Post-Election CFO Optimism Jumps Despite Concerns

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CFO optimism about the economy jumped this quarter, following the recent presidential election.

However, chief financial officers expressed post-election concerns about monetary policy, inflation, the political climate, and tariffs.

These findings are from The CFO Survey, a collaboration of Duke University’s Fuqua School of Business and the Federal Reserve Banks of Richmond, whose district includes South Carolina, and Atlanta.

This quarter, about half of the 515 respondents were polled in a pre-election survey that closed on Nov. 4. The other half responded to a post-election survey that ran from Nov. 6-19.

Each quarter, CFOs rate their optimism about their own firm’s financial prospects on a 0-100 scale.

Averaged across all 515 responses, own-firm optimism increased about two points this quarter, to 71.2. Notably, much of the increase in optimism occurred after the election results were in.

Before the election, CFOs reported own-firm optimism of 70.1. Following the election, own-firm optimism increased to 72.4.

Own-firm optimism among large companies increased to 76.0 after the election.

CFOs also reported their outlook for the broader economy.

CFO optimism about the overall economy jumped from 62.8 before the election to 68.8 following the election.

By sector, companies in manufacturing and construction experienced the largest increases following the election.

Expected growth in real GDP for 2025 increased from 1.9 last quarter to 2.16 in the pre-election survey and to 2.33 after the election.

“This jump in optimism reflects the resolution of uncertainty about the presidential election, combined with a sense that the tax and regulatory policies of the new administration will broadly benefit the corporate sector,” said John Graham, a Duke Fuqua School of Business finance professor and the academic director of the survey. “A similar surge in business optimism occurred the first time President Trump was elected in 2016.”

“Despite this boost in optimism, financial executives also expressed heightened concerns about several items,” Graham added.

In the pre-election survey, the top worry for CFOs was hiring and retaining employees.

Following the election, monetary policy became the top concern, followed by concerns about labor availability, inflation, the political climate, and tariffs.

Prior to the election, tariffs had never before appeared on the list of top 10 concerns.

This survey also created the CFO Policy Importance Index, which is scaled so that the most important policy issue facing companies has a value of 100.

Following the election, regulatory policy topped the Policy Importance Index with a value of 100, followed by corporate taxes (86), monetary policy (83), fiscal spending (65), individual taxes (50), and health care (43).

Automotive Supplier Grows SC Footprint in Greenville County

The South Carolina Department of Commerce announced Dec. 4, 2024, that Magna International, a mobility technology company and one of the world’s largest suppliers in the automotive space, is growing its South Carolina footprint.

The company will establish a new satellite operation and expand its existing operation in Greenville County.

Magna’s combined investment of approximately $200 million will create around 200 new jobs across both facilities starting in 2025, according to Gov. Henry McMaster’s office.

Officials said Magna’s new 625,000-square-foot facility located at 923 Matrix Parkway in Piedmont, along with the additional funding to expand its existing facility, represents a significant commitment to the local economy.

Operations at the new facility are expected to begin in the first quarter of next year.

Both Piedmont facilities will produce automotive components for cars, light trucks and commercial vehicles. Those interested in joining Magna should go to the company’s careers page.

For the company’s new facility, the state’s Coordinating Council for Economic Development approved job development credits related to the project and awarded a $500,000 Set-Aside grant to Greenville County to assist with the costs of facility set up and improvements.

“Magna has been part of the Greenville County community for over 30 years, benefiting from the region's skilled and diverse workforce that drives our innovation and customer value. We look forward to further growth and continuing to be an integral part of this vibrant community,” said Magna Body and Chassis Group President John O’Hara.

Pacolet Milliken Acquires Anderson Wind Farm 

Pacolet Milliken, LLC, a sustainability-focused, family-owned investment firm, said it has acquired 100 percent of Anderson Wind Farm from an affiliate of Goldman Sachs Asset Management. 

Anderson is a 14.95MW, 8 turbine wind farm in Chaves County, New Mexico. The terms of the transaction weren’t disclosed.

Anderson generates over 50,000 MWh of electricity per year, providing clean power to 5,000 homes.

The project achieved commercial operations in 2014 and sells power to Western Farmers Electric Cooperative under a long-term power purchase agreement.

"This transaction marks a significant milestone for Pacolet's Power & Infrastructure portfolio as we expand into wind energy for the first time and increase our presence in the Southwest. We are excited to collaborate with our new partners and local regulatory authorities to advance our mission of delivering renewable energy solutions to the communities we serve," said William Crawford, chief executive officer of Pacolet.

Lance Jordan, co-head and chief investment officer of Pacolet Power & Infrastructure, added, "Anderson is a high-quality asset that aligns with our sustainability goals while also delivering enhanced value for our shareholders. We are excited about this transaction and hope to pursue additional wind energy investments in the region."

Vinson & Elkins served as legal advisor for Pacolet on the transaction.

Headquartered in Greenville, South Carolina, Pacolet is a family-owned investment firm that owns and manages power and infrastructure and real estate assets located across the United States.

Pacolet's Power & Infrastructure consists of a diverse set of power, renewables and infrastructure assets, including a regulated electric portfolio, an industrial utilities company and a substantial solar and landfill gas portfolio.

Agencies Issue Statement on Elder Financial Exploitation

Five federal financial regulatory agencies, the Financial Crimes Enforcement Network (FinCEN), and state financial regulators issued a statement Dec. 4, 2024, to provide supervised institutions with examples of risk management and other practices that may be effective in combatting elder financial exploitation.

Older adults who experience financial exploitation can lose their life savings and financial security and face other harm.

A FinCEN financial trend analysis of Bank Secrecy Act reports over a one-year period ending in June 2023 found that about $27 billion in reported suspicious activity was linked to elder financial exploitation.

Officials said banks, credit unions, and other supervised institutions play an important role in combatting elder financial exploitation and supporting their customers who experience these crimes.

The statement provides examples of risk management and other practices that supervised institutions may use to help identify, prevent, and respond to elder financial exploitation, including but not limited to:

* Developing effective governance and oversight, including policies and practices to protect account holders and the institution.

* Training employees on recognizing and responding to elder financial exploitation.

* Using transaction holds and disbursement delays, as appropriate, and consistent with applicable law.

* Establishing a trusted contact designation process for account holders.

* Filing suspicious activity reports to FinCEN in a timely manner.

* Reporting suspected elder financial exploitation to law enforcement, Adult Protective Services, and other appropriate entities.

* Providing financial records to appropriate authorities where consistent with applicable law.

* Engaging with elder fraud prevention and response networks.

* Increasing awareness through consumer outreach.

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