BOCA RATON, Fla.–New data has been released offering an update on the health of millions of small and mid-sized American businesses.
Released as part of the COVID-19 Economic Impact Tracker (CEIT), a free B2B business health tool that sources data from a community of thousands of companies from across the U.S., by Cortera, the data offers insights about the economic impact of the pandemic.
The CEIT has the capability of generating pinpoint, granular data on millions of small and mid-sized firms in more than 100 industries – a valuable snapshot of the U.S. economy.
According to the report’s most recent data:
- More than 30% of the balances that businesses owe their suppliers are now late. This is a 5% increase over March of 2019.
- Looking at late balance increases across industries highlights businesses most financially impacted by the crisis, hospitality businesses have seen late balances increase to nearly 50% of total balances, an increase of 18% over March 2019. In retail, many sectors are paying suppliers significantly slower, with clothing stores (12% more late balances year over year), food and beverage stores (10% more late balances versus last March), and non-store retailers (6% more late balances) among the most impacted by the crisis.
- Food production and distribution, trucking, construction and general merchandise retail (store and online) are showing to be the strongest industries and likely hiring.
- General merchandise retailer spending increased 13% over March of 2019. However, small business general merchandise retailer spending decreased 4% over last year.
- There has been a shift in food products spending from February to March from restaurants (down 29% in average spending) to grocery stores (up 7%).
- Spending on information technology increased over 85% so far in 2020 compared to the same period in 2019 as companies moved to have employees work from home.
- Most manufacturing segments have been negatively impacted – down in spending 8% versus March 2019 other than food manufacturing, which is up 31% year-over-year – creating warning signs about future production and inventory.