A survey revealed that two-thirds of early British CEOs saw their supply chains under pressure during the pandemic, and bosses around the world now worry that supply disruption is one of the biggest risks to growth.
KPMG’s global survey of CEOs found that supply chain risk is one of the three major business challenges that align with cybersecurity, environmental and climate issues.
It shows that bosses in the consumer goods and retail, manufacturing, and automotive industries see supply chain issues as their main threat to growth.
CEOs had to adjust their business strategies to face the many uncertainties brought about by the pandemic, and now they are seeking to shift their plans from flexibility to expansion as the economy rebounds.
The findings came as the UK supply chain crisis was getting worse due to the shortage of truck drivers, the pandemic and Brexit.
These problems make supermarket shelves more and more empty, and affect all industries from retail and restaurants to housing construction and DIY.
KPMG 2021 Chief Executive Officer The outlook shows that 56% of global CEOs (including 59% in the UK) said that since the beginning of the Covid-19 crisis, their business supply chains have been under increasing pressure.
Nearly one-fifth of global bosses (19%) plan to reduce the impact by “localizing” more supply chains, and 16% of British business leaders say they will increase supply in the UK in the next three years.
Nearly one-third (30%) of global CEOs and 26% of UK bosses stated that they will add new locations to make the supply chain more resilient and thus diversify the sources of input.
A poll of more than 1,300 global CEOs (150 of them in the UK) also highlights the trend towards growth as the global economy rebounds from the pandemic.
A total of 87% of respondents said they are planning to make an acquisition in the next three years.
The evolving climate and social crisis clearly shows that we need to change our approach and work together
In the latest survey, the number of people planning to reduce their physical footprint globally has dropped significantly from 69% in August last year to 21%-and even lower at 14% in the UK.
KPMG UK Chief Executive Officer Jon Holt said: “After a difficult 18 months, it is encouraging that the chief executives of the UK and around the world have renewed their confidence and optimism in thinking about future growth and investment.
“CEOs have had to adjust their business strategies to deal with the many uncertainties brought about by the pandemic, and now they are seeking to shift their plans from resilience to expansion as the economy rebounds.”
The survey highlighted the changes in work culture caused by the pandemic. 37% of people have adopted a hybrid model. Employees can usually work remotely two to three days a week.
More than half (51%) are also investing in co-working space, up from 14% in the January/February survey.
Another key area identified in the study is the increasing importance of environmental issues. 35% of British bosses plan to spend more than 10% of their income on sustainable development measures and plans in the next few years.
Bill Thomas, Chairman and CEO of KPMG, said: “CEOs are paying more and more attention to Environment, Society and Governance (Environmental, Social and Governance) is at the core of its recovery and long-term growth strategy.
“The evolving climate and social crisis clearly shows that we need to change our approach and work together.”
