Insights That Matter on Planning for a Potential Recession
A Note from our Co-head of Americas/Asia, Lisa Donahue:
The signs of a recession are upon us, with four out of five experts we surveyed expecting an economic downturn within the year. Companies continue to struggle with multiple disruptions, from inflation and supply chain to reducing carbon emissions and more. In times of such economic uncertainty, budgeting-as-usual (or hoping for the best) is not enough to rise to the challenges ahead. Action is needed, and it is needed now.
?AlixPartners has a long history of helping companies in trouble–and we’ve witnessed the risks associated with waiting too long to take action. Over the past 40 years, we at AlixPartners have learned a few lessons that should be applied, now, by every company. Our CEO Simon Freakley and I share our 4-step planning process in this Harvard Business Review article, Setting Your Annual Budget Amid Economic Uncertainty.
?With the proper preparation and action, you will be better prepared to navigate the uncertainty ahead.
Lessons learned? Has the pandemic prepared Private Equity for recession?
Adopting a mindset where disruption is a constant is the model all businesses should embrace. And we’re seeing this emerge across PE. Market conditions are causing strategies to shift and forcing a level of portfolio reassessment that mirrors the introspection and swift subsequent action that many businesses implemented in the recent COVID-fueled past.
Managing Director Mark Veldon shares some of the lessons PE firms can learn from this past – the impact of the pandemic – to prepare for an almost inevitable recession.
How can Sourcing and Procurement teams elevate their impact in inflationary times?
Against a challenging macroeconomic backdrop, Sourcing and Procurement (S&P) teams must develop greater flexibility and agility to navigate disruption ahead. Facing ongoing fragility in the global supply chain and increasing inflationary pressures, a well-developed procurement structure is crucial for successful relationships with suppliers and solutions that can weather disruptions. Careful planning and preparation are the keys to keeping your business afloat and growing in the face of disruption.
领英推荐
Are you reacting fast enough to changes in inflation?
Inflation has become the overriding economic concern in 2022. While further supply shocks––such as geopolitical conflict, extreme weather events, or transport strikes––could cause further inflationary pressures, we believe that the global economy may have reached a key inflection point.
Several retailers and manufacturers are working to recover costs, and we expect this to intensify before Q4 joint business planning with major suppliers and 2023 fiscal planning. Our emerging theory suggests a "run on the bank" later in the cycle as companies rush to recover cost increases suppliers pushed through in the past 12-18 months.
Our team of commodities experts track hundreds of input cost factors, and we see meaningful downward moves that we have not seen in several years:
There are strong indications that these trends will continue as recession concerns create even more slack in the system moving into year-end.
Read the complete analysis and our experts Amol Shah, Nitin Jain, and Sudeep Suman’s recommendations here.
Subscribe to the “Insights that Matter” newsletter from AlixPartners and stay up to date on the disruptive trends transforming your world.