OP: Large companies expect demand to pick up – Still little desire to invest

Vain few large Finnish companies intend to focus on expanding and developing their business this year. The majority of large companies rather strive to make their operations more efficient.

This is evident from the survey of large companies published by Osuuspanki on Thursday.

Research according to this report, only 17 percent of large Finnish companies are mainly aiming to expand and further develop their operations this year.

More than half of the companies report that they are focusing on streamlining operations and increasing productivity.

However, the share of large companies aiming to expand their business has slightly increased from a year ago. A year ago, only 12 percent of large companies reported their expansion intentions to OP.

Based on the research, companies’ willingness to expand was at its peak in 2021, when 35 percent announced their intention to expand their business.

Big companies based on OP’s research, this year research, development and innovation activities are mainly focused on artificial intelligence.

Companies are planning additional investments, for example, in the development of artificial intelligence features in production processes and end products. Investments in the digitization of products and services are also planned to be increased somewhat, according to OP’s research.

According to the survey, companies budgeted only 0.6 percent more money for production capacity and facilities this year than the year before.

“Risks related to the development of the economy and the market require companies to be precise in their investment decisions. Investments are now balanced between realism and optimism,” says OP Yrityspanki’s CEO Katja Keitaanniemi in the bulletin.

They don’t Finnish large companies’ outlook for the year that has started is still not completely gray.

According to OP’s research, they expect demand to pick up and grow with the drop in interest rates in the second half of the year at the latest.

According to Keitaanniemi, “even a weak increase in optimism is a favorable message for Finland.”

“Right now, large Finnish companies should be ready to take advantage of the looming turn in the economic cycle and take bold steps towards growth,” he says in the press release published by OP.

OP: n the target group of the large business survey is the 250 companies with the largest turnover in Finland. They can be either originally Finnish companies or Finnish subsidiaries of foreign companies.

According to OP’s release, 137 such companies responded to this year’s survey.

According to the OP, the combined turnover of the defendant companies is EUR 202 billion based on the latest confirmed financial statements. They employ a total of more than 431,000 people.