The Swedish machinery sector has seen many positive developments over the past few years and currently benefits from higher global demand.
- The Swedish machinery sector is highly export oriented. Its main segments are automotive (trucks), agriculture and industrial machines.
- The industry has shown several years of positive development, and currently benefits from higher global demand. Sweden’s economic growth has also picked up (2.4% in 2014) and is forecast to be 2.2% in 2015. As a result, investments continue to increase.
- Due to the benign growth outlook profit margins are expected to remain stable in 2015.
- While the external financing requirement is high, the industry faces no particular lending problems as banks are generally willing to provide loans to the machinery sector.
- The average payment duration in the machinery industry ranges from 30-45 days. Payment behavior has been good over the last two years and the number of payment delays, defaults and insolvencies is expected to remain low in 2015
- Due to the good growth prospects and low credit risk our underwriting stance is relaxed for all subsectors.