The collapse of the United States property market in 2007-8 had major implications for Lennox, with a rapid decline in construction. Dealers selling to a mixed market quickly felt the pinch, following a number of benign years for the housing and construction market.
Credit and collections had not been a major area of focus for us over this period, but we realised that to position the business successfully within a radically different economic climate, we needed to improve accounts receivable performance whilst also supporting our customers who were struggling to manage working capital.
As a result of the collapse of the US property market in 2007-08, Lennox International decided it must improve its accounts receivable process while also supporting the working capital problems of its customers
Peter JacksonVice President, Finance - FP&A and M&A
Lennox International Inc.