GLG Survey: Most C-Suite Execs Expect the COVID-19 Recession to Have Greater Short-Term, Less Long-Term Impact than 2008 Recession
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Unlike any precedent in our lifetimes, COVID-19 has slowed supply chains, put millions out of work, and roiled global markets in a way that suggests a slow recovery. To understand how SMBs and enterprise companies are reacting to the current situation, GLG conducted a survey of c-suite professionals at U.S based-companies to gauge their sentiments.
The survey was conducted in April and included 121 c-suite professionals at U.S.-based SMBs and enterprises. The resulting report, COVID-19 Economic Downturn Study, provides a unique look into the operations of companies during these unprecedented times. The study includes s-suite professionals from more than fifteen industries.
The COVID-19 Economic Downturn Study provides insight into how companies and executives are coping in these unprecedented times, including answers to the following questions:
- How are CEOs preparing their organization for an economic downturn?
Nearly half (49%) of enterprise and SMB executives feel confident about their preparedness to deal with the economic downturn, largely due to cost-cutting and reorganizing measures.
- How do CEOs feel this downturn will compare to the 2008 recession in short-term trends and long-term trends?
Most, (82%) enterprise executives predict that this economic downturn will have more severe short-term implications than the 2008 Great Recession. Similarly, 79% of SMB executives said the same. Conversely, only 42% of enterprise executives believe this downturn will have more severe long-term consequences than the 2008 Great Recession, while 26% of SMB executives echo the same sentiment.
- How long do CEOs feel the economic downturn will last?
Fully 63% of executives believe that COVID-19 will continue to affect their profitability and operations for another nine months after survey publication.
- How long do CEOs predict their organizations will need to recover to pre-COVID-19 levels?
More than half (62%) of executives believe that it will take longer than a year to recover to pre-COVID-19 levels of revenue and productivity.
- How are CEOs cutting costs, if any?
Nearly three quarters (74%) of executives plan to take measures to cut company expenses, including hiring freezes, reducing vendor expenses, using automation tools to increase productivity, and making changes to their investments.
- What are CEOs identifying as areas of need for support, preparation, and sustainability?
Some executives, particularly in the healthcare, energy, and technology industries, believe that their product offerings naturally offer the support and sustainability all companies need in the current crisis.
However, most executives eagerly identified their weakest links as they brace for the remainder of the pandemic and what promises to be a prolonged economic downturn. Of those we surveyed, 44% identified supply chain as a risk, due to inventory inefficiency as companies go entirely remote. Sales and business development are also widely noted as risks, as 66% reported experiencing slow revenue and leads due to client delays in timelines and payment.
More details, questions, and data points are available to you and your business by accessing the GLG COVID-19 Economic Downturn Study.
As every country, industry, and business takes what were once considered extreme measures, GLG continues to emphasize flexibility and creativity to ensure client success. If you have a project you think we could help provide thought partnership, insight, or qualitative and quantitative data for, we are here to help.
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