Publikationen

Higher costs, reduced orders, price pressure and changes in the type of products demanded could put the finances of many smaller suppliers under stress.

Insolvencies are expected to increase by about 3% in the coming 12 months, mainly affecting car dealers, car part distributors and Tier 2 suppliers.

Larger suppliers could seize the opportunity of buying distressed smaller players in order to expand market share and bargaining power against OEMs.

Corporate insolvencies are on the rise globally due to the more challenging economic environment and high policy uncertainty.

Economic reforms are urgent, especially improving the governance in state-owned enterprises, as large contingent liabilities are of great concern.

Private sector debt developments in the US and China probably won’t trigger an economic crisis but could deepen a downturn, possibly triggered by the bilateral trade war.

Should the Sino-US trade dispute continue or even escalate, US petrochemical businesses would face unfriendly market conditions with falling prices.

The repercussions of the trade dispute with the US have been limited so far, but several US-export dependent SMEs could fail should the dispute continue.

Profitability of businesses is generally high in this sector, but Brexit poses a downside risk for businesses profitability and payment behaviour.

Due to the more difficult market environment and decreasing sales, we have recently downgraded the sector performance outlook from “Excellent” to “Good”.