QUARTER OF BUSINESSES FORCED TO DELAY CLIMATE PLANS, SAYS NEW PROXIMA RESEARCH
A survey of 2,000 US & UK CEOs reveals that business leaders are feeling the impact of inflation
Proxima’s Supply Chain Barometer highlights that a quarter of businesses have been forced to delay their plans to decarbonize their supply chain or change their plans altogether due to rising inflation.
The barometer, based on a survey of 2,000 CEOs of US and UK-based companies, provides insight into businesses’ concerns and decision-making in response to increasing inflation and global supply chain challenges. Difficult business decisions to raise prices for customers and cut jobs are down to inflation, according to CEOs.
Key findings from the research include:
- A quarter (25%) of businesses have had to delay their plans to decarbonize their supply chain due to the impact of inflation. Another 13% admitted that inflation had caused them to change their plans to stay on track with decarbonization efforts.
- 91% of CEOs say that they are seeing inflation. For more than half, the level of inflation is above 6% – with one in twenty CEOs saying they have experienced inflation above 10%, and a handful saying they’ve seen hikes as high as 100% in their cost base.
- 15% of CEOs told us they had already acted to ‘nearshore’ their supply chains, while another quarter (26%) said they actively looking at nearshoring some or all of their supply chain.
- Almost half (47%) of the CEOs reported that their businesses had raised their prices as a direct result of inflation. A significant proportion of leaders also said inflation was forcing them to reconfigure their products and services. Close to a third (32%) also said they were delaying planned business investments.
- An overwhelming majority of CEOs (89%) think the Government should be doing more to tackle inflation. Close to half (45%) think that the Government should be taking steps to cap energy prices for business, while a similar number said that the Government should be actively intervening by sourcing certain goods.
Kent Mahoney, Executive Vice President of North America at Proxima, said:
“There is no short-term solution to global supply chain issues which will continue to create increasingly complex challenges for business leaders. The long-term solution is multifaceted and requires an understanding of where disruption is being felt most. It’s vital to focus on available options whether it’s delaying business investments, raising prices, and nearshoring.
Amid historic supply shortages and the highest inflation in decades, businesses are feeling the impact especially when it comes to their plans to decarbonize their supply chains. CEOs are working hard to adapt their plans to reduce carbon emissions, as well as calling on Government to do more to help support their business.”
Read the full research report by clicking below: