What's next for workforce, supply chain and inflation?
As we have surveyed CFOs over the course of the 2021, three challenges have emerged that will dominate your attention in 2022:
Workforce issues: For most of the year, CFOs have expressed concern that the workforce shortages will impact their ability to execute their strategy. While unemployment rates are low, labor participation rates have not bounced back to prepandemic levels, and open positions currently outnumber applications by about 1.5 to 1. The Great Resignation continues as Americans look for new solutions to work-life balance needs.
Supply chain concerns: The pandemic upended supply chains around the world and the fallout continues. Omicron threw another kink in the system, tightening labor supply just as production was ramping back up. Business are looking to build resilience and mitigate risk throughout their supply chains.
Inflation: 2021 started with inflation rates at less than 2% and ended with rates above 7%--inflation not seen in more than a generation. CFOs who have gone their whole careers without having to forecast for or manage the impact of inflation now face yet another challenge. And with the Fed set to crack down, they need to be ready for yet more change.