Businesses shelve long-term strategy to tackle immediate problems- PwC Survey

29-Sep-2022

- Supply chain issues top the list of concerns for businesses

- Almost half of businesses say net zero plans have been superseded by more immediate concerns, however ESG remains an important metric for lenders

- More than half of businesses intend to improve business performance through digital transformation.

With distressed businesses facing an increasing number of economic pressures, findings from a new PwC survey reveal more than half (55%) are prioritising short-term operational improvements over long-term strategic solutions.

PwC’s Business Restructuring Services team surveyed 400 distressed businesses including listed and private companies with revenues spanning £25m to more than £1bn and 165 investors across the UK to find out how they are responding to the economic downturn with findings showing the majority are highly focused on getting through the short term challenges ahead.

Of the immediate challenges to business growth ongoing supply chain issues are of most concern with almost half (47%) saying it is an immediate threat to their business. To further compound the threat, just over a third of respondents say they have done no preparation for supply chain issues and 33% said they lack sufficient data to understand the risks in their supply chain. As well as supply chain issues the winding down of Covid-19 support measures (40%), skills shortages (35%), rising inflation (32%) and energy costs (31%) made up the five biggest challenges to business growth in the survey.

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