What’s Next? Deloitte’s Second Biennial Cost Survey
Cost-improvement practices and trends in the Fortune 1000
Companies today are under constant pressure to reduce costs; yet after years of significant cutbacks, additional opportunities to save money are getting harder and harder to find.
To learn how businesses are tackling this challenge, Deloitte conducted an in-depth follow-up to the breakthrough cost-improvement survey we conducted in 2008. This year's study included 139 senior executives from the Fortune 1000, which consists of publicly-traded companies with annual revenues in excess of $1.5 billion.
According to the survey, an overwhelming majority of respondents (90 percent) expect their revenues to grow over the next 24 months. Yet a similar number (80 percent) expect to pursue cost improvements. This appears to be the `new normal': a period defined by prolonged economic uncertainty, reduced consumer demand and relatively high unemployment. The vast majority of companies we surveyed are responding to these challenges by combining optimism and growth with a continued focus on costs. In fact, for most, the question is not whether to keep reducing costs; the question is “what's next?”
This report looks at the latest trends in cost improvement and offers practical and demonstrated insights to help companies achieve and sustain improved financial and business performance.