Citi Commercial Bank 2024 Global Industry Insights Report

Keeping costs down is starting to get easier andmore companies are considering international expansion, but inflation remains a top concern. Those are just three of the insights gleaned fromCiti Commercial Bank’s annual survey, the 2024 Global Industry Insights Report (GIIR), of more than 750 business leaders of mid-sized companies from around the world. The report provides data and insights on the opportunities and challenges companies globally are faced with in their operations and strategic execution. Participation was voluntary and responses were anonymous. Following our inaugural 2023 survey, we have asked questions about the current ‘state of play’ for companies across a range of industries. It is as important as ever to Citi Commercial Bank (CCB) to continue to helpmid-sized companies navigate a business andmarket environment that continues to be challenged and defined by uncertainty. This year’s report will outline the key findings of our 2024 survey, as well as insights fromour Commercial Bank Global Industry Heads across Consumer & Retail; Healthcare; Business and Professional Services; Digital, Technology and Communications; Industrials and Nonprofit. Of the respondents, just under half of those surveyed were based in Asia Pacific and just under a third were CITI COMMERCIAL BANK 2024 GLOBAL INDUSTRY INSIGHTS REPORT How AI adoption, keeping one eye on the bottom line and global expansion are shaping business strategies in 2024. fromNorth America, with the rest fromEMEA and Latin America. The best represented industries among our 754 respondents were Industrials andManufacturing; Business and Professional Services; Digital, Technology and Communications. Overall, this year’s GIIR paints a brighter andmore settled picture of the business environment when compared with 2023. One year further out from the pandemic and the beginning of the Ukraine war, only 11% of respondents said they were dissatisfied with their financial progress, significantly lower than 27% in 2023. That said, the Industrials andManufacturing industries are the least satisfied with their progress, taking over that position fromConsumer & Retail in 2023. Data and analysis from the 2024 GIIR suggest that companies remain cautiously optimistic on outlook and sentiment. Alongside the improved sentiment around financial progress, three-fifths of respondents said they are considering expanding into other international regions; this compares with a little over half of those surveyed last year. Asia Pacific also remains the most popular destination for international expansion ambitions. Additionally, the results show that businesses’ two biggest worries from last year —keeping costs down and staffing—have been less troublesome in 2024. As Central Banks continue to navigate and execute on monetary policy decisions to tackle inflation, just under three quarters of GIIR respondents said they were either extremely or somewhat concerned about the impact that rising prices may have on their businesses this year. The impact of inflationary pressures came up several times in this year’s survey. In the Consumer industry, far more respondents—some 61%—said that inflation had impacted their business more than any other trend or macro issue. Additionally, 72% of those surveyed in the Nonprofit industry said inflationary pressures were hurting their organizations’ ability to deliver on their missions, a figure almost ten times the number that of those who said the contrary. The final, and perhaps most novel, trend to emerge from this year’s data is the growing adoption of and desire for artificial intelligence (AI) and excitement around its potential to disrupt industries. Around 82% of respondents of the Digital, Technology & Communications industry said they plan to deploy AI technology, either by developing AI solutions in-house, partnering with an outside vendor or by some other means. We’ll break down that finding, and others outlined above, on an industry basis throughout this report. 71% were worried about the impact of inflation, although those worries have eased from last year. 60% are considering expanding into new international regions this year. Asia is still the most popular. 38% are already using AI within their business operations. Digital, Technology & Communications have done more than any other industry. 63% said managing costs or keeping them down is the biggest challenge they face. Industrials found this to be a larger challenge than other industry. 11% are not satisfied with progress towards their financial goals. The Consumer industry the most satisfied. HIGHLIGHTS