{"id":15234,"date":"2023-04-10T03:24:46","date_gmt":"2023-04-10T10:24:46","guid":{"rendered":"https:\/\/essential.construction\/news\/its-not-just-you-construction-really-is-risky-business\/"},"modified":"2023-04-10T03:24:46","modified_gmt":"2023-04-10T10:24:46","slug":"its-not-just-you-construction-really-is-risky-business","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/its-not-just-you-construction-really-is-risky-business\/","title":{"rendered":"It\u2019s not just you: Construction really is risky business"},"content":{"rendered":"<p> <a href=\"https:\/\/essential.construction\/files\/membership-default-internal\/\" class=\"memberhide\"><img decoding=\"async\" src=\"https:\/\/essential.construction\/news\/wp-content\/uploads\/sites\/15\/2023\/01\/20220718_175041000_iOS.jpg\" alt=\"-\"><\/a><br\/><br \/>\n<\/p>\n<div>\n<h3 class=\"standard-heading\">Dive Brief:<\/h3>\n<ul>\n<li><span><span><span><span><span><span>Usually in business, finishing among the top three is a good thing. But it was a dubious distinction in 2022 for the construction industry, which had the third-highest number and cost of legal filings among all U.S. business sectors, according to <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.creditsafe.com\/us\/en\/resources\/research\/state-of-credit-risk-2022.html?utm_source=pressrelease&amp;utm_medium=PR&amp;utm_campaign=CreditRisk2023&amp;utm_content=stateofcreditrisk2022\" target=\"_blank\"><span><span><span><span><span><span><span><span>a recent report<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> from business credit scoring agency Creditsafe.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Construction businesses had 212,582 legal filings entered against them last year, resulting in cumulative losses exceeding $3.36 billion, according to Creditsafe\u2019s State of Credit Risk 2022 report released in February.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Meanwhile, the sector finished first in another aspect of notoriety: Construction firms had the worst average credit score, which garnered a collective label of posing a \u201cmoderate risk\u201d to other business partners, according to the report. Simultaneously, 41% of construction companies were categorized as posing \u201cvery high risk,\u201d a distinction that also put the sector among the top three riskiest of all industries.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dive Insight:<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>The report didn\u2019t completely throw construction under the bus among its peers. Indeed, counter to the widespread reputation construction firms have for paying suppliers and subs late, the Creditsafe report found that the sector actually had one of the best track records of all industries for timely payments.\u00a0\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Construction\u2019s Days Beyond Terms score, or the number of days beyond an agreed-to payment period, such as 30 days, that a check was issued, came in at just 18, and tied with manufacturing. (A lower score means faster payment.) Only public administration (15) and agriculture, forestry and fishing (17) were better.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The retail and transportation industries were actually the slowest payers, each with DBT scores of 23, while the professional, technical and scientific services segment posted a score of 21. Finance, insurance and real estate came in at 20 days, while wholesale trade was at 19.\u00a0\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Overall, the business credit watcher, which claims to predict 70% of bankruptcies up to 12 months in advance, struck an ominous tone in general toward American businesses during the first quarter of 2023.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe impending recession has most businesses scared about how it will impact them and wondering if they can weather the storm,\u201d the report said. \u201cOur data indicates you have good reason to worry.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The report stated that 93% of American businesses had a credit limit lower than $10,000, while just 2% had credit above $50,000 in 2022 as interest rates rose and capital became more scarce.\u00a0\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIt seems that higher credit limits were much harder to secure,\u201d the report said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-5143531171910809\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- News - Bottom -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-5143531171910809\"\r\n     data-ad-slot=\"8320848692\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/construction-really-risky-business-credit\/646869\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dive Brief: Usually in business, finishing among the top three is a good thing. But it was a dubious distinction &#8230; <a title=\"It\u2019s not just you: Construction really is risky business\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/its-not-just-you-construction-really-is-risky-business\/\" aria-label=\"Read more about It\u2019s not just you: Construction really is risky business\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-15234","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/15234","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=15234"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/15234\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=15234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=15234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=15234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}