The report below gives a good overview of the Fall 2021 M&A activity in the Industrials Industry Sector. The pandemic caused chaos in the global economy, including the global manufacturing sector. The COVID-19 crisis prompted the first worldwide manufacturing slump since the financial crisis of 2008, albeit not as severe. However, compared to the previous slump, the global manufacturing sector appears to be rebounding more swiftly. According to a UNIDO report, worldwide manufacturing production increased by 18.2% annually in Q2 2021, compared to a decline of 11.4% in Q2 2020. Companies using medium to high technology expanded at a rapid pace, registering a y-o-y growth rate of 20%, while low-technology businesses subsequently expanded at a slower rate of 13%. According to market intelligence firm Interact Analysis, the global manufacturing value is anticipated to reach $41.9 trillion in 2021, up from $39.3 trillion in 2020. Apart from the pandemic, the greatest concern to the industry is the risk to the supply chain, and firms will continue to analyze their cost of inputs to ensure they rely on cost-competitive suppliers. According to KPMG, industrial firms are increasingly focusing on suppliers and evaluating domestic supply sources and may consider the long-term trend of "buy where you make" as an important element of their company's operating model.
Posted by Patrick Powell.