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The highest percentage of the suppliers interviewed in Hong Kong (42%) reported that domestic B2B customers pay invoices late due to liquidity issues.
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The USMCA has finally been signed on November 30, easing short-term uncertainty surrounding North American trade.
Despite ongoing growth, there are challenges ahead, as profit margins of businesses decreased in 2017 and H1 of 2018 due to sharply increased input costs.
Many producers are under pressure to either expand/grow or refuse orders, while difficulties in hiring skilled staff impacts further business expansion.
As in previous years, competition remains strong in the domestic market, mainly among small and medium-sized machinery companies depending on construction.
A modest insolvency increase is expected in 2019, with businesses related to oil and gas exploration, construction and agricultural markets mainly exposed.
The demand situation for Belgian machinery businesses is generally positive, but remains affected by difficulties in some major buyer industries.
There is pressure on the profits of turbine manufacturers and their suppliers along the value chain, and further consolidation seems to be likely.
Due to its high export ratio the industry is highly susceptible to rising geopolitical risks, exchange rate volatility, and rising protectionism.
Business performance and profit margins of machinery traders could be negatively affected by the ongoing trade dispute between China and the United States.
Due to its high export ratio the industry is highly susceptible to external risks like a deterioration in the Eurozone and rising protectionism.