Inside the Minds of Manufacturing CFOs: Addressing Risks and Challenges
The expanding role of manufacturing CFOs brings new pressures. We asked more than 100 manufacturing CFOs about those pressures and their biggest concerns. From fears about talent shortages, post-pandemic workforce dynamics and the role insurance plays in their companies’ success, the insights revealed here can help inform how businesses may better adapt to and manage risk.
2024 CFO STUDY: A TRAVELERS SPECIAL REPORT
The Evolving Skill Set and Mindset of the Manufacturing CFO
52% of CFOs say being a strategic advisor to the CEO is their primary responsibility, a role that reaches beyond traditional financial leadership
Which Skills Do Manufacturing CFOs Consider Important?
46% say a high level of charismatic leadership and communication skills matter most
35% report emotional intelligence as an essential skill
Who Do They Partner with to Manage Risk?
Risk Managers: 63%
Insurance Brokers: 46%
Insurance Carriers: 42%
Human Resources: 35%
CIOs: 33%
CTOs: 22%
Manufacturing CFOs Study the Macroeconomic Environment
CFOs, just like most business leaders, are concerned about what’s happening in today’s economic environment. They are also optimistic about the present and future.
What Worries Them About Today’s Economy?
Competition: 33%
Talent: 29%
Inflation: 28%
Uncertainty: 24%
How Do They Overcome These Challenges?
84% of companies have a formal process
54% of companies rely on their carrier partners’ risk/insurance guidance
What Are Their Biggest Workforce Pressures?
Challenges of the post-pandemic hybrid work environment: 26%
Investing in employee development: 34%
Being thoughtful about their workload: 24%
Their overall well-being: 21%
What Makes Them Confident and Hopeful About the Future?
87%: Their company has taken/is taking strategic actions to ensure its future success
54%: Increasing digital and emerging technology investments
42%: Their company’s financial strength
27%: Technology, like AI, that makes their businesses more efficient
24%: A strong customer base
Is ESG Awareness Stronger in Manufacturing vs. Other Industries?
Manufacturing companies are more likely to invest in ESG initiatives
Manufacturing 47% vs. Other Industries 35%
Manufacturing CFOs have more expertise in responding to ESG issues
Manufacturing 40% vs. Other Industries 26%
The Travelers Indemnity Company and its property casualty affiliates. One Tower Square, Hartford, CT 06183
© 2024 The Travelers Indemnity Company. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries.
CFOs often place most of their focus on cyber risk, which means they may miss out on other opportunities to proactively mitigate risk. This includes the vital role employee training plays in preventing risk.
Talk to your agent and learn how the expertise of Travelers Risk Control professionals can help you navigate your company’s business risks.
