Companies Find Ways To Increase Profits Under New Economic Conditions: Survey

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Many companies are finally finding ways to increase their profits in the new economic climate, a year after the global economic system nearly collapsed, a survey by the McKinsey & Co. revealed.

According to the quarterly global economic conditions survey conducted the management consulting firm, between September 7 and 11, some companies have started actively planning for the long term. For the first time in a year, more respondents expect their companies' profits to rise than fall in the near term.

"Product development and long-term planning are high priorities for many companies, and most are optimistic about their prospects in the longer term," the consultancy firm said.

But, almost as many expect profits to continue falling, the broader economic hopes remain fragile. Many executives expect more government involvement in economies and industries over the long term.

In the longer run, the survey found that many executives expect the globalization of financial and other markets to resume after slowing notably in 2009.

Respondents also foresee further significant changes in their industries and economies over the next five years, including a stronger government role in both.

Nearly three-quarters of the executives expect their companies to be in a stronger position in five years than they were before the crisis. The executives also think that their industries will be more consolidated and innovative, though growth will be slow.

Many companies are finally finding ways to increase their profits in the new economic climate, a year after the global economic system nearly collapsed, a survey by the McKinsey & Co. revealed. (Market News Provided by RTTNews)