Jul
18
2013

Experian releases Metro Business Pulse: A quarterly look at the health of businesses

Experian Metro Business Pulse

Experian Metro Business Pulse

Experian’s Business Information Services is very pleased to release an analysis of business performance at a metropolitan area level. The result of our research shows the top and bottom five performing metropolitan areas in terms of business performance in four categories: Risk Score, Days Beyond Term, Delinquency and Bankruptcies. The analysis illustrates many success stories throughout the United States where businesses are doing a good job of managing credit, while also pinpointing metropolitan areas that are struggling.

So, which metropolitan areas were included in our analysis? To answer that, we focused on the top 25th percentile of metropolitan areas based on the number of businesses in major industry groups. Each metropolitan area was ranked how well they scored in each of the following credit categories:

  • Risk Score — We used our proprietary commercial risk score, IntelliScorePlus℠, which is based on a scale of 1 to 100 (with 100 being least risky) and predicts the likelihood of severe delinquency (more than 91 days past due) within the next 12 months
  • Days Beyond Terms — The weighted average number of days that businesses paid their bills beyond the contracted terms.
  • Delinquency — The average percentage of dollars that are considered delinquent or past due.
  • Bankruptcy — The average rate of businesses filing for legal protection under Chapters 7, 11, 13 or 15 of the bankruptcy code.

Success stories from the analysis in the Risk Score category include Pittsburgh who came in first place overall and had the highest risk score for the Business Services, Health Services, and Utilities industry groups. Portland, Oregon had businesses with the highest risk scores in the Manufacturing, Public Services and Real Estate industries. New York City had the lowest bankruptcy rate overall, while Salt Lake City reported the lowest average delinquency rate.

The analysis also contained some impressive results in areas hit hard by natural disasters, such as the Atlantic Cape, New Jersey and Monmouth, New Jersey, where the Hospitality industry emerged in the top five for highest risk score. . While in Louisiana, Baton Rouge and New Orleans had the lowest business bankruptcy rate in the Agriculture, Business Services, Educational Services and Retail industry groups.

Another area managing credit risk well is Grand Rapids, Michigan who placed in the top five for risk score in the Agriculture, Business Services, Construction, Educational Services, Insurance, Legal Services and Transportation industry groups.

Visit the Metro Business Pulse page to find out more and see the full analysis. While on the site, you can select individual industries in the top or bottom metropolitan areas, or compare the top performing metros to the bottom.