In their never-ending quest for excellence, the U.S. auto industry is number one again. The auto sector has been voted “the most financially troubled industry in the United States next year,” writes Reuters.
Last year’s top dog was homebuilding, which was bestowed the coveted title of “Most troubled industry for 2008.” For 2009, that crown goes to the autos.
The auto industry received top honors as the result of a survey by the Turnaround Management Association, taken during the first two weeks of December.
Retail, hurt by sliding consumer spending and a drastic cut in credit availability, is seen as the second-most distressed industry for the coming year, up from 6th place last year.
The poll surveyed representatives from 213 companies with TMA membership. The respondents said a Chapter 11 bankruptcy filing was the most appropriate solution for zombiefied automakers.
This poll is no joke. It is a closely watched indicator for a small industry of bankruptcy lawyers, turnaround managers and liquidators, who move merchandise and equipment of failed businesses. “They are expected to be quite busy next year,” TMA said.
Even that shadowy business has found reasons to kvetch: “Although liquidation sales have fared better than regular retail, they are not generating historic returns,” Tom Pabst, chief operating officer of asset management firm Great American Group, said. “Fewer buyers for machinery, equipment and fixtures are driving down values. We expect liquidations to remain active through 2009, but returns will be impacted by economic conditions.”
Nevertheless, the TMA is preparing for a boom year: The TMA’s recent 20th Anniversary Convention attracted 1000 attendees. Keynote speeches were given by General Colin L. Powell and Bob Woodward. Speakers like these easily command six figures on the rubber chicken circuit.
Wow, for some reason I thought TMA had disappeared, but I guess they should be busier than ever with a third Bush recession in 8 years.
I attended one of their conference presentations as a guest of a client after the dot-com busts in the early 2000s.
They’re a wacky bunch. If you can imagine a get together of zany undertakers mixed with the excitement of audit accountants. Fascinating stuff however….
More distressed than the banking? The industry that brought the would to a dead stop, bankrupted countries, has governments dumping un-countable amounts into it from the US, China, Britain, Oz, Russia, and many more? Remember Citigroup? In one Sunday night Billion$ were dumped into it with a whimper. Then the bankers say they do not have to tell us where the money went…yes, the auto companies are worse-off….
Pretty soon there won’t be any industries left in America. Well maybe ethanol if the government can afford the billions of dollars required to subsudize them. I wish I had an unlimited amount of money like the government. Where do they get all that money?