 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

6a. Assume that core inflation is between 0% and 1% each year for the foreseeable future. What effect would an extended low core inflation scenario have on your firm's financial performance?

	 	Number	Percent	95% CI
	-2=Very negative	15	2.5 %	± 1.2 %
	-1=Negative	151	24.7 %	± 3.3 %
	0=No effect	229	37.4 %	± 3.8 %
	+1=Positive	184	30.1 %	± 3.6 %
	+2=Very positive	33	5.4 %	± 1.7 %
	Total	612	100.0 %

	Mean = 0.11
	SD = 0.92

	Missing Cases = 17
	Response Percent = 97.3 %

24 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

6b. Do you believe that an extended period of low core inflation would …

(N=629)

	Yes	No	
substantially diminish your company's ability to raise prices to keep pace with	288	330
rising labor and non-labor costs?	46.6%	53.4%

	205	410
substantially diminish your company's ability to meet its profitability targets?	33.3%	66.7%

	92	518
change the competitive balance in your industry?	15.1%	84.9%

25 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

6b. How would the competitive balance change?

Bank/Fin/Insur/Real Est	Insurance will need more underwriting discipline while the investment returns	
	stay low	
Bank/Fin/Insur/Real Est	Excess capacity	
Bank/Fin/Insur/Real Est	Competition among landlords to drive market rents south. However, on the flip	
	side lower borrowing costs to help with refinancing	
Bank/Fin/Insur/Real Est	Most firms would be unable to competitively price their product or service	
Bank/Fin/Insur/Real Est	Very difficult to operate with reduced profit margins	
Bank/Fin/Insur/Real Est	There will be more consolidation	
Bank/Fin/Insur/Real Est	Less similar industries would survive	
Bank/Fin/Insur/Real Est	further consolidations	
Bank/Fin/Insur/Real Est	We wouldn't be able to enjoy an economies of scale relative to costs.	
Bank/Fin/Insur/Real Est	NIRP is a failed policy, adversely impacting EM countries & companies	
Bank/Fin/Insur/Real Est	Only those entities with large capital reserves will be able to withstand the strain	
	of more prolonged profitability struggles.	
Bank/Fin/Insur/Real Est	The larger companies have more options to get larger returns compared with	
	smaller insurance companies like mine.	
Bank/Fin/Insur/Real Est	Fewer banks equals fewer clients	
Bank/Fin/Insur/Real Est	Flattening yield curve damage profitability.  Regulatory burden costs keep	
	increasing.	
Energy	Bankruptcy of many small players.	
Healthcare/Pharm	Our competitors don't have the scale nor capital to invest in technologies that	
	result in lower production costs.  This allows us to refrain from having to raise	
	prices.	
Healthcare/Pharm	Some competitors will be slow or unable to adapt	
Healthcare/Pharm	Diminish access to raw materials	
Healthcare/Pharm	Price wars and loss leaders used to 'buy business'	
Manufacturing	new entrants would add capacity and depress selling prices	
Manufacturing	new competitive entrants	
Manufacturing	I believe the industry leaders would have to change their business model, which	
	would put pressure on their earnings and revenues.	
Manufacturing	accelerate competition for limited sales volume may lead to price erosion	
Manufacturing	Foreign Competitors are gaining share.	
Manufacturing	overseas competition, US dollar imbalance to other currencies	
Manufacturing	Low cost producers could gain market share from higher-quality producers	
	because of price contractions.	
Mining/Construction	Larger companies will buy smaller companies, less competition, putting a squeeze	
	on smaller companies to purchase at volume.	
Mining/Construction	Well, the capital mass will make well capitalized companies be more competitive,	
	like being able to hired better employees and play 'price-cut' strategies.	
Mining/Construction	Larger companies will have the bid advantage because they can spread cost of	
	medical increases over a larger base of jobs.	
Mining/Construction	allow for more affiliated industries to enter the niche market	
Other	More students seeking retraining	
Other	More established companies (in our case private schools) would have a bigger	
	cushion	
Other	Harder to take existing market share if pricing static	
Other	Yes. It will trigger more M&A and consolidations of similar business	
Other	LOW INFLATION REFLECTS WEAK BUSINESS DEMAND	
Other	The industry would not shrink as fast	
Retail/Wholesale	more consolidation	
Retail/Wholesale	small companies would unable to compete	
Retail/Wholesale	cheap money leads to greater industry consolidation	
Retail/Wholesale	Our competitive environment would decrease as the number of competitors	
	would decrease	
Retail/Wholesale	SHIFT TO ON-LINE	
Retail/Wholesale	We are a upscale quick service restaurant low inflation could reduce the ability for	
	us to offer widely affordable products	

26 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

6b. How would the competitive balance change?

Retail/Wholesale	Our largest competitors will not be as affect as we are as a smaller entity	
Retail/Wholesale	go negative if over 24 months	
Services, Consulting	Larger firms will have the ability to withstand the disruptions, thereby force us	
	out of certain markets and services	
Services, Consulting	those firms with high fixed costs would have a harder time keeping profitability up	
Services, Consulting	We're in outsourced services - with technology investment limiting staff payroll	
	cost, we are in place to offer better prices as wages outpace core prices.	
Services, Consulting	GOVERNMENT INTERFERENCE WOULD OCCUR	
Services, Consulting	Better managed core competencies	
Services, Consulting	n/a	
Services, Consulting	shift in market	
Services, Consulting	Costs are already stressed low and would tend to grow faster than revenue	
Tech [Soft/Hard/Bio]	favor  'unicorns' that borrow and spend at 150% of revenues... instead of reality	
	crushing them	
Tech [Soft/Hard/Bio]	Larger companies with cash will put a tighter squeeze on smaller companies with	
	a smaller cash balance.	
Tech [Soft/Hard/Bio]	Larger companies survive - consolidation.	
Tech [Soft/Hard/Bio]	move to lowest cost position, driving down innovation acceptance	
Tech [Soft/Hard/Bio]	Smaller players would be reduced	
Tech [Soft/Hard/Bio]	Smaller players may find it harder to survive allowing us to thin the market.	
Transp, Public Util	Smaller firms hurt relatively more than larger firms.	
Transp, Public Util	Low demand keeps inflation low.  Companies will need to adapt to compete in a	
	market with a low demand for services.  Those adaptations could take many	
	forms.	

27 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

6c. What steps would your firm take to remain competitive in an extended low inflation environment? 

Agr, Forestry, Fishing	work to enhance productivity per man hour	
Agr, Forestry, Fishing	No special steps required.  We are a commodity business (forest products) low	
	inflation is favorable for product demand.	
Agr, Forestry, Fishing	Merger	
Agr, Forestry, Fishing	Watch input costs carefully and try to increase selling prices	
Agr, Forestry, Fishing	Strict controls	
Bank/Fin/Insur/Real Est	We are a credit union.  Low inflation allows us to keep rates low.	
Bank/Fin/Insur/Real Est	reduce employee benefits	
Bank/Fin/Insur/Real Est	try to keep operating expenses at a minimum with little or no expansion	
Bank/Fin/Insur/Real Est	We would continue to employ the best available person and be competitive on	
	pricing.	
Bank/Fin/Insur/Real Est	merger	
Bank/Fin/Insur/Real Est	Maintain low cost sources of funds	
Bank/Fin/Insur/Real Est	Utilize changes in fees and cut expenses to compete.	
Bank/Fin/Insur/Real Est	EXPENSE CONTAINMENT	
Bank/Fin/Insur/Real Est	n/a	
Bank/Fin/Insur/Real Est	Focus on productivity growth/headcount reductions	
Bank/Fin/Insur/Real Est	Sell more	
Bank/Fin/Insur/Real Est	improve service offerings	
Bank/Fin/Insur/Real Est	Watch expenses, keep production high.	
Bank/Fin/Insur/Real Est	increase capital expenditure	
Bank/Fin/Insur/Real Est	Negotiate contracts to temporarily lower rates.	
Bank/Fin/Insur/Real Est	?	
Bank/Fin/Insur/Real Est	Increase employee productivity and hold wage increases	
Bank/Fin/Insur/Real Est	keep expenses low and work on continued efficiency improvements.	
Bank/Fin/Insur/Real Est	protect a niche	
Bank/Fin/Insur/Real Est	Update technology and become more productive	
Bank/Fin/Insur/Real Est	Keep costs low, slow down growth	
Bank/Fin/Insur/Real Est	Deleverage. Setup and maintain adequate working capital reserves.	
Bank/Fin/Insur/Real Est	Monitor supplier cost	
Bank/Fin/Insur/Real Est	Maintain profit margins	
Bank/Fin/Insur/Real Est	Reduce Costs	
Bank/Fin/Insur/Real Est	curb and cut back on staff; freeze salary increases and bonuses; rely more on	
	outsourced staff	
Bank/Fin/Insur/Real Est	na	
Bank/Fin/Insur/Real Est	Look to expand market share	
Bank/Fin/Insur/Real Est	Acquire as much prime land as possible for future development.  Enhance internal	
	communication to assure employees understand company's contribution to their	
	heathl care costs.	
Bank/Fin/Insur/Real Est	New products that replace traditional fixed income.	
Bank/Fin/Insur/Real Est	expanded mkts and services	
Bank/Fin/Insur/Real Est	more focus on increasing productivity	
Bank/Fin/Insur/Real Est	Cut employees	
Bank/Fin/Insur/Real Est	Retain core customers and increase cross-sell.	
Bank/Fin/Insur/Real Est	Look for merger with another financial institution.	
Bank/Fin/Insur/Real Est	Reduce labor cost.	
Bank/Fin/Insur/Real Est	as a financial firm, we adjust our market positions based on macro-economic	
	models.  Low inflation will persist for extended periods	
Bank/Fin/Insur/Real Est	Put emphasis on growth markets - outside US.  Emphasis on cash cows.  Reduce	
	risk.	
Bank/Fin/Insur/Real Est	Mergers	
Bank/Fin/Insur/Real Est	Offer additional amenities that would generate revenues greater than costs.	
Bank/Fin/Insur/Real Est	Increase operating efficiencies; Find Better sales analytics tools; Seek higher	
	yielding customers.	
Bank/Fin/Insur/Real Est	Market extension	
Bank/Fin/Insur/Real Est	higher allocation to alternative investments.	
Bank/Fin/Insur/Real Est	Leverage existing work over new clients	

28 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

6c. What steps would your firm take to remain competitive in an extended low inflation environment? 

