Focus on Business: Operational Issues for 2022
Inflation, oil prices and the war in Ukraine are currently grabbing the headlines. While these are critical concerns, day-to-day operational issues are still a priority for businesses owners.
Wrapping up Q1 and taking stock of the outlook for the rest of year, the following are key areas of focus businesses should be thinking about as they regain momentum post-pandemic:
- Preparing for and enabling hybrid work environments - For many companies, the phrase “work from home’ will continue in 2022 and beyond. The new hybrid model that many companies are proposing could allow for as much as 40-60% of the work week to be remote. As employees return and acclimate to their new work environments, employers have also implemented better technology and achieved more efficiency. Team Zoom meetings are still no replacement for in-office, face-to-face relationship building and collaboration though.
- Adding personnel and retaining key employees in a tight labor market - Mixed signals in the labor market are proving to be a challenge for employers. While unemployment figures are low on a national level, most industries are having a hard time acquiring talent. When they do find the right candidate, wages are 10-15% higher than a few years ago. That also means good employees can demand higher wages come review time. Employers need to plan for this increased expense and deliver additional benefits such as work flexibility, training, and career advancement.
- Inventory ramp up post-supply chain crisis - Many factors have led to supply chain challenges over the past 18 months and there appears to be no easing in 2022. As sales rebound, companies are considering alternate vendors or focusing on products where the supply chain is less impacted. Margins will need to be reviewed as well and adjusted to maintain or prevent having customers look elsewhere.
- Securing the right financing for continued growth - The government has provided an abundance of capital over the last several years through its Paycheck Protection and Economic Injury Disaster Loan programs. There is no question these loans helped many companies stay solvent during challenging times.
At Mitsubishi HC Capital America, we look at ALL the challenges your company faces, not just your financing needs. We work to enable your success by serving as a reliable business partner providing resources and expertise to meet your specific and unique needs.