Despite economy Grant Thornton LLP study finds majority of CFOs not expected to raise customer prices/fees over next six months
CHICAGO, May 18, 2009 - Despite the current economic outlook for U.S. manufacturers, 68 percent of manufacturing CFOs surveyed by Grant Thornton LLP, do not expect to raise customer fees or prices over the next six months. Only 12.6 percent expect to raise prices or fees.
Manufacturing CFOs are most concerned about the impact of employee benefits on their bottom line, with more than 73 percent indicating it was their biggest concern, followed by raw materials (62 percent); energy (47 percent); and insurance (26 percent).
To help improve profitability, 70.6 percent of CFOs indicate that they are not giving raises this year, and nearly 59 percent aren't giving bonuses. Nearly 70 percent are cutting back on recruiting/hiring, and 66 percent are reducing headcount. On the operations end, 68 percent are refining processes and streamlining and 59 percent are reducing business travel expenses.
At least one piece of good news is borne out by the study, which found that 70 percent of manufacturing CFOs are not having difficulty accessing credit and 92 percent have not had to return to bank credit because they couldn't access alternative financing structures.
The bad news is that 83 percent of CFOs expect the recession to last to the end of 2009.
The survey results were compiled in April 2009 by Grant Thornton LLP representing 120 manufacturing CFOs from companies with revenues from less than $100 million to $1 billion.
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