Most firms will consider operational changes when reopening – survey

29th May 2020

By: Marleny Arnoldi

Deputy Editor Online

     

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A Covid-19 CFO Pulse survey conducted by consultancy PwC has revealed a sense of optimism among finance leaders about their companies’ ability to safely reopen as Covid-19 restrictions slowly start to lift in some countries.

PwC says most businesses in Africa, similar to their global counterparts, are taking adequate steps to provide a safe working environment for employees.

About 75% of CFOs feel very confident that they can meet customers’ safety expectations, while 70% of CFOs are very confident that they can provide a safe working environment for employees.

The survey gathered responses from 867 CFOs across 24 countries earlier this month.

Almost half, or 49%, of CFOs are considering making remote working a permanent option where feasible and 48% of CFOs are looking at accelerating automation and other ways of working.

Particularly CFOs in Denmark, Germany and Mexico are most likely to consider making remote working a permanent option, says PwC.

When it comes to changing supply chains, 51% of CFOs cite developing alternative sourcing options as the most pressing area, led by Africa at 64% consensus and followed by Turkey at 63%.

In Germany and the US, CFOs are most likely to prioritise understanding the financial and operational health of their suppliers.

More than half of CFOs expect a decrease in revenues of up to 25% as a result of the Covid-19 pandemic, with 81% of CFOs saying they will consider cost containment as a strategy in response to the crisis.

PwC finds that 60% of CFOs will defer or cancel planned investments, with 83% of them doing so with facilities and general capital expenditure, 53% doing so with operations and 49% doing so with the workforce.

Further, CFOs are optimistic that their businesses can return to ‘business as usual’ within three months if Covid-19 was to be completely contained, with 51% indicating so.

However, PwC says there is a growing sentiment in many territories that recovery may take much longer. For example, 33% of Africa’s CFOs believe the recovery will take six to twelve months.

Work flexibility, better resilience and agility, and technology investments have come out as the crisis-driven developments that will improve companies’ prospects in the long run.

PwC was due to release its ‘Africa Covid-19 CFO Pulse’ report in the week ending May 22.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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