Manufacturing Witnesses Rise in Mergers and Acquisitions
Published By : 14 Aug 2014 | Published By : QYRESEARCH
According to the recent report published by PricewaterhouseCoopers LLP, the incidents of mergers and acquisitions are on the rise in the manufacturing industry. The report further states, the value of industrial manufacturing in the second quarter of 2014 reached $60.5 billion as compared to $9.9 billion in the same period last year. U.S. Industrial Manufacturing Leader Bobby Bono stated, this is the highest value that this sector has witnessed in the last ten years.
The valuation is inclusive of deal worth more than $50 million. The large chunks can be attributed to the ‘mega deals’ that amounted to more than $1 billion.
Ohio comprised about 12% of those acquisitions, while none were seen in Akron or Cleveland, except a few companies who made their own mergers and acquisitions.
PwC’s July 2014 Manufacturing Barometer surveyed about 38% manufacturers who intended to be a part of some M&A activity in the next year. This is about a 23% rise from same period last year.
According to Bono, executives of these companies tried to find growth by restricting businesses, cutting costs, and looking for internal options. However, in the recent times these companies are trying to make strategic acquisitions and divest the non-core businesses. However, the U.S. Industrial Manufacturing Leader intends to see similar same kind of action in Cleveland or Akron areas for growth and business expansion.
In the first two years after recession, manufacturing made up for half the jobs. Despite this high achievement, hiring still grew by 1% year-on-year. The growth in this industry is only likely to grow, as companies like Nestle USA are in discussion about growth plans.