Bank/Fin/Insur/Real Est	Find other ways to provide value added services	
Bank/Fin/Insur/Real Est	tighten up on expenses	
Bank/Fin/Insur/Real Est	cut costs and lay off staff	
Bank/Fin/Insur/Real Est	Continue to offer strong value proposition and customer service	
Bank/Fin/Insur/Real Est	Hold wages.  Focus on cost cutting.	
Bank/Fin/Insur/Real Est	Business as usual - no special steps	
Bank/Fin/Insur/Real Est	be more aggressive	
Communication/Media	No net hiring.	
Communication/Media	increase employee productivity	
Communication/Media	invest in technologies that will lower operating expenses	
Communication/Media	Reduce expenses in the raw materials used.	
Communication/Media	we've grown through aquisition	
Communication/Media	Differentiate and improve the core product	
Energy	focus attention on value-added activities and correcting course relative to	
	employees and resources	
Energy	Align cost structure	
Energy	no real steps	
Energy	Cut costs	
Energy	Use working capital to purchase oil and gas properties	
Energy	cut costs	
Energy	Nothing	
Energy	operation's cost control, as well as manufacturing plant utilization increases	
Energy	We simply manage our overhead	
Healthcare/Pharm	Increased focus on client service in order to ensure high satisfaction and retention	
Healthcare/Pharm	Continue to invest in R&D and technologies that enable to reduce our cost of	
	production.	
Healthcare/Pharm	Maintain growth pattern	
Healthcare/Pharm	Continue innovating to reduce labor and operational costs.	
Healthcare/Pharm	Reduce wage increases.	
Healthcare/Pharm	Closely analyze market pricing	
Healthcare/Pharm	Reduce office staff; freeze wages	
Healthcare/Pharm	Increase R&D spending to improve our ability to innovate and capture market share.	
Healthcare/Pharm	Continue lean operations and improve contracting with health payors.	
Healthcare/Pharm	Continued push for productivity gains	
Healthcare/Pharm	Automate more, be more aggressive collecting debts	
Healthcare/Pharm	Productivity and purchasing offsets	
Healthcare/Pharm	Utilize low cost capital for M&A and expansion	
Healthcare/Pharm	NA	
Healthcare/Pharm	increase revenue growth thru customer acquisition and increased marketing	
	spending.	
Healthcare/Pharm	focus on patient payment for services	
Healthcare/Pharm	Manage labour costs and expectations	
Healthcare/Pharm	Reduction of bricks and mortar and number of full time employees	
Healthcare/Pharm	Improve operational efficiency to low cost overhead structure.	
Healthcare/Pharm	INCREASE EFFICIENCY	
Healthcare/Pharm	Cut costs	
Healthcare/Pharm	Good cost management!	
Healthcare/Pharm	Manage costs	
Healthcare/Pharm	Stay the course, as we have no fears of this low core inflation.	
Healthcare/Pharm	Aggressive sales campaign	
Healthcare/Pharm	Seek alternative investments	
Healthcare/Pharm	N/A	
Healthcare/Pharm	Expand products to customer base	
Healthcare/Pharm	provide better service - push employee productivity - reward high performing	
	employees	
Healthcare/Pharm	growth, cost productivity	
Healthcare/Pharm	Pricing strategies    Group purchasing discounting	

29 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

6c. What steps would your firm take to remain competitive in an extended low inflation environment? 

Healthcare/Pharm	price increases	
Manufacturing	Process improvement, product re-design	
Manufacturing	eliminate positions that may impact long term but could help with lowering costs	
	in the short term	
Manufacturing	Specific cost reduction programs and continuous improvement activities	
Manufacturing	Improve Processes and Productivity	
Manufacturing	We have steps to implement improved productivity.	
Manufacturing	ruthless focus on productivity and innovation	
Manufacturing	same thing we do every year; work on productivity, other cost reductions as well	
	as developing new products and pursue new markets	
Manufacturing	lower pricing	
Manufacturing	Strict expenditure control; raise cash reserves; drop low profitability, non-growth	
	products	
Manufacturing	strong cost reduction program	
Manufacturing	Steps to increase productivity via planbt floor automation and Re-Engineering our	
	products	
Manufacturing	Sharpen pencils when quoting long term packages	
Manufacturing	cost containment and product innovation	
Manufacturing	Rely more on automation and less on employees	
Manufacturing	Keep wages down, keep commodity prices low.	
Manufacturing	Look for productivity savings and efficiencies.	
Manufacturing	continue cost cutting measures	
Manufacturing	improve productivity	
Manufacturing	Manage our overhead, maintain our excellent customer relations.	
Manufacturing	Lowering COGS.	
Manufacturing	We would work to reduce our operating costs as much as possible, including	
	reducing head count.  We likely would be unable to raise prices, so we would need	
	to be more efficient and effective in production to lower costs.	
Manufacturing	Control COGS, Add innovative new products	
Manufacturing	Hold prices constant.	
Manufacturing	cost cutting to become the lowest cost supplier, limit availability in certain areas	
	where we cannot compete on cost	
Manufacturing	Accelerate Review all product categories and trim non essential lines, Streamline	
	back office support activities to bare bones to combat inflation, resource supply	
	chain based on cost more than lead time, trim business with least profitable	
	customers to name a few.	
Manufacturing	more aggressive advertising	
Manufacturing	We are tied to the housing industry, so low inflation improves home affordability,	
	which is a benefit to  our company.	
Manufacturing	focus on improved efficiency and remain price competitive.	
Manufacturing	just do our best	
Manufacturing	Reduce number of employees	
Manufacturing	N/A	
Manufacturing	continue to automate to reduce number of remployees	
Manufacturing	Continue to work on improvements	
Manufacturing	Hold wage growth in line with inflation growth.	
Manufacturing	Change sourcing to lower cost areas; expand product offering to increase margin	
	dollars	
Manufacturing	low inflation is drive by excess capacity or low demand. The only thing we can do	
	is continue to balance resources and investment with demand.	
Manufacturing	increase productivity & cost effectiveness	
Manufacturing	expansion	
Manufacturing	First, we would substitute capital equipment and technology for labor. Second,	
	we would move more towards value added manufacturing and away from low	
	value distribution.	
Manufacturing	Restrain annual normal wage increases	
Manufacturing	improve efficiency and cost management	

30 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

6c. What steps would your firm take to remain competitive in an extended low inflation environment? 

Manufacturing	Further cost cutting, including labor force reductions.	
Manufacturing	Cut costs	
Manufacturing	Continued focus on quality over quantity output.	
Manufacturing	workforce reduction, cost containment	
Manufacturing	Reduce labor costs including benefits.	
Manufacturing	Cost containment to offset wage increases while demanding increase productivity.	
Manufacturing	To be a low production cost leader	
Manufacturing	manage spending (SG&A, capex)	
Manufacturing	Increase productivity	
Manufacturing	We are in a low competition product/market. Low inflation would benefit our	
	product growth.	
Manufacturing	Unlikely to be a factor	
Manufacturing	streamline costs	
Manufacturing	New product introduction	
Manufacturing	Continue to find lower costs in sourcing, new markets and automation ,	
	technology wins. Reduce pain points, labor costs, health care, worker	
	compensation insurance.	
Manufacturing	Productivity, cost reductions	
Manufacturing	Use of technology	
Manufacturing	Implement floor price for our products	
Manufacturing	Continue to drive supply chain costs lower.  Focus on reducing manufacturing	
	costs.  Reduce headcount and investment in growth initiatives.	
Manufacturing	Cost-cutting to increase margins.	
Manufacturing	Develop new products , Add value to current products thru R&D, extend customer	
	base, look for blue oceans	
Manufacturing	Invest in marketing.	
Manufacturing	add value added services to goods	
Mining/Construction	Focus on improving productivity, through pre-fabrication and other off-site	
	construction measures.	
Mining/Construction	not sure	
Mining/Construction	Avoid capital expenditures.	
Mining/Construction	Control production costs, salaries & wages, and strenghten customer relationships	
Mining/Construction	invest in technology / productivity tools	
Mining/Construction	Focus on improved operational efficiency.	
Mining/Construction	decrease prices charged and reduce benefits paid to employees	
Mining/Construction	revisit our estimating procedures and adjust where needed	
Mining/Construction	Cost control and seek new revenue opportunities	
Mining/Construction	increase market share	
Mining/Construction	Cost containment	
Mining/Construction	Increased advertising.	
Mining/Construction	cut employee costs	
Mining/Construction	Cost Control, and Internal Controls focus, as well as, execution.	
Mining/Construction	Fewer employees, use more outsourced labor.	
Mining/Construction	Increase workforce training	
Mining/Construction	cost management - wages, material, equipment	
Other	Reduce workforce numbers	
Other	Keep tuition and fees at present level	
Other	innovation	
Other	We would probably need to invest in systems to become more efficient.	
Other	Increased use of technology to keep overall costs in check	
Other	Cut costs while raising benefits	
Other	N/A	
Other	Offer discounts for spending more	
Other	This should keep our costs down and we are a donor driven organization.	
Other	Cost control	
Other	We would keep prices low to stay competitive in the market.  Controlling our	
	expenses to the best of our ability.	

