A recent study by Moody’s has determined that the global auto industry is on somewhat of an uptick. The financial research company has upgraded the industry outlook from “stable” to “positive”.
Trends in volume, demand and prices, which have recovered faster than anticipated, have led them to this conclusion. Their optimism is somewhat tempered though, due to rising prices of raw material, mainly steel, which could result in automakers operating at a loss.
Overall, this is very good news for Consolidated Metal Service Inc. Given that a good amount of material that we process and distribute ultimately goes to the auto industry, any positive outlook is good for us.
Hopefully their outlook as accurate and the auto industry, which is the backbone of the US economy, will continue to fight back. If they are accurate in their projections, it can only be a positive for us as a company and as a country.