According to a survey by the French-Czech Chamber of Commerce, the coronavirus pandemic did not affect investments in 62 percent of French companies operating in the Czech Republic. Most companies plan to invest in technology, such as tool digitization, process automation, data analysis and management, or cyber security. Recruitment of new employees is planned by about half of the companies, but companies have long struggled with a shortage of skilled labor. According to most companies, the biggest obstacle in business is the return of restrictions related to a pandemic.
18 percent of companies stopped or reduced investments. The decline in spending was mainly reflected in marketing, real estate and human resources. 40 percent of companies had to lay off employees, and 43 percent of companies retained their numbers.
Despite the pandemic, 18 percent of companies have increased investment spending. The crisis has accelerated change in most companies. Digitization of processes was introduced by 61 percent of companies, most often related to team meetings, meetings with partners and clients. However, most companies still prefer face-to-face meetings at trade fairs and exhibitions, for example. During the crisis, 60 percent of companies allowed work from home and 62 percent remote control.
Turnover last year fell from expectations to 66 percent of companies due to the crisis, 21 percent recorded a decline between ten and 20 percent, 13 companies recorded a decline of more than 40 percent. 18 percent of companies did not have any changes in the development of turnover, 16 percent of companies recorded an increase.
“In recent years, we have seen a clear increase in Czech direct investment in France. This trend is unlikely to be significantly affected by the pandemic. For Czech companies, France remains an attractive market with great potential. It is therefore clear – and our survey confirmed this – that companies maintained an optimistic outlook for the future despite challenging market conditions,” said Michal Macko, director of the French-Czech Chamber of Commerce.
The survey was conducted among members of the French-Czech Chamber of Commerce from May 18 to June 18. It was attended by 82 companies, about half of which were companies with up to 150 employees, a quarter of companies have over 251 employees, the rest were small companies with less than 11 employees. The survey answered 68 percent of companies that have a French majority of their own, about a fifth of respondents were Czech companies.
Source: French-Czech Chamber of Commerce and CTK
