A brand new survey of 249 U.S. CFOs, this time by Grant Thornton, conveys a “better of instances, worst of instances” vibe, with 72% anticipating rate of interest hikes to create a recession.
Over the subsequent six months is when the doom and gloom settle just like the opening of a mediocre English homicide thriller. Solely 39% of these responding had a constructive outlook for the nation’s economic system and 30% are contemplating layoffs. Not excellent news for the CRE workplace section, which is already underneath stress from attempting to know what area use will likely be like going ahead.
Particularly, pessimism comes from considerations over increased power prices, provide chain issues, rate of interest hikes, and better prices of credit score and capital.
There may be additionally a possible secondary impact from playoffs. “Watch out,” warned Tim Glowa, a principal and chief of Grant Thornton’s worker listening and human capital analytics companies, within the firm’s launch, “as a result of the influence of layoffs or different cuts to the worker worth proposition can linger for employers. Corporations that had been fast to chop headcount at the start of the pandemic suffered within the intense competitors to rebuild workforces throughout the restoration.”
When issues enhance, corporations that went too onerous into preventative measures like main layoffs might discover themselves unable to catch up in a well timed trend, slowing enterprise and their want for area much more.
However that’s one aspect of the CFO and company puzzle. The opposite is a real flip aspect. Money and liquidity jumped from 19% in Q1 to 31% in Q2. And 65% of CFOs assume that the influence of Covid-19 is “waning” (though keep in mind the CDC says it’s nonetheless the third largest reason for demise within the U.S.). Additionally, 66% assume their corporations will meet progress objectives whereas 61% anticipate to extend income.
The highest three considerations of CFOs are cybersecurity (41%), provide chain (37%), and distant workforces (32%). Provide chain is essential as a result of whereas CFOs assume buyer demand is there, they fear that issue in assembly provide might price them.
“But whereas money considerations is probably not surprising, many leaders could also be shocked to see remote-workforce points rank third on the record of considerations,” stated the report. “Based on Grant Thornton leaders, there are a number of components fueling this concern: the confusion over how a lot workplace area is required; a deliberate elevated funding in coaching; and potential layoffs.”
