Why 73% of Manufacturers Say Cash Flow Limits Innovation

DONNA DELAROSABlog

Innovation Takes Fuel—And Right Now, It’s Running on Empty

Ask manufacturers about their biggest pain point, and you’ll hear: supply chain chaos, labor shortages, raw material costs. But dig deeper and a quieter villain emerges: cash flow constraints.

The National Association of Manufacturers (NAM) reports that 73% of U.S. manufacturers say late B2B payments delay innovation and R&D. Translation: fewer robots, fewer automation upgrades, and fewer chances to keep pace globally.

Late Payments = Late Progress

Atradius found 51% of B2B invoices in manufacturing are paid late, with an average delay of 28 days. That’s a month of frozen capital—capital that should be fueling AI-driven production lines or sustainable practices.

Now add the looming workforce shortage: Deloitte predicts 2.1 million unfilled jobs in U.S. manufacturing by 2030. Without innovation, companies risk being doubly squeezed: not enough workers, not enough tech.

The DSO Game-Changer

Manufacturers who tackle Days Sales Outstanding (DSO) with robust receivables management cut delays by up to 35%. That means more capital unlocked for R&D, resilience, and competitiveness.

Because in manufacturing, every unpaid invoice isn’t just cash delayed—it’s progress denied.

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