The Q3 2024 CFO Survey by Grant Thornton, which engaged over 230 senior finance leaders, reveals a mix of optimism and caution among CFOs. Despite declining confidence in meeting demand (51%), supply chain objectives (53%), and labor needs (49%), 79% of respondents anticipate growth in net profits over the next 12 months — the highest in 10 quarters. However, expectations for over 20% growth have tempered due to economic and political uncertainties. Cost optimization has become a priority, with 64% identifying it as a focus area, while investment in IT and digital transformation is on the rise, with 66% planning to increase spending, marking a 15-quarter high. CFOs are also increasingly adopting generative AI, particularly in customer relationship management (60%) and product development (58%).
Election-related uncertainties further complicate strategic planning, with 61% of respondents considering the potential impact on business strategies. Nevertheless, CFOs are determined to prioritize fundamentals, including technology upgrades, cybersecurity, and market share growth. Sales and marketing investments are expected to rise, with 56% planning increases, reflecting a focus on differentiation. While human capital costs remain a top area for potential cuts, workforce rationalization has reached a record low of 27%. Grant Thornton leaders emphasize the importance of long-term strategies over political volatility, urging businesses to maintain focus on innovation and efficiency.
