December 2016 Credit Management magazine

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Region 7 6 5 4 3 2 1 0 2 1 PAYMENT 0 TRENDS 0 1 2 3 4 5 6 7 8 Scotland orth West umberside t Midlands t Midlands ast Anglia Wales outh West South East Getting Worse Scotland Getting Better North West -0.7 Yorkshire & Humberside West -3.4Midlands -3.3 -3.0 -2.6 -10.4 -4.3 -4.2 -2.6 London -2.0 ern Ireland East Midlands East Anglia -8.5 Wales South West South East Getting Worse Region Top Five Prompter Payers Northern Ireland 12.6 DBT Scotland 15.2 DBT Wales 10.9 DBT 12.6 DBT Getting Better Region ALL Oct TREATS 16 Change on Sept 16 West Midlands 9.4 -3.0 Scotland Financial & 15.2 Health & Getting Worse -0.7 Insurance Social South West 10.0 -4.2 Northern Ireland 12.6 -8.5 East Midlands 10.6 -2.6 North West +4.5 12.6 +0.4 -3.4 Wales 10.9 -4.3 London 12.3 -2.0 Yorkshire and Humberside 11.6 -3.3 South East 11.8 -2.6 AND NO TRICKS! Mining & pter Payers Bottom Quarrying Five Poorer Education Payers Getting Better -17.3 -10.8 -9.7 Oct 16 Change on Sept 16 9.4 -3.0 Getting Worse Scotland Financial & 15.2 Health & -0.7 Agriculture West Midlands 9.4 DBT South West 10.0 DBT Region Oct 16 Change on Sept 16 Region 11.6 DBT South East East 11.8 DBT Midlands 10.6 DBT Business from home London -7.3 12.3 DBT Business from home -7.3 Jason 10.0 Braidwood -4.2 FCICM(Grad), Head Northern of Ireland Credit Insurance and Collections Social 12.6 at -8.5 Creditsafe Group, analyses 10.6 the latest -2.6 monthly business North West to business +4.5 payment 12.6 +0.4 performance -3.4 statistics. 10.9 -4.3 London 12.3 -2.0 at quite possibly the best set of figures we’ve mberside 11.6 -3.3 South East 11.8 -2.6 IT’S fair to say that most of us who work in the credit management industry are by nature a somewhat cautious, and dare I say it, even slightly pessimistic lot. We’ve all heard the hard-luck stories and the lame excuses and have developed somewhat cynical responses to being told once again ‘the cheque’s in the post’. Experience has told us not to look on the bright side, just for once I’m going to. I’m sitting here on a bright Autumn’s day to complete my analysis of our trade payment databases for October and it looks like good news all round. I said last time that the bounce back we’d seen after the sharp downturn in May appeared to be continuing. We’re looking 0 1 2 3 4 5 6 7 8 Getting Better -0.7 -3.4 -3.3 -3.0 -2.6 -10.4 -4.3 -4.2 -2.6 London -2.0 Northern Ireland -8.5 Mining & Northern Ireland 12.6 DBT Bottom Quarrying Five Poorer Education Payers -17.3 -10.8 seen in the last two years, and certainly well ahead of last Autumn’s poor performance. We’ve even seen an improvement on the position in the spring with positive moves in days beyond terms in all regions of the UK, and almost all trade sectors with only two bucking that trend, and one of those by less than half a day. At this point I feel the need to inject the traditional note of caution. This is just one month’s figures and as we’ve seen before things can just as rapidly go the other way. However, with nearly five months of (on the whole) improving data I think we can call this a trend – and a very welcome and healthy one as well. I can only hope that I’ll be writing Scotland 15.2 DBT North West 12.6 DBT Yorkshire & Humberside 11.6 DBT East Midlands 10.6 DBT West Midlands North West Yorkshire & East Anglia Wales 9.4 DBT Humberside 11.7 DBT 10.9 DBT Agriculture -9.7 South West 10.0 DBT Region Oct 16 Change on Sept 16 London 12.3 DBT East Anglia 11.7 DBT Professional & Scientific -6.2 South East 11.8 DBT something similar next month so that we can look forward to the festive season and next year. Despite moves in the right direction and the best figures in 18 months, we can’t hide that we are still struggling with a commercial culture that accepts late payment as either a fact of life or some sort of perverse badge of pride. If I were to sit down with my colleagues in Germany or Scandinavia and tell them I was excited about an average days beyond terms that was hovering around ten days, they’d be genuinely shocked and see that as completely unacceptable. There is always work to do, but it does at least look as if we’re currently travelling in the right direction. 25 20 15 10 5 0 25 15.7 15 Jan 20 15 10 5 Fe 0 Profes & Scie -6 42 December 2016 www.cicm.com The recognised standard
