Value Investor's Edge’s Post

There are 5 major trends that will affect the Manufacturing industry in 2021. Don’t get caught off guard. This @Paycor article highlights ways you can better prepare for the new year:

Vehicle manufacturers: Transform potential losses into financial gains! 🗞️ Many in the automotive sector are currently grappling with high levels of excess and obsolete (E&O) electronic stock. Recent trends, including volatile supply chains and high obsolescence rates, have created a perfect storm, tying up valuable capital in surplus inventory. Component Sense is excited to release our newest white paper, "Ultimate Guide to Turn Excess Into Revenue." This comprehensive, FREE white paper reveals: 🔹 Strategies to convert surplus inventory into significant profit 🔹 Stock management advice from subject matter experts 🔹 Tips to outpace market changes and obsolescence 🔹 Real-world redistribution success stories Gain access to the "Ultimate Guide to Turn Excess Into Revenue" here: https://lnkd.in/dtwkYmAb #ExcessInventory #ElectronicManufacturing #evmovement #hybridtechnology #ComponentSense

The auto industry's changing impact on the Michigan economy is detailed in this excellent article from CNN. https://lnkd.in/grVXG8az #autoindustry #manufacturing #michiganjobs #useconomy #commercialbanking

𝗧𝗿𝗼𝘂𝗯𝗹𝗲 𝗮𝘁 𝘁𝗵𝗲 𝗺𝗶𝗹𝗹 During my MBA, one of the fundamental principles we learned was about the effect of high operational gearing on different businesses. Businesses that have high fixed costs need to make sure they cover those high costs. Then, for every pound they make after this, it drops to the bottom line profit. Car manufacturers are a classic example of a trade with high operational gearing, and they're currently struggling to meet these high fixed overheads. Across Western manufacturers, we're seeing flashing red lights across the sector with profit warnings (for instance, VW twice in three months). And, in the case of Stellantis, a significant overhang on stocks in critical markets like the USA. This will cause bumpy times, especially this quarter when the majority of the automotive sector has a December year-end. Amidst the challenges faced by manufacturers and dealers, there's a silver lining for consumers. The current situation is likely to lead to some attractive deals on new and nearly new vehicles as manufacturers strive to balance their stock oversupply and pricing. For dealers, the key challenge will be to ensure that their balance sheets are not utilised by manufacturers to clear their excess stock. The positive news is that the used market continues to be very healthy, although the challenge of finding replacement stock is putting pressure on margins. In this environment, focusing on speed of stock turn is all important. This will require laser focus on pricing and also response management. The winners will be those that treat every lead like gold dust – especially their phone calls, which still represent around 50% of all enquiries. Mediahawk now uses AI to ‘listen’ to calls and make it even easier to manage this channel and ensure maximum success. Happy to explain more - feel free to slide into my DMs.

Ever wonder how business trends shift? In 1979, as the American auto industry stalled and technology surged, The Wall Street Journal made a game-changing move. They traded Chrysler for IBM in the Dow Jones Industrial Average, marking a pivotal moment in industry dynamics. Explore the past that shapes today's innovations and market strategies. Dive into history and discover the power of change. #DesignComponentsInc #BusinessHistory

Impacts from a recall go beyond the cost of inventory of the recalled product. There is a potentially large economic cost, including scraping/loss of inventory, loss of production time and the cost of the entire recall process. Discover what's possible with the right #MES solution in our latest blog https://rok.auto/4afgf3C

If anyone wants to understand options pricing then they can refer below example.. **Black-scholes Model** for options pricing.

Distributors: what lessons can we learn from this unfolding EV-disaster in the making? 1.    Don’t assume that one big solution will replace one old solution. (EVs don’t work for all contexts and jobs.) 2.   Every big change will require lots of small, failing forward experiments in which the learning value exceeds the resource cost. 3.   For Big New changes, expect several significant “pivots” too. 4.   For a distributor, innovation model for applying - both customer and SKU profitability analytics – check out this 400 word blog. https://lnkd.in/gMAwfekn Otherwise: 1.    “build it back better” is heating the economy/inflation with deficit spending to please Democrats’ special interest groups and buy votes in swing states. 2.   China is making EVs for 60% less and they dominant the mines-to-batteries supply chain, which can’t be duplicated in the US. 3.   Voters want climate change and national debt solutions, but not enough to want taxes raised and (more) benefits cut. So, career pols will continue to borrow and spend to try to never have to retire. Their role models: Robert Byrd died in office at 92. Diane Feinstein died in office at 90.   

In the ever-evolving automotive industry, timely and reliable data is crucial for confident decision-making. We provide precise Residual Value forecasts with monthly updates, featuring the latest data from the past 20-60 days. Key Advantages: 1. Speed: Monthly updates, 5-year extension on model years, and daily CMV updates. 2. Depth: Double the data points from all wholesale channels. 3. Precision: Dynamic adjustments per model year based on numerous input variables. Discover how our Residual Value Insights can give you a significant edge here: https://lnkd.in/ehS9M4BY #AutomotiveIndustry #ResidualValue #MarketInsights

Who is looking at Data in Fixed but not finding answers. David Spisak posted some great information this morning about inventory levels versus sales levels in Variable. Is there enough incremental gross in Fixed to offset the erosion in new car gross? Consider a full alignment rack should generate nearly $30,000 a month in gross. How many alignments do you sell today? How many should you? Call us, TraXtion can help.