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Winter 2024 | M&A Report In The Industrials Industry Sector

By Patrick Powell

January 26, 2024

The report below gives a good overview of the Winter 2024 M&A activity in the Industrials Industry Sector. The global industrials sector encompasses capital goods manufacturers in aerospace, defense, building products, electrical equipment, machinery, construction, and engineering services. This capital-intensive sector navigates complex supply chains and embraces innovation to shape the modern global economy. Despite challenges such as the global pandemic, supply chain disruptions, inflation, geopolitical tensions, localization pressures, carbon footprint concerns, and talent shortages, industrials leaders have demonstrated resilience. In the U.S., recent data shows a 0.2% increase in industrial production in November, with manufacturing output rising by 0.3%, led by a 7.1% rebound in motor vehicles and parts production post-resolution of strikes. The industrial construction pipeline slowed dramatically at the start of 2023, but semiconductor and electric vehicle manufacturing continue to prop up the sector. CommercialEdge reported that since the beginning of 2022, most of the 94 million square feet of industrial space under construction was devoted to semiconductors, batteries, and EV plants. According to a report by KPMG, CEOs remain confident in their companies' three-year growth despite global economic challenges, extending optimism to industry growth until 2025. Short-term concerns arise due to governments curbing demand to address rising inflation. Despite this, over three-quarters acknowledge potential impacts on three-year growth in case of an economic downturn. Macroeconomic trends are driving executives to focus even more than before on a twin transformation: smart digitization and a focus on ESG. These remain key imperatives, but now the global picture has become distorted. The world economy is slowing down while technological change is accelerating.

Posted by Patrick Powell.

Read the Entire Winter 2024 Industrials Report Here