12 December 2022, etc.venues Monument, London
Business Travel Show Europe, presented by The BTN
21 November, London Hilton Metropole
Pessimism on hopes of quick recovery
Finance officers around the world are still aggressively focused on cutting costs, a survey by American Express said today (May 12).
The research found that companies in all regions were pessimistic about any prospects of a rapid economic recovery.
The second annual American Express/CFO Research Global Business & Spending Monitor quizzed 285 senior finance executives in the US, Europe, Canada, Asia and Australia.
70% of the executives said they expected the recovery to begin "sometime in 2010."
But two thirds said they predicted economic contraction over the next 12 months while 63% said their own companies' investment would fall over 2009.
On cost controls, the survey found that 85% of executives were tightening their company spend, 82% were placing greater stress on measuring and monitoring financial performance and 71% were improving internal financial controls.
But the survey found that executives took a similar attitude to business the other company activities.
A large majority (87%) said their company planned to spend less on business travel this year with 44% expecting a cut of more than 10%.
The survey found that companies were shifting to a "heavy focus" on revenue generating travel.
82% said they were likely either to maintain or increase meetings with new client or for business development while 66% said they would maintain or increase travel for existing clients.
But the research found that companies were maintaining spending in areas which were regarded as vital.
These included IT, employee benefits, marketing and advertising and research and development.
Ares where spend was being cut, besides travel, were investment, merger opportunities and third party consultants.
Gunther Bright, Amex's senior vp global client group, said: "While companies are clearly focused on cutting where they can, they are spending when they should to become more efficient and keep revenue flowing.
"They're also measuring themselves against new metrics that reflect today's market reality, as well as a post-recession global economy."