CEO INSIGHTS – Week Ending 11 August 2023

Industrials

“In a more normal environment in which supply chains are more reliable and transport times are more under control, the level of orders is not affected by the so-called panic buying approach. And what we are seeing today is a more normal” Fabio Marasi, CEO, Interpump Group [world's largest manufacturer of high-pressure pumps]

Soft Commodities

“[Last quarter] the market pulp prices deteriorated sharply across the world and in a very short period of time” Juan Carlos Bueno, CEO, Mercer International Inc [one of the world's largest tissue/paper pulp mills]

Shipping

“We are in the midst of the biggest correction after the Covid boom of 2021 and 2022. It’s always difficult to handle such a radical change in demand” Vincent Clerc, CEO, A.P. Møller – Mærsk

“The supply outlook continues to be the best we have seen in the recent history of the dry bulk shipping. Uncertainty on future propulsion, high ship building costs and limited shipyard capacity until late 2025, have helped keep new orders under control…while scrap [metal] prices have stabilised at elevated levels” Petros Pappas, CEO, Star Bulk Carriers Corp

Exporters

“[Australian exporters] are keen to re-engage with Chinese buyers, but the lessons of the last few years will mean that there is unlikely to be a strong rush back, with many seeking to manage future risks by diversifying their export markets” David Olsson, President, Australia China Business Council

Renewables

“By 2050 electricity will supply over 50% of total global energy demand, up from about 20% today. On current estimates, over 2 billion people will drive electric cars by 2050. That's 100x more than today, an equivalent to 75% of the global car fleet. Achieving net 0 carbon emissions by2050 will require investments of more than $4.4 trillion per year between 2021and 2030 and clean energy technologies and infrastructure” Richard Kendall Lancaster, CEO, CLP Holdings Ltd [parent co. of Energy Australia]

Construction & Materials

“This is the industry now that government and society are relying on to fix the housing crisis, build our way to net-zero [emissions] and to house and deliver the infrastructure that’s going to house and cope with migrants coming to supplement the rest of the economy” Jon Davies, CEO, Australian Constructors Association

“It [global steel markets] looks pretty dire, one of the worst steel markets I have ever seen” Gerhard Ziems, CEO, Coronado Global Resources Ltd

“People are sitting on the sidelines and waiting for a little bit” Aaron Erter, CEO, James Hardie Industries Plc‍

Languages & Education

"If you look at just the total language learning market, the majority of it is people learning English and many of these people do want something more advanced than just beginner stuff” Luis von Ahn, CEO, Duolingo Inc

“The looming iceberg of skills shortage requires a much shorter turning circle than the provision of traditional three-year degree programs if it is to be avoided” David Lloyd, Chairman, Universities Australia[peak higher education industry body]

Consumer Staples

"Some of the factors which have influenced the volumetric trends [lower battery sales] we have been seeing are as follows…a shift in consumers engagement with devices from both buying new and using existing devices to spending more time and dollars on experiences like travel. And, consumers across all income groups changing their behaviour to offset their reduced purchasing power” Mark LaVigne, CEO, Energizer Holdings Inc

“We know that people are really struggling to find ways of managing household expenses. Over the first half, we had over a 5 per cent increase in customer growth year-on-year, and looking at July data it’s actually higher than that” Anna McGrath, CEO, Aldi Australia

Macroeconomic

"it's interesting, a lot of people are suggesting that the gold price is not performing. It's performing extremely well. And for me, the more interesting part is that some see this is driven by a forecast decline n interest rates…I really believe it's more about a risk on situation as we wrestle with the global economy and deglobalisation of the world as a whole” Dennis Bristow, CEO, Barrick Gold Corp [world’s second largest gold company]

“But there is no way in the world we are going back into a deflationary environment. There is a chock under this” Vik Bansal, CEO, Boral Limited

Workplace

“The commercial office environment has become more challenging since the start of the year. And although we don't compete directly with traditional leased office, we certainly aren't immune to multi-decade high vacancy rates and weak pricing in that market” David Tolley, CEO, WeWork Inc

Tourism

“Also as post-COVID pent-up demand continues to level off in Florida, local tax data shows evidence of some softening in several major Florida tourism markets” Bob Iger, CEO, The Walt Disney Company

Activities & Leisure

“We also see a resilient and engaged consumer across all of our businesses” Oliver Brewer, CEO, Topgolf Callaway Brands Corp

“While the market environment in our Adventure segment [in Australia] is still challenging, we believe the worst is behind us” Michael Yates, CFO, Clarus Corp [parent co. of Rhino-Rack]‍