First Quarter Shows U.S. Businesses Are Making A Comeback, According To Experian's Latest Business Benchmark Report

First Quarter Shows U.S. Businesses Are Making A Comeback, According To Experian's Latest Business Benchmark Report

Costa Mesa, Calif., April 21, 2010 — Experian®, the leading global information services company, today announced the results of its monthly Business Benchmark Report. Findings from the March report show that the national average commercial risk score is up 2.4 percent and overall delinquencies have declined since the beginning of the year. The national average percentage of dollars delinquent has improved by 5.9 percent, and the percentage of dollars 91-plus days delinquent has improved by 1.9 percent. Additionally, businesses in states with large metropolitan areas, such as California and Texas, had among the lowest rates of severe delinquency, coming in at 14.8 percent and 28.8 percent below the national average.

Other key findings from this month’s Business Benchmark Report include the following:

Risk score:

  • The national average commercial risk score was 58.60* in March. This is the third consecutive month of improvement (2.4 percent increase in 2010), highlighting the continuing improvement seen in the business sector overall.
  • Although down slightly from February, the education services and public administration sectors have shown the greatest average risk score change, improving by 8.3 percent and 9.8 percent, respectively, since December.
  • All geographic regions have shown marked improvement since December, improving by as much as 8.7 percent. The Plains states continue to have the highest risk score average of all geographic areas (62.56).
  • The largest businesses (those with more than 1,000 employees) have seen a slight decrease in the average credit score from February, but have seen the greatest improvement over the last six months, with a 1.3 percent improvement.

Average days beyond terms (DBT):

  • All business sizes, with the exception of nonemployer firms, have shown significant improvement in their payment behavior over last month. The largest changes came from midsize to large businesses, or those with 100 to 999 employees showing as much as a 5.8 percent improvement.
  • Payment performance from all industry groups appears to continue stabilizing, with some industries showing signs of improvement over the last six months. Hospitality, which has struggled during the downturn, has seen the greatest improvement in payment behavior over last month (by 2.8 percent), followed by public administration (by 2.3 percent).
  • The Northeast and New England continue to show the best average payment performance, with 4.64 and 4.78 DBT, respectively. Some states with large metropolitan areas, such as Texas (5.7), California (5.25) and New York (4.15), all came in well below the national average of 6.28 DBT.

Percentage of dollars delinquent:

  • Overall, delinquencies are declining. The national average percentage of dollars delinquent has improved by 5.9 percent since the beginning of the year, and the percentage of dollars 91-plus days delinquent has improved by 1.9 percent.
  • Over the last six months, the average percentage of dollars delinquent has improved by 1 percent. Large businesses with 500 to 999 employees and midsize businesses with 100 to 249 employees have seen the greatest improvements at 2.1 percent and 3.3 percent, respectively.
  • Texas, Arizona and California were among the areas with the lowest percentage of dollars delinquent, with an average of 10.14, 9.6 and 9.27, respectively. Additionally, California and Texas ranked among the areas with the lowest rates of severe delinquency, coming in at 14.8 percent and 28.8 percent below the national average.

March 2010

 

 

 

 

Six-month change

 

 

Risk score

Average DBT

Percent $ delinquent

Percent $ 91+

 

Risk score

Average DBT

Percent $ delinquent

Percent $ 91+

National average

58.60

6.28

11.8%

5.2%

 

-0.9%

1%

-1%

0%

 

 

 

 

 

 

 

 

 

 

Number of employees

 

 

 

 

 

 

 

 

Nonemployer

61.22

5.52

7.3%

4.7%

 

-0.7%

0.2%

-3.3%

-1.5%

1 to 4

56.38

6.72

13.1%

7.6%

 

-1.4%

1.0%

0.1%

0.9%

5 to 9

54.16

8.02

14.3%

7.2%

 

-1.3%

0.9%

0.7%

2.4%

10 to 19

53.46

8.26

14.3%

5.9%

 

-1.1%

0.9%

-0.3%

1.5%

20 to 49

54.52

8.08

13.6%

4.8%

 

-0.9%

0.7%

0.4%

3.0%

50 to 99

54.96

7.66

14.0%

3.5%

 

-0.7%

0.7%

-0.2%

2.0%

100 to 249

53.05

7.83

16.0%

2.8%

 

-0.7%

0.5%

-0.2%

-3.3%

250 to 499

51.62

8.24

15.1%

2.2%

 

-0.8%

0.2%

0.4%

1.3%

500 to 999

51.36

8.55

17.4%

1.8%

 

-1.1%

0.4%

-0.1%

-2.1%

1,000 and over

38.04

7.53

18.1%

2.0%

 

1.3%

1.7%

0.3%

1.4%

 

 

 

 

 

 

 

 

 

 

 

