Fall 2016 issue of Horizons


The Economic State of Manufacturing & Distribution by Jim Mather, CPA, CGMA

W hen reading and listening to many of the lead stories and headlines about the manufacturing and distribution segments of our economy, there appears to be a great deal of emphasis on the negative, including the loss of jobs and unfavorable activity overseas. However, while reviewing the financial results of RubinBrown’s clients and contacts over the past year and first two quarters of 2016, coupled with the entrepreneurial optimism of business owners and management teams, we are happy to report that the industries appear to be doing very well. Many companies have worked diligently since the challenges experienced in 2008 to control costs and work efficiently while enhancing quality and customer satisfaction. Management continues to focus on growth, expansion and innovation to enhance earning potential and value.

There are numerous examples of growing revenues through expansion domestically and even internationally. Companies have enjoyed access to very favorable lending arrangements which have provided opportunities to make strategic acquisitions and expand product or service offerings and revenues. A substantial amount of merger and acquisition activity driven by private equity investors has occurred over the past 18 months. Management teams are also contemplating investments in capital equipment including technology enhancements and facility upgrades to support expansion.

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