Which sectors are affected now?
If you look globally, the clothing and textile sector in particular seems to be hit hardest. And we also see this in the Netherlands and Western Europe. The recent bankruptcy of Scotch & Soda and the insolvency of Peek & Cloppenburg are well-known examples. The entire retail sector is suffering. Web shops were booming during the pandemic, but now sales within e-commerce are falling sharply. Inventories and high costs are skyrocketing due to returns and warehousing. The logistics sector is also affected, with fewer new goods in storage and fewer transport movements. Traditionally strong sectors such as chemicals and food are also slowly encountering problems. The medical sector is still strong in most parts of the world and so is the ICT sector, albeit to a slightly lesser extent. Thereby, it is notable that globally most sectors are showing a decline, especially the aforementioned textile and clothing sector.
Economic recession?
In itself, of course, it is not surprising that various factors put pressure on economic growth. We need only think of the after-effects of corona, the war in Ukraine, the energy crisis and the disrupted relationship with China. Despite these effects, our economy will grow by 1.5% in 2023. So there is still growth, but less than we are used to.
Anticipate
All this means that companies in most sectors need to anticipate. Managing debtor risks and optimising working capital are more important than ever. The recent bankruptcy of Peek & Cloppenburg shows once again that bankruptcy can come as a bolt from the blue. Insured suppliers will fortunately receive a quick payout, even for orders still to be delivered. Uninsured companies are left with unpaid invoices and the products of orders that cannot be delivered. This can lead to huge losses and in some cases even bankruptcy of the supplier. And this is easily prevented with credit insurance.
