Inflation is now viewed by executives as the No. 2 external threat to business, compared with No. 22 a year ago, the survey found. The top concern remains Covid-19 disruptions.
A staggering 95% of manufacturing CEOs polled by The Conference Board say they are facing upward pricing pressure on raw materials, wages and other inputs. They pointed to supply chain turmoil, worker shortages and turbulent energy prices.
Less than 40% of CEOs indicated their companies are “well prepared” for an “inflation-related crisis,” the Conference Board survey found.
Business leaders plan to deal with inflation by cutting costs and especially by passing it along to consumers in the form of higher prices, the Conference Board said.
“There are currently few signs” that CEOs are willing to “absorb price increases” by allowing them to eat into profit margins, the survey found.