31 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

6c. What steps would your firm take to remain competitive in an extended low inflation environment? 

Other	n/a	
Other	Accelerate plans to reduce direct labor	
Other	Keep tuition and salaries low; shift costs of medical insurance premium	
Other	Need to make our product unique.	
Other	We have to keep our operation costs at a minimum and price our product at the	
	low end of the spectrum.	
Other	lower costs	
Other	Advertising	
Other	control costs	
Other	Cut costs	
Other	We are in professional services, architecture and engineering.  Low inflation	
	doesn't much affect us.	
Other	Continuous drive for productivity	
Other	Increase presence in foreign markets	
Other	Increase productivity, reduction of management layer, business simplification,	
	boost multi year deals, charge for all free of charge services, reduce dividends,	
	maintain a healthy BS	
Other	Provided more services.	
Other	Improve purchasing procedures to control costs.	
Other	Lower pay increases and lower tuition increases	
Other	Since our industry is very labor intensive, and the labor is growing in age	
	demographics, other areas of operating cost reductions will be sought.	
Other	review all jobs and consolidate tasks as much as possible	
Other	Improve efficiency; control costs	
Other	keep salaries as they are now	
Other	cut costs	
Other	no significant changes in a low inflation environment	
Other	just fucking do it literally	
Other	Continue to be more efficient.	
Other	DECREASE EMPLOYEES	
Other	Maintain our core values, faith and attitude	
Other	Continue to look for alternative revenue sources	
Other	Have to work harder	
Other	Our number one step is to be efficient with the current tonnage being processed in	
	a maturing/shrinking market	
Other	Reduce G&A - Increase per customer sales	
Other	Cost control and efficiency/effectiveness	
Other	Cost control and more efficiency with what we have in place.	
Other	workforce reduction	
Other	Compete in new markets.	
Other	Review compensation levels, insurance and benefits	
Other	None	
Pub Admin	very little	
Pub Admin	smaller salary increases	
Pub Admin	Stay the course.	
Pub Admin	Invest in investments with increased risk to generate higher returns	
Pub Admin	efficiency improvement, new services products, elimination of old non	
	competitive services/products	
Pub Admin	None	
Pub Admin	Identify new revenue sources and continue efforts to retain high quality staff	
Pub Admin	N/A - Governmental Agency	
Pub Admin	None, we should be no worse than others and since we have a low overhead we	
	will probably be ok.	
Retail/Wholesale	Continued aggressive cost cutting.	
Retail/Wholesale	manage costs lower	
Retail/Wholesale	find new sources of revenue	
Retail/Wholesale	contain costs	

32 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

6c. What steps would your firm take to remain competitive in an extended low inflation environment? 

Retail/Wholesale	New product development and investment in additional sales team	
Retail/Wholesale	Quality vs. price war.	
Retail/Wholesale	Cut overhead	
Retail/Wholesale	Increased labor efficiency, adding new products	
Retail/Wholesale	Remain competitive?  Low inflation is a good thing, not bad.  Zero inflation is	
	even better.  Why would anyone be so stupid as to think lower prices are a bad	
	thing?  Keynesians are idiots.	
Retail/Wholesale	Continually need to introduce new products to avoid commodity pricing.	
Retail/Wholesale	Concentrate on holding on to current customers	
Retail/Wholesale	cut capex, slow pay increases, review hiring at the fringes.	
Retail/Wholesale	Negotiate better supply terms/costs with vendors.	
Retail/Wholesale	more value add services for our customer	
Retail/Wholesale	monitor expenses and product cost	
Retail/Wholesale	none needed	
Retail/Wholesale	increase the value of our services and effectiveness	
Retail/Wholesale	Work with our supply chain to reduce costs	
Retail/Wholesale	Cost structure,  merechandise mix,continue migration to omnichannel business	
	model	
Retail/Wholesale	add a new line of products or services to go along with core products	
Retail/Wholesale	expand product portfolio	
Retail/Wholesale	INCREASE POINTS OF DISTRIBUTION	
Retail/Wholesale	Reduce operating costs.	
Retail/Wholesale	None	
Retail/Wholesale	Reduce Labor Costs	
Retail/Wholesale	Innovation in products, better financial management.	
Retail/Wholesale	keep wages down	
Retail/Wholesale	Focus on service	
Retail/Wholesale	Stay the course with quality and prices and continue to attract customers who are	
	moved by quality and service more than price.	
Retail/Wholesale	cannot sell product for less. close shop	
Retail/Wholesale	Cut back health care	
Retail/Wholesale	Reign in labor increases and very cost focused reducing strategic investments	
Retail/Wholesale	reduce costs	
Retail/Wholesale	minimize price increases; keep labor cost low	
Retail/Wholesale	readjust our plan and see where revenues and expenses are in and balance where	
	we have to be with reserves.	
Retail/Wholesale	we are a regional company and better able to adapt to the local market needs.	
Retail/Wholesale	New products & expansion into new channels of distribution	
Retail/Wholesale	cut prices	
Services, Consulting	It is difficult to say in a service industry tied to jobs.  If jobs slow due to an	
	inability of our clients to pass on price increases to outpace labor costs, we may	
	be forced to evaluate pricing concessions if the competition moves in that	
	direction.	
Services, Consulting	Introduce services which differentiate us but do not add to delivery costs	
Services, Consulting	Control costs	
Services, Consulting	Increase level of service	
Services, Consulting	Maintain lower prices relative to competitors	
Services, Consulting	none	
Services, Consulting	Take further actions to boost productivity and gain market share	
Services, Consulting	streamline processes	
Services, Consulting	attempt to keep cost in check and limit hiring and raises	
Services, Consulting	work to keep costs down - less spending	
Services, Consulting	not raise prices	
Services, Consulting	Consider expansion into more countries	
Services, Consulting	continued cash management and reserve buildup	
Services, Consulting	Continue process improvements to work more efficiently.  Continue to gain new	
	customers from leads from our existing, satisfied customers.	

33 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

6c. What steps would your firm take to remain competitive in an extended low inflation environment? 

Services, Consulting	Increase marketing efforts	
Services, Consulting	Focus on wages, 'greening' of staff on long term projects	
Services, Consulting	Monitor gross margin closely.	
Services, Consulting	I can't assume that salaries will remain stagnant.  Offshoring is a logical alternative	
	to rising wages.	
Services, Consulting	Hold wages to levels of 2010 which have not changed since then.  Reduce marking	
	efforts.	
Services, Consulting	We are not capitol intensive; therefore, our risk is minimized. Our customers face	
	capitol risk and react by reducing their needs which intensifies their need for our	
	services.	
Services, Consulting	We are in a low inflationary time so our competitive standing will not be	
	significantly affected.	
Services, Consulting	Little effects	
Services, Consulting	Hire best and brightest and continue to pump cash into evolution of our product/	
	service offerings.	
Services, Consulting	quality service	
Services, Consulting	Reduce prices, cut staff	
Services, Consulting	cut costs where possible.	
Services, Consulting	Improve efficiency, less outsourcing	
Services, Consulting	Try to identify cost savings areas to reduce expenses.	
Services, Consulting	Investment in capital expenditures	
Services, Consulting	Control costs	
Services, Consulting	Keep in the NICHE market. Excellent client relationship to retain there business.	
	Innovation. Advertising to get new business, Hiring quality employees for high	
	performance.	
Services, Consulting	add further value added services	
Services, Consulting	Manage headcount, automate processes, drive efficiency.	
Services, Consulting	limit wage increases	
Services, Consulting	focus on maintaining low wage growth	
Services, Consulting	Adjust benefits	
Services, Consulting	Limit/freeze hiring. Less raises, more performance based pay. Limit credit granted	
	to small clients - raise credit granted to large established clients with added fees.	
Services, Consulting	Find an additional investor principal or sell practice for best available price.	
Services, Consulting	Continue marketing aggressively.	
Services, Consulting	Maintain current policies	
Services, Consulting	Keep on wages at the current inflation rates.	
Services, Consulting	Continue to market and spend on marketing and sales initiatives	
Services, Consulting	We are a very small player in a huge market. We would attempt to hold or	
	increase market share.	
Services, Consulting	SINCE WE ARE A FEE BASED ENTITY WE WOULD LOWER FEES	
Services, Consulting	Continue to drive efficiencies within the business.  Look for more margin based	
	sales opportunities.	
Services, Consulting	must raise productivity, hire better people and retain them,	
Services, Consulting	Since we provide services to much larger entitiesâ€¦.try to keep the price	
	reductions that these large entities try to push on us in order to retain the	
	contracts.  Negotiate very hard with our vendors in order for us to maintain our	
	gross margin.  Forgo hiring additional workers in order to meet our net profit goals	
Services, Consulting	NA.  We are consulting focused.  Impact would be more focused on clients.	
Services, Consulting	Inflation has been between 8-11% each year for the last 3 years.  Where are you	
	living that you use the term 'low inflation environment'?	
Services, Consulting	Concentrate on better management of core competencies	
Services, Consulting	Drive sales	
Services, Consulting	maximize system efficiencies, reduce reduncanies and review activities performed	
	outside the organization	
Services, Consulting	Use loans effectively to upgrade equipment	
Services, Consulting	Adjust salary increases and have proactive cost management to keep cost at or	
	below low inflation.  Seek efficiencies.	

