ERA Cost Barometer: Save to Steer
Across almost all industries, the past ten years has seen a substantial level of uncertainty become normality. Longheld beliefs have been turned on their heads by both political and economic pressures and with COVID-19, further unpredictability has carried us into the new decade.
The reality for many businesses is that this uncertainty will continue to play a significant role in decision-making and strategy.
Both expansionist and defensive strategies must be employed so that businesses can manoeuvre within this ever-changing business world. The wider implications of embedding these strategies – or failing to embed – must be fully explored.
CFOs are tasked with steering the path to security and growth. This challenge is becoming more complex than ever before. Our latest whitepaper considers how CFOs plan to navigate through these testing waters, analysing statistical data and research collated from a breadth of credible sources.
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"There are fears that a new financial crisis may be on the horizon, fuelled by slowdowns in major markets and an abrupt change in consumer behaviour."
What are the potential outcomes of COVID-19 and what will happen to the global economy as a result of Coronavirus?
The COVID-19 outbreak is first and foremost a global tragedy affecting hundreds of thousands of people. With the outbreak moving quickly, it is also necessary to explore the impact it is having on the global economy and what it may mean for your business.
The potential scenarios illustrated map out the affects of a quick recovery to the possibility of a global recession.
Recession – a word that haunts businesses and professionals alike. Europe has been slowly recovering since the 2008/2009 crash but with COVID-19 and other economic uncertainties, is your business prepared for the next recession? Whilst many CFOs may answer yes, this response is slightly hasty. The next recession could potentially arrive sooner than we once imagined.
If we do not assume the worst, a quick recovery paints a different picture. The virus will continue to spread given its high transmissibility and daily behaviours will change – but not so much that the population turn to survival mode. Industries that typically require human interaction, for example hospitality, will feel a negative impact. In a quick recovery scenario, 2020 global growth will fall from 2.5% to 2.0%.
Whether COVID-19 results in a global recession or a quick recovery, entire industries can still face disruption. It is extremely beneficial to plan for the possible than wait and be backed into a corner during a crisis. The next economic downturn remains uncertain, no one knows it’s scale, duration or the surprises in store – but we do know that it will inevitably happen.
"If companies are serious about refining their costs during challenging economic times, then a new appreciation for the expertise required needs to be realised."