Businesses respond to inflation with investment in technology transformation as concerns of recession linger
San Fransisco, California – Financial decision-makers across regions are investing in automation (37%) and supply chain technology (37%) as businesses respond to inflation and lingering concerns about a recession, according to new research from Taulia, the working capital management solutions provider.
The survey, which was carried out amongst more than 500 senior financial decisions-makers in the U.S., UK, Germany and Singapore found that businesses in Singapore and the U.S. are more likely to invest in technology and infrastructure than undertake cost-cutting measures, such as seeking cheaper suppliers, reducing staff expenses, and working more efficiently with raw materials and energy, as economic uncertainty continues.
U.S. decision-makers said they are prioritizing investment in automation (43%) and supply chain management tech (41%) alongside cutting costs (41%). Financial decision-makers in Singapore are more likely to invest in supply chain management tech (46%) and automation (44%) than cutting costs (37%).
Cedric Bru, CEO of Taulia, said: “Contractionary monetary policy to fight off inflation has driven concerns about a recession in many regions. While layoffs are happening, especially in some industries, it is encouraging that we are seeing businesses explore alternatives to extreme cost-cutting that has characterized recessions of the past. We are also seeing a strong trend of investment as business leaders look to instill resilience and find creative ways to continue doing business in the face of adversity.
“This intelligence is an invaluable resource for businesses looking to reorganize their supply chains and rethink their financial arrangements to suit a fast-changing business environment in which priorities are very different now than a few months ago.”