Precision Manufacturing Growth Dynamics Support Strong Near-Term M&A Outlook
Capstone Partners released its January 2022 Precision Manufacturing Sector Update, reporting that key indicators including Industrial Capacity Utilization, Total Manufacturers’ New Orders, and the Industrial Production Index demonstrate the continued recovery of manufacturing activity. Sector performance is expected to remain strong throughout 2022, driven by growth in key end markets including Defense, Medical Devices, and Electronics.
Due to the healthy demand backdrop and resurgence of manufacturing activity, buyers have pursued companies serving growing end markets, fueling elevated merger and acquisition (M&A) activity. The Precision Manufacturing M&A market proliferated in 2021 with transaction volume increasing 32.9% year-over-year (YOY). Notably, private equity add-on acquisitions led deal activity in 2021 as sponsor-backed companies leveraged financial support to acquire accretive targets.
Also included in this report:
- Public company insights highlighting key trends in sector leaders’ earnings calls
- How demand for heightened supply chain visibility and automation has driven the integration of Industry 4.0 technologies
- Summaries of recent notable precision manufacturing deals
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