Reports

Payment behaviour has been good over the last two years and the number of payment delays, defaults and insolvencies is expected to remain low in 2016.

The Swedish machinery industry has shown several years of positive development. Machinery production is expected to grow 2.3% in 2016 and 0.9% in 2017.

US machinery businesses related to the oil/gas or the mining segments are affected by lower capital spending on purchasing machinery and equipment.

The French chemicals sector continues to grow in 2016, but high labour costs and strict regualtions remain a burden and global competition is strong.

Weak economic situation and uncertain outlook as the security situation remains tense. Inflation is high and the business sentiment remains subdued.

Survey findings point to Great Britain as the country in Western Europe that is the most impacted by late payment from export customers.

Economic performance impacted by slower growth in China and Southeast Asia.

GDP growth in 2016 (up 2.5%) still below the country´s growth potential, and political uncertainty remains an issue.

Stable growth (up 6.4% in 2016) and inflation back under control, but the economic fundamentals still show some weaknesses.

The first increase in US interest rates in almost 10 years may lead to trouble in emerging markets.

Due to the weaker exchange rate and increased demand from overseas markets, Dutch food exports increased in 2015 and are expected to rise further in 2016.

Natural gas prices have fallen significantly in Asia and Europe on the back of the sliding oil price. As more LNG comes on the market regional prices are set to remain low.

Robust growth rates persist, but lower exports hurt the manufacturing sector.

Crucial reforms have been passed, but their proper implementation remains to be seen.

Growth is expected to slow down, while business insolvencies to increase in 2015 and 2016.

Nearly half of the respondents in Australia said that the risk of payment delay and default from B2B buyers has increased over the past six months. One in five respondents rated it as “significant”.

62.0% of the businesses surveyed in China (compared to 46.3% in Asia Pacific) reported that domestic B2B customers have slowed invoice payment due to liquidity problems over the past year.

Russia remains an important market in the global economy. The ten principles of the report are meant to help businesses mitigate risks when exporting to Russia.

Thanks to the strong recovery seen since H2 of 2014 many of Italy’s car suppliers have registered increasing profit margins and an improvement of their financial strength.

Japanese automotive businesses´profit margins have generally improved, mainly due to higher sales in North America.

Payment behaviour in the US automotive sector has been rather good over the past two years.

Lower construction growth and overcapacity affect the sector, but the outlook for 2016 has improved.

The outlook for the industry remains subdued, with many Smaller steel mills struggling with poor operating margins.

Competition in the sector is high, and there are clear signs of price wars as the industry is struggling with overcapacity and weaker demand.

Structural overcapacity in the industry had a negative effect on businesses´ profit margins in 2014, and this negative trend is expected to continue in 2015.

The outlook for the machinery industry is promising, as the Italian economy is expected to grow 0.6% in 2015 and 0.9% in 2016 after two years of contraction.

After modest growth in 2013 (up 0.3%) and 2014 (up 0.4%) the Austrian economy is expected to see a modest 0.8% surge in 2015.

Chemicals/pharmaceuticals has been a well performing sector in Switzerland; demand and profit margins are expected to remain stable in 2015.

German chemicals/pharmaceuticals businesses have a strong market position, and many are highly specialised. The industry has a well-deserved reputation for innovation and a competitive edge.

Despite the significant amount of time given B2B customers to pay their invoices, a sizeable proportion of the total value of domestic B2B receivables in Turkey (55.2%) was overdue.

33% of survey respondents in Sweden (compared to 20% in Western Europe) consider a fall in demand for their products and services as one of the greatest challenges to business profitability in 2015.

Respondents in Denmark are the most inclined to use trade credit of all the countries surveyed in Western Europe. 70.5% of the total value of their domestic B2B sales is transacted on credit terms.

31% of survey respondents in Switzerland, compared to 24% in Western Europe overall, consider cost containment to be one of the greatest challenges to business profitability in 2015.

The strong focus on protection of exports from the risk of payment default by customers comes as no surprise for the Netherlands, whose GDP growth is heavily dependent on international trade.

In 2015, Sweden expects a modest growth in the consumer durables retail segment.

Argentina’s economy contracted 1.6% in 2014, and this negative trend is expected to continue in 2015, as exchange and price controls are forcing producers to scale back their activities.

In 2015 the Mexican construction industry is forecast to grow 4 %.

A 9 % increase is forecast for the US construction sector in 2015; the vast majority of construction and design firm executives believe the market is stable or growing.

As in 2013 and 2014, fierce competition means that the Dutch construction sector is still affected by price wars, leading to on-going pressure on margins.

India’s rebound is expected to be driven by the resumption of stalled infrastructure projects, high investment, urbanisation, the improvement of the business environment and structural reforms.

Concerns that credit quality could be deteriorating in several countries in Asia Pacific are growing.

43.8% of Japanese respondents said that the biggest challenge to business profitability was falling demand for their products and services, the highest percentage of all Asia Pacific nations surveyed.

Respondents in Hong Kong indicated that their biggest challenge to profitability this year would be maintaining adequate cash flow, with 37.4% stating this to be the case.

The German steel sector is profiting from robust domestic demand, mainly from the construction and automotive industries, with apparent steel use expected to grow 4.5% in 2014.

On average, payments in the Indian steel/metals industry have remained unchanged since last year, taking between 60 and 90 days.

Trade successfully with the Czech Republic looks at ten principles that those seeking to expand into the Czech Republic should follow to avoid some of the pitfalls of trading in untried territory.

When trading with UAE, foreign exporters need to consider the deep cultural and religious basis of life there. Trade successfully with UAE is designed to help exporters expand into this vibrant market

'Trade successfully with' reports highlight the opportunities that emerging markets offer foreign exporters, and the steps to take to avoid the pitfalls of trading in new and unknown territories.

Indonesia offers a wealth of business opportunities if you approach the market in the right way. The principles underlined in this report look at how a successful trading relationship can be achieved.

Doing business in Brazil can be challenging if you’re not used to the local business environment. The ten principles set out in this report can help make trading relationships lasting and successful.