Page 17 - HW MARCH 2020

stats watch
Statswatch Dec-Jan 2020
DECEMBER-JANUARY NUMBERS reflect both an uneven year and business as usual.
• Januarywasatoughmonthforcollections.
• Decemberconsentsrebound,boostingyearend.
CHALLENGES FOR CREDIT MANAGERS
The latest stats from CreditWorks Data Solutions (www. creditworks.co.nz) reveal that, as anticipated, January was a tough month for collections.
And, says General Manager, Alan Johnston, don’t expect February to be much easier.
January’s DSO in the Building Material supply sector increased by over 21⁄2 days and remains the highest of the different sectors.
However it was the Electrical supply sector that was impacted to the greatest degree, with average DSOs extending by over 6 days, followed closely by Roofing and Glass.
As a result, says Alan: “February will again be tough to make up lost ground, especially since it has fewer working days.”
However on a more positive note, he adds 2020 being a leap year, at least Credit Managers get an extra day at the end of the monthtopursuetheirslowpayers!
OverallDSOsrose,andthiswillbeexpectedtoleveloffin February, albeit at unsatisfactorily high levels.
Total debt on the CRISworks database remained steady and not at peak levels, with December and January generating fewer sales – however, more of the debt is aged.
The first quarter of the New Year remains the most challenging in the Credit Manager’s world...
REBOUND IN DECEMBER CONSENTS
Rebounding from November’s negative growth, building consent values for December 2019 from Stats NZ (www.stats. govt.nz) were positive, as follows:
• Residential: $1.2 billion (+17.2% on December 2018).
• Non-residential: $587 million (+11.8%).
• Total: $1.8 billion (+15.3%).
By volume residential 2,910 dwellings were consented in the
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MARCH 2020 | NZHJ 15