GlobeNewswire Inc | Aug 23, 2021 09:00AM EDT

August 23, 2021

ST. LOUIS, Aug. 23, 2021 (GLOBE NEWSWIRE) -- A recently completed Stifel Financial Corp. (NYSE: SF) survey of corporate executives, business owners, and private equity investors finds the tight U.S. labor market is the biggest perceived threat to business today. Nearly all those surveyed (95%) have had to raise wages in order to attract or retain employees, and an overwhelming majority (81%) say at least some of those costs are being passed onto customers.

Addressing Long-Term Implications of Labor Constraints

The difficult environment for hiring and retention, coupled with wage inflation, is forcing business leaders to think outside the box for creative solutions to the labor pains were experiencing across many sectors, said Michael Kollender, Managing Director and Head of Consumer & Retail and Diversified Industrials Investment Banking. While most companies are increasing investment in technology and automation, our survey finds that more than half of respondents (54%) are also emphasizing potential acquisition opportunities that promote greater operational efficiency. We believe, in some cases, a thoughtful M&A strategy can be a very effective mitigation tool.

Capital-Raising Environment

As labor market conditions fuel additional M&A activity, many companies are taking advantage of low interest rates and strong financial market conditions to raise additional capital. More than a quarter (26%) plan to raise debt or equity in the foreseeable future to fund strategic initiatives. Thats on top of 19% who say theyve already done so. Another 11% plan to raise capital now, while terms are favorable, even though they dont need it right away. The rest (44%) expect to have access to capital at attractive terms in the future.

Additional Survey Findings: Supply Chains, Inflation, Public and Monetary Policy

The survey, focused specifically on consumer, retail, and diversified industries participants, also found that:

-- 93% are experiencing supply chain disruptions, and 39% consider the disruptions significant. -- Nearly all respondents (95%) worry about inflation, and one-third (33%) are very concerned about it. Most (58%) believe inflation is a mid-term problem lasting the next two quarters to a year. -- While theres obvious uncertainty over potential policy changes like tax increases or increased government regulation, three-quarters (75%) are proceeding with strategic initiatives as planned. -- Addressing climate change isnt a top priority yet. Only 12% are very concerned about it. -- Labor constraints, supply chain issues, and a potential COVID-19 resurgence pose the greatest risks to business (in that order). Lesser perceived threats include inflation, cyberattacks, changes in tax policy, and increased regulation. -- Even though more than half of respondents (58%) believe the Federal Reserve will have to raise interest rates before 2023, only a fraction (7%) consider higher rates a significant threat.

While theres a general sense of optimism following a long period of COVID-induced disruption, business leaders will need to manage everything from labor shortages to potential tax reform and all things in between, summarized Kollender. Transaction pipelines at Stifel are at record highs, as companies race to adapt and transform to todays fast-changing environment. Whether youre an executive, entrepreneur, or investor, understanding how external forces impact business and being able to react swiftly and decisively is a key to success.

The online survey of 57 corporate executives, business owners, and private equity investors was conducted August 2-16, 2021. Click here to view the full survey results.

About Stifel Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifels broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners business division; Keefe, Bruyette & Woods, Inc.; Miller Buckfire & Co., LLC; and Stifel Independent Advisors, LLC. The Companys broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Companys website at www.stifel.com. For global disclosures, please visit https://www.stifel.com/investor-relations/press-releases.

Media Contacts:

Neil Shapiro, +1 (212) 271-3447shapiron@stifel.com

Jeff Preis, +1 (212) 271-3749 preisj@stifel.com

Infographics accompanying this announcement are available at

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