PwC takes pandemic pulse of Caribbean CFOs
APRICEWATERHOUSECOOPERS study has found that as Caribbean companies implement return-to-workplace strategies, 64 per cent of chief financial officers, CFOs, in the region are most concerned about a new wave of COVID-19 infection and 61 per cent the effects of a global economic downturn.
According to PwC, most CFOs anticipate a significant effect on their bottom line, with 39 per cent expecting a decrease in revenue and/ or profits of between 10 per cent and 25 per cent as a result of the crisis, while 20 per cent expect a decline of 25 per cent to 50 per cent. “Caribbean finance leaders are now looking to balance their business strategy with the new requirements for doing business in this challenging era of unpredictability,” said Leighton McKnight, PwC Jamaica territory leader.
He added that 70 per cent of CFOs are planning to focus on product innovation, and this is a good sign. “COVID-19 has created opportunities and it will be good to see businesses evolving and adapting to remain profitable. CFOs are also concerned with bringing people back into workspaces and reorganising to keep both employees and clients safe. This isn’t surprising, but if companies implement the right measures to keep employees and clients safe and take a phased approach, they’ll be better able to focus on working to survive and thrive as we move forward,” McKnight said.
In order to rebuild revenue streams, 70 per cent of Caribbean CFOs are planning changes to their product or service offerings, a higher number than their United States and global counterparts, said the PwC report.
Companies are embracing new ways of working, with half of Caribbean CFOs reporting that they plan to make remote work a permanent option for roles that allow, and as many saying they plan to improve the remote working experience, said the PwC report.
PwC said CFOs are more likely to cut general capital expenditure investments than other investment types, but none in the Caribbean are planning cuts to digital, research and development or cybersecurity.
Respondents in the June 8 to 11 survey to gauge the business and economic impacts of COVID19 included 44 CFOs and finance leaders from leading organisations in The Bahamas, Barbados, Bermuda, Jamaica, St Lucia, and Trinidad and Tobago.
It has now been a few weeks since many countries have embarked on phased reopenings, slowly permitting more commerce and other activities.
As those decisions unfold, CFOs are navigating return-to-workplace plans, determining when and how – and to what extent – to bring employees back. Among respondents, the top concern as they implement those plans is a new wave of COVID-19 infection.
The most common area for potential cuts remains, as it has been in all of PwC’s CFO pulse surveys, facilities/general capital expenditure globally, 82 per cent, compared to 77 per cent in the
Caribbean.
“This is good news, given respondents’ belief in digital transformation and the importance of developing new products and services,” the report said.
CFOs report that they feel very confident about their organisations’ ability to provide a safe environment for customers (77 per cent) and employees (73 per cent).
Although a new wave of infection is a top concern, they also report feeling very confident that they would be able to respond effectively (82 per cent).
When it comes to more forwardlooking measures, confidence starts to wane. Fewer CFOs say they are very confident about building skills for the future.
Half of Caribbean CFOs indicated that they will take steps to improve the remote work experience and to make remote work a permanent option.