Let the Sector games begin: Companies are having an early start at their own Olympics

2/1/2016 - Report
ic_blogtagConstructionEnergyInformation & Communication TechnologiesMachinery & EquipmentMetalPharmaceuticalsRetailTransportationCreditGrowthSector Risk
2015 was a rough year for sectors and industries worldwide. Euler Hermes chronicled 148 industry downgrades and only 76 upgrades. Metals and Machinery & equipment were the hardest hit sectors. Latin America and GCC countries are the regions with most downgrades.

In 2016, companies will have to develop the characteristics of professional athletes. They will have to be: i) resilient to the protracted period of low commodity prices; ii) precise enough to target the right markets, especially since the emerging economies' Eldorado has disappeared; (iii) strong when faced with increasing debt, payment terms and credit risk; (iv) fast to avoid being disrupted for a lack of quality investment; and (v) agile � with a good team spirit � as consolidation and M&As will increase price pressures.

Each sector will compete in its own Olympic discipline this year: Metals will face the triathlon of demand, prices and debt, Energy will have to cope with the marathon of lower oil prices, Construction will go for unsynchronized swimming (or sinking) across countries, Machinery will have to jump many hurdles, Transportation will do the splits, Retail will wrestle for profits, ICT will have to stay alert when fencing with competition, and Pharmaceuticals will have to break its own high jump (profit) record.

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Let the Sector games begin: Companies are having an early start at their own Olympics - Report