Executives surveyed share several universal concerns about their short-term prospects and the long-term impact of the recession on business conditions:
- 71% think that government regulation of business will increase over the next five years. 77% of North American respondents think that this will be the case
- 71% feel that the current downturn will change consumer behaviors for at least three years
- 70% are very concerned about meeting growth targets in 2009. This number jumps to 81% in Latin America
- 64% are planning for a downturn that will last at least until early 2010. This sentiment is felt equally across all regions
Brighter notes from the survey include:
- 75% of executives feel that their company will use this recession to improve their competitive position. Only 69% of North American executives surveyed agree. Though Rigby points out, “Of course, this raises a natural question about how many companies can actually improve their competitive position if so few worsen.”
- Only one-in-four executives think that their company waited too long to respond to this economic downturn. This number increases to 31% when asked of executives in Asia Pacific
Other key findings from the survey:
Established versus Emerging Markets
- 74% of executives in established markets feel that government regulation of business will increase over the next five years, while 68% of executives in emerging markets agree
- 63% of executives in established markets are very concerned about how their company will meet growth targets in 2009. This number jumps to 76% when asked of executives in emerging markets
Large Companies (more than $2 billion in sales) versus Small Companies (less than $600 million in sales)
- 69% of executives of large companies are planning for a downturn that will last at least until early 2010, only 58% of executives of small companies agree
- 41% of executives of large companies say that their company will have significant layoffs in 2009, only 31% of executives of small companies agree
Industry Variances
- 27% of healthcare executives say that their company will have significant layoffs in 2009 versus the highest rate of 44% of manufacturing companies
- 81% of financial services executives feel that the current downturn will change consumer behavior for at least three years. 64% of executives in technology, telecommunications and 62% in manufacturing agree
Asia Pacific Country Differences
- 40% of Chinese executives feel that their company waited too long to respond to this economic downturn. 22% of Indian executives agree. 34% of executives companies in other Asia Pacific countries agree
- 40% of Chinese company executives expect that their company will have significant layoffs in 2009. 23% of Indian executives agree, as do 33% in other Asia Pacific countries
- 70% of executives in China are planning for a downturn that will last at least until early 2010. 56% of Indian executives agree. 67% of executives of companies in other Asia Pacific countries agree
- 64% of executives in India think that the current downturn will change consumer behaviors for at least three years. This number jumps to 72% in China and 82% in other parts of Asia Pacific
"While the survey highlights many common themes in this global recession, it also points to important differences across both geographies and industries," concluded Rigby. "Clearly various tools will be more important and relevant to some executives than to others, depending on a company’s individual situation."
