Good Morning,
As we enter the fall season and experience the related change of weather it triggers a reflection back on a year that has seemed to fly by, and what an eventful year it has been!
After a month and a half, it appears the UAW and two of the three OEMs (Ford & Stellantis) have come to a resolution, which will help to put many minds at ease, especially for suppliers in Tier II, III, and below. It is all but assured that GM will not fall far behind but there is still work to be done.
While not an entirely quick process, I think most would agree that the UAW came out of the negotiations with a "win". The effects on the supplier base are yet to be seen as you can be certain all employees have been paying attention to the negotiated rates.
M&A markets continue to lag on a year-over-year basis but we are seeing signs of an awakening. Mid-States is seeing more incoming opportunities on the sell side, some buy-side interest, and the buyers we're talking to seem anxious to find a suitable transaction. We expect a very active 2024.
Most economists are now predicting we will avoid a full-blown recession.
While interest rates are yet to decline it does appear that they have stabilized for the time being. An increased focus on near-shoring and on-shoring should assist in propping up the manufacturing industry and the government's stance on foreign competition in key industries should drive growth.
All in all, Mid-States is relatively positive on the future as we enter the fourth quarter.
We'd like to take this opportunity to announce the newest addition to our Mid-States team, Fadi Sadik. Fadi joined Mid-States as an Analyst and is already proving to be a great asset to the team. Take a couple of minutes to learn more about Fadi here and feel free to reach out to him to welcome him to the team.
Economic Outlook Survey results will also be available within the next week so keep an eye out.
Best Regards,
The Mid-States Team