Inflation and energy costs have forced over half of 508 corporate executives and senior decision-makers to modify their investments strategy.
Growth and revenue are influenced by cyclical investment in company. Has the global economy influenced this?
“Our exploration into businesses’ reinvestment plans and whether they’ve been affected yielded some interesting insights,” BusinessComparison founder and MD Philip Brennan said of the poll. It was surprising that over half of company leaders said global events had changed their intentions.
The East of England invested approximately half of its revenues, which was fascinating. Although the current environment is difficult for businesses, it was reassuring to see so many sustaining investing plans.
First, they needed to see if companies were reinvesting. 53% invest annually and 19% based on earnings.
The North West (67%) and Greater London (66%) invested the most annually, whereas 17% from the East of England did not reinvest despite generating a profit.
23% invest 11%-20% of profits or extra cash. One-fifth also invests 21-30%. Investment averaged 37% of earnings nationwide.
18–24-year-olds invested 41% of profits compared to 27% for 55+.
The East of England was the biggest investor, reinvesting 44% of profits. South East reinvestment averaged 28%.
What are 84% of firms investing in now that we know?
Top three responses:
- Buying tech: 59%
- Marketing/advertising: 50%
- Training staff: 43%
54% of London company executives prioritized equipment and technology. 47% of East England concentrated on self-sustainability, the most of any region.
Has financial pressure changed reinvestment plans? 57% of enterprises have had their investment strategy affected, with 55% investing at a lower pace and 2% not investing at all.
Finally, the study asked how firms were getting capital to invest.
The top three replies were:
- 35% business loans
- Current stakeholders funded 34%
- Director investments: 33%
Global conditions have hurt firms and investment ambitions. The poll shows how financial hardship is affecting these organizations.
