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UK firms 'focusing on cost reduction'

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UK firms 'focusing on cost reduction'

Monday, 28/9/2009 12:05
An increasing number of businesses are focusing on cost reduction and financial management as they bid to survive the recession, new research has shown.

According to a survey by the Forum of Private Business, some 37 per cent of UK organisations said they are now paying more attention than ever to their financial situation.

The group polled 5,800 members to gauge confidence in the current business environment and test the strength of UK firms in the face of the credit crisis.

More than a quarter of those questioned also revealed their intentions to amend their current business plan in order to help develop the organisation in the short term.

Commenting on the findings, Business Link adviser James Stancombe said many companies are likely to become a lot more aware of their finances as a result of the recession.

He suggested that firms seeking to maintain growth in the current climate, where capital is hard to come by, should look at changing their logistics and reducing costs.

"I think they can certainly start by developing a more efficient understanding of their own operation," he added.

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