The bulk of UK-quoted industrials have proved to be dab hands at navigating downturns. Many were forced to reassess their business models and put their houses back in order after several years of muted capital spending. Cutting unnecessary fat out of operations and retuning growth strategies has left them better positioned to prosper as manufacturing activity spending shows signs of gradually picking up – and equally less susceptible to waver should the recent bullish outlook on the global economy prove to be short lived again. Rewards await those investors able to distinguish the adaptable leaders from the out of shape laggards.
The sheer diversity of global industrial stocks and the breadth of opinion amongst analysts makes this a fascinating sector. A lack of consensus on the outlook for the global economy and industry presents skillful stock-pickers with opportunities to snap up quality companies at attractive valuations. In this Alpha sector report we discuss the discipline needed in assessing the best companies and analyse the trends and themes investors must consider.
Read our previous sector reports below:
Housebuilders: Finding room for more upside
Oil & Gas: Cash and Compromise
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