According to Germany’s leading business newspaper “Handelsblatt” European top managers shift their attention more towards the reduction of expenses again. In the Handelsblatt Business Monitor, 1170 European Top Managers answer, on a regular basis, questions regarding future strategies.
This result is a major turnaround. Only one year ago the strategic focus on the acceleration of growth had a share of 49%, this time only 36%. The focus on the reduction of expenses increased to 31% (last year 25%). A balanced importance for both areas see one third of the participants.
The reasons for the increasing cost focus are obvious: the high prices for raw material (especially steel and oil), increasing costs for energy and logistics, the enduring weakness of the dollar and the associated decreasing market growth in general. The question is: how will the corporations achieve the savings targets?
Of course, we will see again some restructuring projects, which will lead to mass layoffs (Siemens, RWE, Volvo already started). But: according to Handelsblatt, this time the main focus will be on the improvement of global raw material purchasing, replacement of actual used raw materials as well as re-design of the supply and value chain. This sounds like there are some promising opportunities at the horizon, to prove the value of the purchasing function …
In the Handelsblatt Business Monitor 401 Top Managers from Germany, 250 from the U.K., 207 from France, 153 from Italy, 103 from Switzerland and 56 from Austria are included.
