The Spring 2014 CFO Survey conducted by Grant Thornton LLP includes responses from over 1,000 financial executives, revealing a positive outlook for the U.S. economy, with 56% of manufacturing CFOs expecting improvement in financial prospects. Key topics highlighted include the research credit, where only 53% of manufacturers currently claim it, and challenges related to international taxation and the Affordable Care Act, which many CFOs anticipate will increase costs. Additionally, data security has emerged as a significant concern, particularly regarding employee data privacy and potential breaches.

1. Spring 2014 CFO Survey
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THE RESEARCH CREDIT
An overlooked benefit for most manufacturers
About the CFO survey
Grant Thornton LLP conducts its CFO survey twice a year with CFOs and other senior
financial executives across the United States. The spring 2014 survey took place between
May 13 and June 4, with 1,038 CFOs and controllers participating, of which 211 were from
manufacturing companies.
Manufacturing CFOs expect the
U.S. ECONOMY TO IMPROVE
during the next six months.
49% one year ago
46+54+N
54%
44+56+N
56%
Manufacturing CFOs think the FINANCIAL
PROSPECTS WILL IMPROVE during
the next six months.
51% one year ago
The most important proposed
changes to the current research
credit law:
1. Permanent extension of the research credit
2. Increased alternative simplified
credit rate
3. Safe harbor to limit conflict with
the IRS on exam
Tax benefits most important
to manufacturers
45+21+21+N
Bonus and accelerated depreciation 45%
Research credit 21%
Section 199 (domestic production
activities deduction) 21%
Only 53% of manufacturers currently
claim the research credit.
INTERNATIONAL TAXATION
Transfer pricing, global compliance remain top issues*
Transfer
pricing
57% one year ago
41+59+N
59%
54+46+N
46%
61+39+N
39%
71+29+N 29%
73+27+N 27%
Overall global
compliance burden
47% one year ago
Repatriation of
offshore earnings
40% one year ago
M&A
Same as
one year ago
Risk management in
developing countries
Same as one year ago
THE AFFORDABLE CARE ACT GIVES CFOs HEADACHES
*Percentages include “the most important” and “very important” responses.
Almost 2 in 3 manufacturing CFOs
think the act will be a burden in the
next 12 months because of
97%
Increased costs
33%
Inability to devote resources to higher-value activities
DATA SECURITY CREEPS UP ON THE WORRY LIST
Top cybersecurity and data privacy concerns for manufacturers:
38%
53%
Employee and workplace data privacy
Unknown and identified risks
62+38+N
62%
Potential undetected breaches
36%
Customer/client data privacy
22%
Compliance with data security laws
Optimism boosts
ECONOMIC OUTLOOK
for manufacturers