APRIL 20226MANUFACTURING TECHNOLOGY INSIGHTSDue 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 percent 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.Precision manufacturing is one of the most sought-after and most significant advancements in industrial manufacturing. Not only has precision manufacturing contributed almost $10 billion to the U.S. economy in the last 10 years, but by 2024, the precision parts market is expected to continue growing by at least 12 percent.The Precision Manufacturing M&A market proliferated in 2021 with transaction volume increasing 32.9% YOY. Amid the resurgence of manufacturing activity, buyers have pursued resilient companies serving growing end markets. As a result, the M&A market have become highly competitive, with buyers willing to pay premiums to win deals. Notably, in a Q2 2021 survey of 315 business brokers and M&A advisors, engineering and manufacturing companies were the most sought-after sectors in the lower middle market (enterprises valued between $5MM-$50MM), according to the International Business Brokers Association (IBBA).Private strategic deals also surged, accounting for 31.3 percent of transactions as companies consolidated to capture market share, gain service offerings, enhance end market exposure, and create economies of scale. In October, Methods Machine Tools entered an agreement to acquire Koch Machine Tool, a machine tool dealer based in Houston, Texas (undisclosed).Moreover, North America region, most of manufacturing industries are following industry 4.0 automation like manufacturing machine with well-developed sensors and using artificial intelligence and performing cloud based operation will drive the market. Increased awareness about the energy efficient manufacturing processes in economical developing countries along with fast industrialization will increases market demand. Due to the many benefits of precision manufacturing, including accuracy, versatility, and repeatability, manufacturers are quickly looking for ways to improve precision within their operations.Let us know your thoughts.The Evolving Space of Precision ManufacturingEDITORIALCopyright © 2022 ValleyMedia, Inc. All rights reserved. Reproduction in whole or part of any text, photography or illustrations without written permission from the publisher is prohibited. The publisher assumes no responsibility for unsolicited manuscripts, photographs or illustrations. Views and opinions expressed in this publication are not necessarily those of the magazine and accordingly, no liability is assumed by the publisher thereof. Editor-in-ChiefLaura DavisEditorial StaffSalesVisualizerChris LynnAnnie Mathewsannie@manufacturingtechnologyinsights.comAva Gracia Peter ThomasRose DcruzAaron PaulTECHNOLOGY INSIGHTSTECHNOLOGY INSIGHTSLaura DavisEditor-in-ChiefManufacturing Technology InsightsEmail:sales@manufacturingtechnologyinsights.comeditor@manufacturingtechnologyinsights.commarketing@manufacturingtechnologyinsights.com APRIL - 04 - 2022, Vol 08 - Issue 04 (ISSN 2644-2493) Published by ValleyMedia, Inc. To subscribe to Manufacturing Technology InsightsVisit www.manufacturingtechnologyinsights.com Disclaimer :*Some of the Insights are based on our interviews with CIOs and CXOs
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