NAOS CEO Insights

CEO INSIGHTS – Week Ending 25 June 2021 By NAOS Asset Management

June 25, 2021

“It's simple. Businesses across every industry will adapt or they'll perish and with $100 trillion flowing into the global economy, demand for digital infrastructure will continue to explode” Charles Meyers, CEO, Equinix Inc [world’s largest colocation data centre provider]

CEO INSIGHTS – Week Ending 25 June 2021 By NAOS Asset Management

“It's simple. Businesses across every industry will adapt or they'll perish and with $100 trillion flowing into the global economy, demand for digital infrastructure will continue to explode” Charles Meyers, CEO, Equinix Inc [world’s largest colocation data centre provider]


As part of the NAOS investment process, we pay particular attention to the comments made by company CEOs and business leaders in order to gain a greater understanding of the current investment environment and key trends that may be emerging. Below are quotes from the week which in our view detail some of the most important and prominent industry trends and economic factors impacting their businesses.  
 
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Sport & Entertainment

“The demand has been unprecedented. There’s no factories anywhere around the world that predicted this kind of growth” Dick Sullivan, CEO, PGA Tour Superstore [leading global golfing retailer]

Travel & Leisure

“People have spent a lot of time in isolation and lock down, people really want to experience things, I think that's going to last a while” Arnold Donald, CEO, Carnival Corporation [world’s largest travel leisure company]

Housing Market

“Price rises are good up to a point but then affordability becomes an issue and the best way to address affordability is to have more supply into the market” Tarun Gupta, CEO, Stockland

“Even though we don’t have migrants coming to the country at the moment we have had a lot of Australians returning back to the country who have supported [prices], probably more the established home market, but that is still driving a halo effect on the market that we service” Tarun Gupta, CEO, Stockland

Domestic Property

“Among global investors Australia continues to be a highly attractive investment destination and we expect continued strength in investment demand for quality assets in the year ahead” Darren Steinberg, CEO, Dexus

Employment & Workplace

“Quite simply, companies are rethinking their organisational structure, roles, and responsibilities…Gone are the days of vertical leadership that focuses on driving results up the chain, today companies need more horizontal leadership. That's all about leading across the enterprise” Gary Burnison, CEO, Korn Ferry Inc [world’s largest executive search/recruitment firm]

“Sectors such as arts, retail and hospitality, which were really impacted the most by the lockdowns, are starting to see an uptick in jobs and salaries” Trent Innes, CEO, Xero Australia

Technology

“The world is becoming digital, driven by four superpowers: cloud, connectivity 5G, artificial intelligence and the intelligent edge. I call these superpowers because each expands the impact of the others and, together, they are reshaping every aspect of our lives and work” Patrick Gelsinger, CEO, Intel Corporation

“It's simple. Businesses across every industry will adapt or they'll perish and with $100 trillion flowing into the global economy, demand for digital infrastructure will continue to explode” Charles Meyers, CEO, Equinix Inc [world’s largest colocation data centre provider]

“Digital transformation has become an imperative for businesses of every size in every industry. According to our recent Adobe Digital Economy Index, e-commerce spending is projected to be $4.2 trillion globally this year” Shantanu Narayen, CEO, Adobe Inc

Construction

“Construction workers in Australia earn over 30 per cent more than their best-paid peers among benchmark countries, primarily due to the small Australian labour force and high activity in the construction sector” Market Statement, Accenture Australia Ltd

Inflation & Interest Rates

“It’s everywhere. We are having huge input costs in terms of logistics, transport, we have a lot of headwinds from input costs” Sandra Martinez, CEO, Nestlé Oceania

Trade, Logistics & Packaging

“The ratio of the prices of things we export to those things we import – known as the terms of trade – is approaching the peak reached a decade ago, itself a 150-year high” Lucile Ellis, Assistant Governor, Reserve Bank of Australia

“The amount of goods moving in the supply chain is being met by very fundamental constraints in availability of equipment, vessels, containers, aircraft” Richard White, CEO, WiseTech Global Ltd

“[We’ve seen] the explosion in takeaway food [containers]” Miles Roberts, CEO, DS Smith Plc [UK listed multinational packaging manufacturer]

Semiconductor Shortage

“So this [event] is a huge opportunity to learn how to manage the supply chain differently” Jim Farley, CEO, Ford Motor Company

Automotive

“The most expensive thing most mature car companies do is put the logo on the car. We all discount way too much” Jim Farley, CEO, Ford Motor Company

“[There’s a] new wave of engaged enthusiasts, especially millennials and younger generations” Michael Happe, CEO, Winnebago Industries Inc

Financial Services

“[Financial] Adviser numbers reduced by a further 12% in 2020 and are estimated to drop to 13,000 Advisers in 2023, a 53% reduction in adviser numbers since 2018 [which marks the year in which the Royal Commission hearings took place]” Market Statement, Countplus Ltd

Environmental & Energy

“I think after a few years where there's been a lot of talk and a lot of discussion about how we replace plastic, it's now really starting to happen” Miles Roberts, CEO, DS Smith Plc [UK listed multinational packaging manufacturer]

“We expect 2021 to be a better year for households and small businesses as large reductions in the wholesale cost of electricity continue to flow through to people’s bills” Rod Sims, Chairman, ACCC

Important information: This material has been prepared by NAOS Asset Management Limited (ABN 23 107 624 126, AFSL 273529) (NAOS) for general information purposes only and must not be construed as investment advice. Certain economic, market or company information contained in this material may have been obtained from published sources prepared by third parties. Nothing contained herein should be construed as granting by implication or otherwise, any license or right to use such third party content without the written permission of the owner.