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Plus: Why Private Businesses Are So Optimistic

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Interest rates are down, markets are up and private businesses are optimistic. A report issued last month by KPMG found that 86% of private and recently public companies have high hopes for growth in the next 18 months. Nearly three in four say they’re ready to capitalize on major growth opportunities today. And about two-thirds are projecting an uptick in M&A in the next 18 months.

How are these companies going to get to that growth? Most of them—53%—see themselves as strong disruptors or game changers, innovating in their industries enough to challenge traditional operations and change consumer expectations.  

But it’s not all enthusiasm. Private and recently public companies also see barriers to realizing that growth. The potential slowdown in innovation and tech advances was seen as the largest stumbling block, but cybersecurity threats, inflation, increasing energy costs, geopolitical issues and problems with attracting and retaining talent also ranked high on their list of worries.

Because these companies are mostly private, it’s hard to say if their actual results will back up their sanguine projections. However, KPMG pointed out that many of these companies are more agile than those publicly traded, and can quickly make changes and adapt to new trends and technologies. However, analysts have been predicting more economic growth, an upswing in M&A deals and increasing consumer spending up ahead. These things could bolster all companies’ prospects going forward.

Two ingredients for business growth today are a quality brand and cultural relevance. Stanley 1913, which makes the social media sensation Quencher water bottle, has seen its sales soar as its colorful beverage containers are a top accessory on desks, at schools, in gyms and on fashion show runways. I talked to Matt Navarro, president of the 111-year-old brand, about how Stanley has continually reinvented itself and continued to be a treasured brand. A portion of our conversation is later in this newsletter.

Until next time.

Megan Poinski Staff Writer, C-Suite Newsletters

Follow me on Forbes.com

In todays CEO newsletter:
  • First Up: Tesla stock speeds up, but will Elon Musk make it crash?
  • Tomorrow's Trends: How Stanley keeps reinventing the legacy brand, time and time again
  • Strategies + Advice: Why you should think twice before endorsing a presidential candidate
NOTABLE EARNINGS
Last week, Tesla did something it’s been unable to do for most of 2024: Inspire a market rally. Shares in Elon Musk’s EV company shot up more than 20% last week after the company reported stronger-than-expected earnings and ended its four-quarter streak of year-over-year profit declines. Tesla also increased its estimates for vehicle deliveries, both this year and next—with Musk projecting a 25% to 30% bump in 2025. He also said he expects self-driving taxi service to launch in California and Texas next year. Thursday, the day after Tesla’s after-hours earnings report, was the company’s best on the market since 2013. The EV-driven rally continued through Friday, helping move the Nasdaq to an all-time high of 18,690.01.

It’s unclear if Tesla’s rally will lose its charge anytime soon. For the positive points in the earnings report, there were also some negatives. Tesla missed its revenue expectations for the quarter. On the earnings call, Musk continued to double down on Tesla’s new target of self-driving Cybercabs. Previously, he’d announced Tesla was working on a more affordable $25,000 EV model. In response to a question about it, Musk said it’s no longer in development

As is always the case nowadays with the polarizing and outspoken Musk, statements he’s made and news stories about his personal life may also hurt Tesla’s returns. Since Tesla’s earnings report, federal findings show he’s bankrolled former President Donald Trump’s campaign to the tune of nearly $120 million, though Philadelphia’s district attorney sued Musk over his $1 million voter sweepstakes for people who sign a petition on his PAC’s website. And over the weekend, the Washington Post reported Musk started working in the U.S. without legal immigration status—something he has denied, but would contradict the anti-immigrant stance he’s taken on the campaign trail.

HUMAN CAPITAL
Throughout 2024, almost every week has been another bad one for Boeing, but last week was particularly bad. On Wednesday, the company released its quarterly earnings, which were in the red across the board. And then Boeing’s latest contract proposal, offering 35% pay increases to the striking union, the International Association of Machinists and Aerospace Workers, was rejected by 64% of membership. The six-week walkout has left the aerospace company at a standstill, leading Boeing’s new CEO Kelly Ortberg to quickly try to balance the budget with additional layoffs and furloughs. In remarks with the earnings report, Ortberg said it is time to shift Boeing’s culture, working to more closely integrate all employees with the company’s first mission and business, writes Forbes senior contributor Jim Osman

Is that enough? Time will tell, though Forbes’ Jeremy Bogaisky writes about another way the company could make a change to get back on track: Reinstate the employee pension plan. The pension plan has been a central issue to the strike since its beginning, and benefits experts told Bogaisky that now would be a good time to bring one back: Economic conditions, regulatory changes and new guidelines that reduce risk for companies are on the way. Not to mention a pension plan will drive more employee loyalty since workers would want to spend their entire career at Boeing to take full advantage of the benefit.

