Lack of capital market access will continue to constrain upstream producers and ultimately hit service providers hardest, and increasing risk of conflict in the Middle East may drive higher volatility.
Senior lenders are increasingly seeing liquidations as the lower-risk alternative to lengthy restructuring plans. That is forcing companies to develop fast-tracked turnarounds to have a chance at remaining a going concern.
PLS is expected to remain challenged as specialty startups strive for scale in a competitive market. The continued fallout from the opioid crisis will likely force additional restructurings in that segment.
Decreasing production volume coupled with the considerable investments needed to keep pace with the technological shift towards electric and autonomous vehicles continue to strain OEMs and their suppliers.
Dining and food service
Statutory increases in hourly labor costs, increasing commodity prices, high rent costs and rapid growth of costly third-party delivery continue to challenge the industry and could drive increased financial distress.