According to a Grant Thornton study, the majority of manufacturing executives (55%) are willing to increase prices to offsite rising prices. And this increase might be the reason that 44% of manufacturing CFOs expect their company’s financial prospects to improve over the next six months. More than four-fifths of senior financial executives (84%) project that raw material cost hikes will put the most pressure on financial performance followed by energy costs, which 46% of CFOs project will impact performance.
Another aspect of financial concern is credit and only 15% of CFOs indicated that they had to return to bank credit because they could no longer access alternative financial structures. However 58% say that credit is more difficult to obtain that it was just last year. Correspondingly, just over half of respondents (53%) have seen credit costs increase.