Global inflation and recession worries are leading more businesses to consider automation, according to new research. Taulia, a startup that provides working capital management and electronic invoicing services for supply chain companies, surveyed more than 500 “senior financial decision makers” in the U.S., U.K., Germany and Singapore and found 37 percent are investing in automation technology as a hedge against recession fears that could lead to layoffs.
In the U.S., senior leaders are prioritizing investments in automation even more than cutting costs (43 percent vs. 41 percent).
“Contractionary monetary policy to fight off inflation has driven concerns about a recession in many regions,” said Cedric Bru, CEO of Taulia. “While layoffs are happening, especially in some industries, it is encouraging that we are seeing businesses explore alternatives to extreme cost-cutting that has characterized recessions of the past. We are also seeing a strong trend of investment as business leaders look to instill resilience and find creative ways to continue doing business in the face of adversity.”
In Singapore and the U.S., Taulia found that senior leaders polled are more likely than British and German companies to invest in technology and infrastructure than undertake cost-cutting measures, such as seeking cheaper suppliers, reducing staff expenses, and working more efficiently with raw materials and energy, as economic uncertainty continues.