Wax Digital Home Page

CBI warns of escalating procurement costs

by Daniel Ball, Marketing Director, Wax Digital 1. March 2008 06:37
Inflationary pressures and continued fears of an impending economic slowdown could drive procurement costs upwards through 2008, according to a recent report by the Confederation of British Industry (CBI).

The report suggested that 22% of UK SMEs are likely to increase prices in the the first half of the year – the strongest indication yet companies are beginning to feel the pinch.

"Firms, especially the smallest, are no longer able to absorb rising input costs and, even with fears of weakening demand, are now being forced to raise prices,” Russell Griggs, chairman of the CBI’s SME council, said.

“This continued squeeze on profit margins means that product and process innovation is ever more important." Streamlining purchasing processes and driving best value through electronic sourcing are areas of opportunity increasingly in focus. 
 

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