Back in 2019, the worker shortage was by far the main concern for companies, with 75% citing it as a main challenge. Next on the list came economic weakness in target markets, tariffs and upward wage pressure. Just over half of the respondents cited each of those.This time around, the pandemic caused domino effects that resulted in weaknesses already a part of the economy becoming much worse. From messy supply chains, to a sped up timetable for e-commerce, to talent issues, to changing customer desires, to a much less predictable world stage, what were once smaller, manageable issues got a lot bigger, changing the must-have list of what it takes to be a successful business. Navigating the new rules significantly falls to the finance team, which works with business leaders to identify and address challenges as they come
In this report, we examine the major current challenges and how midsize businesses are addressing them. The data presented in these charts comes from an early June poll of 500 executives and managers in companies with under $250 million in annual revenue. Half of the respondents were from companies with less than $50 million in annual revenue. Half work in finance, and half are executives. The result is a 360-degree view of business challenges and solutions as well as manager reactions to executive actions.
Here are the key findings discussed in the report:
- 80% of managers say their team is struggling to meet its goals, and 40% say leadership doesn’t understand how supply and staffing shortages affect their ability to meet goals
- 45% of larger organizations and 32% of smaller ones say inflation has positively affected their business
- Nearly all executives foresee a recession within the next year and half. In response, 51% of finance executives are evaluating the recession sensitivity of products and services.
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