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BIG MOVES
Southwest Airlines has settled with activist investor Elliott Investment Management, restructuring its board with six new directors, writes Forbes’ Suzanne Rowan Kelleher. Those board members, including former Southwest CEO and executive chairman Gary Kelly, will fast-track their retirements and leave the company on November 1. Southwest CEO Bob Jordan, who Elliott pushed to replace, will keep his job. The activist investor took a $1.9 billion stake in the carrier and presented a long slate of ideas to help it make more money. Southwest made some changes—including a planned end to its open seating model, premium seats with more legroom, and overnight “red-eye” flights.
TOMORROW’S TRENDS
Stanley 1913 President Matt Navarro.   Stanley 1913
From Factory Lunches To Viral Must-Have, Stanley’s President On Renaissance For The Century-Old Brand
The colorful Stanley Quencher has been a very trendy buy for the last several years, but it’s only one of the recent successes of Stanley 1913. The 111-year-old company, known for its insulated steel containers, made lunch boxes and metal food jars that powered workers at 20th century factories, and then food and drink containers to enable people to explore the outdoors. I talked to Stanley 1913 President Matt Navarro about the company’s legacy, its current popularity and what’s on the horizon.

This interview has been edited for length, continuity and clarity. A more complete version is available here.

How did you take Stanley’s history, brand equity and what Stanley stands for and update it for today’s consumers?

Navarro: Stanley has reinvented itself several times over the last hundred years. We are a transformational brand. We have a long history and have been a part of culture throughout many generations, and we’re continuing to tap into that cultural connection and connect to consumers. We like to frame it as our eras. From 1913 to 1965, we helped people go to work. As modern America was built, people brought their lunch box to the job site. From about 1965 to 2020, when food service became more readily available on the job site, we shifted and helped consumers get outside and enjoy the great outdoors. In more recent history, we’ve leaned into hydration, meeting especially the female consumer in her everyday life—connected to her fashion, style, lifestyle—and disrupted the hydration and drinkware space with innovative products and colors.

What is it like leading a company that is the viral “it” thing, and how do you manage that popularity to maintain Stanley’s positive view in the larger social media and pop culture sphere?

We are much more than a viral moment. We are focused on longevity over short-lived hype. We’re creating products that have impacts on consumers’ lives. We’re designed for performance, and our “Built For Life” promise [reinforces that]. We’ve become a part of consumers’ everyday lives. We’re original. We’re relevant. We move at the speed of culture. We stay connected to culture through our collaborations and partnerships, and ensuring that we’re distributed the right way around the world. 

We’re a global brand and a global organization, which is a bit unique in our space. Our North American business is incredibly successful, but we’re also growing fast in Europe and across Asia, in places like Japan and Korea. We’re staying current and connected to culture, and we’re building this brand for the next hundred years.

You’ve worked for other legacy brands before coming to Stanley. What advice would you give leaders at other legacy brands about remaining relevant and being a brand everyone talks about?

I believe the heart of strong leadership is how you build your team, and it’s also how you build your brand. It’s diversity and authenticity. For me as a leader, the more diverse points of view, the more diverse skill sets, the more diverse levels of experience and backgrounds that we can hire within the Bearforce, the better decisions, the better products, the better innovation, the better we are as a team. In that environment, we also allow those people to be authentic, to be themselves and to thrive in a very authentic way. 

Authenticity is the really important piece of how you connect the brand to consumers. Consumers are really smart, and you can’t fool them or trick them, even if you try, in today’s world. What Stanley has done a really fantastic job of, and what we’ll continue to do, is be authentic to who we are, honor the past and our heritage, but also continue to innovate and connect to culture and connect to consumers as we build the future.

Given its long history, Stanley will likely be around for generations to come. What do you hope people are saying about the brand in 10 years?

In some ways, we are at our best when people don’t even notice that we’re there. And what I mean by that is when people are at the yoga studio, in their car, at a tailgate or in the backyard, we’re making their life better. We’re fueling human connections with the people they're with, and we’re obviously hydrating them. That’s what I hope we can be. Today, we’re at the heart of culture and consumers’ lives. I hope we can continue to do that and meet people in more places within their lives over the next 10 years.

 

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