CEOs Expecting 'Trump Effect' to Drive Hiring and Investment Growth

CEOs Anticipate the 'Trump Effect'

In a recent survey by Teneo, a global advisory firm, large numbers of chief executives are anticipating that the 'Trump Effect' will lead to increased hiring and greater investment in their companies. Following President-elect Trump's success over Vice President Harris in the 2024 presidential election, 43% of CEOs are planning to ramp up domestic investment spending.

Optimism Surrounding Business Strategies

• According to the survey, 34% of executives are also looking to increase hiring.
• A significant 36% indicated that they will expedite international investments as a result of Trump's policies.
• Conversely, around 20% mentioned that they would pause or slow down hiring.
• Moreover, 18% of executives are reconsidering their international investment strategies.
• Interestingly, 17% stated they will not alter their business strategies.

Tax Cuts and Regulatory Easing Fueling Optimism

Many of these sentiments stem from expectations surrounding tax cuts and reduced regulatory burdens. Over 64% of respondents believe these factors will positively impact their business operations.

Mid-Cap Companies Exhibit Unique Perspectives

Mid-cap companies, those valued between $2 billion and $10 billion, display more positive attitudes towards hiring dynamics and tariffs compared to larger counterparts. An impressive 80% believe that increased tariffs on imports will favor their businesses, contrasted with only 13% of large-cap executives who share this view.

The survey findings, gathered from over 300 global public company CEOs and 380 international investors, underscore a complex landscape. As a result, while some businesses may face challenges from new policies, others might find new opportunities from reduced competition.