Survey: UK business performance and cost management
We are launching a brand new research and invite all to participate. The study aims to examine the implications and impact of cost management for UK business performance.
In 2010 Proxima ran some research which found that the FTSE350 could improve its EBITDA by £53 billion from better procurement performance on 3rd party costs. At the time of the research, this represented a significant opportunity to improve bottom line delivery and shareholder return.
Fast forward two years to March 2012, and not much has changed. However, what has changed is that in response to a continuing lack of top line growth, many businesses are focusing on their cost mangement in a way we haven't seen before - and that is by challenging their largest, but least visible business expenditure item – third party (non-labour) costs.
Over the past five years companies have been heavily cutting labour costs. Many businesses, having been through multiple rounds of redundancies, are at the point where further cuts will undermine productive capacity. Further to this, businesses generally spend far more externally on third party goods and services than on their workforce. While there are many external factors out of a business' control and, as 2011 has taught us, hard to predict, managing these costs is definitely in control of every business.
Proxima would like to invite you to participate in our latest survey to examine the implications and impact of cost management for UK business performance.
The survey should take you less than 10 minutes to complete.