FEA Outlook Q2 2022 Results

We’d like to thank everyone that took part in the latest edition of FEA Outlook. Member involvement is key to the success of FEA Outlook and the more members that take part the more we are able to garner from the results. Please keep an eye out for FEA Outlook Q3 2022, if you are new to the survey it takes no longer than ten minutes to complete and is only issued once a quarter.

FEA Outlook Q2 2022 results

Collectively, 83% of respondents are anticipating 5%+ business growth over the next 12 months. This is slightly down (-4%) on last quarter's FEA Outlook. Overall, perceived confidence in the level of business growth has dropped, and 14% foresee a period of no growth compared to just 4% in Q1 2022. However, when looking at respondent's selections individually, slightly more people are anticipating growth at the higher end of the scale, with 21% anticipating business growth over 20% which is up on Q1’s results.

The aforementioned drop in confidence has resulted in 72% of respondents making strategic adjustments based on their forecast. This is down 11% on the last quarter.

Top three major issues of concern (Major Concern) are:

• Supply chain and transport 93%
• Price increases and inflation 93%
• Raw material prices 75%

The top three concerns have remained unchanged since Outlook Q1 2022. Interestingly, Lack of Economic Growth was split 54% and 46% between Major Concern and No Concern, respectively.

Areas of least concern included (No Concern):

• Availability of Credit 85%
• Regulatory Pressures 75%
• Uncertainty over the UK’s role within Europe 65%

Weakening Economic Climate (75%), and Inability to Pass on or Mitigate Cost Increases (71%) are seen as the greatest threat to growth in the current climate.

Sales

93% of respondents have recorded improved sales when comparing like-for-like with the same quarter last year.

However, when looking at the previous six months, 7% of respondents experienced a decline in sales. That’s not to say that it was a negative period for all respondents as 18% recorded like-for-like sales and a further 74% recorded increased sales.

Looking forward six months; 32% of respondents are projecting sales to be on budget with 39% projecting a +10% uplift, and 21% projecting a +20% uplift.

In light of this, FEA members are adapting to the increase in demand by taking on more staff with 64% of respondents now employing more staff than Q1 2022.

However, in what seems a stark contrast, finding staff is still proving to be a struggle with 68% of respondents not being able to fill vacancies. In response to this, 64% of respondents have increased employee wages to both attract and retain staff.

Generating Business

FEA members still see Selling to Existing Customers as the most important driver for growth (82%) over the next 12 months with Selling into New Customers (75%) and Introducing New and Innovative Products (61%) as the second and third most important drivers.

Group Operators, Independent Operators, and Dealers are the main focus of sales efforts. For generating new business and making contact with buyers, FEA members are making the most of Trade Shows, Events and Conferences, and using LinkedIn and other online platforms to provide further support.

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