Pushing ahead in 2016

OMBs show high levels of confidence about their ability to hit revenue and profit targets in 2016.

Over three-quarters (77%) of OMBs surveyed are confident about the general outlook for 2016, compared to 70% last year. Almost three-quarters (73%) are confident about meeting revenue targets and 68% are confident about hitting profit targets – results consistent with those of the last two years.

Sector wise, technology and telecommunications OMBs appear most confident about 2016 – with 80% expecting a better year ahead, followed by financial services (72%).
 

Fig 1. Confidence amongst sectors on whether 2016 will be a better year than 2015

Causes for optimism

OMBs who expect 2016 to be a better year base their optimism on a range of factors, including:
 

• expansion into overseas markets;
• increased focus on sales and marketing activity (including websites);
• tight cost control and efficiency initiatives having an impact; and
• increased confidence in the economy.

Reasons for OMB pessimism

While just one in ten of the OMBs surveyed expect 2016 to be worse than 2015, this still compares unfavourably with previous surveys (8% and 6%). Among OMBs expecting a worse year in 2016, key challenges include:
 

• concerns about the economic strength of international markets, particularly the Eurozone and China;
• uncertainty about the resilience of the UK economy;
• staff being poached or in short supply; and
• local councils and other public bodies cutting spending.

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