North East businesses face new bill
The region’s businesses could be part of a £90bn bill if sustainable cost cutting does not remain a priority, according to the financial firm KPMG.
In a forthcoming report, British business acknowledged there is an urgent need to stay lean post-downturn, despite a desire for growth.
In fact, the majority polled were concerned that over 95% of cost reduction and streamlining, delivered during the recession, could bleed back into businesses as managers focus on the growing top line.
This equates to a UK wide £90bn of extra and returning costs.
David Muir, who leads KPMG’s Northern Performance & Technology team, said: “There is a real risk that mounting costs will quickly erode already tight profit margins and eliminate bottom line growth at companies in the North East.
“Cost-management efforts need to be redoubled to make sure that recession driven improvements are not lost in the exhilaration of renewed growth,” Muir added.
This was posted in Bdaily's Members' News section by Ruth Mitchell .
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