Companies ‘blinkered’ about recession
Feb 22 2010
Companies need to 'wise up' to the economic outlook, warns BDO
The operating environment for businesses will ‘never return to pre-recession normality’ and a period of weak growth could continue until 2015, claims accountancy firm BDO.
In a stark warning, based on a poll of 11 senior economists, it adds that some companies are ‘blinkered’ about the true state of the economy, and will ‘wither away and die’.
Peter Hemington, partner at BDO LLP, says: ‘Although this recession may be over – we hope – the consequences still remain. As a result, the economic environment will remain tough for some time to come.’
Ian Pearson, director at consultancy Futurizon, says: ‘The recession has enforced the necessity to trim an awful lot of dead wood from the economy. The companies which are faster to modify themselves and more willing to grasp new techniques and new business models will thrive.’
The warning comes as a separate survey from BDO finds that almost half of company board members think there will be a return to pre-recession normality and report that their businesses will not fundamentally change in the next five years.
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