Archive for May, 2016

Pharmaceutical Industry 2016 – Still on the Rise

For past reports, AR International conducted evaluations in the ever growing pharmaceutical industry, a global market worth $300 billion a year and expected to rise to $400 billion in three years according to the World Health Organization (WHO). Of the $300 billion, revenue share of the North American market calculate to about 44.5% of the market.
Over the past decade, the pharmaceutical industry has grown in a flurry of merger and acquisition activity. Mergers and acquisitions (or, M&A) such as the 2015 purchase of Salix Pharmaceuticals by Valeant for $15.8 billion, have since overtaken commercialization and become status quo. M&A, although not always encouraged in business, has the potential to improve the quality and standards of medicine with the consolidation of resources, machinery and equipment. According to a 2015 report from Forbes, pharmaceutical deals reached $59.3 billion; a 94% increase from 2014.
While some believe M&A may replace research and development (R&D), many companies are still investing in R&D departments to hone existing methods, or introduce safer, more efficient alternatives. New methods such as molecular modeling and computer assisted drug design and DNA sequencing are being implemented to allow early stage research to occur at a significantly lower cost, allowing leaner start-up companies a chance at the market against larger pharmaceutical companies.
All this in mind, we can continue to see a steady increase in the pharmaceutical market in 2016 companies look to improve quality and introduce new equipment to the industry.

CNC Machinery and Aviation Manufacturing

As the demand for new technology rises, the manufacturing industry is evolving to keep up with the demand with more effectiveness, efficiency, and with a narrower margin of error. Delving into this industry, one of our recent valuations involved the review of Computer Numeric Control machinery (CNC), a process of manufacturing that involves the use of computers to control machine tools such as lathes, mills, routers and grinders. The users program specific code to instruct the machine to perform certain tasks. the CNC control then interprets the CNC program and activates the specific series of commands in the sequential order as it reads from the program. Implementing CNC machinery allows a manufacturer to simplify production processes, and immensely reduce costs with each machine lasts between five to seven years.

Since 2011, the machine shop services industry has increased steadily, further expanding into the automobile, aircraft, medical care, and metal forging industries. Much of the industry’s 1.1% annual growth these last five years was thanks to the commercial aerospace and transportation manufacturing arenas, which sparked in 2011. With constantly improving performance, CNC machinery is becoming more and more desirable compared to its human operator counter parts with improved automation, consistency, accuracy, and flexibility.