Fears on inflation and supply

Inflation – general and wages – along with supply chain issues are the issues of most concern to a majority of business leaders as their organisations face into 2022.

That’s according to the latest quarterly research by the Institute of Directors (IoD) in Ireland, which has also found that a majority of business leaders remains optimistic about the financial performance of their primary organisation in both Q1 2022 and, indeed, for the year 2022.

The advance findings of the IoD’s latest Director Sentiment Monitor survey for Q4 2021, to be published in January, found that 86% of the business leaders are concerned that general inflation will negatively impact the financial performance of their primary organisation in Q1 2022.

And 83% of the survey’s respondents fear that wage inflation will impact staff retention and staff recruitment over that same first quarter.

Nearly a third say their business model has been adapted for supply chain issues – but two-thirds remain concerned regarding their primary organisation and its supply chain issues for the end of 2021.

Again, 34% of respondents say supply chain issues are impacting their ‘bottom line’ for 2021 – and 46% of the business leaders are concerned that there will be supply chain issues for their primary organisation in 2022.