Global Executives Predictions for 2010
Trade credit insurer Atradius released results of 35,000 global executive interviews regarding predictions and trends of the economic recovery and the effect of government stimulus efforts. Channel Insider takes a deeper look at what global executives are seeing, thinking and doing to mitigate risk and prepare their businesses for recovery.
Prediction: Rebound in 2010
Nearly 40% of global respondents expect the economic crisis to end in the first quarter of 2010. 66% of US respondents anticipate a rebound in business by the end of 2010.
Prediction: Financial Stability on the Horizon
Half of US respondents believe their companies’ financial position will stabilize at the end of 2009, and 30% anticipate an improvement in their financial stability by this year’s end.
Prediction: Banks Continue to Fail
Although optimistic about economic recovery, US business leaders remain pessimistic about large bank and financial institution failures with nearly half of US respondents predicting an anticipated increase in bank failures and 34% suffering a decrease in their access to financing.
Survival: Mitigating Risk
Hunkering down and working for business continuity,global leaders have taken a variety of risk mitigations teps, including changing their credit terms (40%), outsourcing collection services (34%), and considering or have begun using credit insurance as a risk mitigation tool (32%).
Survival: Entering New Markets
Finding new markets or sales channels for products and services (50%) and placing a heightened focus on customer service (58%) have proven essential elements for business continuity, as have gaining access to financing and conducting staff level reviews.
Is Stimulus Helping?
56% of American respondents think the US government’s stimulus until now efforts have largely been ineffective. 62% think the government should stimulate economic growth through tax cuts and incentives with only 1% favoring additional tax increases.