aerospace and defense automotive chemicals q3 2018 · the q3 2018 results show a strong employment...
TRANSCRIPT
Q3 2018
What’s Growing? Every industrial subsector we follow posted an increase in job postings during Q3 2018 versus the prior quarter. Hiring in EPC and Automotive rose the most dramatically (31% and 15% respectively) versus last quarter. Across the board, all subsectors were up strongly in Q3 2018 versus Q3 2017.
What’s Slowing? No subsectors showed weakness versus last quarter.
Where are the investment dollars flowing? From a Private Equity investment perspective in Q3 2018, private equity invest-ment in the Industrial sector was down 53% quarter-over-quarter. Subsectors that showed relative strength related to investments this quarter were Oil & Gas and Heavy Equipment. The total number of deals this quarter was down 50% versus last quarter.
Aerospace and Defense Automotive ChemicalsDiversified Manufacturing Engineering ProcurementConstruction Heavy Equipment Oil and Gas
Nate Frank, Managing Director and Head of the Global Industrial Practice for ZRG Partners stated:“Global industrial hiring was off the charts in Q3, and while there may be a bit of normalization in Q4, we expect the numbers to remain very strong. On the flip side, we saw PE activity in the space decline sharply – to its lowest levels in more than two years. If this investment trend continues, we would expect 2019 hiring to begin to move lower as well.”
Sect
or In
dex
Num
ber
Aerospaceand Defense EPC Heavy
EquipmentAutomotive Chemicals DiversifiedManufacturing
0
100
200
Oil and Gas
300
400
500
Global Industrial Hiring Index
Q2Q2Q2Q2Q2Q2Q22017201720172017201720172017
Q3Q3Q3Q3Q3Q3Q3 Q4 Q4 Q4 Q4 Q4 Q4 Q42018
Q12018
Q12018
Q12018
Q12018
Q12018
Q12018
Q1Q2Q2Q2Q2Q2Q2 Q2
94.9 98.0
Q1 Q22015
100.5
87.3
Q3 Q4 Q1 2016
122.3
80
100
114.4
Q2
107.1
Q3
98.3
Q4 Q1
111.6
2017
112.7
Q2
122.0
Q3
134.9
Q4
120
140
Q1 2018
147.6157.8
Q2
160
Q3
171.4180
Q3Q3Q3Q3Q3Q3Q3
The Q3 2018 release of the ZRG Partners Global Industrial Hiring Index posted a 12% increase in global hiring demand quarter-over-quarter. Additionally, the Index improved 34% year-over-year when compared to Q3 2017. The sturdiness in global hiring demand continues unabated. In fact, the last time the ZRG Partners Global Industrial Hiring Index showed a decrease quarter-over-quarter was Q4 2016. Since Q1 2017, the Index has been increasing in strength each subsequent quarter. As evidenced by this quarter’s numbers, the strongest quarter of hiring demand we’ve ever recorded, hiring continues to be very robust globally.
The Q3 2018 results show a strong employment market across all subsectors within the Industrial space with all subsectors up at least marginally. EPC and Automotive had the most relative strength and both showed solid increases in hiring versus last quarter (up 31% and 15% respectively). Other strong subsectors included Aerospace & Defense and Heavy Equipment which were both up more than 10% versus last quarter
About ZRG Partners
zrgpartners.com
Private Equity investment in all tracked sectors
ZRG Partners Industrial Team Managing Directors
About the ZRG Global Industrial Hiring IndexZRG tracks hiring demand and PE investment over seven Industrial sectors globally. We do this by tracking hiring trends of top 10 leaders in each sector and track private equity investment in the same areas. The Index is a proprietary formula that will reflect global hiring demand from these data sources. ZRG collaborates with data from the CEB TalentNeuron tool and Pitchbook to assemble the sector data.
ZRG Partners, LLC is a leading authority on global talent management issues within the Industrial markets. ZRG provides its clients with specialized market expertise in executive recruitment, consulting and advisory work, with a focus on data and analytics to drive great business decisions.
ZRG brings patented solutions that are changing how companies approach talent in the Industrial sector. Our value proposition is centered around providing data and analytics that perfectly compliment the market expertise we bring in this sector.
From a Private Equity investment perspective in Q3 2018, investments in the Industrial sector were down 53% to $14.6 billion on a quarter-over-quarter basis. Investments in the sector were down 64.1% from a year ago levels. Strong PE investments flowed into the Oil & Gas and Heavy Equipment subsectors with investments of $7.7 billion and $649.1 million, respectively. Four of the seven total subsectors showed decreases in investments quarter-over-quarter.
Mary Kier, [email protected]+1-312-445-6527Jason Kroon, Houston [email protected] +1-832-928-6877Christophe Mille, United [email protected]+44-7985-071677Denys Monteiro, [email protected]+55-11-3456-2451Richard Morford, New [email protected]+1-732-245-4870Melissa Oszustowicz, [email protected]+1-952-314-2252
Leslie Sharp, [email protected] +1-832-858-7577
David Sheahan, Dallas [email protected]+1-214-906-7336Jill Schofield, Calgary [email protected]+1-403-444-6943Andy Talkington, Houston [email protected]+1-713-343-9111Geraldo Teixeira, Brazil [email protected]+55-11-3456-2451Steve Tosches, New Jersey [email protected]+1-609-269-5340Rebecca Wareing, Connecticut [email protected]+1-860-561-8499Robert Wolgemuth, Chicago [email protected]+1-630-462-1840
Q3
James Aslaksen, [email protected]+1-630-701-6456Allen Brady, [email protected]+1-206-489-5539Samantha Foster, [email protected]+1-860-561-8499Nate Frank, [email protected]+1-630-462-1841Peter Gremillion, [email protected]+49 0 170 225 0440
Aerospaceand Defense
3
2
0
200
0
Chemicals
6
3
0
200
0
DiversifiedManufacturing
25
12.5
0
200
0
EPC
10
5
0
500
0
20182017
HeavyEquipment
10
5
0
200
0
Automotive
1
0.5
0
200
0
200
0
Oil & Gas
Q1Q4 Q2 Q3
16
8
0
Capital Invested & Deal Count
Numberof deals
Capital Invested (Billions of dollars)
Global Hiring Demand
Q1Q12016
Q20
10
20
30
40
50
239
321
315
$22.9
$16.8
$39.7
Q3
251
$16.3
Q4
158
$21.1
2017Q2
$22.8
171
Q3
194
$40.7
Q4
$29.1
204
214
$35.4
Q12018Q2
$30.9
227
Q3
113
$14.6