Tight Budgets Ahead
Doing more with less remains the mantra at corporations, according to a new survey from Deloitte Consulting LLP. Most senior executives expect revenues to grow over the next two years, but nearly as many say they remain focused on cost-cutting initiatives. These efforts can be ambitious, with over half of companies surveyed expecting to trim 10% or more from their budgets. Despite intense pressure to save, most executives are not meeting budget-reduction objectives; that means the pressure is on to find new ways to cut. "While we are emerging from the Great Recession, companies are struggling to adapt to this new economic paradox to constantly spend less, but grow more," said Omar I. Aguilar, leader of Deloitte's enterprise cost management practice. "At this point, much of the 'low hanging fruit' has been picked and companies need to move beyond the approaches they've already leveraged to improve efficiency that will bolster growth efforts." Nearly 140 U.S. executives took part in the survey. To access the report, click here.