Nearly one-third of suppliers (31.8%) are extremely confident their customers will maintain their current purchasing volumes in the first half of 2024, while 51.1% are moderately confident, according to new research from PrimeRevenue. Only 17% of suppliers reported they were not confident their customers would maintain purchasing volumes in the first half of next year.
“While there are valid reasons to be optimistic for the year ahead, there are also substantial challenges—including geopolitical instability, along with broader economic uncertainty—that, for the foreseeable future, will continue to pose significant threats,” said PJ Bain, CEO, PrimeRevenue. “For suppliers, working capital solutions such as supply chain finance, receivables finance, and dynamic discounting each play their role in providing much-needed cushion through uncertainty and volatility.”
Key takeaways:
- Business demand is expected to remain strong in the first half of 2024.
- Of the business challenges specified, 42.7% of suppliers reported cash flow was their biggest anticipated challenge over the next six months, while 31% cited decreased market demand as their top concern.
- Nearly half of suppliers (47.6%) say their business will not be impacted by deteriorating market conditions, while 20.4% expect market conditions to positively impact their business.
