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. 

 
ANCHOR TITLE FACTS

Placeholder Infographic goes here

     

 

Survey highlights

  • 62% cite unforeseen geopolitical risks as a top organizational challenge in MANAGING impacts of inflation
  • 82% expect to raise prices by the rate of inflation (52%) or more (30%)
  • 72% envision passing on price increases in three to six months
  • 74% are looking at right-sizing staff as a means of offsetting the impact of inflation
  • Nearly 40% plan to allow all employees to work remotely to reduce real estate and related spending
  • 65% anticipate increasing their technology spend by 5% to 20% to mitigate inflationary impacts


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.


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%).


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.


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.

Version 2

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.

      

       

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.

                     

  

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%).

   

   

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.

   

   

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.

  

Showcase gated content, 

highlighted event, etc.

This is a lightbox for roasting pieces of important content

  

A focus on banks

Our survey included 60 banking executives, primarily with balance sheets larger than $10B. Learn the multi-front strategies they are using to help manage costs in today’s high-inflation environment.

Connect with KPMG Economics 

KPMG Economics provides timely insights into economic indicators, monitoring short and long-term trends and identifying potential opportunities that could impact your objectives.

  

Structural Change Watchlist

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.


Our Team

Meet our trusted partners who can answer questions regarding inflation and help you plan for unpredictable factors.  

Prashanth Brindavan

Prashanth Brindavan

Principal, Advisory Finance Transformation, KPMG LLP

+1 949-885-5437
Yash Acharya

Yash Acharya

Managing Director, Advisory, KPMG LLP

+1 212-954-2125