The report below gives a good overview of the Fall 2021 M&A activity in the Metal Fabrication Industry Sector. The global sheet metal fabrication services market size was valued at $15.81 billion in 2020 and is estimated to grow at a CAGR of 3.46% to reach $16.31 billion by 2021, as per research published by Research and Markets. The increasing investments in major end users of automotive, aerospace, and military industries, will propel the growth in the global sheet metal fabrication services market. The demand for sheet metal fabrication is being fueled by OEM’s increasing focus on improving operational efficiency and lean production. Innovative prefabrication techniques adopted by sheet metal fabrication service providers is expected to drive future growth. Adopting cobots in metal fabrication processes could help to mitigate the growing labor shortage. It will also improve operating efficiency and product quality. Steel and aluminum are the most used metals for sheet metal manufacturing. The global steel demand in 2021 is expected to increase by 4.1%, as per report published by OECD. The industry structure, government support measures, and the balance struck by individual governments between virus containment and promoting economic activity, will play a major role in the recovery in the steel demand. Strong steel demand coupled with growth in the automotive and other sectors such as construction, equipment, and transportation, is expected to drive growth in the metal fabrication industry.

Posted by Jim Zipursky.

Read the Entire Fall 2021 Metal Fabrication Report Here

The report below gives a good overview of the Summer 2021 M&A activity in the Metal Fabrication Industry Sector. The global metal fabrication market was valued at $84,569 million in 2020, and it is projected to grow at a CAGR of 3.5% from 2021 to 2031 as per research published by Facts and Figures.Biz. Metal fabrication companies may confront a variety of obstacles if the COVID-19 crisis persists for a long period. Large construction projects were halted during the pandemic which ultimately impacted the metal fabricators. Hence, it is extremely crucial for industry players to adjust to the material shortages. Steel prices have skyrocketed in USA due to its increased demand coupled with lower domestic production and reduced steel imports. Lumber and aluminum are another two examples, that are subjected to additional import tariffs. This has led to increased operating losses and capital destruction for the metal fabrication companies. In order to find the correct balance between manufacturing vital minerals items and maintaining public health, metal fabrication companies should prepare for a new era of greater public-private collaboration.

Posted by Jim Zipursky.

Read the Entire Summer 2021 Metal Fabrication Report Here

The report below gives a good overview of the Spring 2021 M&A activity in the Metal Fabrication Industry Sector. The global market for metal fabrication services is estimated at US$3.8 Billion in the year 2020 and is projected to reach a revised size of $4.3 Billion by 2027, growing at a CAGR of 2% over the period 2020-2027. China, the world second largest economy is forecasted to reach a market size of $676.5 million in the year 2027 trailing a CAGR of 3.1 % through 2027. The other notable geographical markets are Japan and Canada, each of these markets are forecasted to grow at 1.4% and 1.6% respectively over the period 2020-2027.

Moreover, within Europe, Germany is forecasted to grow at approximately at 1.6% CAGR while the rest of the European market will reach to $676.5 million by the year 2027. The growing demand for vehicles production and lightweight materials are the key contributing factors for the metal fabrication industry’s growth. Further, the rise in the sales of the hybrid and electric vehicles and global recognition of the hydroforming techniques has extended the opportunities in the Metal Fabrication market.

Posted by Jim Zipursky.

Read the Entire Spring 2021 Metal Fabrication Report Here

The report below gives a good overview of the first quarter M&A activity in the Metal Fabrication Industry Sector. M&A activity for North American based target companies in the Metal Fabrication sector for Q4 2019 included 40 closed deals, according to data published by industry data tracker FactSet.

Kaman Aerospace Group, Inc., a subsidiary company of Kaman Corp, acquired Bal Seal Engineering, Inc. for US$330 million in cash, subject to customary adjustments for net debt and working capital. Kaman Aerospace Group manufactures aircraft components and aero structures. Bal Seal Engineering manufactures coil springs. The Company offers sealing, connecting, conducting, electromagnetic interference shielding, and grounding components.

