WASHINGTON – Whether or not the U.S. economy is in a recession is still up for debate (see next story), but it certainly is slowing down. That’s bad news for business, of course. But some executives see a silver lining, according to a study by the consulting firm Accenture.
Most of the executives surveyed by Accenture say they have taken advantage of the current economy to pause, take a critical look at their business models and make needed changes.
About 60% of executives from mid-sized companies say the biggest gains are coming from eliminating poor business models. Nearly a third say the slowdown is helping them increase their focus on cost reduction and gain an edge on competitors weakened by the marketplace shakeout. One in eight says that, thanks to the weaker economy, it is easier to recruit and train needed workers.
As for the negative effects of the slowing economy, nearly 40% say the biggest obstacle is the inability to raise new capital, while about half that number point to excessive inventories and the difficulties of planning for an uncertain future.
Accenture also asked the executives which “new technology investments” made in the past couple of years have been most beneficial. The most frequent answer was supply chain management (SCM) systems, followed by customer relationship management (CRM) and enterprise resource planning (ERP) systems.