34 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

6c. What steps would your firm take to remain competitive in an extended low inflation environment? 

Services, Consulting	Focus on increasing market share.  Prices for our services haven't gone up in years.	
	The key is expanding revenue and becoming more productive	
Services, Consulting	new technologies enhance value of products	
Services, Consulting	New Offerings	
Services, Consulting	cut marketing expenditures	
Services, Consulting	Expand to other markets	
Services, Consulting	Not applicable	
Services, Consulting	Strengthen client relationships.  Concentrate on development of automated	
	systems and other efficiency.	
Services, Consulting	Keep prices to what the market can bare and minimize hiring	
Services, Consulting	hire more competent employees, cut cost accordingly	
Services, Consulting	cost controls, extensive marketing to find and retain new clients	
Services, Consulting	Adapt	
Services, Consulting	Seek more clients - potentially shift to a different model, as trainer rather than	
	service provider	
Services, Consulting	If our cost remain firm our selling price strategy will be to continue testing the	
	market for increases that are min 5% about inflation.	
Services, Consulting	More marketing	
Services, Consulting	More competitive advertisement.	
Tech [Soft/Hard/Bio]	Disinflation is unlikely to last.  We see a whipsaw of disinflation followed by the	
	risk of high inflation.	
Tech [Soft/Hard/Bio]	more aggressive innovation  and selling	
Tech [Soft/Hard/Bio]	Increase our marketing efforts to attract new customers.	
Tech [Soft/Hard/Bio]	Improve productivity	
Tech [Soft/Hard/Bio]	Stay on the leading edge of technological change.	
Tech [Soft/Hard/Bio]	shred costs, automate at every opportunity	
Tech [Soft/Hard/Bio]	capital	
Tech [Soft/Hard/Bio]	None needed	
Tech [Soft/Hard/Bio]	Higher level of outsourcing	
Tech [Soft/Hard/Bio]	Focus on productivity improvements.	
Tech [Soft/Hard/Bio]	Slow spending/investment	
Tech [Soft/Hard/Bio]	Shift composition of employment away from high cost employees	
Tech [Soft/Hard/Bio]	Improve productivity, rationalize wage increases, other cost management	
	initiatives	
Tech [Soft/Hard/Bio]	Keep pricing the same	
Tech [Soft/Hard/Bio]	No price increases	
Tech [Soft/Hard/Bio]	Deliver continuously better software technology	
Tech [Soft/Hard/Bio]	Competitive prices and low wage increases	
Tech [Soft/Hard/Bio]	Grow revenue	
Tech [Soft/Hard/Bio]	Develop new ways to market and price products	
Tech [Soft/Hard/Bio]	reduce R&D investment and reduce jobs	
Tech [Soft/Hard/Bio]	reorder product mix to best cost position, create more value driven demand to	
	support price levels, and eliminate marginal products or acquire products to gain	
	market share	
Tech [Soft/Hard/Bio]	Unique products, support and reputation.	
Tech [Soft/Hard/Bio]	cut employees	
Tech [Soft/Hard/Bio]	Minimize S&W inflation	
Tech [Soft/Hard/Bio]	Include additional product features without raising price	
Tech [Soft/Hard/Bio]	Keep prices and wages lower than normal. Employee turnover is OK to counter	
	wage increases.	
Tech [Soft/Hard/Bio]	None necessary	
Tech [Soft/Hard/Bio]	none	
Tech [Soft/Hard/Bio]	Manage costs that are manageable and look for alternatives for those that are not.	
Tech [Soft/Hard/Bio]	Doesn't really affect us.	
Tech [Soft/Hard/Bio]	reduce staff, increase productivity of remaining staff	
Tech [Soft/Hard/Bio]	refocus on inefficiencies in the system	
Tech [Soft/Hard/Bio]	Operational efficiency	

35 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

6c. What steps would your firm take to remain competitive in an extended low inflation environment? 

Tech [Soft/Hard/Bio]	Pursue acquisitions with relatively cheap money.  Invest in projects to bring	
	contract manufacturing in-house.	
Tech [Soft/Hard/Bio]	inorganic growth	
Tech [Soft/Hard/Bio]	focus on efficiency initiatives and focus on technology to automate routine	
	processing	
Tech [Soft/Hard/Bio]	No extraordinary steps - just maintain our current path	
Transp, Public Util	Shrink with the industry	
Transp, Public Util	renegotiate contracts	
Transp, Public Util	Seek volume through holding prices, offering concessions on terms. Cutting costs,	
	including holding wages and reducing variable pay.	
Transp, Public Util	Offer more and a greater variety of services	
Transp, Public Util	Increase offerings of services as we have since 2008	
Transp, Public Util	Continuing investment in technology, emphasis on employee empowerment and	
	not chasing lower prices fully.	
Transp, Public Util	Try to keep costs low and operational efficiencies high.	
Transp, Public Util	as a regulated utility serving a defined territory, we feel no direct competitive	
	pressures. Indirect pressures, however, including the lack of economic growth in	
	the region and state, are substantial.	
Transp, Public Util	Low inflation would have very little effect on our company.	
Transp, Public Util	Maintain strong fiscal expense discipline	
Transp, Public Util	We are reviewing all of or process and procedures with an eye to reducing staff	
	and gaining efficiencies.  Centralizing wherever possible.	
Transp, Public Util	Cost reductions and reduced capital spending	
Unspecified Industry	Yesz	
Unspecified Industry	Maintain cost controls and invest in technology.	

36 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

7. Holding everything else constant, did the December 2015 increase in interest rates affect your company?

	 	Number	Percent	95% CI
	-2=Very negative	3	0.5 %	± 0.5 %
	-1=Negative	91	14.7 %	± 2.8 %
	0=No effect	503	81.1 %	± 3.1 %
	+1=Positive	20	3.2 %	± 1.4 %
	+2=Very positive	3	0.5 %	± 0.5 %
	Total	620	100.0 %

	Mean = -0.11
	SD = 0.45

	Missing Cases = 9
	Response Percent = 98.6 %

37 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

8. Compared to interest rates today, how much would your borrowing costs have to increase to cause your company to 'reduce hiring plans'?

	 	Number	Percent	Cumulative
	0.25	16	4.3 %	4.3 %
	0.5	20	5.4 %	9.8 %
	0.75	13	3.5 %	13.3 %
	1.0	55	14.9 %	28.3 %
	1.5	24	6.5 %	34.8 %
	2.0	86	23.4 %	58.2 %
	2.5	28	7.6 %	65.8 %
	3.0	45	12.2 %	78.0 %
	3.5	8	2.2 %	80.2 %
	4.0	73	19.8 %	100.0 %
	Total	368	100.0 %	100.0 %

	Mean = 2.21
	SD = 1.19

	Missing Cases = 261
	Response Percent = 58.5 %

38 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

8. Compared to interest rates today, how much would your borrowing costs have to increase to cause your company to 'reduce capital spending plans'?

	 	Number	Percent	Cumulative
	0.25	17	4.2 %	4.2 %
	0.5	19	4.7 %	8.9 %
	0.75	19	4.7 %	13.6 %
	1.0	57	14.1 %	27.7 %
	1.5	39	9.6 %	37.3 %
	2.0	93	23.0 %	60.2 %
	2.5	28	6.9 %	67.2 %
	3.0	59	14.6 %	81.7 %
	3.5	7	1.7 %	83.5 %
	4.0	67	16.5 %	100.0 %
	Total	405	100.0 %	100.0 %

	Mean = 2.15
	SD = 1.15

	Missing Cases = 224
	Response Percent = 64.4 %

39 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

8. Compared to interest rates today, how much would your borrowing costs have to increase to cause your company to 'reduce borrowing plans'?

