K&H: the exchange rate change is a bigger problem than the lack of people, the companies say

By: Trademagazin Date: 2022. 12. 09. 10:31

According to 53 percent of SMEs, exchange rate fluctuations, lack of professionals, cost increases, inflation and material shortages together affect the operation of domestic businesses more than the coronavirus epidemic, according to K&H’s research among SMEs. In addition, 9 out of 10 companies are adversely affected by the continuous rise in inflation, which they try to counterbalance primarily by reducing operating costs and raising prices.

Exchange rate fluctuations are the biggest challenge

In the past semester, companies had to deal with many challenges. According to the third-quarter results of the K&H SME confidence index research, which examines the expectations of micro, small and medium-sized enterprises, it was exchange rate fluctuations that hindered companies’ operations the most in the past six months (34%) instead of the lack of professionals. In addition, the increase in costs (26%), inflation (22%) and lack of materials (21%) appeared in a similar proportion as circumstances making business difficult.

“For a year, the proportion of companies whose operations are hindered by exchange rate fluctuations and the resulting uncertainty has been steadily increasing. According to numbers, this means that compared to last year’s results, the number of company managers who said this increased by 13 percent. The result is not surprising, since in recent months there has been a difference of more than HUF 50 between the euro and the dollar exchange rate. This can mean a serious increase in costs for businesses, as well as make planning and pricing more difficult.”

– said Zoltán Rammacher, head of K&H SME marketing and sales support.