CIMA study: FDs determined to weather storm
Despite the financial crisis, FDs are determined to weather the storm, a CIMA sudy shows
Although the global financial crisis is taking its toll on business
confidence, finance directors are determined to use tried and tested means to
weather the storm, the latest survey by the
Chartered
Institute of Management Accountants (CIMA), released today reveals.
More than a quarter of businesses in different sectors, including
manufacturing, retail, transport and finance expect staff in their organisation
to be reduced over the next 12 months. Temporary staff and external consultants
will be most at risk as 42% of respondents expect their numbers to be cut. The
research is a stark contrast to six months ago when 40% of companies expected
employment growth.
One-third of firms reported declining sales in the past quarter, while those
still positive of growth dropped to only 37%. However, despite the economic
downturn, the survey of leading British FDs show the majority of companies are
determined to weather the storm and come out of the current crisis.
Many FDs are planning to invest their way out of recession. About
three-quarters of firms were planning to maintain or increase spending on
marketing, staff training and capital expenditure, while only 5% of companies
said they would be cutting back on new product development.
Further reading:
Backgrounder: the worst day of the banking crisis yet?