Press Release
February 2009: UHY Business Outlook 2009 Survey - Resilient businesses manage the current crisis
As a member firm of UHY International, a global network of independent accountancy and consultancy firms, we are pleased to publish the findings of their recent survey: the UHY Business Outlook Survey for 2009.
Survey respondents
Respondents to the UHY Business Outlook survey 2009 come from a mix of business size, sector and location, however 75% are businesses with turnovers of USD 25 million or less, 56% are based in Europe (Continental and East) with 44% from the rest of the world. Business services, manufacturing and finance and insurance are the major sectors represented (30%, 20% and 14% respectively.)
Key findings
Given this respondent profile, it is interesting that the survey findings present a ‘business as usual’ picture for many respondents - the current economic situation is affecting their business predominantly to only a moderate degree, however some issues are expected to adversely affect them in the future.
The following key points summarise the detailed findings:
Confidence levels and business impact
- Overall, respondents seem able to maintain current operations; however their confidence in their ability to maintain their future plans for the business is reduced. Therefore achieving revenue projections, maintaining current staff levels and funding capital expenditure and acquisitions seems less likely this year.
Compensating opportunities
- Over 60% of respondents see two key compensating opportunities for their businesses given the current economic climate: with over 60% regarding weakened competition and more easily available talent in the market place. In order to take advantage of these opportunities respondents are most likely to develop and launch new products or services and/or increase sales, however their plans around acquisition or expansion are less likely.
Outlook for the future
- Respondents have split views as to when there will be economic improvement for their countries: 36% are optimistic and expect to see improvement this year, however the majority (48%) do not expect to see improvements until 2010. But 17% are more pessimistic and do not expect improvement until 2011 or beyond.
- As seen previously throughout this survey it is the plans for expansion, on this occasion into emerging overseas markets, that are being reconsidered with 31% of respondents rating an expectation to do less this year and only 11% saying they expect to do more.
UHY International Chairman, John Wolfgang, comments:
“From the survey results it is evident that many businesses remain upbeat despite the downturn in the global economy. Managers see challenges ahead in terms of financing and cost-cutting. Most companies do not predict an increase in sales, but do not expect a massive contraction in sales either.”
“It is their medium term plans for the future that are being put on hold although many seem poised to take advantage of market opportunities that may arise due to weakened competition or exceptional talent becoming available.”
About UHY International
Established in 1986 and based in London, UK, UHY International is an association of independent audit, accounting and consulting firms with offices in over 211 major business centres in 72 countries. Over 7055 staff generated an aggregate income of US$667 million in 2008, ranking UHY International among the top 25 international audit, accounting and consultancy networks (by revenue). Each member of UHY International is a legally separate and independent firm. For further information on UHY International please go to www.uhy.com