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U.S. utility CEOs optimistic about their company and industry growth

Staff Writer |
Nine out of ten utility industry CEOs expressed confidence in the growth prospects for the industry over the next three years.

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87 percent indicated that growth opportunities are also abundant for their organizations, according to the 2016 KPMG CEO Study. Nearly 50% of CEOs also believe the industry is experiencing peak growth cycle right now.

KPMG's survey of 41 U.S. utility CEOs found that they are more optimistic than their peers in other industries about the prospects for growth in their companies and the industry.

They rank new markets and customers as the most important sources of this growth, and say their organizations plan to use a mix of inorganic (68%), collaborative (63%) and organic (59%) growth to drive shareholder value.

A top strategic priority over the next three years for utility CEOs is minimizing cyber security risks. To address cyber risks, 44 percent plan to devote significant investments or resources to cyber security solutions over the next three years.

This is important as only ten percent of utility CEOs believe their organizations are fully prepared for a cyber event.

Another strategic priority over the next three years for utility leaders is responding effectively to regulatory change. Compared to U.S. CEOs in other industries, leaders of utilities are slightly more concerned that regulations will inhibit their growth (93% vs 84% total U.S. CEOs).

Regulatory risk was even considered a greater concern than environmental and cyber security risks to CEOs.

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