Forget adverse economic conditions – they are not necessary as an impediment to corporate spending, according to a survey from Deloitte Financial Advisory Services. But the majority are going to spend anyway.
The deterrent to spending is apparently woven into the DNA of the average human.
It’s a natural aversion to spending, period. For any reason. But in spite of this natural tendency, a plurality of companies appear ready to open their checkbooks this year.
Three areas are leading the way when it comes to investment focus: they are performance improvement (35.2 percent), M&A (19.8 percent) and restructuring (11.2 percent).
Deloitte’s Charles Alsdorf noted that more corporate boards are beginning to recognize the need to take steps to overcome spending inertia.
Another Deloitte exec, Charles Crouse, said the advent of a crisis makes the need to stick to growth plans even more important, even as the crisis cements the anti-spending bias. “In volatile situations, it becomes even more critical for leaders to apply the same decision-making and project prioritization approaches. No matter what the pressures, the leaders who often make the best capital allocation decisions are able to objectively evaluate data, while effectively identifying–and stepping beyond–their own assumptions.”
RBR-TVBR observation: This is just one more positive indicator among many as the communications business begins the year.
And we note that Crouse has just made the classic pitch for spending in the midst of adversity, often invoked by sellers of advertising. The company that spends boldly to the challenges of a down period often double dips the benefit, enjoying both near-term gains and a permanent increase in market share.
Use it!
