Inflation continues to impact businesses across all industries.
This has put increased pressure on executives to assess their current situation and make bold moves to protect their margins and move towards growth.
However, the combination of supply chain disruptions, unpredictable consumer demand and growing global volatility means businesses are facing price pressures they are unprepared to handle.
The inflation challenges facing businesses are not always transparent. Due to the low inflation levels, many companies put on their autopilot and stopped driving their pricing power. Now with sustained inflation they are finding themselves in a defensive position with an inefficient price increase process.
Has inflation impacted your businesses? Find out how a robust pricing framework and price adjustment process are key to protect margins and unlock growth.
Inflation Affecting US Companies
As inflation continues businesses are still at risk for margin erosion and pressure on profitability. We surveyed 524 businesses in the US as part of the 2022 Global Inflation Pricing Study to explore how US businesses are navigating these uncertain times. We share the US results and insights in this downloadable infographic.
Aerospace and Defense
Actionable Insights and Solutions
Inflation has caused particular pain for companies in the Aerospace and Defense industry, where increases across all major cost drivers - including raw materials, fuel, transportation, and labor - have outpaced standard contract escalation clauses by more than double. What’s worse is that these erratically rising costs are expected to continue following this trend for the foreseeable future. As a result, Aerospace and Defense companies are being forced to revisit their commercial strategies, specifically in relation to pricing.
Simon-Kucher has developed a proven 9-step framework that allows our clients to adjust their pricing in a way that increases their profitability while limiting customer churn, particularly during challenging economic times. From design and configuration, through implementation and tracking, our unique structure prepares companies for every aspect of a sound price increase plan to combat inflation.
In this current economic environment, we’ve found that companies are struggling to know which levers to pull to best improve profitability. Our experience reveals that cutting costs can only relieve so much pressure before a company must turn to other tactics.
We firmly believe that a sound pricing strategy serves as a primary method for responding to changes in the market and delivering higher profitability. We’ve identified 5 key actions manufacturers can adopt to become “pricing winners."
Our experts are always happy to discuss your issue. Reach out, and we’ll connect you with a member of our team.