|Corporate Executive Board Announces Findings from Second Quarter Business Barometer Survey of Senior Executives|
Seventy-Nine Percent of Senior Executives Anticipate Increasing
Cost Pressure at Their Organizations in the Next Twelve Months
WASHINGTON--(BUSINESS WIRE)--June 4, 2007--The Corporate Executive Board Company (NASDAQ: EXBD) today announced the second quarter results of its Business Barometer survey of business conditions at the world's largest organizations. The Barometer takes advantage of the Corporate Executive Board's access to a unique membership of senior executives by evaluating 28 leading indicators of business performance across sourcing, manufacturing and distribution functions.
Faced with heightened economic uncertainty, senior executives maintain a positive growth outlook, but nearly 80 percent anticipate increasing cost pressure in the next 12 months. While some companies are in outright cost-cutting mode, executives forecast increased capital expenditure and staffing levels. Key findings include:
-- Cutting Expenses Rather than Business Investment: While 50
percent of Chief Financial Officers anticipate lower General &
Administrative expenses, more than 60 percent forecast higher
capital expenditure levels. Sixty-three percent of Chief
Information Officers forecast growth in discretionary
IT-related capital expenditures.
Corporate Executive Board Senior Director Michael Griffin says, "The results of the Barometer reflect the desire of senior executives to build flexibility into business plans and ensure effective responses to uncertain economic conditions. The forecasted increase in capital expenditure and staffing levels, viewed in light of expected reductions in general and administrative expenses, indicates a cautious posture toward top-line growth."
More than 350 senior executives at the world's largest organizations in North America, Europe and Australia participated in the Corporate Executive Board's Business Barometer survey in May 2007.
About the Corporate Executive Board
The Corporate Executive Board Company (NASDAQ: EXBD) is a leading provider of best practices research and analysis focusing on corporate strategy, operations, and general management issues. EXBD provides its integrated set of services currently to more than 3,700 of the world's largest and most prestigious corporations, including over 80 percent of the Fortune 500. These services include best practices research studies, executive education seminars, management implementation toolkits, customized research briefs, and Web-based access to a library of over 300,000 corporate best practices.
CONTACT: Corporate Executive Board