business cfo leaders 2017 industries cfos respondents

Industry Outlook: High-TechThe 2017 CFO Spotlight Survey attracted respondents from a number ofindustries in Phoenix and Tucson. We will highlight the high-tech segment herein terms of growth, risk factors, strengths and trends.cfosurv/circle-computer-chipSurveyed CFOS in high-tech industries were based mainly in Phoenix. Theyanticipate growth, with the economy appearing more stable than in 2016. Themajority of leaders called for technology incenties to improve the businessclimate, followed by research and development incentives, federal lobbyingefforts and attracting the next generation of business leaders.Cybersecurity and competition are the big question marks when it comes tomanaging uncertainty. High-tech companies are investing in bonuses andcompensation to attract the best talent while at the same time keeping a tightrein on labor and operating costs. Identityfing M&A targets as well asfinancing is an ongoing challenge due to the narrow focus of their productsand services. More than 67% of respondents expected an impact by the Internetof Things and artificial intelligence on their business models as well asinternational market influences. Every leader cited the need to continuouslynavigate change — admitting a larger role in operations than in the past.AVERAGE SIZE: 38 employees AVERAGE REVENUE: $39 million> CFO Says: “[I have] developed flexible budgeting and cost control to match> revenue spikes.”### Revenue in 2017Will increase significantly: 50% Will increase slightly: 50%Optimism? 50% somewhat optimistic 25% somewhat uncertain. Access to Cash? Sometimes a problem Border Security? Yes! Fix it. Environmental Issues? Not a problem Millennials? Cold.### Top Areas of Focus:Cybersecurity Labor Costs Operating Costs M&A Sources of CapitalCFOs and leaders in high-tech are more concerned about providing a return oninvestment and are challenged by shifting business models, the speed of newtechnologies to market, and international influences — all of which requiredaily forecasting and keeping the right talent.### Contact UsEric MajchrzakEric Majchrzak is a shareholder and chief strategy officer of BeachFleischmanPC.