They are not prepared enough, many companies may go bankrupt in the next two years

By: Trademagazin Date: 2022. 11. 02. 11:42

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The company’s operating and business costs only increase month by month. This phenomenon can now be considered continuous and permanent. The biggest impact on spending growth comes from rising prices for energy, gas, metals and other raw materials, as they form the basis of manufacturing and service processes.

Vass Anikó

The growth of individual cost categories triggers the growth of other categories like dominoes, if, for example, the cost of logistics services increases, sooner or later it will increase the costs of the entire supply chain, even waste management.

Almost all companies try to deal with the continuous increase in prices with some measure or austerity, but usually this does not go further than reducing the number of employees and cutting the marketing budget. According to the latest research by Expense Reduction Analysts, a cost optimization consulting company operating in more than 40 countries, companies learned from the 2008 crisis, but did not take the appropriate steps: 80% of respondents regret that they did not prepare for the crisis in time.

Despite the regret, most companies cannot be said to be prepared even now: according to 81%, cost optimization will be the most critical factor affecting operations in the next 24 months.

Expense Reduction Analysts