Key Industries across the Middle Market Return to Pre-Pandemic Spending Levels, AvidXchange Report Shows
AvidXchange Holdings (Nasdaq: AVDX) reported positive trends in its fifth Middle Market Spending Trends report, highlighting a recovery in the Retail Trade and Professional Services sectors, returning to pre-pandemic spending levels. The Transportation and Warehousing industry experienced the highest quarterly spending growth due to rising gas prices and increased demand for warehouse spaces. However, the Construction sector continued to decline for the third consecutive quarter, affected by labor shortages and supply chain disruptions.
- Retail Trade and Professional Services sectors returned to pre-pandemic spending levels.
- Transportation and Warehousing industry showed the highest quarterly increase in spending.
- Construction sector spending declined for the third consecutive quarter.
- Ongoing skilled labor shortages and supply chain issues continue to impact the Construction industry.
Surging gas prices and supply chain issues ignite spending on Transportation and Warehousing
CHARLOTTE, N.C., Feb. 16, 2022 (GLOBE NEWSWIRE) -- AvidXchange Holdings, Inc. (“AvidXchange”) (Nasdaq GS: AVDX), a leading provider of accounts payable automation software and payment solutions for middle market businesses and their suppliers, today released the fifth report in its Middle Market Spending Trends series based on statistically significant data captured from the transactions processed in Q3 2021 by AvidXchange through its AvidPay Network.
The latest research shows that two key industries, Retail Trade and Professional, Scientific and Technical Services, have returned to pre-pandemic spending levels from early 2020. This can likely be attributed to a combination of economic reopening partly as a result of vaccination rates rising, and increased consumer spending habits around the impending holidays, as well as better market stabilization which allowed companies to spend more on these services.
“After several consecutive quarters of only spending increases primarily in the technology industry, we’re now seeing other industries pick-up momentum which is promising for the middle-market’s return to a pre-pandemic level,” said Dan Drees, Chief Growth Officer of AvidXchange. “These additional spending increases may indicate that a broad-based economic recovery is underway and we’re readying ourselves to be able to help our customers as efficiently and effectively as possible during this time of growth.”
The Transportation and Warehousing industry continues to show signs of recovery as it made the single-highest jump on spending quarter over quarter this year based on the report. The rise in demand can likely be attributed to the increase in gas prices, and more business leaders opting to rent industrial warehouse spaces to store supplies instead of transporting them.
Construction continues to be affected by external influences as well; the industry shows a decline in spending for the third consecutive quarter this year due to the growing skilled labor shortage, and the ongoing cargo ship issues which have greatly affected the supply chain and manufacturing. This marks it as the only industry in the report without a positive quarter in 2021.
To learn more and view the report, read Middle Market Spending Trends.
About AvidXchange
AvidXchange is a leading provider of accounts payable (“AP”) automation software and payment solutions for middle market businesses and their suppliers. AvidXchange’s software-as-a-service-based, end-to-end software and payment platform digitizes and automates the AP workflows for more than 7,000 businesses and it has made payments to more than 700,000 supplier customers of its buyers over the past five years.
Forward-Looking Statements
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Factors which could cause actual results or effects to differ materially from those reflected in forward-looking statements include, but are not limited to, the risk factors and other cautionary statements described in registration statements and periodic reports we file with the SEC, including our prospectus as amended and filed with the SEC pursuant to Rule 424(b)(4) on October 14, 2021 which may be obtained on the investor relations section of our website (https://ir.avidxchange.com/) and on the SEC website at www.sec.gov. Any forward-looking statements made by us in this press release are based only on information currently available to us and speak only as of the date they are made, and we assume no obligation to update any of these statements in light of new information, future events or otherwise unless required under the federal securities laws.
Contact
Olivia Sorrells
osorrells@avidxchange.com
980-643-7889
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