Spyros Svoronos: Chinese incremental manufacturing capacity continues to be exported to global markets including Europe and the US.

Whether it's from basic materials all the way to more advanced sectors including electric vehicles.

Companies are looking to deal with the competitive pressures through a number of ways.

They're looking at transactions that they wouldn't have considered before consolidating transactions with other players in the same space as well as transactions that are driving cost competitiveness and capacity utilization reduction.

They're doing that through asset sales, non-core assets. Through balance sheet rationalization, improved cash management and reducing capital expenditures.

The corollary of the Chinese overcapacity is people are looking for growth and they're doing that largely in the US. There is significant interest in investing and doing transactions in the US. Some of that's because of the idea that the US is contributing significant amount of GDP growth and some of it is the perception of a more benign regulatory environment in the US at least through the end of 2026.

So, I'd be remiss not to talk about AI driven M&A activity. In industrials specifically, AI deals are really driven about the need and interest to invest in the value chain that supports the transmission, distribution and handling of electricity and heat.

That is really what's driving the AI related M&A boom: It's the idea that you're investing in the value chain and the services that support AI.

Together, these trends will continue to drive transaction activity in our space. Whether it's the push of incremental Chinese manufacturing capacity, or the pull of significant interest in AI driven M&A, boards and companies have to be considerate in how to deal with these trends.