Publications

Payment behaviour in the construction industry slowly deteriorated in 2017 and 2018, and this negative trend is expected to continue in the coming months.

The overall indebtedness of many Belgian construction businesses is still high, while banks remain rather unwilling to provide credit to the industry.

Besides the low spending capacity, ongoing tight lending conditions set by banks remain one of the main reasons for the subdued sector performance.

Payments in the Australian construction sector take 30-60 days on average, and the level of protracted payments and insolvencies was high in 2018.

Late payments by mainly larger companies continue to negatively affect the working capital management of many smaller businesses in all segments.

Mid-sized businesses are facing profitability issues due to higher labour costs triggered by shortage of qualified staff and increased commodity prices.

Despite increasing clouds on the horizon, there remain several bright spots for export opportunities in emerging markets.

The economic impact of USMCA on Mexican-US trade is likely to be limited, as it is effectively a small modification of the pre-existing NAFTA agreement.

Trade policy uncertainty is one of the top risks to US businesses and consumers in 2019 that may bring the next downturn on more quickly than expected.

Despite a forecast growth slowdown in 2019 the economy should still experience positive momentum, with low unemployment and manageable inflation.

Some larger players continue to push the supply chain on price and longer payment terms, adding cash flow challenges to mainly smaller food businesses.

Many food producers and processors struggle to pass on higher input prices, which is hampered by the high concentration and market power of retailers.

As the UK is a major Danish export market, a hard Brexit could trigger a significant decrease in Danish export of food and agricultural products.

Despite efforts of food exporters to diversify shipments away from Britain, a hard Brexit remains a major challenge, also for shipments to mainland Europe.

Growth is set to continue, but the strong export orientation makes many food businesses susceptible to trade disputes and price/currency fluctuations.

Many meat processors and producers suffer from higher procurement prices, while their ability to pass on those increases to retailers is limited.

Even the biggest food retailers are small compared to other major international players, and e-commerce is increasingly challenging traditional businesses.

The new Mexican government could launch policies in order to increase domestic production and put emphasis on domestic agricultural support programmes.

After shrinking in 2018 US food businesses´ profit margins are expected to decrease further in 2019, as fuel prices and other input costs are increasing.

Higher input costs have increased the pressure on margins in recent years, with a recent draught in Australia having and additional negative impact.