Sector Getting Better Getting Worse Mining & Quarrying -17.3 Top Five Prompter Payers Financial & Insurance +4.5 Education -10.8 INDUSTRY SECTORS For the last couple of months I’ve started Getting Worse Health & Social +0.4 Business Agriculture from home Getting Worse -9.7 -7.3 Top Five Prompter Bottom Payers Six Poorer Payers Professional & Scientific -6.2 Sector this part of the analysis, where Oct 16 we look Change at on Sept step 16 backwards Sector with a worsening of four Getting Oct 16 and Better Change on Sept 16 Region Oct 16 Change on Sept 16 Region Oct 16 Change on Sept 16 Education trade sectors to see how 3.1 the industries -10.8 with a half days. International Bodies 18.0 -5.0 IT and the Comms greatest exposure to 7.9 consumers -5.3 and West Midlands Business Admin 9.4 & Support -3.0 15.9 -4.8 Scotland Financial & 15.2 Health & Getting Worse -0.7 Insurance Social Real particularly Estate Retail are doing, 9.2 in an attempt -5.2 South to West Energy Supply 10.0 -4.2 REGIONS 15.0 -2.4 Northern Ireland 12.6 -8.5 Agriculture see if we can gauge the state 9.6 of consumer -9.7 East Midlands We start our Financial review and 10.6 of Insurance -2.6 the regions and 13.5 +4.5 North West +4.5 12.6 +0.4 -3.4 Retail confidence. Well, once again 10.2 it looks -3.2 Wales like nations of Hospitality 10.9 -4.3 the UK by looking at London. 13.4 I was -1.2 London 12.3 -2.0 Yorkshire and Humberside Mining and 11.6 Quarrying -3.3 13.4 -17.3 South East 11.8 -2.6 good news with a steady improvement. The sector is now showing a DBT score of just over ten days and has actually moved into our list of the ‘Top Five Prompter payers’ for what seems like the first time ever. In fact this is the best set of figures we’ve seen from Retail in well over two years and it will be particularly interesting to see if this continues over the next few months as we move into the Christmas shopping season. Elsewhere, we’ve also seen continued small improvements in both the Entertainment and Hospitality sectors, but these two are still lagging behind Retail when they were both well ahead earlier in the year. If we now look at the more traditional indicators of general economic performance, we can also see some more encouraging signs with continued improvement from the Manufacturing sector as well as Transport. You may remember Manufacturing found itself back in the ‘Top Five’ last month, and although it has seen another step forward this month, it has been squeezed out by some spectacular results elsewhere with Education in particular almost paying on time. Construction has also taken another step in the right direction and it’s interesting to see the significant improvement in the Real Estate sector which may yet pull through that particular chain, or indeed be another positive sign of consumer optimism. If we look at our other movers this month we can see that the blip for Agriculture last month was just that and the sector has climbed in the ‘Most Improved’ rankings and back where we usually see it in our ‘Top Five’. Also, given our usual head shaking at the performance of the wider utility sectors, it’s nice to see a big positive move from Mining and Quarrying, even if it still scrapes into our ‘Bottom Six’. On a slightly less positive note we should also take a look at some of the key service sectors where there might be some cause for concern. Although we have seen an improvement, the Business Support sector remains in our ‘Bottom Six’ again Yorkshire & Humberside -3.3 Insurance West Midlands +4.5-3.0 East Midlands East Anglia Top Five Prompter Payers Wales Sector -2.6 -10.4 -4.3 Social +0.4 Sector Oct 16 Change on Sept 16 Education South West -4.2 3.1 -10.8 IT and Comms South East 7.9 -2.6 -5.3 Real Estate 9.2 -5.2 Agriculture London 9.6 -2.0 -9.7 Retail 10.2 -3.2 Northern Ireland -8.5 along with Finance and Insurance which have to be singled out for displaying the only real delighted to point out a second best score for the capital in the last 18 months and I’m pleased to say with further improvement we are now seeing the lowest DBT score for London in well over two years, and well below its average in that time. If this trend of the last couple of months can be continued, then it really is good news for the whole country. While staying with the good news, my gloomy predictions last month that Northern Ireland had somehow reverted to type with a score of over 20 days beyond terms, appears to have been misplaced. The province has come back strongly despite the ongoing concerns as to the effects on its