OnDemand WTP Pricing Research

Excited by Lower Energy Prices? Depends on Your Industry | WSJ

Expectations about energy prices are generally not being built into pricing plans, either. In most of the industries surveyed, less than 25% of CFOs said their energy price expectations are affecting their own companies’ pricing plans. In contrast, 60% of energy/resources CFOs indicate their energy price expectations are affecting their own companies’ pricing plans, as did 48% of CFOs from the manufacturing sector.

Still, energy savings are not stopping companies from raising prices. CFOs said prices are largely back to pre-recession levels—and headed higher. Just under half say their prices are higher now than pre-recession, and well over half say their prices will be higher in a year.How long that trend is sustained depends on how long energy prices remain at current levels. “If low energy prices are sustained, it will have an impact on non-energy industries,” says Dr. Ira Kalish, chief global economist for Deloitte Touche Tohmatsu Limited.

In addition to boosting consumer and business purchasing power, Dr. Kalish notes that “lower energy costs will give companies more wiggle room to either cut prices, boost investment, or increase returns to shareholders.”

Read complete article here:

Excited by Lower Energy Prices? Depends on Your Industry.

1 Comment on "Excited by Lower Energy Prices? Depends on Your Industry | WSJ"

Trackback | Comments RSS Feed

Post a Comment

WP-SpamFree by Pole Position Marketing