North American manufacturing suppliers have generally become healthier since 2009 according to the latest BBK Ratings data. In spite of this, many manufacturers are still concerned that their suppliers’ financial health can deteriorate quickly and potentially disrupt their operations. This is reflected by the increased demand for organizations like BBK to rate suppliers.
“BBK Ratings requests are up this year, indicating there’s still a lot of uncertainty about the economy and that more companies want to proactively evaluate their suppliers to eliminate surprises,” said Michael Wagner, BBK director of proactive services.
Wagner added that private companies are recovering nicely from the nation’s economic collapse, noting that 65 percent are now rated as financially stable compared to 46 percent in 2009. However, 24 percent are still showing some level of financial distress, he concluded.
