Merger and acquisition activity has accelerated in the precision machining industry due to the confluence of three fundamental technological and market forces.
- Large capital inflows from private equity funds
- Automated, digital manufacturing processes
- Digital integration of the supply chain
The capital required to simply stay competitive is likely to soon leave a substantial portion of the industry field behind. The average firm owner may not yet have felt a serious impact, but complacency about the changes underway will threaten the competitive position of many industry participants and can have a serious impact on the equity they have taken years to build. Owners must recognize and confront pro-actively the building pressures for exploring a non-organic growth model.
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