Managing Construction Credit Risk with an Industry-Specific Score

Описание: In this Commercial Pulse Update, we examine the payment friction defining the construction sector today: 70% of contractors regularly face delayed payments, 41% have increased credit use to manage cash flow gaps, and construction businesses seek credit more than twice as often as firms in other industries. With 60+ day delinquency rates running higher than sector averages and spending levels that peaked above $2.2 trillion in 2024, lenders need sharper tools to navigate this environment.

We introduce Experian's construction-specific risk model — built with machine learning and sector-specific attributes to predict the likelihood of a business becoming 61+ days beyond terms within 12 months. Producing scores from 300–850, the model offers meaningfully better separation than generic alternatives, helping lenders make more precise credit decisions and allocate capital with greater confidence.

What you'll learn:
Why construction businesses represent both elevated risk and significant lending opportunity
The payment and cash flow dynamics driving higher delinquency in the sector
How industry-specific scoring outperforms generic models in construction credit decisioning

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00:00 US Construction Snapshot: Growth, Firms & Spending Trends
02:58 What’s Driving 2026 Growth: Data Centers, Renewables & Infrastructure
03:08 Tightening Credit & the Reality of Payment Delays
03:37 Portfolio Risk Signals: Higher Credit Demand and Delinquencies
03:53 Risk Leaders’ Challenge: Turning Sector Friction into Opportunity
04:03 Experian’s Construction Risk Model: How It Works
04:31 Model Results & Why Industry-Specific Scoring Wins
04:51 Wrap-Up: Precision Credit Strategy in Volatile Payment Markets