The Decline in Capex: Why Aren’t Companies Spending?

Published on16 FEB 2016

Fifteen years of over-investment in capital-intensive industries has led to overcapacity in many markets. Daniela Costa, senior analyst for Goldman Sachs Research, forecasts a 5% global capex decline in 2016 that will kick off the first multiyear downturn since the early 1990s. 

As we enter this period of decline in capex… management teams will need to be a lot more focused in identifying what are their competitive advantages versus their peers because they will need to grab share of a shrinking pie.

- Daniela Costa

Daniela Costa
Head, European Capital Goods Equity Research, Goldman Sachs Research