5th September 2017
Besides the risk of a sales downturn, the economic policies of the Trump administration could pose a potential challenge for the US car industry.
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13th February 2018
Improvements in business performance and credit risk seen in 2017 and the stable outlook for 2018 have led to a performance rating upgrade to “Fair”.
The sector still suffers from fierce competition with prices and profitability at a low level, while major players keep putting pressure on subcontractors.
Tight lending conditions set by banks still hamper sector performance, exacerbating the fact that many construction businesses remain highly geared.
Brexit will undoubtedly impact on the construction market in the coming years, as the industry is very susceptible to shifts in investor confidence.
Banks remain rather cautious in providing loans to the industry due to the large number of insolvencies and generally volatile market demand situation.
Construction expansion is set to continue, underpinned by robust economic growth, with building businesses profit margins expected to remain stable.
The profit and loss accounts of businesses active in energy-intensive segments (e.g. cement) are negatively affected by elevated electricity and gas costs.
While mining-related activity could decline further the prospects for growth in other parts of engineering and non-residential construction are improving.
The outlook for 2018 remains subdued and the already low profit margins of many construction businesses are expected to deteriorate further in H1 of 2018.
Payments take 60-120 days on average and the payment behaviour has been rather bad over the past two years, with a high level of protracted payments.