Middle-market companies are confident in their ability to navigate inflation and a potential recession, according to a survey by Moss Adams, one of the largest accounting, consulting and wealth management firms in the nation. The survey shows that while most US CEOs and owners of mid-market companies are preparing for a potential economic decline—64 percent believe a recession is imminent and 88 percent are concerned with inflation—97 percent are confident in their ability to navigate inflation and a recession.
“Often when facing economic uncertainty, we see businesses go into contraction and protection mode,” Rebecca Pomering, chief practice officer and partner at Moss Adams, said. “What we’re seeing, which the results of the study affirm, are businesses striving to be proactive, looking to invest in opportunities, talent and efficiency gains while also evaluating operations.”
According to the survey, conducted by Talker Research, of the companies preparing for a recession:
- 53% are investing in technology
- 51% are working to improve customer relationships and customer experiences
- 46% are investing in creating new revenue streams
Of those concerned with inflation:
- 53% plan to increase the price of their products
- 51% look to cut down on operational costs
- 47% are searching for cheaper alternatives throughout their supply chain
- 21% are considering layoffs
To address economic uncertainty, respondents appear to be taking a multifaceted approach, indicating they plan on implementing the following:
- 57 percent plan to invest and adopt technology solutions
- 46 percent anticipate investing in employee training and retention
- 45 percent intend to increase investment in sales and marketing
- 40 percent plan to further product development
- 34 percent are engaging in scenario planning
- 30 percent are giving teams more latitude to move quickly or without roadblocks
“It’s not just about cutting costs,” Pomering said. “Businesses are assessing all options from tax incentives to technology investments to employee training. Advisors, like those at Moss Adams, are well-positioned to aid not just in navigating a complicated tax environment but also in identifying efficiency gains and business opportunities.”
Read the full report for a more detailed breakdown of the results.
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Tags: Accounting, Small Business
