Fragile economy will expose the weak, says KPMG
KPMG's Nottingham office is warning East Midlands companies to "rethink their business models" in light of ongoing fragile economic conditions.
The comments come on the back of the Bank of England's Monetary Policy Committee's decision to hold interest rates again.
The MPC's decision potentially signifies that interest rates will not rise much before 2012, said KPMG.
Phil Charles, partner at the firm's Nottingham office, said that the businesses that will survive the current economic climate and emerge in a strong position are those who have "the most robust business model".
He said: "As fragile growth and high commodity prices continue to squeeze margins, businesses have to work much harder for lower returns. Management teams, who have reviewed, revised and effectively challenged their business model under the pressures currently present in the economy, are likely to be the ones that will flourish when conditions improve."
"There is no doubt that weakness in a company’s commercial proposition will be exposed if their business models are unsuitable."
