Baird Survey: Impact of Global Trade Policy on Industrials Anticipated to Continue Through 2019

CHICAGO, November 6, 2018
- As a preview to the 2018 Global Industrial Conference, Baird has released the results of its fourth annual Global Industrial Survey, designed to identify what company executives believe are the key drivers and threats to profitable market growth in the year ahead. This year’s findings highlighted continual trends in the industry amid visible impact and anticipated lasting effects from recent changes in global trade policy.

For more information, contact Baird Public Relations at or 414-765-7250.

Global Trade Policy Impact

According to most respondents, recent changes in global trade policy have negatively impacted cost structure and supply chain/logistics. Most respondents expected this impact to continue for at least 12 months.

Global Trade Policy Impact

Length of Impact

2019 CapEx & Cost Outlook

Forty-two percent of survey respondents expect flat 2019 capital expenditure, and fifty-eight percent of respondents anticipate cutting costs, a decrease from last year’s findings

Capital Allocation Priorities

Capital Allocation Priorities

Respondents again ranked bolt-on acquisitions as their top capital allocation priority over the next 12 months.

Capital Allocation Priorities

*Total weighted score with a ranking scale of 1-6

Geographic Growth in 2019

Over the next 12 months, respondents expect that growth will accelerate in Latin America and decelerate in China.

Geographic Growth in  2019

End market growth expectations

In the next 12 months, respondents expect growth to continue accelerating in the Energy sector and decelerate in Automotive.

End Market Growth Expectations

Most impactful macro factors

Consistent with last year’s survey, respondents anticipate the U.S. economy will have the biggest impact on their business over the next two years.

Most Impactful Macro Factors

*Total weighted score with a ranking scale of 1-6

Other impactful macro factors

"Tariffs" was the most common write-in response for other factors impacting business over the next two years.

Other Impactful Macro Factors

Baird conducted a survey of 52 industrial company executives in conjunction with the 2018 Baird Global Industrial Conference in Chicago, Ill., November 6-8, 2018.