CFO Journal Predicts a Rise in 2014 Capital Spending

April 16, 2014

Capital spending in 2014Here’s some decidedly good news for economic developers.

According to CFO Journal, an online section of The Wall Street Journal, companies are now starting to loosen the purse strings and invest in new factories and equipment.

Two factors are driving the change: 1) a strengthened U.S. economy, 2) pressure from long-term investors for companies to invest in their own growth. On the latter point, here’s a quote from Larry Fink, CEO of BlackRock, Inc., one of the world’s largest money managers, in an open letter to C-suite executives:

“Too many companies have cut capital expenditure and even increased debt to boost dividends and increase share buy-backs. When done for the wrong reasons and at the expense of capital investment, it can jeopardize a company’s ability to generate sustainable long-term returns.” 

Click here for a link to the article. And if you have trouble navigating through the WSJ’s paywall, just shoot me a quick email and we’ll email you a copy of the article.

Written by Andy Levine

Andy Levine is Chairman of DCI. Since joining DCI in 1991, he has worked with a broad range of places from “A” (Alabama, Asheville, Australia) to “W” (Wales, Wichita Falls, Wyoming).

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