More than a third of businesses (35%) said that the heightened cost of energy is their greatest concern, as high inflation bites globally, according to a survey from working capital solutions business Taulia. The research, carried out amongst more than 500 senior financial decision makers at large companies in the US, UK, Singapore and Germany, found that while energy costs are most pronounced in Europe, they remain a key concern in all regions.
What were the findings of Taulia’s survey?
Two in five businesses in the UK (41%) and Germany (39%) said energy costs were inflationary pressures having the greatest impact on their business, though almost a third (31%) of US decision makers and just over a quarter (27%) in Singapore agreed.
The research found that four in five (83%) are concerned about the effects of inflation on their business, citing the cost of raw materials (29%), increased supplier (28%) and labor costs (26%) as key concerns. Inflation concern is most pronounced in the US, where over nine in ten (93%) said that the impact of inflation was a worry. This resonated globally, with nearly nine in ten (87%) agreeing in the UK and over four in five (83%) in Singapore.
What do the findings mean for global businesses?
Cedric Bru, CEO, Taulia, said:“While the higher price of energy is most pronounced in Europe, it is a leading inflationary concern for businesses everywhere. The danger that higher energy prices will affect the cost of production and doing business is real and present in all markets.”
“In order to mitigate the consequences of higher prices and avoid supply chain logjams, it is incumbent upon leaders to ensure they have the financial facilities in place that allow them to smooth over this protracted period and keep the lights on until calm is restored.”