K&H: this is how domestic companies are handling the new crisis

By: Trademagazin Date: 2022. 08. 30. 07:21

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After 2008 and 2020, this year is another milestone for companies. Although for the time being, there is not as strong a decline as two years ago, there is a permanent decrease in expectations. All of this is caused by the fact that companies are currently facing four challenges at the same time, for which it is no longer enough to digitize and modernize a few processes, but a complete rethinking and simplification of energy consumption, supply chains and production technologies is required.

Aggravating factors are present in the economy at the same time

Manufacturing, trade, construction and real estate development are the leading sectors in which large domestic companies contribute the most to GDP. The largest companies employ more than 10,000 people, and there are hundreds of companies that are regionally or even nationally decisive. However, after 2008 and 2020, the sector faces another crisis, which for many may bring a turning point in operations and future plans.

“The role of large companies in the domestic economy is unquestionable, since a company with a turnover of nearly six thousand, over 2 billion, can even determine the livelihood of an entire region or the performance of a specific sector due to its significant employment and extensive supplier network. The reason why they are now receiving increased attention is that they have to deal with four very serious challenges – runaway inflation, rising energy prices, worsening raw material shortages and falling real wages – at the same time. Although these were already present in the economy individually in the last two decades, their effect can be magnified together.”

Gábor Rajna, head of the K&H Business Clients Division, outlined the situation at the last press conference.

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