The results are in: Uncertainty for the business is a top concern in the EU

look out airplane window over cargo ships in ocean

On May 20th, 2020 BDP conducted a virtual “regulatory update” to multiple companies within various industries across the European region.

The poll was anonymous and was conducted prior to the full regulatory overview. The goal of the polling was to try to capture a point of time on how companies felt about the current situation that has impacted everyone in the business world. 

The captured results provide concrete insight as to how companies perceive a few important areas across the current economy. Of nearly 100 participants, 28% of such felt that a global recession is taking place, 22% see a financial crisis impacting the region.

An important issue for companies that is always in the front of mind is the heightened customer service level that is expected for every order. 72% of the respondents have concerns from significant to moderate in meeting the customer demands due to issues like source point and/or at the supplier level.

Issues at supply points will bring the ripple effect to a global supply chain by placing greater stress points on meeting the customers’ expectations. However, not all companies have been severely impacted as some 12% reported no major interruptions, 5% reported no impact to their revenues for the year and 3% have reported an increase in revenues for the year. While these numbers are low, it is imperative to call them out as it shows that some businesses are meeting the challenges that the current crisis has placed in front of us.

And finally, how long do companies feel this impact be felt? Well, a number of companies - 42% to be exact, have placed their bets that within the year things will start to turn around from a financial standpoint. 25% of the companies were not sure, 11% told us that within 6 months things will change for the good and finally, some 20% of companies see the current issue having severe impacts and stated that a 2-year period is more likely for a turnaround.

While the numbers between the US and EU respondents vary in data, one thing is for sure: no matter what the region, uncertainty looms.

You can view the full results of the polling session below.