Davies is under no illusion that this is the reason for their recent shortcomings and the explanation for their goalless draw with Birmingham.
Davies said: "It has been agreed with the chairman that the business will be done in January."
Surprisingly the Scot was non-committal on the main talking point of the game - the sending-off of his substitute striker Darius Henderson for a reckless tackle on Birmingham's skipper Paul Robinson late in the game.
The Forest boss said: "Write it as you saw the incident. All I can ask for is consistency on the pitch."
Davies admitted that he had not seen a replay of the incident and would only decide whether an appeal would be made when he had watched it back.
Davies added: "I thought we played a lot of good football. Back to middle there are no problems but we have to be more clinical and must add more firepower in the next transfer window. That has always been the plan from the very first day.
"I thought it was a very good point. It's the third (consecutive) clean sheet against a side which has not lost in six games.
"You know you always face a competitive match at Birmingham. They make it difficult for you but great credit to the team. They worked really hard and in the end it was a really good point."
The other talking point of the game was the inexplicable miss by Birmingham striker Nikola Zigic in the 37th minute.
Chris Burke provided a head-high cross from the right but the Serb appeared to hold back when he should have lunged at the ball right in front of Forest's goal.
Birmingham manager Lee Clark would not criticise his striker and said: "The time it is a problem is when they are not in there missing chances.
"On the form he is in he would probably have expected to have scored. It was a great cross but I have no issue with people missing chances.
"Top strikers do not allow missed chances to worry them. They get back in and get on the next cross.
"He is not down as he knows I do not criticise people. That is football and he is making a massive contribution to what we are doing here at Birmingham."
Clark added: "It was a good point. It was always going to be tough but I thought my players gave everything. They were committed and never gave in.
"Some of the football was excellent and their keeper had to make two or three great saves.
"I could not fault the players. They produced a fantastic performance. In the first half Burke and (Paul) Caddis were very impressive.
"It was probably one of our most fluent home performances and Olly Lee had a big say in this display."