Way forward | Cost optimization measures
Two thirds of the companies surveyed will respond to the anticipated cost development with optimization programs – the main objectives are to improve cash flow , reduce expenses for innovation , and reduce personnel expenditure
FOCUS OF OPTIMIZATION MEASURES
Probability of optimization measures in the next 24 months
" Yes "/ “ likely " 67 %
COMMENT
• Awareness of anticipated cost challenges until 2025 appears to be existing
• The majority of respondents ( 67 %) has already decided on optimization measures or consider them likely
Focus of the selected optimization measures |
• In addition to cash optimization ( 81 %), the preferred levers are the review / reduction of innovation budgets ( 73 %) and the reduction of personnel expenditure ( 65 %) |
81 % |
73 % |
65 % |
38 % |
• Remarkably enough , a renewed passing on of the cost increase to the customer ( e . g . through price increases ) is predominantly ( 62 %) no longer regarded as feasible . The tolerance limit on the customer side seems to have been reached |
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Cash optimization
Review of innovation budgets
Reduction of personnel expenses
…
Pass on costs ( to customers )
Source : goetzpartners Cost Management Pulse Check 2023
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