As a consequence of late payment by B2B customers, 45% of suppliers surveyed in India reported they had to take specific measures to correct cash flow.
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A deterioration of trade relations with China could negatively affect the ICT component supply side and confront US end-consumers with higher sales prices.
Despite increasing challenges a recovery of the exchange rate and a rather stable economic outlook for 2018 should help the ICT industry in the short-term.
Despite continued sales growth, most German ICT businesses operate on very tight margins due to fierce competition and price erosion in most subsectors.
Payment experience over the past two years has been good in the ICT sector and the level of insolvencies is low, with no major change expected in 2018.
Due to limited organic growth opportunities and the on-going economic uncertainty, market players strive to expand through acquisitions and specialisation.
Payment behaviour in the ICT sector has been good over the past two years, and the number of payment delays and insolvencies is expected to remain low.
Despite minor improvements, the impact of late payments cannot be denied and businesses in Asia Pacific need more time to convert B2B invoices into cash.
Payment delays have remained largely stable and payment duration improved. Bankruptcy and failed collection attempts remain top reasons for write-offs.
Despite improvements, the proportion of overdue B2B invoices and that of uncollectable B2B receivables in Hong Kong remain some of the highest in Asia Pacific.
2018 brought many changes in India – more frequent payment delays, increases in the proportion of overdue B2B invoices and DSO, a longer payment duration.