Page 17 - HW May 2021

stats watch
Statswatch – March 2021
RISK AND CONSENT data from March 2021 appear to indicate a generally optimistic outlook.
• Although uncertainty remains, risk data for March confirms
a general feeling that debt repayment has improved across
the board.
• March residential consents hit all time high, boosting
optimism going forward.
JAN-MARCH QUARTER RISK DATA
Our latest exclusive data from CreditWorks confirms a general feeling that debt repayment has improved across the board.
Exclusive to NZ Hardware Journal, the latest data from CreditWorks Data Solutions (www.creditworks.co.nz) assesses the level of credit risk posed by the four business sectors most closely associated with our chosen industry: • Residential Construction.
• Commercial Construction.
• Hardware, Building & Garden Supplies Retailing. • Core Retailing.
Our last update (April issue) showed debt risk as steady, with the exception of Commercial Construction, which was showing a “reasonably significant increase in the likelihood of failure statistics over the last quarter”.
Now, having got through the always critical December- February period, with the slight exception of the 10-20% risk area of Core Retailing, our January-March 2021 charts seem to reflect a general feeling around the industry currently that debt repayment is improving across the board.
CreditWorks’ Alan Johnston comments: “March showed a general improvement in pretty much all sectors. Companies are reporting very good collection returns and there is a definite market focus on paying debt on time.
“Whether this is due to more money in the local economy, and/or greater scrutiny around lending and prompt repayment terms, is difficult to determine.
“However, several major retailers and building supply merchants are reporting record collections for the month of March and indications are that these will continue through April.”
Having said all this, customers with credit accounts will be keenly aware of the need to keep their suppliers satisfied at a time of timber and other product shortages.
“Debt exposure protection is the focus of most businesses now like never before with so much uncertainty ahead”
“A solid credit record is paramount,” warns Alan Johnston, adding: “Debt exposure protection, rather than sales at any cost, is the focus of most businesses now like never before with so much uncertainty around what lies ahead.”
MARCH BUILDING CONSENTS
Consent data from Stats NZ (www.stats.govt.nz) show that March 2021’s consents hit an all-time high, with massive gains all round in value and volume, albeit off a low base from 2020’s pre-lockdown period:
• Residential: $1.8 billion (+38.3% on March 2020). • Non-residential: $770 million (+77.8%).
• Total: $2.6 billion (+48.1%).
By volume, 4,128 new dwellings were consented in the
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