The major concern looking ahead for businesses in the US is how ongoing fluctuations in economic conditions may affect their business operations and future profitability.
The Atradius Payment Practices Barometer is an annual proprietary survey we conduct of our customers to get first-hand information on the current state of the economy. This year, businesses report that 46% of all B2B sales are transacted on credit among US companies, a slight decline from 48% this time last year. The survey many companies are relying on credit for transactions. Business concerns include how ongoing fluctuations in economic conditions could impact business operations and profitability, as well as market saturation, depending on industry.
The survey also shows that steel and metals businesses are concerned that insolvencies will increase in 2025 and regardless of sector, half of those surveyed say they are worried about this trend. Meanwhile, businesses in the chemicals sector are apprehensive about long-term sustainability trends and the ongoing US cybersecurity threats that could impact data operations and financial stability.
The major concern looking ahead for businesses in the US is how ongoing fluctuations in economic conditions may affect their business operations and future profitability, with anxiety evident for both the short-term and long-term, according to these findings.
Despite these concerns, it is important to note that 69% of companies surveyed anticipate a surge in demand for their products and services in the coming year. Businesses are altering their risk management strategy to strike a prudent balance between safeguarding financial health and pursuing sales growth, which is reflected in 46% of all B2B sales currently being transacted on credit. This approach is complemented by payment terms for B2B customers being set on average 30 days from invoicing.
“As our survey reveals that 15% more businesses than last year have moved to more strategic methods of managing credit risk, including the added layer of protection that is provided by trade credit insurance. This allows businesses to safeguard their financial health and achieve business opportunities that arise even during these uncertain global economic circumstances,” said Cessford.
US. companies should continue their strategic approaches to improve financial stability. Additionally, US businesses will need to closely monitor financial and economic trends and predictions for 2025 as ongoing changes are expected.