Business leaders are focused on how COVID-19 is impacting supply chains and revenue, while reconfiguring post-crisis capital allocation and M&A plans, according to the EY Global Capital Confidence Barometer (CCB22).
Three-quarters of respondents to CCB22 – a survey of nearly 3,000 C-suite executives globally – expect COVID-19 to have a severe impact on the global economy in the form of supply chain disruption and declining consumption.
At the same time, executives are reviewing their operating models in response to the crisis.
Anticipating the next
Many companies already had major transformation initiatives underway, triggered because of pressure on revenue targets and to meet profitability goals.
The majority (72%) are also planning to conduct more regular strategy and portfolio reviews. Once some normality has returned, executives say they’ll focus on prioritizing changes in new investments in digital and technology (43%), and capital allocation (42%).
Beyond the crisis
While 54% of respondents expect a recovery period of slower economic activity extending into 2021, 38% see a return to normal activity by around October. Just 8% foresee a sustained recession period until 2022.
The human cost is the most tragic aspect of the crisis, not only in terms of the lives lost, but also the number of livelihoods at risk. As business leaders respond with urgency to the unprecedented impact COVID-19 is having globally, workforce welfare and job preservation will be at the top of their minds.
The full report can be accessed here.
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