	 	Number	Percent	Cumulative
	0.25	18	4.7 %	4.7 %
	0.5	15	3.9 %	8.6 %
	0.75	18	4.7 %	13.3 %
	1.0	53	13.8 %	27.2 %
	1.5	30	7.8 %	35.0 %
	2.0	98	25.6 %	60.6 %
	2.5	27	7.0 %	67.6 %
	3.0	53	13.8 %	81.5 %
	3.5	14	3.7 %	85.1 %
	4.0	57	14.9 %	100.0 %
	Total	383	100.0 %	100.0 %

	Mean = 2.15
	SD = 1.13

	Missing Cases = 246
	Response Percent = 60.9 %

40 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

9a. Approximately what percentage of your primary workforce currently earns minimum wage? [US Headquarters Only] (mean is an estimate) 

	 	Number	Percent	95% CI
	0% (None)	453	74.9 %	± 3.5 %
	5%	59	9.8 %	± 2.3 %
	10%	33	5.5 %	± 1.8 %
	20%	13	2.1 %	± 1.1 %
	30%	11	1.8 %	± 1.0 %
	40%	4	0.7 %	± 0.6 %
	50%	4	0.7 %	± 0.6 %
	60%	2	0.3 %	± 0.4 %
	70%	2	0.3 %	± 0.4 %
	80%	0	0.0 %	± 0.0 %
	90%	1	0.2 %	± 0.3 %
	95%	1	0.2 %	± 0.3 %
	100% (All)	22	3.6 %	± 1.5 %
	Total	605	100.0 %

	Mean = 6.98
	SD = 20.79

	Missing Cases = 15
	Response Percent = 97.6 %

41 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

9b. Among your primary workforce, how much do the lowest paid workers currently earn in hourly wages? [US Headquarters Only] (mean is an estimate derived from category midpoints)

	 	Number	Percent	95% CI
	$7.25 or less per hour	9	1.6 %	± 0.9 %
	$7.26-$8.74	28	5.1 %	± 1.6 %
	$8.75-$9.99	55	9.9 %	± 2.2 %
	$10-$11.99	133	24.0 %	± 3.2 %
	$12-$14.99	149	26.9 %	± 3.4 %
	$15 or more per hour	180	32.5 %	± 3.6 %
	Total	554	100.0 %

	Mean = 12.60
	SD = 2.30

	Missing Cases = 66
	Response Percent = 89.4 %

42 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

ALL RESPONDENTS: If the minimum wage were increased, would your company...

		increased to $8.75/hr		increased to $10.00/hr		increased to $15.00/hr	
		Yes	No	Not Sure		Yes	No	Not Sure		Yes	No	Not Sure	
													
Net: Reduce current or		13	17	3		40	40	5		256	86	11	
future employment		39.4%	51.5%	9.1%		47.1%	47.1%	5.9%		72.5%	24.4%	3.1%	
													
Reduce current		4	25	7		18	61	13		152	168	49	
workforce		11.1%	69.4%	19.4%		19.6%	66.3%	14.1%		41.2%	45.5%	13.3%	
													
Slow future hiring		13	17	6		40	41	9		247	93	32	
		36.1%	47.2%	16.7%		44.4%	45.6%	10.0%		66.4%	25.0%	8.6%	
													
Shift towards labor-		11	19	6		40	36	16		268	81	22	
saving technologies		30.6%	52.8%	16.7%		43.5%	39.1%	17.4%		72.2%	21.8%	5.9%	
													
Reduce employee		4	24	7		25	51	13		177	127	65	
benefits		11.4%	68.6%	20.0%		28.1%	57.3%	14.6%		48.0%	34.4%	17.6%	
													
Raise product prices		8	18	10		38	45	6		177	142	46	
		22.2%	50.0%	27.8%		42.7%	50.6%	6.7%		48.5%	38.9%	12.6%	
													
Reduce employee		8	20	8		20	50	21		93	181	91	
turnover		22.2%	55.6%	22.2%		22.0%	54.9%	23.1%		25.5%	49.6%	24.9%	
													
Increase worker output		6	20	10		32	45	15		151	145	73	
		16.7%	55.6%	27.8%		34.8%	48.9%	16.3%		40.9%	39.3%	19.8%	
													
Attract higher-quality		6	24	5		12	60	17		122	171	73	
talent		17.1%	68.6%	14.3%		13.5%	67.4%	19.1%		33.3%	46.7%	19.9%	

43 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

MANUFACTURING SECTOR: If the minimum wage were increased, would your company...

		increased to $8.75/hr		increased to $10.00/hr		increased to $15.00/hr	
		Yes	No	Not Sure		Yes	No	Not Sure		Yes	No	Not Sure	
													
Net: Reduce current or		0	0	0		0	0	0		8	3	2	
future employment		0.0%	0.0%	0.0%		0.0%	0.0%	0.0%		61.5%	23.1%	15.4%	
													
Reduce current		0	0	0		0	0	0		2	6	5	
workforce		0.0%	0.0%	0.0%		0.0%	0.0%	0.0%		15.4%	46.2%	38.5%	
													
Slow future hiring		0	0	0		0	0	0		8	3	2	
		0.0%	0.0%	0.0%		0.0%	0.0%	0.0%		61.5%	23.1%	15.4%	
													
Shift towards labor-		0	0	0		0	0	0		10	2	1	
saving technologies		0.0%	0.0%	0.0%		0.0%	0.0%	0.0%		76.9%	15.4%	7.7%	
													
Reduce employee		0	0	0		0	0	0		3	4	6	
benefits		0.0%	0.0%	0.0%		0.0%	0.0%	0.0%		23.1%	30.8%	46.2%	
													
Raise product prices		0	0	0		0	0	0		6	5	2	
		0.0%	0.0%	0.0%		0.0%	0.0%	0.0%		46.2%	38.5%	15.4%	
													
Reduce employee		0	0	0		0	0	0		3	6	3	
turnover		0.0%	0.0%	0.0%		0.0%	0.0%	0.0%		25.0%	50.0%	25.0%	
													
Increase worker output		0	0	0		0	0	0		6	4	3	
		0.0%	0.0%	0.0%		0.0%	0.0%	0.0%		46.2%	30.8%	23.1%	
													
Attract higher-quality		0	0	0		0	0	0		5	6	2	
talent		0.0%	0.0%	0.0%		0.0%	0.0%	0.0%		38.5%	46.2%	15.4%	

44 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

RETAIL/WHOLESALE SECTOR: If the minimum wage were increased, would your company...

		increased to $8.75/hr		increased to $10.00/hr		increased to $15.00/hr	
		Yes	No	Not Sure		Yes	No	Not Sure		Yes	No	Not Sure	
													
Net: Reduce current or		2	2	1		7	8	1		37	8	3	
future employment		40.0%	40.0%	20.0%		43.8%	50.0%	6.3%		77.1%	16.7%	6.3%	
													
Reduce current		1	3	1		4	11	1		22	18	8	
workforce		20.0%	60.0%	20.0%		25.0%	68.8%	6.3%		45.8%	37.5%	16.7%	
													
Slow future hiring		2	2	1		7	8	1		35	8	5	
		40.0%	40.0%	20.0%		43.8%	50.0%	6.3%		72.9%	16.7%	10.4%	
													
Shift towards labor-		2	2	1		7	7	2		39	7	2	
saving technologies		40.0%	40.0%	20.0%		43.8%	43.8%	12.5%		81.3%	14.6%	4.2%	
													
Reduce employee		2	1	1		4	10	2		25	15	8	
benefits		50.0%	25.0%	25.0%		25.0%	62.5%	12.5%		52.1%	31.3%	16.7%	
													
Raise product prices		1	2	2		7	6	3		26	14	7	
		20.0%	40.0%	40.0%		43.8%	37.5%	18.8%		55.3%	29.8%	14.9%	
													
Reduce employee		0	4	1		3	9	4		11	23	14	
turnover		0.0%	80.0%	20.0%		18.8%	56.3%	25.0%		22.9%	47.9%	29.2%	
													
Increase worker output		0	3	2		6	8	2		21	19	8	
		0.0%	60.0%	40.0%		37.5%	50.0%	12.5%		43.8%	39.6%	16.7%	
													
Attract higher-quality		0	4	1		1	13	1		19	20	8	
talent		0.0%	80.0%	20.0%		6.7%	86.7%	6.7%		40.4%	42.6%	17.0%	

45 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

LESS THAN 100 EMPLOYEES: If the minimum wage were increased, would your company...

		increased to $8.75/hr		increased to $10.00/hr		increased to $15.00/hr	
		Yes	No	Not Sure		Yes	No	Not Sure		Yes	No	Not Sure	
													
Net: Reduce current or		2	5	1		6	14	2		73	27	1	
future employment		25.0%	62.5%	12.5%		27.3%	63.6%	9.1%		72.3%	26.7%	1.0%	
													
Reduce current		1	6	1		4	15	4		42	48	13	
workforce		12.5%	75.0%	12.5%		17.4%	65.2%	17.4%		40.8%	46.6%	12.6%	
													
Slow future hiring		2	5	1		6	14	2		72	28	5	
		25.0%	62.5%	12.5%		27.3%	63.6%	9.1%		68.6%	26.7%	4.8%	
													
Shift towards labor-		1	5	2		8	7	8		73	26	5	
saving technologies		12.5%	62.5%	25.0%		34.8%	30.4%	34.8%		70.2%	25.0%	4.8%	
													
Reduce employee		1	6	1		5	15	3		42	39	23	
benefits		12.5%	75.0%	12.5%		21.7%	65.2%	13.0%		40.4%	37.5%	22.1%	
													
Raise product prices		0	6	2		9	12	0		51	43	9	
		0.0%	75.0%	25.0%		42.9%	57.1%	0.0%		49.5%	41.7%	8.7%	
													
Reduce employee		2	6	0		6	12	4		26	53	24	
turnover		25.0%	75.0%	0.0%		27.3%	54.5%	18.2%		25.2%	51.5%	23.3%	
													
Increase worker output		1	5	2		9	11	3		39	47	19	
		12.5%	62.5%	25.0%		39.1%	47.8%	13.0%		37.1%	44.8%	18.1%	
													
Attract higher-quality		2	6	0		4	16	3		31	58	16	
talent		25.0%	75.0%	0.0%		17.4%	69.6%	13.0%		29.5%	55.2%	15.2%	

46 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

100-999 EMPLOYEES: If the minimum wage were increased, would your company...

		increased to $8.75/hr		increased to $10.00/hr		increased to $15.00/hr	
		Yes	No	Not Sure		Yes	No	Not Sure		Yes	No	Not Sure	
													
