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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ANCHOR TITLE FACTS

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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.

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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.

Read the survey

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.

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Insight

From proof of concept to connected capabilities

4 steps to a more intelligent forecast

Industry specific reports

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2022 KPMG Inflation Survey: Banking Report

How banks are managing the impact of rising costs in a volatile operating environment

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2022 KPMG Inflation Survey: Consumer & Retail Report

How your Consumer and Retail organization can strike the right balance between pricing strategies and profit margins.

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2022 KPMG Inflation Survey: ENRC Report

Energy, natural resources, and chemicals companies in the United States are certainly feeling the pressure in parts of their business.

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2022 KPMG Inflation Survey: Industrial Manufacturing Report

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2022 KPMG Inflation Survey: Insurance Report

Inflation prompts a multifaceted response from insurers

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