Insights · June 30th, 2023
In Q2 2023, economic uncertainty remained the most discussed theme in boardrooms globally, as per IOT Analytics report.
There was a notable decline in the number of CEOs discussing inflation, with only 50% mentioning the keyword (a 21% decrease from the previous quarter). Similarly, other related topics also experienced a decrease in prominence, with interest rates being discussed by only 33% (-13%) of CEOs and the term “recession” being mentioned in just 18% (-15%) of all earnings calls in Q2/2023. Despite these slight variations in the focus on economic topics among CEOs, it is important to note that overall, economic uncertainty remains a prevailing concern in boardrooms.
“We expect macro headwinds will continue with the potential for a recessionary environment across both the U.S. and Europe.”
Ian Broaden – Executive Vice President and Chief Financial Officer, McDonald’s, May 2, 2023
Key upcoming themes
(Generative) AI
Generative AI discussions, specifically around use cases and applications, continue to increase.
The mention of Generative AI experienced a significant increase of +129% in the last quarter, with 6% of discussions specifically referencing it. Additionally, the broader topic of AI was discussed in 21% of earnings calls (+21%), while the more technical term, “large language model” (LLM), saw a 229% increase in mentions, and was present in 1% of all earnings calls.
Banks
CEOs discussed banks more frequently in Q2 2023 (+36%). Following the banking turmoil involving several institutions including Silicon Valley Bank (SVB) and Credit Suisse in Q1 2023 companies discussed about a potential fallout as well as stricter lending regulations from some (regional) banks.
“We have seen a number of banks pulling back from auto lending, which is kind of a hallmark of banks through difficult markets, and that’s created a bit of a pricing opportunity for us, as well as improvement in share – financing share for us.”Marion Harris – CEO, Ford Motor Company Credit Company, 02 May 2023
Reshoring
Discussions around reshoring increased by +30% in Q2 2023. 1.3% of all companies and 5% of industrial companies talked about the topic. Given the ongoing tensions between China and the USA, many US-based companies appear to prioritize enhancing the resilience of their supply chains, and some have concluded that bringing production closer to home is the solution.
“Reshoring continues to be a prevalent topic among our customers, and we expect near and longer-term benefits from this trend.”Frank Dellaquila – CFO, Emerson Electric Co., 03 May 2023
Declining themes
Sustainability and climate change
Despite record temperatures around the world (e.g., temperatures in the North Atlantic Ocean increased to records highs), discussions on climate (-16%), emissions (-25%) and sustainability (-17%) experienced a decline in Q2/2023.
Supply chain disruptions
With supply chains slowly improving and supply shortages easing, discussions regarding supply chains in general (-19%), and supply chain disruptions (-54%) in particular, decreased strongly in Q2/2023.
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He helps shape the visions that shape impactful organizations, trillion-dollar companies, progressive governments, and 200+ billion dollar investment funds.
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