The energy crisis, escalating inflation and rising interest rates paint a complex scenario for Spanish companies that remain optimistic about their growth in the next twelve months, despite the cautiousness of their economic forecasts. This is evident from the ‘Perspectivas España 2023’ report conducted by KPMG in collaboration with the CEOE. 70% of business people surveyed expect their sales to increase throughout the year (seven points less than in 2022) and this will invest 50% more (ten points less than the last edition of Perspectivas España).
CEOE president Antonio Garamendi said:The results of the report reaffirm the need for companies to promote effective support measures. have a framework of political stability and regulatory quality that creates a favorable investment climate as well as sustaining the progress of the economy and jobs”.
Juanjo Cano, head of KPMG Spain, said: “With the prudence required by the current context, Spanish businessmen’s prospects for the development of their organization are optimistic and show their confidence in sales growth and promotion.” sustaining investment and employment. This optimism is based on a determination to continue moving forward in digital and sustainable transformation.. Entrepreneurs are aware that the success of this process will determine growth opportunities in the medium and long term in an increasingly competitive environment that requires a quick response to change.
Regarding the state of the Spanish economy, 57% of managers consider it normal (53% in 2022), 28% consider it bad or very bad. This data contradicts the view they share about the current state of their company: almost three-quarters (73%) consider it good or excellent. Moreover, 44% of surveyed entrepreneurs believe their organization will improve throughout the yearIt’s the same percentage that expects the Spanish economy to get worse over the next twelve months.
Managers more cautious in hiring forecasts. But the results show companies’ employment commitment: Compared to 2022, the percentage of respondents who will expand their workforce drops to 38% (eight percentage points less than 2022), and the percentage who does so rises to 50%. remains the same (seven points more than the previous edition).
An environment marked by inflation
The report also reveals the effects of inflation on other areas of corporate governance. 69% of executives say inflation has a high or very high impact on profit margins from your organization. As a result, more than half (52%) of respondents have redefined their pricing policies to reflect the increase in costs, and 31% plan to do so in the next twelve months. In addition, 45% have renegotiated their contracts with suppliers, and 32% plan to do so during this year.
It is not surprising that the majority of respondents (53%) put the development of measures to reduce inflation among their strategic priorities for the next twelve months. 54% consider rising prices to be one of the main threats to the Spanish economy in the short term.
Therefore, three aspects closely related to inflation, such as the cost of energy, price volatility or demand risk, responded higher when executives were asked about the main risks to their business this year (38%, 36% and 36%, respectively). ).
On the other hand, recent years have been marked by intense legislative activities, including local, regional and general elections to be held in the coming months. In this context, 46% of respondents in this issue of Perspectivas España include: Also among the main threats to the Spanish economy in 202 is political uncertainty.3.
Difficulty attracting and retaining talent
The transformation process that companies are immersed in requires new skills and talents, which has led to talent gaining prominence on corporate agendas. 57% of executives surveyed believe that attracting and retaining talent is one of their biggest challenges over the next three years, with almost half (49%) citing this area as a strategic priority for 2023.
The effects arising from the need for new skills and professional skills are already noticeable in companies. In fact, 59% say their organization has trouble recruiting the talent they need, while 65% agree that a lack of talent puts their business goals at risk.
About this report
Perspectivas España is a report KPMG has produced since 2009. It has been prepared in collaboration with the CEOE over the past seven years. 1,116 businessmen and executives from 24 sectors and all autonomous communities participated in this edition. Responses were collected through an online survey conducted between December 2022 and February 2023.
51% of the respondents are chairman, general manager, company owner or director and 40% are managers.. 29% of participating companies have more than 1,000 employees and 33% invoice more than 200 million Euros per year. The most represented sectors were Industry (13%), Business Services (10%) and Consumer Goods (8%). By communities, Madrid (28%), Andalusia (15%) and Catalonia (10%) have the most assets.
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