This Industry Outlook is a portion of the 2018 Arizona CFO Spotlight Survey Report
The 2018 Arizona CFO Spotlight Survey attracted respondents from a number of industries in Phoenix and Tucson. We will highlight the high-tech segment here in terms of growth, risk factors, strengths and trends.
Surveyed CFOs in high-tech industries are based mainly in Phoenix, with 16% based in Tucson and about 30% in other cities. Growth has cooled from a year ago, according to revenue projections from respondents. However, about 33% expect revenues to increase significantly, compared to just 25% of CFOs in the 2016 Survey. About half of CFOs still expect a slight increase in revenue, which was the sentiment a year ago. Optimism has gone up about the economic climate as well as leadership at the federal level. Leaders are positive about the financial prospects of their companies and the economic climate in the state. However, all CFOs cite the need for available skilled labor, technology incentives and tax incentives as the top priorities for growth. Although half of companies in the 2016 Survey have plans to increase prices, just one-third plan to do so in 2018.
Demand for talent has ramped up in the past year, and CFOs are looking to universities as well as international markets to attract interns and international hires.
High-tech companies are the most likely of all industries surveyed to offer work-at-home options for employees. This benefit ties to a focus on flexible schedules and a revised dress code. As they work to attract talent, 83% of high-tech companies offer health insurance benefits. Leaders want to see improvements in public transit and IT, in particular, to attract people to Arizona to live and work. In the meantime, respondents cite international hires or outsourcing internationally as a way to deal with staffing shortages. All leaders expect to spend their time helping people navigate change either due to changes in their business model or in leadership.
"Our biggest challenge is having the proper communication to employees to explain what is happening, why it's happening, and to set them at ease during the process."
Average Number of Employees
Revenue in 2018
- 33% Will increase significantly 33%
- 50% Will increase slightly 50%
Top Areas of Focus
- Attracting talent
- Strategic planning/forecasting
- Managing workplace culture
33% very optimistic
67% somewhat optimistic
Access to Cash?
not a problem
not a problem