Riding the wave
Building resilience from top line to bottom line
2022 KPMG Inflation Survey
With inflation at a 40-year high and multiple shocks disrupting the financial and business landscape, companies are re-examining business models and developing new strategies for
- Accelerating topline growth
- Protecting the bottom line
- Planning for unpredictable exogenous factors
We surveyed 300 leading financial executives to learn how they're building operational resilience through today's environment of inflation and continued disruption.
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Structural shifts are more profound than cyclical shifts, as they upend existing business models. Knowing the trends already underway is a powerful advantage when hedging risk. We look at the top 10 structural changes reshaping the economic landscape today.
From bottom line to top line, inflation is top of mind
The 2022 KPMG Inflation Survey captures a long-term view of how inflation is impacting strategic decisions and corporate behavior.
1
Accelerating top-line growth
Despite falling consumer sentiment, 82% of companies expect to raise prices by at least the rate of inflation. At the same time, nearly 60% may look to develop new products at lower price points in an effort to maintain or increase customer wallet share.
2
Protecting the bottom line
In the face of wage inflation, companies are re-evaluating the right size, structure and location of their workforce. They are considering workforce reductions (48%), cuts in non-salary compensation (47%) and relocating staff to lower-cost regions (53%), while also exploring refinancing (54%).
3
Planning for exogenous factors
With unforeseen geopolitical risks leading the list of organizational challenges, companies are realizing that “dark swans” are lurking everywhere. They are factoring geopolitics into their risk planning, on-shoring or near-shoring more functions, and building resilience into their supply chain and foreign exchange processes.
4
Responding with technology
With headcount reductions and right-sizing programs looming, companies expect to counter the potential hit to productivity with technology. Among respondents, 65% expect to increase tech spending by 5% to 20%, with AI, machine learning, blockchain and cloud computing increasingly seen as inflation-fighting investments.
Dive into our thinking:
Inflation survey white paper
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