Those who went digital during the pandemic are already seeing their money in automation investments, according to Amex’s latest Global Business Spending Indicator.
B2B spending for U.S. businesses is still hovering at record highs, but two-thirds (67%) of these businesses expect to spend more to drive productivity and efficiency, including a focus on technology. The latest edition of the American Express Global Business Spending Index.
61 percent of US businesses cite inflation as the biggest negative impact on their business. To help offset inflation, the GBSI indicates that the majority (79%) of respondents are looking to access working capital and manage cash flow.
Nearly half (48%) cite productivity as a key driver, and 60% of U.S. businesses expect to spend more on technology, GBSI found.
45% of respondents said they hope to improve the quality of their products or services, while 37% said they want to improve the speed and efficiency of making and receiving payments.
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Automation is a key focus.
Nearly half (45%) of businesses that recently started using automatic payments said they had already seen improvements in cash flow management and received faster payments, which helped offset the impact of inflation.
Additionally, most businesses plan to automate more—specifically, 56% want to automate payments when looking at payments to suppliers and 63% of payments received, according to GBSI.
GBSI also found that 48% of respondents said the digitization of payments has already helped reduce costs, while half associate automation with more efficient payment processes.
“Technology is a key area of investment for U.S. businesses focused on improving productivity – especially important in today’s macroeconomic environment, where businesses look for any opportunity to increase productivity and remain competitive. This survey data shows that U.S. businesses feel optimistic about the future of their business, and technology Your investment in support supports this,” said Trina Dutta, vice president of B2B payments automation at American Express.
Although American businesses are being challenged by rising costs and supply chain disruptions, “many are looking to invest in technology. An economist at the Center for Economics and Business Studies conducted the survey.
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Major changes are taking place in the supply chain.
40% of US businesses are reassessing their supply chains and will still be affected by supply chain issues in 2022. When asked what actions they have taken in the past six months due to supply chain challenges:
- 70% found new suppliers, changed and/or different suppliers
- 35% was negotiated with suppliers
- 28 percent found more goods and services locally at the beach
- 25% digital works
Dutta added that Amex was “motivated by seeing that businesses across the country are resilient despite supply chain and inflation challenges, with 71% of US businesses optimistic that their business will be successful in the next 12 months.”
On what’s next for financial automation, Dutta said American businesses are taking steps to secure their futures amid macroeconomic challenges.
“For example, we found that US businesses that went digital during the GBSI pandemic are seeing their investments in automation pay off: 45% of businesses that have started using automated payments are already seeing improvements in cash flow management, accepting faster payments, and helping. offset the inflation,” said Dutta.
When looking at payments received from business customers, the share of providers looking to expand their current level of financial automation rises to 63 percent, Dutta said. “As businesses continue to see the benefits of financial automation, we expect to see more adoption, and in turn, more innovation in the space.”
