ITW - Baird finds momentum heating up into 2021 for these welding names

A dig into the welding sector by Baird has contacts reporting better volumes and pricing in the fourth quarter of 2020, with growth expected to pick up as 2021 progresses. Meanwhile, raw material inflation should get passed through to end users. More than 60% of welding contacts see an improvement in activity in Q4, while 75% say the quarter's coming in ahead of internal expectations. There look to be sequential gains in welding hardgoods volume and pricing, as well as in industrial gases. Of the 60% seeing business activity up, 11% experienced "significant" growth, and less than 10% reported deceleration. About 36% of the respondents saw momentum build later in the quarter, suggesting carryover into 2021 that should add even more momentum later in the year. Inventory availability and managing the supply chain came up as important factors, with a "demand surge" likely to hit all at once during the

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Baird finds momentum heating up into 2021 for these welding names