Industry Reports

Published on: 01/28/2019
The Juvenile Products industry experienced strong revenue growth in 2018, driven by the 7.5% year-over-year increase in real disposable income (US Census Bureau), which fueled robust consumer confidence and spending last year. Additionally, personal consumption expenditures increased 2.8% YOY in November, propelling strong holiday season sales figures. The US Bureau of Labor Statistics’ robust December jobs report indicated unabated economic momentum heading into 2019.
Published on: 01/25/2019
Policy changes towards patient-centered healthcare, including the transition from fee-for-service to value-based care and the 2019 transparency law requiring hospitals to list standard prices online, have encouraged a revamp of healthcare solutions and organizational needs. The trend towards consumerization has bolstered increased focus on Healthcare Information Technology (HCIT) solutions which are simplified, personalized, and interconnected for tracking and transparency.
Published on: 01/23/2019
From both an industry growth and merger and acquisition (M&A) standpoint, 2018 was a monumental year for the Packaging industry. Rising levels of consumer spending and e-commerce sales have generated significant demand for sophisticated packaging services and innovative branded packaging solutions. Strong demand for packaging products and solutions has resulted in a corresponding increase in M&A activity resulting in a banner year. Capstone Headwaters identified 135 announced or closed transactions, a notable uptick relative to the 112 identified during 2017.
Published on: 01/22/2019
Though tempered relative to that of the previous two years, merger and acquisition (M&A) activity in the Chemicals industry remained healthy during 2018. With 182 transactions announced or closed in the US, there was sustained interest from strategic buyers to pursue M&A as a means to expand geographically, diversify offerings, and improve economies of scale. Strategic buyers looking to add synergistic businesses accounted for 66.1% of deal activity.
Published on: 01/18/2019
Through Q3, the MM lending market remained fairly aggressive in terms of rates, leverage, price flexes, covenant structures, and headroom reflecting flat new-deal volume (demand), robust capital raising among Direct Lending and other credit platforms (supply), and continued strength in the economy. However by year-end, the credit market had turned more cautious due to rising concerns about an approaching recession, escalating trade tensions, the government shutdown, heightened stock market volatility, and further mixed economic signals.
Published on: 01/18/2019
One of the hurdles consistently facing medical device original equipment manufacturers is the significant costs and length of time to design, develop, and secure regulatory clearance for a new product. According to ScienceDirect, a platform for peer-reviewed scholarly literature, the average time-to-market for a medical device falls between three to seven years at a cost of $94.0 million for a high-risk, novel medical device.
Published on: 01/14/2019
America is currently facing major problems in the development of key projects that are essential to maintaining and improving the nation’s infrastructure. A primary problem is that rarely are projects fully under the jurisdiction of a single entity, whether that’s at the local, county, or state level. In addition, seldom do two of these jurisdictions have the same regulations or laws.
Published on: 01/04/2019
Activity in the Recreational Products industry has been primarily driven by robust macroeconomic fundamentals and a growing desire among consumers to lead healthy, active lifestyles. Historic levels of real disposable income, rising 2.8% year-over-year in October, and low unemployment have resulted in growing expenditures on luxury consumer goods. Shifts in consumer preferences, supported by a strong Consumer Sentiment index level of 98.6, have driven industry consolidation.
Published on: 01/02/2019
Merger and acquisition activity in the Environmental, Health & Safety industry remains robust as buyers continue to capitalize on market opportunities created by increasing government regulations, mounting corporate concerns regarding risk and potential liability, and favorable end-market dynamics. With a significant degree of industry fragmentation, firms are looking to the M&A market as a means to build scale and to offer clients expanded capabilities and geographically far-reaching services.
Published on: 01/02/2019
Strong macroeconomic fundamentals, including the nine-year expansion of the US economy, low unemployment, and high consumer confidence levels, drove healthy industry activity in the Building Products space in 2018. In Q2, the Associated Builders and Contractors’ Construction Backlog Indicator hit a historic high of 9.9 months and has since remained above 9.0 months, indicating strong levels of construction activity in the coming months.