ALMONTE, ON, Dec. 4 /CNW/ - This week, international trade credit insurer Atradius, based in Almonte, Ontario, released its Global Economic Crisis Survey based on more than 3,500 interviews with executives and senior managers from companies in North America, Europe, Asia and Australia. The survey was designed to learn business leaders' views on current economic indicators, including:
- Viability of their businesses, industries and financial institutions
- Value of government interventions
- Business practice modifications to maintain cash flow and prevent
"This survey provides us with a current snapshot of the global business community and our domestic economy," said Ian Miller, Country Manager, Atradius Credit Insurance, N.V., part of the Atradius Group, which manages insured trade worth more than $20 billion annually. "Economists' forecasts and insights from policy leaders are helpful, but when it comes to managing risks and uncovering new business channels in this economic environment, it is vital to understand how business decision makers are modifying their practices and planning for a recovery."
Key survey findings include:
- Nearly 71 percent of global respondents expect the economic crisis
to end in the fourth quarter of 2010. Seventy-five percent of
Canadian respondents anticipate a rebound in business by the end
- Fifty-four percent of Canadian respondents believe their
companies' financial position will stabilize at the end of 2009,
and 39 percent anticipate an improvement in their financial
stability by this year's end. In respect to these numbers,
Canadian optimism shows as they top the list when it comes to
financial stability of their own companies.
Impact on Business Practices - Canadian respondents
- Thirty-four percent have suffered a decrease in their access to
- Canada is among the most optimistic of countries surveyed when
it comes to expectations of failures of large banks and
financial institutions, with only nineteen percent reporting an
anticipated increase in failures.
- Thirty-seven percent have changed their credit terms, 38 percent
have increased their use of outsourced collection services, and
47 percent have increased the frequency of their buyers' credit
- Finding new markets or sales channels for products and services
(56 percent) and placing a heightened focus on customer service
(62 percent) have proven essential elements for business
continuity, as have gaining access to financing and conducting
staff level reviews.
- Twenty-four percent are considering or have begun using credit
insurance as a risk mitigation tool.
Government Stimulus Efforts
- In 17 of the 20 surveyed countries, more than 40 percent responded
that they have experienced no impact from government initiatives
to stimulate the economy.
- In Canada, 47 percent think the government's efforts thus far have
largely been ineffective, and 71 percent think the government
should stimulate economic growth through tax cuts and incentives
with 68 percent reporting favor with lower interest rates. No
other action was even half as popular as these.
"To effectively manage risk and capitalize on economic opportunities in this market requires an understanding of business leaders' mindset - what actions boost confidence, which in turn inspires activity and the capital gains needed for long-term investments," added Miller. "Recovery rests with our economy's business leaders, which is why these insights and this level of outreach are so significant to our business endeavors related to protecting companies from the risk of catastrophic losses and uncovering new areas of economic opportunity worthy of investment."
The full "Atradius Global Economic Crisis Survey" can be downloaded from www.atradius.com.
The Atradius Group provides trade credit insurance, surety and collections services worldwide, and has a presence in 42 countries. Its products and services aim to reduce its customers' exposure to buyers who cannot pay for the products and services they buy. With total revenues of more than EUR 1.8 billion and a 31% share of the global trade credit insurance market, its products help protect companies throughout the world from payment risks associated with selling products and services on credit. With 160 offices, it has access to credit information on 52 million companies worldwide and makes more than 22,000 trade credit limit decisions daily.
SOURCE Atradius N.V.
For further information: For further information: Ian Miller, Country Manager - Canada, Tel: (613) 256-9134, Mobile: (613) 294-2186, E-mail: email@example.com, www.atradius.com