According to a survey, finance bosses believe the “double whammy” of labor shortages and supply disruptions is currently causing major problems for British businesses, which are unlikely in any meaningful way until the beginning of 2023. will not be less than
Deloitte’s quarterly survey of chief financial officers – which includes 18 companies listed on the FTSE 100 – found that the majority of firms were being impacted.
Most CFOs have experienced labor shortages in the past three months, with some serious or significant problems in three quarters. Nearly the same proportion (73 percent) expect the same level of difficulties in a year’s time.
Nearly six in 10 CFOs (59 percent) report that their businesses have experienced some, significant or severe supply chain disruption.
Supply disruptions and labor shortages have left companies struggling to meet demand as the economy recovers from the pandemic.
Four in 10 CFOs (41 percent) report that demand for products and services from their own businesses has already returned to pandemic levels.
Others, however, have pushed back their hopes for demand recovery in light of shortages of both material and labour. Some 52 percent of CFOs are now expecting to reach pre-pandemic levels in 2022 or later, up from 43 percent in the second quarter.
“CFOs are dealing with a double whammy of labor market shortages and supply chain disruption. But they remain confident with a strong appetite for growth and investment in new markets, products and services,” said Richard Houston, senior partner and CEO at Deloitte.
“With the continuing impact of the pandemic, climate change is firmly rooted as a major risk. As businesses set their sights on transitioning to net zero, finance leaders are focusing on ways to reduce carbon emissions, which are fully embedded in their corporate strategy. “
Official data released last week showed job vacancies hit their highest level in 20 years, with 1.1 million postings in August.
Rapid consumer behavior changes during the pandemic have created a mismatch between the skills of unemployed workers and those required by businesses.
A move towards online shopping has created a greater demand for warehouse and logistics workers, with companies competing for limited labor. Meanwhile, thousands of foreign workers left Britain in the wake of Brexit.
Credit: www.independent.co.uk /