Although the overall picture of trade payments remains stable, payment delays show little change from last year. However, the study indicates that the percentage of companies with long-term arrears (between 6 months and 2 years) representing 2% or more of their annual turnover will increase from 9% in 2023 to 16% in 2024. The engineering sector is the most affected, with 30% of companies there reporting significant payment arrears.
The number of companies reporting new arrears increased to 78%, and the average length of arrears rose to 30.8 days, up 0.7 days from last year. The most serious challenges are faced by companies in construction, wholesale and retail trade, and engineering, which report delays in the payment of commercial invoices over 150 days due.
German companies are very pessimistic about the economic situation, with 48% of respondents saying that their business situation has worsened compared to the previous year. Only 9% of companies reported an improvement, resulting in a net difference of -39 points – the lowest level of optimism since the start of the COVID-19 pandemic.
In response to growing risks, 16% of German companies are implementing risk mitigation measures, compared to 12% in 2023. , with 33% of companies having already done so.
Companies are increasingly focusing on supplier and customer diversification, with 41% of companies using this approach. Proximity strategies, where supply chains are moved closer to key markets, are also becoming popular, with 24% of companies already implementing them.
Despite stability in terms of payments and delays, rising financial risks and a pessimistic economic outlook are major challenges for German industry in the coming year.
2024-10-10 08:24:00
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