SOUTHFIELD, MI – 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 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.
BBK completes its Ratings by gathering and evaluating suppliers’ financial data at the request of the suppliers’ original equipment manufacturers (OEMs), Tier One and Tier Two customers. BBK Ratings provide them with current, objective, comprehensive, confidential evaluations of their suppliers’ financial status and the factors influencing it. Rated companies represent several industrial sectors: manufacturing, services, agricultural and retail.
“Private companies are recovering nicely from the nation’s economic collapse: 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,” said Wagner.
BBK’s Ratings reports give companies timely and often critical insights into the health of their suppliers not found in balance sheets alone. This includes analytical comments and metrics that let companies act before underlying problems become more obvious and more costly to solve. Financial data is evaluated in a consistent manner through the use of BBK’s proprietary statistical model and processes that are trusted by all parties involved. Rated companies do not receive copies of their BBK Ratings reports and Ratings data are shared only with companies that the Rated companies approve. Over 10,000 BBK Ratings have been completed on public and private companies in the past eight years.