Manufacturing Payment Practices Edge Up, But Improvement Remains Marginal: 2021 vs. 2022 (50.3 to 51.2)

The Comparison

• 2021: A study of 210 manufacturing companies yielded an average payment practices score of 50.3 out of 100. This reflects a generally weak performance regarding timely payments and effective payment management.
• 2022: Data collected from 190 manufacturing firms shows a slight increase in the average payment practices score to 51.2 out of 100. This suggests a marginal, almost negligible, improvement in payment efficiency year-over-year.

What This Means

The increase of just 0.8 points indicates that while there may be minor adjustments in payment behaviors, the fundamental challenges regarding payment practices within the manufacturing sector remain largely unchanged. Companies might consider assessing their processes using tools such as this late payment calculator to highlight specific shortcomings. The difference in sample size between 2021 and 2022 (210 vs 190 companies) may also have influenced the results, although the effect is likely small.

Summary: The manufacturing sector saw a minimal improvement in payment practices from 2021 (50.3/100) to 2022 (51.2/100).