Net: Reduce current or		1	8	0		16	12	1		80	33	7	
future employment		11.1%	88.9%	0.0%		55.2%	41.4%	3.4%		66.7%	27.5%	5.8%	
													
Reduce current		0	8	1		5	20	5		51	54	20	
workforce		0.0%	88.9%	11.1%		16.7%	66.7%	16.7%		40.8%	43.2%	16.0%	
													
Slow future hiring		1	8	0		16	13	1		77	35	13	
		11.1%	88.9%	0.0%		53.3%	43.3%	3.3%		61.6%	28.0%	10.4%	
													
Shift towards labor-		3	6	0		15	12	3		93	26	7	
saving technologies		33.3%	66.7%	0.0%		50.0%	40.0%	10.0%		73.8%	20.6%	5.6%	
													
Reduce employee		0	8	0		8	16	4		61	42	22	
benefits		0.0%	100.0%	0.0%		28.6%	57.1%	14.3%		48.8%	33.6%	17.6%	
													
Raise product prices		1	6	2		10	16	3		53	51	19	
		11.1%	66.7%	22.2%		34.5%	55.2%	10.3%		43.1%	41.5%	15.4%	
													
Reduce employee		2	6	1		6	17	7		29	63	30	
turnover		22.2%	66.7%	11.1%		20.0%	56.7%	23.3%		23.8%	51.6%	24.6%	
													
Increase worker output		1	7	1		11	17	2		48	54	22	
		11.1%	77.8%	11.1%		36.7%	56.7%	6.7%		38.7%	43.5%	17.7%	
													
Attract higher-quality		1	7	0		4	19	7		44	53	25	
talent		12.5%	87.5%	0.0%		13.3%	63.3%	23.3%		36.1%	43.4%	20.5%	

47 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

1000+ EMPLOYEES: If the minimum wage were increased, would your company...

		increased to $8.75/hr		increased to $10.00/hr		increased to $15.00/hr	
		Yes	No	Not Sure		Yes	No	Not Sure		Yes	No	Not Sure	
													
Net: Reduce current or		5	4	2		13	10	2		62	11	3	
future employment		45.5%	36.4%	18.2%		52.0%	40.0%	8.0%		81.6%	14.5%	3.9%	
													
Reduce current		2	9	3		5	21	4		35	36	12	
workforce		14.3%	64.3%	21.4%		16.7%	70.0%	13.3%		42.2%	43.4%	14.5%	
													
Slow future hiring		5	4	5		13	10	6		61	12	11	
		35.7%	28.6%	35.7%		44.8%	34.5%	20.7%		72.6%	14.3%	13.1%	
													
Shift towards labor-		3	8	3		10	15	5		62	15	6	
saving technologies		21.4%	57.1%	21.4%		33.3%	50.0%	16.7%		74.7%	18.1%	7.2%	
													
Reduce employee		2	8	4		8	15	6		46	24	13	
benefits		14.3%	57.1%	28.6%		27.6%	51.7%	20.7%		55.4%	28.9%	15.7%	
													
Raise product prices		3	6	5		12	15	3		43	26	14	
		21.4%	42.9%	35.7%		40.0%	50.0%	10.0%		51.8%	31.3%	16.9%	
													
Reduce employee		2	7	5		6	17	7		25	33	26	
turnover		14.3%	50.0%	35.7%		20.0%	56.7%	23.3%		29.8%	39.3%	31.0%	
													
Increase worker output		1	7	6		8	14	8		43	22	19	
		7.1%	50.0%	42.9%		26.7%	46.7%	26.7%		51.2%	26.2%	22.6%	
													
Attract higher-quality		1	9	4		2	20	5		27	36	21	
talent		7.1%	64.3%	28.6%		7.4%	74.1%	18.5%		32.1%	42.9%	25.0%	

48 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

ANSWERED ALL THREE MINIMUM WAGE BREAKPOINTS: If the minimum wage were increased, would your company... 

		increased to $8.75/hr		increased to $10.00/hr		increased to $15.00/hr	
		Yes	No	Not Sure		Yes	No	Not Sure		Yes	No	Not Sure	
													
Net: Reduce current or		12	15	3		19	7	4		25	3	2	
future employment		40.0%	50.0%	10.0%		63.3%	23.3%	13.3%		83.3%	10.0%	6.7%	
													
Reduce current		3	25	7		15	13	7		26	5	4	
workforce		8.6%	71.4%	20.0%		42.9%	37.1%	20.0%		74.3%	14.3%	11.4%	
													
Slow future hiring		12	17	6		21	7	7		29	3	3	
		34.3%	48.6%	17.1%		60.0%	20.0%	20.0%		82.9%	8.6%	8.6%	
													
Shift towards labor-		10	18	6		17	9	8		28	3	3	
saving technologies		29.4%	52.9%	17.6%		50.0%	26.5%	23.5%		82.4%	8.8%	8.8%	
													
Reduce employee		3	23	7		13	14	6		22	8	3	
benefits		9.1%	69.7%	21.2%		39.4%	42.4%	18.2%		66.7%	24.2%	9.1%	
													
Raise product prices		7	18	10		21	9	5		28	4	3	
		20.0%	51.4%	28.6%		60.0%	25.7%	14.3%		80.0%	11.4%	8.6%	
													
Reduce employee		7	20	8		9	13	13		19	9	7	
turnover		20.0%	57.1%	22.9%		25.7%	37.1%	37.1%		54.3%	25.7%	20.0%	
													
Increase worker output		5	20	10		16	12	7		21	7	7	
		14.3%	57.1%	28.6%		45.7%	34.3%	20.0%		60.0%	20.0%	20.0%	
													
Attract higher-quality		5	22	5		7	15	10		13	7	12	
talent		15.6%	68.8%	15.6%		21.9%	46.9%	31.3%		40.6%	21.9%	37.5%	

49 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

10. On February 15, 2016 the annual yield on 10-yr treasury bonds was 1.7%. Please complete the following: 

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

Over the next 10 years, I expect the average annual S&P 500
return will be: There is a 1-in-10 chance it will be less than:	1.90	8.34	1.21 - 2.60	2	-50	125	558

Over the next 10 years, I expect the average annual S&P 500
return will be: Expected return:	6.32	7.95	5.67 - 6.98	5	-20	100	568

Over the next 10 years, I expect the average annual S&P 500
return will be: There is a 1-in-10 chance it will be greater than:	10.04	13.28	8.94 - 11.15	8	-5	164	557

Over the next year, I expect the average annual S&P 500 return
will be: There is a 1-in-10 chance it will be less than:	-3.79	9.73	-4.60 - -2.98	0	-50	50	557

Over the next year, I expect the average annual S&P 500 return
will be: Expected return:	3.13	6.04	2.64 - 3.63	3	-30	90	566

Over the next year, I expect the average annual S&P 500 return
will be: There is a 1-in-10 chance it will be greater than:	7.15	5.56	6.69 - 7.61	6	-5	50	554

50 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Revenue Weighted: 10. On February 15, 2016 the annual yield on 10-yr treasury bonds was 1.7%. Please complete the following: 

	Mean	SD	95% CI	Median	Minimum	Maximum

Over the next 10 years, I expect the average annual S&P 500 return will
be: There is a 1-in-10 chance it will be less than:	1.56	4.55	1.19 - 1.93	2	-11.80	15.62

Over the next 10 years, I expect the average annual S&P 500 return will
be: Expected return:	5.89	3.23	5.63 - 6.16	5	-6.75	19.39

Over the next 10 years, I expect the average annual S&P 500 return will
be: There is a 1-in-10 chance it will be greater than:	9.37	5.57	8.91 - 9.82	8	-5	31.89

Over the next year, I expect the average annual S&P 500 return will be:
There is a 1-in-10 chance it will be less than:	-4.31	7.96	-4.96 - -3.65	0	-19.80	12.22

Over the next year, I expect the average annual S&P 500 return will be:
Expected return:	2.50	4.05	2.17 - 2.83	3	-6.80	13.07

Over the next year, I expect the average annual S&P 500 return will be:
There is a 1-in-10 chance it will be greater than:	7.00	3.97	6.67 - 7.32	6	-1.99	16.29

51 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Employee Weighted: 10. On February 15, 2016 the annual yield on 10-yr treasury bonds was 1.7%. Please complete the following: 

	Mean	SD	95% CI	Median	Minimum	Maximum

Over the next 10 years, I expect the average annual S&P 500 return will
be: There is a 1-in-10 chance it will be less than:	1.67	4.11	1.33 - 2.00	2	-11.80	15.62

Over the next 10 years, I expect the average annual S&P 500 return will
be: Expected return:	5.75	3.03	5.50 - 5.99	5	-6.75	19.39

Over the next 10 years, I expect the average annual S&P 500 return will
be: There is a 1-in-10 chance it will be greater than:	9.09	5.23	8.66 - 9.51	8	-5	31.89

Over the next year, I expect the average annual S&P 500 return will be:
There is a 1-in-10 chance it will be less than:	-3.80	7.57	-4.43 - -3.18	0	-19.80	12.22

Over the next year, I expect the average annual S&P 500 return will be:
Expected return:	2.79	3.76	2.49 - 3.10	3	-6.80	13.07

Over the next year, I expect the average annual S&P 500 return will be:
There is a 1-in-10 chance it will be greater than:	7.01	3.92	6.69 - 7.33	6	-1.99	16.29

