How can you protect your business when the economy shifts?
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Our international team of trade experts is here to help. Contact us to learn more about our coverage options for the Construction Industry or request a free, no obligation quote that includes credit reports for your largest trade partners.
Construction Industry
Construction is a major contributor to the U.S. economy, with more than 7 million employees. The sector also rises and falls with the economy, so when the economy slows, residential and commercial construction also tanks.
Amid widespread concern about climate change and the need to cut down emissions, there is increasing pressure on construction firms to reduce their environmental impact. Planning, building materials and construction processes must all change comprehensively. Supply chains have to be rethought, and an understanding of the materials required for a life-cycle approach will become crucial. For a more detailed and updated report, download it here.
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Atradius is here to help. Contact us to learn more about our coverage options or request a free, no obligation quote that includes credit reports for your largest trade partners.
The construction industry is notoriously slow to pay vendors. Contracts are often created with milestone payments and if projects are delayed, payments will be delayed as well.
In advanced markets, labour shortage has become a serious issue. Tight labour markets and lack of a skilled workforce increase wage costs for builders in many advanced markets. In Europe this could become a structural problem in the mid-term future.
Due to social distancing protocols and new internal policies for construction firms, there has been a reduction in direct work productivity. Between staggered shift assignments, reduced crew sizes and increased personal protective equipment (PPE) requirements, the construction sector is seeing the impact the pandemic has on productivity.
Construction costs will rebase at a higher level. A correction in the mismatch between supply and demand will ease the pressures driving construction cost growth. However, we do not expect construction costs to fall back to pre-Covid levels.
Atradius has given us peace of mind to take on customers who we haven’t had past experiences with.
Benefits to Credit Insurance
Trade credit insurance is a risk management tool that can help protect your company’s commercial accounts receivable from the devastating effects of loss caused by a bankruptcy or protracted default of your buyers. No company wants to face the unknown. At Atradius, we give our clients peace of mind knowing that their policy protects them from a customer’s sudden inability to pay. Especially in an industry that must adhere to high-cost environmental regulations, trade credit insurance can help with cash flow and to ensure companies are financially stable.
Atradius analyzes industry trends and the risk of every buyer to ensure you are working with stable customers. If a previously stable customer starts showing signs of deteriorating payment trends, Atradius alerts you right away so you can take steps to protect and insure your accounts receivable. By evaluating the supply chain from every angle Atradius can alert clients to trouble coming down the pipeline before there is a loss.
Companies in the midst of an intense growth phase may need to put up accounts receivable as capital to receive additional funds from a bank. Having a trade credit insurance policy with Atradius that mitigates your risk means banks are more comfortable loaning the funds you need.
Aggressive policy tightening by central banks in 2022 has lifted borrowing rates and thereby reduced the demand for building construction work. However, a large backlog of work will help to mitigate somewhat the impact on construction work done during 2023.
Atradius can offer companies a team of experts to support their trade credit insurance needs. Atradius is a global company with a presence on every continent. With innovative services and practical tools to manage a company’s receivable and build the foundation for solid business growth and success.
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Atradius is here to help. Contact us to learn more about our coverage options or request a free, no obligation quote that includes credit reports for your largest trade partners.