Index continues to hit all-time high, but delinquencies remain elevated
PORTLAND, ME – May 21, 2018 – BlueTarp Financial – the leading credit management company for B2B suppliers – released its Q1 2018 Building Supply Index. The Q1 2018 12-month trailing average, which accounts for seasonality, hit an all-time high at 130.66, up from 128.84 in Q4 2017. The unadjusted view also remained high at 125.67 – a 5.6% increase from Q1 2017.
To interpret the index, values below 100 reflect recessionary or recovering performance. Values above 100 reflect healthy economic activity.
Consumer confidence continues to be the main driver for the elevated index level, with that measure seeing an 8% increase from this time last year.
As a supplement to the Building Supply Index, BlueTarp conducts a quarterly survey of its contractors to gauge sentiment on the current and future state of the economy. Sixty percent of respondents expect the next 12-months to be “somewhat” or “significantly” improved. They are encouraged by an increase in jobs and customer spend, driven by consumer confidence, as well as proposed tax breaks for businesses.
“It’s clear from the index and survey, business is good,” said Scott Simpson, president and CEO of BlueTarp. “I’m a broken record on this, but delinquencies remain hovering at a level where a disruption will trigger a new wave of bad debt – beware.”
The report represents trends from 120,000 pro customers and more than 2,000 building material suppliers across the United States. It also incorporates macro-economic drivers including: building permits, construction spend and consumer confidence as reported monthly by the Census Bureau and The Conference Board.
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About BlueTarp Financial
BlueTarp Financial is a B2B credit management company serving more than 2,000 suppliers since 1998. BlueTarp pays suppliers upfront for their sales and protects them from credit risk so they can fund the growth of their business. Suppliers can customize their program by choosing to manage customer interactions as they do today, or select a full service option where BlueTarp handles customer service and collections. They can also grow sales with options for up to 90 day terms, credit lines up to $1M, and a loyalty rewards program. Learn more at BlueTarp.com, or send them an inquiry through their NADRA member profile page HERE
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