Last spring, European credit risk managers were somewhat optimistic about delinquencies across mortgages, auto loans and other credit products.
Now, much of that confidence seems to have evaporated.
The third European Credit Risk Survey, which was conducted by FICO and Efma in September, found that: (more…)
Supplier financial vulnerability continues to be a concern in the supply chain.
In fact, now that the risk is so significant, a new report urges companies to start acting like their own credit rating agencies.
The New Weakest Link in Your Supply Chain: Supplier Credit, a report from Oliver Wyman in collaboration with the Association for Financial Professionals (AFP), says that:
. . . supply chain risks have moved from the province of engineers into the realm of chief financial officers and treasurers. To emerge from the global recession unscathed, companies should rethink their approach to supply chains by behaving much more like their own credit rating agencies— and fast.
According to the report, credit rating agencies have downgraded the ratings of more than 500 companies in North America since April. Plus, the number of US businesses filing for federal bankruptcy protection has risen 126 percent over the past few years. Obviously, companies in your supplier network could be at risk, and it makes sense to take a hard look, specifically with strategic suppliers.
To mitigate supplier financial risk, the report suggests developing a predictive credit analysis framework that includes: (more…)
For the second straight quarter, more than one-third of North American manufacturers polled in MFG.com’s latest MFGWatch survey say they’ve experienced a significant supply chain disruption in the past three months.
The survey — which drew responses from 334 manufacturers of parts and services, purchasing professionals and engineers –was conducted in early January 2010.
Specifically, 35 percent of purchasing professionals responding to the survey said they had experienced a significant supply chain disruption and had to seek alternative sources to recover. Likewise, 34 percent of supply-side manufacturers reported that they had received queries from buyers experiencing supply chain disruptions within the past quarter.
In addition, the new MFGWatch survey reveals that expectations for excess capacity, employment growth and supplier reductions expressed by poll respondents a few months ago have not fully materialized. (more…)
Last Friday, regulators shut down three more banks, bringing the total of U.S. bank failures to four so far this year.
Take a look at the data from the past few years, and it’s easy to see that banks (small banks, in particular) have taken a big hit from the recession: (more…)
Analysts are expecting automobile sales to rebound this year as the economy improves, but by all accounts that I’ve seen, automotive suppliers aren’t out of the woods yet.
There is still too much capacity. Plus, many suppliers continue to face difficult credit markets.
The Detroit News reports that the Original Equipment Suppliers Association (OESA) recorded almost 60 automotive suppliers seeking bankruptcy protection in 2009. 200 others simply closed. (more…)
