Headwall Partners releases steel and metals growth survey

Headwall Partners LLC, Greenwich, Conn., an independent corporate finance and strategic advisory firm focused on the steel and metals industry, has published the "Headwall 2018 Annual Steel & Metals Growth Survey." The annual survey summarizes the perspectives of senior steel sector executives, who this year identify mergers and acquisitions (M&A) as the key source of strategic growth at their companies over the next three years.

Peter J. Scott, founder and managing partner of Headwall Partners, commented, “This year’s growth survey indicates that the market is primed for a meaningful uptick in M&A. Senior sector executives indicated optimism about near-term growth at their companies as a result of the past and expected future Trump administration policies. Fueled by this optimism, management teams are focused on pursuing growth opportunities through M&A.”

Thomas A. Danjczek, senior adviser to Headwall Partners, added, “The survey respondents were extremely positive regarding expected steel sector production volume, pricing, and financial performance. Therefore, we anticipate more meaningful sector growth and increasing M&A activity.”

Headwall conducted a detailed survey of sector executives at the chairman, CEO, and CFO levels to assess how management teams in the steel industry are pursuing growth. Participating companies represented a broad spectrum of the industry’s subsectors, sizes, and ownership structures. The survey focused on the policies of the Trump administration, general expectations for economic and sector growth rates, and corporate plans for strategic growth.

Eighty percent of respondents believe the economic policies of the Trump administration had a positive impact on 2017 U.S. GDP. Going forward, 85 percent of respondents believe Trump administration policies will have a positive impact on 2018/2019 GDP, and 75 percent believe such policies will have a positive effect on steel volume growth.

The survey also reveals that 89 percent of respondents are more optimistic about the prospects for their company’s financial performance over the next three years than over the past three years, and 95 percent of respondents expect their company to be equally active or more active in M&A over the next three years than in the past three.

The complete results of Headwall’s survey can be found at bit.ly/hwsurvey18.