economy from Brexit in the longer term given the land border with Ireland. Scotland has taken Northern Ireland’s place as the worst paying region and has also registered the smallest improvement across the UK. However, before we get too worried, it is an improvement and indeed its second best score in the last year and a half. Just as we saw with Agriculture in the industry review, East Anglia has bounced back strongly from a bad month and it is worth speculating whether the correlation between these two may be a reflection of that region’s economic profile. While the region has no doubt seen a big recovery, it hasn’t got back into our Top Five where the Midlands regions are still holding sway, although they have been split by a strong improvement by the South West, and are being chased by Wales, which like London, has seen its best performance in more than two years. We can only hope all this good news continues through November but old credit hand that I am I can also remember that other Bonfire Night saying ‘Up like a rocket – down like a stick!’ Let’s hope not. Mining Northern & Agricultu North West Yorkshire -9.7 & Sector Oct 16 Change 12.6 on Sept Humberside DBT 16 -3.3 11.6 DBT International Bodies Financial 18.0 & -5.0 Health & Getting Worse Business Admin West & Support Midlands15.9 Insurance -3.0 -4.8 Social East Energy Supply 15.0 +4.5 -2.4 +0.4 Midlands Financial and East Insurance Midlands13.5 -2.6 +4.5 10.6 DBT West Hospitality 13.4 -1.2 Midlands East Anglia -10.4Wales 9.4 DBT Mining and Quarrying 13.4 10.9 -17.3 DBT Quarrying Ireland Education Bottom Six Six Poorer North Poorer Payers 12.6 West Payers -3.4 DBT Getting Better -17.3 -10.8 Yorkshire & Humberside Top Five Five Prompter Payers Payers London 12.3 DBT South West -4.2 Sector Oct 16 Change on Sept 16 South West Education South East3.1 -2.6 -10.810.0 DBT IT and Comms 7.9 -5.3 Real Estate London9.2 -2.0 -5.2 Agriculture 9.6 -9.7 Northern Ireland -8.5 Retail 10.2 -3.2 Mining & Getting Worse Bottom Quarrying Five Five Poorer Education Poorer Payers Payers -17.3 We’ve all heard the hard-luck stories and the lame excuses and have developed somewhat cynical responses to being told once again ‘the cheque’s in the post’. Scotland Wales -10.8 Getting Better -0.7 -4.3 Top Five Five Prompter Prompter Payers Payers Agriculture -9.7 We can only hope all this good news continues through November but old credit hand that I am I can also remember that other Bonfire Night saying ‘Up like a rocket – down like a stick!’ Let’s hope not. B Busine from ho -7.3 Bo Getting Better Region Oct 16 Change on Sept 16 R West Midlands 9.4 -3.0 Getting Worse S South West 10.0 -4.2 N East Midlands 10.6 -2.6 N Wales 10.9 -4.3 L Yorkshire and Humberside 11.6 -3.3 S The recognised standard www.cicm.com December 2016 43
Page 1 and 2: CREDIT MANAGEMENT THE CICM MAGAZINE
Page 3 and 4: CONTENTS DECEMBER 2016 www.cicm.com
Page 5 and 6: Hoist Finance. Season’s greetings
Page 7 and 8: NEWS IN BRIEF MANUFACTURING DRIVES
Page 9 and 10: News in Numbers - provided by the M
Page 11 and 12: BACK TO BLACK IVAS AND RPBS In resp
Page 13 and 14: OPINION TOMORROW’S CICM Philip Ki
Page 15 and 16: INTERNAL AND EXTERNAL RECOGNITION A
Page 17 and 18: The biggest weapon in the armoury,
Page 19 and 20: Now is the time when employers in c
Page 21 and 22: INTERVIEW WILDE AT HEART Sean Feast
Page 23 and 24: ‘‘What we offer is not for ever
Page 25 and 26: THE RECOGNISED STANDARD CICM Britis
Page 27 and 28: We want to build the financial capi
Page 29 and 30: TRADE TALK So the multi-layer impac
Page 31 and 32: HEDGING YOUR BETS NISSAN seems to b
Page 33 and 34: the ice Despite the controversies,
Page 35 and 36: The recognised standard www.cicm.co
Page 37 and 38: WEBSEND 4 IN SUMMARY eBilling and D
Page 39 and 40: Although there is much debate over
Page 41: ASK THE EXPERTS LINES OF COMMUNICAT
Page 45 and 46: EDUCATION GRADUATE STARS Debbie Tuc
Page 47 and 48: ‘‘ Below eight credit professio
Page 49 and 50: THE CICM MAGAZINE FOR CONSUMER AND
Page 51 and 52: The recognised standard For further
Page 53 and 54: NEW CICM MEMBERS THE INSTITUTE WELC
Page 55 and 56: BRANCH NEWS SOUTH WALES BRANCH COLL
Page 57 and 58: CREDIT MANAGER DRIVE BUSINESS TARGE
Page 59 and 60: Cr£ditWho? CICM Directory of Servi
Page 61 and 62: Cr£ditWho? CICM Directory of Servi
Page 63 and 64: CREDIT MANAGEMENT CM MONTHLY PRIZE

December 2016 Credit Management magazine

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