The Reaction of Companies to Inflation

Inflation will be particularly severe this year and should affect the cash flow of individuals as much as that of companies. According to a sum up study, conducted among european sm es from november 2 to 9, 2022, through a self-administered online questionnaire on 3,488 people based in 5 countries (united kingdom (890), france (730), italy ( 1404), germany (333) and switzerland (131), the cash flow of french sm es will be mainly impacted by the rise in energy prices (37.7%) and supply costs (34.5%). but how do companies react? A reduction in their turnover envisaged sm es are not very positive this year. It must be said that during the study, 47.4% of french sm es expected a drop in their turnover compared to the previous year over the holiday season. In question, a drop in sales for 42.7% of them but also in the frequency of purchases (36.1%) and a logical tendency on the part of consumers to seek sources of savings.

If These Results Are to Be Confirmed

The coming months, the feeling seems generally more negative at european level where. The united kingdom (58.2%) and germany (52.8%) take the lead of the most pessimistic. Sm es that should mostly survive fortunately, most sm es do not plan to go out of business even if it should be not that 9.1% of them plan to stop their activity because of the crisis. Note that depending on the company’s activity. The consequences Business Development Directors Email Lists can be dramatic. Overall, it should be not that this situation causes stress. Since almost two thirds say they feel more stress than before. However, the situation does not affect all activities in the same way and companies are seeing their margin shrink like a trickle. Prices and margins: the main answers. According to this study, 39% of french sm es have simply decided to increase their prices. While 32.3% will reduce their margins to absorb inflation .

C Level Executive List

Work More to Compensate for These Loss of Income

Even work on their energy costs for 29.4%. in this context of economic uncertainty. Soaring commodity prices. Rising energy prices and slowing growth. Some have therefore decided to pass on these increases while others will try to reduce the impact through. Their activity or even their cost management . It should be not that they. Do not consider as a priority a reduction in their remuneration or their payroll. Solutions Asia Email List to the crisis and inflation for 40% of sm. Es who are hit hard by inflation and the energy crisis . The solution also lies in new technologies because they consider. Them essential to get out of the crisis. The feeling is the same in italy with 37.9% of respondents among the “technologists”. However only 5.5% want to put them at the heart of their adjustment strategy. It is not much better at european level.

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