Risk score

Average DBT

Percent $ delinquent

Percent $ 91+

 

Risk score

Average DBT

Percent $ delinquent

Percent $ 91+

Industry group

 

 

 

 

 

 

 

 

 

Agriculture

62.88

5.58

8.29%

5.14%

 

-0.85%

1%

3%

6%

Forestry

65.03

3.67

11.15%

3.24%

 

-1.07%

1%

-8%

-14%

Mining

59.77

4.97

8.45%

1.34%

 

-1.16%

0%

6%

6%

Construction

54.88

10.43

21.40%

9.64%

 

-1.04%

1%

0%

1%

Manufacturing

55.26

8.83

15.16%

4.02%

 

-0.95%

1%

1%

1%

Transportation

52.09

8.10

13.71%

5.67%

 

-1.23%

0%

2%

2%

Communications

48.91

9.87

15.59%

7.50%

 

-1.67%

1%

0%

2%

Utilities

68.30

5.16

15.98%

2.75%

 

-0.72%

1%

1%

-4%

Wholesale trade

55.65

7.82

12.24%

3.43%

 

-1.04%

1%

0%

0%

Retail trade

51.48

8.26

17.45%

5.83%

 

-1.26%

1%

1%

1%

Finance

49.36

8.93

12.08%

8.17%

 

-1.89%

1%

-2%

2%

Insurance

58.35

6.24

9.66%

6.52%

 

-1.76%

1%

1%

6%

Real estate

55.43

6.70

4.40%

2.68%

 

-1.34%

1%

-3%

-1%

Hospitality

51.75

7.04

5.57%

2.05%

 

-1.03%

0%

1%

3%

Business services

53.84

8.98

15.47%

8.25%

 

-1.45%

1%

1%

1%

Health services

60.32

4.85

10.56%

3.71%

 

-1.25%

1%

0%

2%

Legal services

55.78

6.81

12.89%

9.01%

 

-1.67%

1%

1%

2%

Educational services

60.54

5.51

10.43%

5.39%

 

-1.17%

1%

0%

2%

Public admin.

60.37

5.15

13.04%

4.21%

 

-1.24%

1%

-1%

1%


 



 

Risk score

Average DBT

Percent $ delinquent

Percent $ 91+

 

Risk score

Average DBT

Percent $ delinquent

Percent $ 91+

Region

 

 

 

 

 

 

 

 

 

Mid-Atlantic

60.62

5.43

12.7%

4.7%

 

-0.9%

1%

-2%

-2%

Midwest

60.29

6.58

16.3%

7.0%

 

-0.8%

1%

-1%

-1%

Mountain

59.04

9.57

7.7%

4.2%

 

-0.7%

1%

0%

3%

New England

61.72

4.78

10.5%

3.9%

 

-0.7%

1%

-2%

0%

Northeast

55.71

4.64

14.1%

5.4%

 

-0.9%

0%

-1%

1%

Northwest

60.66

7.98

11.9%

5.1%

 

-1.0%

1%

-1%

0%

Plains

62.56

5.91

12.0%

4.2%

 

-0.6%

1%

0%

1%

South Central

58.52

5.54

10.2%

3.7%

 

-1.0%

0%

-1%

0%

Southeast

56.80

6.90

12.5%

5.9%

 

-0.9%

0%

-2%

-2%

Southwest

56.92

6.31

9.5%

5.1%

 

-1.3%

1%

1%

2%

To download previous reports or to see a visual representation of this data and other information broken down by state in an interactive map, visit http://www.experian.com/business-benchmark-report.

Contact:
Roslyn Whitehurst
Experian Public Relations
1 714 830 5578 Telephone
roslyn.whitehurst@experian.com Email

About the Business Benchmark Report
Experian’s Business Benchmark Report is a monthly look at how businesses are faring in the United States. Designed to monitor the progress of business recovery, the report looks at four key indicators of business health, including commercial risk score, days beyond payment terms, percentage of dollars delinquent and percentage of dollars severely delinquent.

About Experian’s Business Information Services
Experian’s Business Information Services partners with organizations to establish and strengthen customer relationships, enabling them to mitigate risk and improve profitability. The company’s business database provides comprehensive, third-party-verified information on U.S. companies of all sizes, with the industry’s most extensive data on the broad spectrum of small and midsize businesses. By leveraging state-of-the-art technology and superior data compilation techniques, Experian is able to provide market-leading tools that assist clients in processing new applications, managing customer relationships and collecting on delinquent accounts. For more information about Experian’s advanced business-to-business products and services, visit http://www.experian.com/b2b or call 1 800 520 1221.

About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 65 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score and protect against identity theft.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2009, was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil.

For more information, visit http://www.experianplc.com.
 
Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein may be the trademarks of their respective owners.

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