Manufacturing Payment Practices See Marginal Improvement: 2023 Edges Ahead of 2022 by 0.6 Points

The Comparison

• 2022: Analysis of 190 manufacturing companies revealed an average payment performance score of 51.2 out of 100.
• 2023: A similar study, encompassing 186 manufacturing companies, reported an average payment performance score of 51.7 out of 100.

What This Means

While there's a slight positive trend, the 0.6-point increase indicates essentially flat payment performance in the manufacturing sector between 2022 and 2023; this minor shift suggests systemic challenges persist. Factors such as supply chain disruptions and fluctuating material costs may continue to influence manufacturers' ability to meet payment obligations promptly, potentially impacting cash flow. Use our late payment calculator to calculate potential penalties and interest charges.

One-line summary: The manufacturing sector saw virtually no movement in payment performance, with the average score rising from 51.2 in 2022 to 51.7 in 2023.