Mike Taylor, CIO & CEO at Pie Funds, says in the challenging environment for industrials you need to identify those companies with pricing power. The environment for industrials right now is quite tough. Companies that have pricing power are likely to be more resilient as consumer sentiment softens, see TRS vs KMD as an example. Firms that have to discount to maintain sales will suffer. In particular, the IT sector has suffered of late with lower margins and deferred project work. In this environment two of the companies we own, EPD and PSZ are still experiencing earnings growth this year and likely next. Therefore, the key is to discern which firms are going to suffer in the coming 6 months and which aren't. There will be winners and losers and the difference will be quite marked.