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The report below gives a good overview of the fourth quarter M&A activity in the Metal Fabrication Industry Sector. M&A activity for North American based target companies in the Metal Fabrication sector for Q3 2019 included 44 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in September when a private group led by KCM Capital Partners LLC, Five Points Capital Inc, PNC Mezzanine Capital Corp and management of Industrial Valve Sales & Services, Inc., acquired Industrial Valve Sales & for an undisclosed amount in cash. The transaction enhances Industrial Valve Sales & Services’ service opportunities. Founded in 1975, Industrial Valve Sales & Services is located in Alabama and provides valve services and products.

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The report below gives a good overview of the third quarter M&A activity in the Metal Fabrication Industry Sector. M&A activity for North American based target companies in the Metal Fabrication sector for Q2 2019 included 37 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in April when Montage Partners LLC acquired Advanced Manufacturing & Development, Inc., trading as METALfx, a subsidiary of Avista Corp, for an undisclosed amount in cash. Montage Partners is a private equity firm located in Scottsdale, Arizona. Advanced Manufacturing & Development manufactures sheet metal products. The firm offers laser cutting, welding, painting and powder coating, punching and stamping, forming and CNC machining. The company was founded by in 1976 and is headquartered in Willits, CA.

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The report below gives a good overview of the second quarter M&A activity in the Metal Fabrication Industry Sector. M&A activity for North American based target companies in the Metal Fabrication sector for Q1 2019 included 55 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in March when Tribus Aerospace LLC, a portfolio company of Shorehill Capital LLC acquired Midwest Precision LLC for an undisclosed amount. Antares Capital Corp provided debt and equity capital to Tribus Aerospace. The acquisition aims to expand the service offerings of Tribus Aerospace. Founded in 1953, Midwest Precision is located in Eastlake, Ohio and provides contract manufacturing services in precision machining of stainless steel, aluminum and exotic materials.

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The report below gives a good overview of the first quarter M&A activity in the Metal Fabrication Industry Sector. M&A activity for North American based target companies in the Metal Fabrication sector for Q4 2018 included 27 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in October when Premier Thermal Solutions LLC, a portfolio company of Z Capital Partners LLC, acquired Alfe Heat Treating, Inc. for an undisclosed amount. The acquisition would expand Premier Thermal Solutions’ ferrous and aluminum heat treating services. Alfe Heat Treating is located in Indiana and provides aluminum commercial heat treatment services.

Industry Indicators

• US durable goods manufacturers’ shipments of fabricated metal products, an indicator of fabricated metal parts production, rose 9.4% year-to-date in October 2018 compared to the same period in 2017.
• US steel mill product prices, an indicator of commodity steel costs for fabricated metal products manufacturers, rose 18.5% in December 2018 compared to the same month in 2017.

Posted by Jim Zipursky.

Read the Entire Metal Fabrication 1st Quarter Newsletter Here

The report below provides a good overview of the third Quarter M&A activity in the Metal Fabrication Industry Sector. M&A activity for North American based target companies in the Metal Fabrication sector for Q2 2018 included 52 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in June when Steel Dynamics, Inc. acquired Companhia Siderúrgica Nacional, LLC for US$400 million in cash. The transaction is expected to be accretive to near-term earnings and cash flow per share. In addition, the transaction is believed to expand Steel Dynamics’ annual flat roll steel shipping capacity to 8.4 million tons and total shipping capability to 12.4 million tons. Companhia Siderúrgica Nacional is located in Terre Haute, Indiana and manufactures coiled steel sheet products.

Tariffs on steel imposed by the Trump administration have had the sector in flux. The graph below illustrates how tariffs effect certain states.
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The report below provides a good overview of the second Quarter M&A activity in the Metal Fabrication Industry Sector. M&A activity for North American based target companies in the Metal Fabrication sector for Q1 2018 included 31 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions announced in the quarter was in January when Wynnchurch Capital, LLC announced that it had completed an investment in Anderson Metals Corporation, Inc. Terms of the deal were not disclosed. Anderson is a manufacturer of brass fittings, valves, pipe nipples and related products to the plumbing, hardware and general industrial end-markets. The Company is headquartered in Kansas City, Missouri and was founded in 1947.

The demand for fabricated steel products rose sharply in Q1 2018 partly driven by the potential for tariffs implemented by the current administration.

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