Forefront | Blog
Forefront 2017 – Issue 3
This edition of Forefront highlights issues in the agriculture industry. Commodity prices have continued to tumble and the long term commitments to land leases and equipment when times were better has introduced an unanticipated distress in the industry. Horticulture growers which have also kept us busy over the last five years continue to have challenges with the economics of their distribution to big box sales channels. The ability to understand your business risk and to be able to price it into your customer relationship will give you sustainable advantages rather than following the herd (sometimes off the cliff). We have developed strategies and insights that have enlightened even our most sophisticated clients in these spaces. Automobile units are slowing but will get a bump from the need to replace damaged and irreparable vehicles from the summer hurricanes. Just when you think a market is slowing, it gets an unexpected boost. The interest rates are rising (Fed expects another rate hike in December) but it hasn’t slowed M&A activity because of the cash still sitting on the sidelines from the deleveraging of the last six years. Anyway, it’s a dynamic market and everybody seems to be busy. – Patrick O’Keefe
