By GREGORY ZELLER //
Reviews of the much-debated Inflation Reduction Act of 2022 are tepid at best in the latest Marcum-Hofstra CEO Survey.
The fifth survey of 2023 produced by accounting giant Marcum LLP and Hofstra University’s Frank G. Zarb School of Business – each a litmus test of current business environments and 12-month projections – zeroes in on the Inflation Reduction Act of 2022, which included several provisions intended to spur U.S. innovation, increase coast-to-coast industrial productivity and otherwise improve the nation’s global economic competitiveness.
Whether or not the sprawling act – which also tackled climate change and spiraling healthcare costs, among other high-profile socioeconomic challenges, when it was signed into law by President Joe Biden 16 months ago – has actually hit its economic-development marks depends on whom you ask.
Jeffrey Weiner: Work in progress.
It’s six-to-five and pick ’em, according to the respondents of the latest CEO Survey, which queried 260 mid-market chief executives (overseeing revenues between $5 million and $1 billion-plus) in September and uncovered a general ennui regarding the ballyhooed Inflation Reduction Act.
Slightly less than half of respondents (47.5 percent) felt the new law had at least a “moderately positive” impact on the U.S. economy, with 12.9 percent referencing a “strong” positive impact.
Those numbers are not terrible – until you notice the roughly one-quarter of respondents (23.2 percent) citing their belief the law did actual harm to the U.S. economy, and the virtually identical bloc (23.3 percent) noting harm to their specific business.
Perhaps more damning: the almost two in five CEOs (38.4 percent) who say the Inflation Reduction Act had no effect at all.
Marcum Chairman and CEO Jeffrey Weiner termed the latest survey in the long-running series as more of a cautionary tale than an indictment of the new law.
“Our latest insights reflect a fluid and rapidly evolving business landscape facing CEOs,” Weiner noted. “Despite pockets of optimism in sectors such as real estate and technology, a prevailing sense of caution persists.”
Janet Lenaghan: Mapping it out.
Overall, the latest CEO Survey records a slight downtick in optimism, compared to the previous survey conducted in June and released in July. This time around, 11 percent of CEOs rated their outlook as “very positive” (down from 12.4 percent), while 35.7 percent rated their outlook in the upper range of “positive” (down from 39.6 percent).
Optimism was more prevalent in technology, real estate and healthcare sectors, but down sharply across the construction trades. Rising costs and talent retention led CEO concerns, with respondents also citing concerns with new-hire skill levels – more than half (53.2 percent) felt new hires needed additional training and only 30 percent said new hires had the required skills.
Frank G. Zarb School of Business Dean Janet Lenaghan trumpeting the latest survey, citing “today’s fast-evolving economic landscape” and the need to understand the practical effects of “pivotal legislative moves such as the Inflation Reduction Act.”
“These insights not only inform academia,” the dean added. “[They] provide a roadmap for policymakers and the broader business community.”
