The analysis conducted by Euler Hermes Italia, the credit insurance giant and leader in the suretyship and commercial credit recovery market, aims to study how the missed payments in 2011, compared to the previous year, hit companies more strongly Italian. The strengths underlying the representative capacity of this study are not only the large number of data available, taken from the database of Euler Hermes Italy, which has about 450 Italian companies, and integrated with external data from institutional sources (Banca d' Italy, ISTAT, Chambers of Commerce and Trade Associations), but also the high degree of updating of the data itself, the result of a daily monitoring activity.
The survey shows that this phenomenon has increased over the last year, not only in frequency but also in intensity. The number of non-payments among companies in the Italian regions has in fact increased by 42% compared to 2010, while the consistency of average amounts has increased by 17%, as far as the domestic market is concerned. The figures on exports are more comforting: the study finds, in fact, a certain solidity of the export market as regards the frequency with which this phenomenon occurs, which remains unchanged compared to 2010, however showing a certain growth in the severity of the average amounts of 7%.
The report proposes an analysis on how the Regions and sectors of Made in Italy are differently affected by episodes of non-payments. Among the Regions most affected by this phenomenon are Umbria, Emilia Romagna, Calabria and Tuscany; Valle d'Aosta, Basilicata and Molise observe an increase in the severity of the average amounts in missed payments, compared to 2010, by 100%. Although the increase in the frequency of these episodes affects all Italian regions, the intensity of the same also observes some ppositive decreases in the Regions of Sardinia, Abruzzo, Liguria and Campania. Veneto, Trentino Alto Adige and Marche are below the average, indicating a slight increase in the frequency and intensity of missed payments.
As far as the sectors most affected by this phenomenon are concerned, the energy sector stands out positively, measuring a reduction in the frequency and severity of episodes of non-payments, both at a domestic level and at an export level; on the other hand, the mechanical, wood and furniture and agri-food sectors suffer in particular, all with greater intensity in the domestic market than in the export one. Peculiar is the steel sector, which observes an increase in the occurrence and intensity of episodes of non-payments in the internal market, but shows a decrease in the same as regards exports. Even the leather and fur sector shows opposing trends between the domestic market and exports: while at the domestic level it denotes a slight increase in the frequency of non-payments, but a reduction in the consistency of the average amounts in question, in the context of exports a increase in severity and a decrease in the frequency with which these episodes occur.
“Il phenomenon of missed payments in Italy – says Michele Pignotti, Head of the Mediterranean Countries, Africa & Middle East Region of Euler Hermes and Country Manager of Euler Hermes Italy – it does not only concern a sector or a supply chain but it is evident in the main sectors of Made in Italy, with the exception of the Energy sector which, due to its characteristics of essentiality in industrial processes, is the last to be involved. In the export market, positive signals come from clothing, footwear and the iron and steel industry, which are confirmed as solid in the main outlet markets, such as France, Germany and the USA”. “Within this scenario – continues Pignotti – businesses are facing further credit difficulties; on the one hand the restrictions related to access to bank credit and, on the other, prudently increase the provisions of the company bad debt fund to cover commercial transactions. Self-financing therefore becomes a competitive factor for businesses – concluded Pignotti – which, through the correct use of working capital, will generate growth margins for the most virtuous companies. Only a careful risk management policy will be able to guarantee the consolidation of working capital and healthy and long-term business development on the markets ".
Knowledge of the market, in a context similar to the current one, with little reassuring forecasts for 2012 and 2013, is of primary importance in the development of business decision making processes, especially those relating to credit management. In this regard, the collaboration between the Finance Department and the General and Commercial Department is essential: appropriate credit management, which is based on the availability of timely information on the market and on commercial activity, in fact translates into a considerable advantage for the company, significantly influencing its solidity and development.
For further information, the Report prepared by Euler Hermes is attached.
