Many companies were able to rely on boosting prices in recent quarters to offset inflation. But this strategy may have run its course as worsening consumer sentiment is running into resistance from inflation-weary customers.
Operating costs are at an all-time high. According to the S&P Global Market Intelligence Report, operating expenses at U.S. investment-grade nonfinancial companies rose 23% during the fourth quarter from a year earlier, to a total of $2.75 trillion. Of the 442 companies surveyed, 83.5% of their total revenue was spent on operating expenses during the quarter, the highest level in a year, according to S&P. Recent corporate earnings results also reflect this situation.
- Why it's important to digitalize the full closed loop process
- Where to discover the value leaks (over 28 different examples)
- How AVEVA provides the right digital foundation to accelerate the journey
- Case studies of how AVEVA customers have improved operational efficiency