Market Outlook: Composites in General Aviation

One assumption is that aircraft construction is a boom/bust market. But current order backlogs and resulting ramp-ups in production rates indicate that civil aircraft manufacturers are looking ahead with a great deal of confidence. Expected long-term growth in Asian and other developing economies accounts for a large proportion of the recently placed aircraft orders. As a result, many manufacturers already have backlogs amounting to several years of production for popular models. While some observers argue that the aircraft industry, as a result, has entered a “super cycle” or “a bubble,” investment banking advisor Trevor Bohn takes a slightly different view. A vice president at RSM EquiCo Capital Markets, Bohn said at COMPOSITESWORLD Conferences’ 2008 Composites Industry Investment Forum held in February that he preferred to describe the market as “stronger for longer.” With the growing number of aircraft orders and a resulting build up in aircraft delivery backlogs, the market for composite aerostructures in general aviation has been growing rapidly. According to the General Aviation Manufacturers Assn.’s recently released 2007 year-end statistics, the industry grew 16.5 percent to a record $21.9 billion in aircraft shipments, compared to 2006. Read More.

A little perspective on surging oil, mining, utility M&A

April 2 - Corporate Dealmaker Blog (The Deal) - While the world laments the death of M&A given the credit crunch, financial institutions crumbling and the gyrating stock market, oil and gas, power and mining deals are thriving. According to three separate reports over the past month by PricewaterhouseCoopers, M&A value levels were up .3% in the oil and gas industry last year to $292.2 billion, up 25% in power to $372.5 billion and up 18% in mining to $158.9 billion.

The figures aren't a big surprise, as demand for energy and natural resources in developing countries like China and India continues to grow and companies' profits continue to surge on record commodity prices. Read More.

Many Middle Market Companies With Global Operations Have Found Success and Intend to Expand Overseas, KPMG Survey Finds

58 percent of US middle market execs surveyed plan to expand globally in next five years, with downturn in U.S. economy possibly accelerating rate of expansion

March 11 - PRNewswire - Overseas markets are proving fruitful for middle market companies and, facing a declining U.S. economy, many are intending to expand globally, according to a survey by KPMG LLP, the U.S. audit, tax and advisory firm.

KPMG's Global Enterprise Institute, dedicated to global middle market companies, surveyed 1,013 executives from middle market companies in 10 cities across the country in December and January to gauge success overseas, to assess plans for future expansion and to better understand key challenges and risks. In doing so, KPMG found that 58 percent of middle market executives plan to expand their global presence in the next five years, compared with 33 percent who expressed that they will maintain their current size. Read More.

Many Middle Market Companies With Global Operations Have Found Success and Intend to Expand Overseas, KPMG Survey Finds

March 11 - PRNewswire - Overseas markets are proving fruitful for middle market companies and, facing a declining U.S. economy, many are intending to expand globally, according to a survey by KPMG LLP, the U.S. audit, tax and advisory firm.

KPMG's Global Enterprise Institute, dedicated to global middle market companies, surveyed 1,013 executives from middle market companies in 10 cities across the country in December and January to gauge success overseas, to assess plans for future expansion and to better understand key challenges and risks. In doing so, KPMG found that 58 percent of middle market executives plan to expand their global presence in the next five years, compared with 33 percent who expressed that they will maintain their current size.

In addition, 41 percent of the surveyed executives felt that their company has been successful at achieving its global expansion objectives over the past two years, compared to 20 percent who indicated limited success. The global aspect of their business strategy was also expected to increase, with 39 percent indicating that global expansion is an integral part to their company's growth strategy. Read More.

Time for a New Corporate Buying Spree?

As earnings take a nosedive, analysts expect to see more companies turn to M&A to pick up the slack. They certainly have the cash

The slowdown in U.S. corporate profits has been swift and stunning. While earnings for companies in the Standard & Poor's 500-stock index grew a robust 14.7% in 2006, profit growth has screeched to a halt amid the troubled financial climate of 2007. With the income-reporting season kicking off the week of Oct. 8, average earnings for the S&P 500 companies are on track to grow just 1.9% during the third quarter, the slowest pace in more than five years, according to senior S&P index analyst Howard Silverblatt. That's down from 7.9% for the first quarter and 9.6% in the second. Read More.

U.S. Middle Market Companies Confident about Business Growth in Year Ahead Despite Concerns about Slowing Economy

July 30 - Business Wire - Sixty-four percent of U.S. middle market companies, with revenues between $25 million and $1 billion, are predicting growth over the next 12 months, even though nearly 60% believe the U.S. economy will slow down, according to a new study from the Economist Intelligence Unit and CIT Group Inc. (NYSE: CIT), a leading global commercial and consumer finance company. Respondents also indicated that a “shortage of talented staff” and high “labor costs” were the top two challenges to achieving this growth.

The study, "Perspectives from America’s Economic Engine: The CIT U.S. Middle Market Outlook 2007,” surveyed more than 500 senior financial decision-makers at companies with revenues between $25 million and $1 billion. According to the most recent U.S. Census, the middle market accounts for more than $6 trillion in sales and employs almost 32 million Americans, which is more than twice the revenues and four times the number of employees of the blue-chip companies that comprise the Dow Jones Industrial Average. Read More.

RSM McGladrey CEO/CFO Survey Indicates Positive Growth for Small, Middle-Market Companies

July 18 - Carolina Newswire - The manufacturing and wholesale distribution segments in North Carolina and South Carolina continue to see positive growth across several industry segments, according to the RSM McGladrey 2007 Manufacturing and Wholesale Distribution National Survey.

Conducted this spring, the second annual RSM McGladrey survey provides insights into what CEOs, CFOs, and other senior industry executives are thinking, doing and planning to grow their businesses in an increasingly competitive marketplace. Industry executives were asked questions about cost structure, profitability, technology initiatives, operations, globalization and more.

Of the 947 surveys completed by executives of manufacturing and wholesale distributor companies nationwide, 43 originated from North Carolina and South Carolina. Read More.