52 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Return on assets (ROA=operating earnings/assets)

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

% Approximate ROA in 2015	9.74	17.79	8.22 - 11.25	5.50	-25	100	528

% Expected ROA in 2016	11.08	17.26	9.59 - 12.57	6.40	-25	100	517

53 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Manufacturing capacity utilized

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

% of capacity utilized in last half of 2015	71.27	17.11	68.10 - 74.44	73.50	10	100	112

% of capacity utilization planned for the first half of 2016	71.44	17.21	68.25 - 74.62	73.50	11	100	112

54 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Manufacturing capacity utilized (Revenue Weighted)

	Mean	SD	95% CI	Median	Minimum	Maximum	Total

% of capacity utilized in last half of 2015	76.33	11.08	74.52 - 78.15	75	38.52	100	143

% of capacity utilization planned for the first half of 2016	76.77	11.60	74.87 - 78.67	75	38.45	100	143

55 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Industry

	 	Number	Percent	95% CI
	Manufacturing	116	18.6 %	± 3.0 %
	Services, Consulting	96	15.4 %	± 2.8 %
	Banking/Finance/Insurance/Real Estate	80	12.8 %	± 2.6 %
	Retail/Wholesale	59	9.5 %	± 2.3 %
	Technology [Software/Hardware/Biotech]	55	8.8 %	± 2.2 %
	Healthcare/Pharmaceutical	50	8.0 %	± 2.1 %
	Mining/Construction	24	3.9 %	± 1.5 %
	Transportation & Public Utilities	20	3.2 %	± 1.4 %
	Energy	14	2.2 %	± 1.2 %
	Public Administration	13	2.1 %	± 1.1 %
	Communication/Media	10	1.6 %	± 1.0 %
	Agriculture, Forestry, & Fishing	6	1.0 %	± 0.8 %
	Other Industry	80	12.8 %	± 2.6 %
	Total	623	100.0 %

	Missing Cases = 6
	Response Percent = 99.0 %

56 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Industry (Other specified)

accounting	
accounting	
Aerospace	
Architecture/Engineering	
architecture/engineering	
Associations	
Botanical Garden	
Building materials	
charity	
Charity non-profit	
conglomerate of auto and entertainment	
Conservation	
Contractor/ Developer?Construction Mng.	
Custom Vehicle Manufacturing	
distribution	
DOD Ship Repair	
Education	
Education	
Education	
Education	
Education non-profit	
education	
education	
education services	
Entertainment	
federal govt contractor	
government	
Higer Education	
Higher Education	
Higher Education	
Higher Education	
Higher Education	
Higher Education/	
HOLDING COMPANY	
Home Builder	
Hospitality	
Hospitality	
Hospitality	
Hotel/entertainment	
Hotels & hotel management	
Industrial Automation	
Information services	
Insurance	
Investment company	
K-12 Public Education	
Marketing/Advertising	
No -profit	
Non profit	
Non profit	
Non-Profit Association	
Non-Profit Religious	
Non-profit	
non profit	
non-profit religious	
Nonprofit	
Nonprofit	
Nonprofit	

57 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Industry (Other specified)

Nonprofit Foundation	
nonprofit	
Not For Profit	
Not For Profit	
Not for profit	
not for profit	
not for profit	
Oil Services	
Paper Recycling	
private equity	
Professional Sports	
Publishing	
Realestate and Hotels	
repair/overhaul equi.pment	
Sales and distribution	
Services (plumbing ect.)	
steel distribution	
Tax and accounting	
telecommunications	
Utilities	
Water Filtration	
wholesale distribution	
wholesale-retail home items	
wine producer	

58 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Sales Revenue

	 	Number	Percent	95% CI
	Less than $25 million	255	41.3 %	± 3.8 %
	$25-$99 million	141	22.8 %	± 3.3 %
	$100-$499 million	108	17.5 %	± 3.0 %
	$500-$999 million	37	6.0 %	± 1.8 %
	$1-$4.9 billion	45	7.3 %	± 2.0 %
	$5-$9.9 billion	11	1.8 %	± 1.0 %
	More than $10 billion	21	3.4 %	± 1.4 %
	Total	618	100.0 %

	Missing Cases = 11
	Response Percent = 98.3 %

59 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Weighted Sales Revenue (Millions)

	Minimum = 25

	Maximum = 11000

	Mean = 847.52

	Median = 62

	Variance (Unbiased Estimate) = 5108721.52

	Standard Deviation (Unbiased Estimate) = 2260.25

	Standard Error Of The Mean  = 90.92

	95 Percent Confidence Interval Around The Mean = 669.32 - 1025.72

	99 Percent Confidence Interval Around The Mean = 613.40 - 1081.64

	Skewness = 3.57

	Kolmogorov-Smirnov Statistic For Normality = 44.60

Quartiles

	 1 = 25
	 2 = 62
	 3 = 300

Valid Cases =618
Missing Cases =11
Response Percent = 98.3%

60 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Number of Employees

	 	Number	Percent	95% CI
	Fewer than 100	223	42.5 %	± 3.8 %
	100-499	149	28.4 %	± 3.3 %
	500-999	34	6.5 %	± 1.8 %
	1,000-2,499	31	5.9 %	± 1.7 %
	2,500-4,999	35	6.7 %	± 1.8 %
	5,000-9,999	19	3.6 %	± 1.3 %
	Over 10,000	34	6.5 %	± 1.8 %
	Total	525	100.0 %

	Missing Cases = 104
	Response Percent = 83.5 %

61 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Weighted Number of Employees

	Minimum = 100

	Maximum = 12000

	Mean = 1578.10

	Median = 300

	Variance (Unbiased Estimate) = 10074786.44

	Standard Deviation (Unbiased Estimate) = 3174.08

	Standard Error Of The Mean  = 138.53

	95 Percent Confidence Interval Around The Mean = 1306.58 - 1849.61

	99 Percent Confidence Interval Around The Mean = 1221.39 - 1934.81

	Skewness = 2.49

	Kolmogorov-Smirnov Statistic For Normality = 37.27

Quartiles

	 1 = 100
	 2 = 300
	 3 = 750

Valid Cases =525
Missing Cases =104
Response Percent = 83.5%

62 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Where are you personally located?

	 	Number	Percent	95% CI
	Midwest U.S.	165	26.5 %	± 3.4 %
	Northeast U.S.	159	25.6 %	± 3.4 %
	South Atlantic U.S.	92	14.8 %	± 2.8 %
	Pacific US	88	14.1 %	± 2.7 %
	South Central U.S.	70	11.3 %	± 2.5 %
	Mountain U.S.	46	7.4 %	± 2.0 %
	Other	2	0.3 %	± 0.4 %
	Canada	0	0.0 %	± 0.0 %
	Latin America	0	0.0 %	± 0.0 %
	Asia	0	0.0 %	± 0.0 %
	Africa	0	0.0 %	± 0.0 %
	Europe	0	0.0 %	± 0.0 %
	Total	622	100.0 %

	Missing Cases = 7
	Response Percent = 98.9 %

63 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Where are you personally located? - Other specified

Arizona	
Southeast US	

64 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Ownership

	 	Number	Percent	95% CI
	Private	416	71.6 %	± 3.7 %
	Nonprofit	68	11.7 %	± 2.4 %
	Public, NYSE	54	9.3 %	± 2.2 %
	Public, NASDAQ/AMEX	24	4.1 %	± 1.5 %
	Government	19	3.3 %	± 1.3 %
	Total	581	100.0 %

	Missing Cases = 48
	Response Percent = 92.4 %

65 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Foreign Sales

	 	Number	Percent	95% CI
	0%	330	53.6 %	± 3.9 %
	1-24%	205	33.3 %	± 3.7 %
	25-50%	51	8.3 %	± 2.1 %
	More than 50%	30	4.9 %	± 1.7 %
	Total	616	100.0 %

	Missing Cases = 13
	Response Percent = 97.9 %

66 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

In what region of the world are most of your foreign sales?

	 	Number	Percent	95% CI
	Europe	93	37.3 %	± 5.5 %
	Canada	63	25.3 %	± 4.8 %
	Asia/Pacific Basin	62	24.9 %	± 4.8 %
	Latin America	28	11.2 %	± 3.5 %
	Africa	3	1.2 %	± 1.2 %
	Total	249	100.0 %

	Missing Cases = 37
	Response Percent = 87.1 %

67 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

What is your company's credit rating? 

	 	Number	Percent	Cumulative
	AAA	66	15.0 %	15.0 %
	AA+	56	12.8 %	27.8 %
	AA	50	11.4 %	39.2 %
	AA-	22	5.0 %	44.2 %
	A+	34	7.7 %	51.9 %
	A	42	9.6 %	61.5 %
	A-	25	5.7 %	67.2 %
	BBB+	46	10.5 %	77.7 %
	BBB	18	4.1 %	81.8 %
	BBB-	10	2.3 %	84.1 %
	BB+	11	2.5 %	86.6 %
	BB	15	3.4 %	90.0 %
	BB-	7	1.6 %	91.6 %
	B+	5	1.1 %	92.7 %
	B	13	3.0 %	95.7 %
	B-	7	1.6 %	97.3 %
	CCC	7	1.6 %	98.9 %
	CC	2	0.5 %	99.3 %
	D	3	0.7 %	100.0 %
	Total	439	100.0 %	100.0 %

	Missing Cases = 0
	Response Percent = 100.0 %

68 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

What is your company's credit rating? 

N=439		Total		Credit Rating	
		 		Actual	Estimate	
		 		A	B	
						
Total		439		171	268	
		100.0%		39.0%	61.0%	
						
AAA		66		34	32	
		15.0%		19.9%	11.9%	
				b	a	
						
AA+		56		24	32	
		12.8%		14.0%	11.9%	
						
AA		50		17	33	
		11.4%		9.9%	12.3%	
						
AA-		22		13	9	
		5.0%		7.6%	3.4%	
				b	a	
						
A+		34		14	20	
		7.7%		8.2%	7.5%	
						
A		42		10	32	
		9.6%		5.8%	11.9%	
				b	a	
						
A-		25		8	17	
		5.7%		4.7%	6.3%	
						
BBB+		46		18	28	
		10.5%		10.5%	10.4%	
						
BBB		18		5	13	
		4.1%		2.9%	4.9%	
						
BBB-		10		4	6	
		2.3%		2.3%	2.2%	
						
BB+		11		3	8	
		2.5%		1.8%	3.0%	
						
BB		15		5	10	
		3.4%		2.9%	3.7%	
						
BB-		7		4	3	
		1.6%		2.3%	1.1%	
						
B+		5		1	4	
		1.1%		0.6%	1.5%	

Significance Tests Between Columns:   Lower case: p<.05   Upper case: p<.01

69 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

What is your company's credit rating? 

N=439		Total		Credit Rating	
		 		Actual	Estimate	
		 		A	B	
						
B		13		6	7	
		3.0%		3.5%	2.6%	
						
B-		7		2	5	
		1.6%		1.2%	1.9%	
						
CCC		7		2	5	
		1.6%		1.2%	1.9%	
						
CC		2		0	2	
		0.5%		0.0%	0.7%	
						
D		3		1	2	
		0.7%		0.6%	0.7%	

Significance Tests Between Columns:   Lower case: p<.05   Upper case: p<.01

70 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Your job title (e.g., CFO, Asst. Treasurer, etc):

	 	Number	Percent
	CFO	273	45.3 %
	Controller	41	6.8 %
	President	25	4.2 %
	CEO	23	3.8 %
	Treasurer	11	1.8 %
	Director of Finance	9	1.5 %
	Director	6	1.0 %
	Principal	6	1.0 %
	Managing Director	5	0.8 %
	Finance Director	4	0.7 %
	Cfo	4	0.7 %
	Corporate Controller	4	0.7 %
	owner	4	0.7 %
	Accounting Manager	4	0.7 %
	VP	4	0.7 %
	COO	4	0.7 %
	VP Finance	3	0.5 %
	VP of Finance	3	0.5 %
	Partner	3	0.5 %
	controller	3	0.5 %
	Vice President Finance	3	0.5 %
	SVP Finance	2	0.3 %
	Manager	2	0.3 %
	VP/CFO	2	0.3 %
	VP, Finance	2	0.3 %
	CEO/CFO	2	0.3 %
	Owner	2	0.3 %
	SVP	2	0.3 %
	Financial Controller	2	0.3 %
	President and CEO	2	0.3 %
	Director of Financial Operations	2	0.3 %
	Vice President	2	0.3 %
	Executive Director	2	0.3 %
	Assistant Controller	2	0.3 %
	managing member	1	0.2 %
	Coo &CFO	1	0.2 %
	Executive Vice President - Finance	1	0.2 %
	SVP & Asst. Treasurer	1	0.2 %
	CEO/Owner	1	0.2 %
	SVP Strategic Planning	1	0.2 %
	Director of Finance and Operations	1	0.2 %
	Senior Partner, VP Corporate Development	1	0.2 %
	Controller & Treasurer	1	0.2 %
	Group CFO	1	0.2 %
	Co-CFO	1	0.2 %
	DIRECTOR	1	0.2 %
	VP Finance & Administration	1	0.2 %
	Director, Facilities Financial & Administrative	1	0.2 %
	Director of FInance	1	0.2 %
	Accountant	1	0.2 %
	Sr Director	1	0.2 %
	Global IA Lead	1	0.2 %
	contractor	1	0.2 %
	VP of FInance and Admin	1	0.2 %
	CFO of Holding Company	1	0.2 %
	Director - Budget & Operational Analysis	1	0.2 %
	CFO/Controller	1	0.2 %

71 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Your job title (e.g., CFO, Asst. Treasurer, etc):

	 	Number	Percent
	Controller - Division	1	0.2 %
	Director of Budget	1	0.2 %
	Vice President finance.	1	0.2 %
	Head of Finance & Accounting	1	0.2 %
	President-CEO	1	0.2 %
	Area Vice President	1	0.2 %
	General Manager	1	0.2 %
	Senior Financial Officer	1	0.2 %
	Senior Analyst	1	0.2 %
	Senior Investment Manager	1	0.2 %
	EVP/CFO	1	0.2 %
	Trustee	1	0.2 %
	Board Member	1	0.2 %
	consultant	1	0.2 %
	Chief Financial Officer	1	0.2 %
	VP Sales	1	0.2 %
	AVP & Cashier	1	0.2 %
	manager	1	0.2 %
	president	1	0.2 %
	Investment Accountant	1	0.2 %
	VP Business Planning	1	0.2 %
	EVP Finance	1	0.2 %
	Senior Director of Finance	1	0.2 %
	ex vp brokerage	1	0.2 %
	Senior Engineer	1	0.2 %
	Chief Financial Officer and President	1	0.2 %
	Divitional CFO	1	0.2 %
	VP Finance (CFO)	1	0.2 %
	Vice President Tax	1	0.2 %
	Director, Treasury	1	0.2 %
	Director of FP&A	1	0.2 %
	Chairman	1	0.2 %
	finance director	1	0.2 %
	Group Controller	1	0.2 %
	Finance	1	0.2 %
	TSE	1	0.2 %
	President & CEO	1	0.2 %
	Sales	1	0.2 %
	Strategic Advisor	1	0.2 %
	Manager of Finance	1	0.2 %
	DIrector of Accounting	1	0.2 %
	finance	1	0.2 %
	EVP	1	0.2 %
	Manager of Finance and Accounting	1	0.2 %
	President & CFO	1	0.2 %
	Vice President of Finance	1	0.2 %
	Vice Chairman	1	0.2 %
	Board	1	0.2 %
	Director of Financial Services	1	0.2 %
	FOUNDER	1	0.2 %
	Sr analyst	1	0.2 %
	Sr Director-Finance	1	0.2 %
	Senior Accountant	1	0.2 %
	Internal Audit Manager	1	0.2 %
	VP-Finance	1	0.2 %
	Founder & Principle	1	0.2 %
	VP & CFO	1	0.2 %

72 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Your job title (e.g., CFO, Asst. Treasurer, etc):

	 	Number	Percent
	Sr. VP Finance	1	0.2 %
	Director of Operations	1	0.2 %
	EVP - Finance	1	0.2 %
	VP, Finance and Administration	1	0.2 %
	Division Controller	1	0.2 %
	Group Vice President of Finance	1	0.2 %
	County Administrator	1	0.2 %
	Senior Manager	1	0.2 %
	Co-CEO, CFO	1	0.2 %
	asst treasurer	1	0.2 %
	President/CEO	1	0.2 %
	Sr. Financial Management	1	0.2 %
	PRESIDENT	1	0.2 %
	CEO & CFO	1	0.2 %
	Deputy cfo	1	0.2 %
	vp finance	1	0.2 %
	sole prop	1	0.2 %
	CFO/Treasurer	1	0.2 %
	Deputy CFO & Treasurer	1	0.2 %
	Director Finance	1	0.2 %
	VP Controller	1	0.2 %
	CFO and COO	1	0.2 %
	sr v p	1	0.2 %
	Director of Finance & HR	1	0.2 %
	Supply Chain Director	1	0.2 %
	CEO & President	1	0.2 %
	Director Finance and HR	1	0.2 %
	CFO/COO	1	0.2 %
	VP - Corporate Strategy & Financial Analysis	1	0.2 %
	Chief Adminisitrator	1	0.2 %
	Vice President of Accounting	1	0.2 %
	Mill Division Controller	1	0.2 %
	Executive Vice President & CFO	1	0.2 %
	TREASURER; DIRECTOR FP&A	1	0.2 %
	SR VP Financial Services	1	0.2 %
	VP FP&A	1	0.2 %
	Contoller	1	0.2 %
	Controlled	1	0.2 %
	Treasury Manager	1	0.2 %
	Assistant Treasurer	1	0.2 %
	Chief Investment Officer	1	0.2 %
	Sr Project Manager/ V.P. Finance	1	0.2 %
	Utilities Financial Manager	1	0.2 %
	Finance Manager	1	0.2 %
	Chief Accounting Officer	1	0.2 %
	Sr Dir Capital Development	1	0.2 %
	Senior VP	1	0.2 %
	Sr. Director of Accounting	1	0.2 %
	Director of Treasury Services	1	0.2 %
	Director Internal Audit	1	0.2 %
	President/Owner	1	0.2 %
	CEO / President	1	0.2 %
	Senior Accountant/Analyst	1	0.2 %
	DIRECTOR OF ACCOUNTING	1	0.2 %
	Total	602	100.0 %

73 

Duke CFO magazine Global Business Outlook survey - U.S. - First Quarter, 2016

Your job title (e.g., CFO, Asst. Treasurer, etc):

	Missing Cases = 27
	Response Percent = 95.7 %