Past deals
Manufacturing
Manufacturing Industry Outlook: Navigating Growth and Innovation
As we look at the manufacturing landscape in 2024, it's clear that the industry is undergoing a significant transformation. For family business owners in this sector, understanding these changes is crucial for making informed decisions about the future of their companies.
Past Manufacturing Deals
Industry Growth and Economic Impact
The U.S. manufacturing market is on a steady growth trajectory, with projections indicating a compound annual growth rate (CAGR) of 3.05% from 2023 to 2028. By 2028, the market volume is expected to reach an impressive $3.59 trillion. This growth underscores the sector's resilience and its critical role in the U.S. economy. Manufacturing's economic footprint extends far beyond its direct output. If U.S. manufacturing were a standalone economy, it would rank as the seventh-largest in the world. This statistic highlights the sector's global competitiveness and its potential for further expansion
Employment and Workforce Trends
While the manufacturing sector saw a slight decrease of 7,000 jobs in September 2024 compared to the previous month, the industry continues to offer substantial employment opportunities. In 2023, manufacturing employees earned an average of $102,629 in pay and benefits, reflecting the sector's commitment to providing competitive compensation.
The industry's focus on employee well-being is evident, with 93% of manufacturing employees eligible for health insurance benefits in 2023. This commitment to workforce welfare is crucial for attracting and retaining talent in a competitive labor market.
Looking ahead, the manufacturing sector is poised for significant job creation. By 2034, an estimated 3.8 million manufacturing jobs will likely be needed. This projection presents both a challenge and an opportunity for family-owned businesses to plan for future growth and succession.
Innovation and Research & Development
Manufacturing is at the forefront of innovation, with manufacturers performing 52.9% of all private-sector R&D. This commitment to innovation is driving the rapid growth of sectors such as:
Major Smart Appliance Manufacturing (29.7% revenue growth expected in 2024-2025)
3D Printing Services (22.6% revenue growth expected)
Hybrid and Electric Vehicle Manufacturing (22.1% revenue growth expected)
These growth rates indicate exciting opportunities for family businesses to diversify and expand into high-potential areas.
Technological Transformation
The manufacturing industry is experiencing a technological revolution. A staggering 86% of manufacturing executives believe that smart factory solutions will be the primary drivers of competitiveness in the next five years. This shift towards AI, IoT, and smart factory solutions is reshaping the industry landscape.
For family business owners, embracing these technological advancements is not just an option—it's a necessity for staying competitive. The integration of smart technologies can lead to increased efficiency, reduced costs, and improved product quality.
M&A Activity and Industry Consolidation
The manufacturing sector is seeing significant M&A activity, indicating a trend towards consolidation and strategic partnerships. Recent notable transactions include:
Johnson & Johnson's agreement to acquire Proteologix Inc. for $850 million in cash, with potential for an additional milestone payment
Roche's completion of its Carmot Therapeutics acquisition for $2.7 billion
Agilent Technologies' agreement to acquire BioVectra for $925 million
These transactions highlight the industry's dynamism and the opportunities for family businesses to consider strategic partnerships or exits.
Challenges and Opportunities
While the manufacturing sector shows promising growth, it also faces challenges such as economic uncertainty, skilled labor shortages, and supply chain disruptions. However, these challenges also present opportunities for innovative family businesses to differentiate themselves.
The industry's growing focus on sustainability and net-zero emissions goals offers another avenue for family businesses to lead and innovate. By embracing sustainable practices, companies can not only contribute to environmental goals but also appeal to an increasingly eco-conscious market.
For family business owners in the manufacturing sector, this is a time of unprecedented opportunity. The industry's growth trajectory, coupled with technological advancements and a focus on innovation, creates a fertile ground for expansion and value creation. However, navigating this complex landscape requires expertise and strategic guidance.
At Iconic, we understand the unique challenges and opportunities facing family-owned manufacturing businesses. Our dedicated team of industry experts is equipped to guide you through every step of your growth journey or exit strategy. Whether you're looking to expand, innovate, or explore M&A opportunities, Iconic's streamlined and transparent process ensures you're always informed and in control.
With our ecosystem of high-quality, vetted buyers from private equity to vertical partners, we can help you position your manufacturing business for success in this dynamic market. Let Iconic be your partner in unlocking the full potential of your family's manufacturing legacy.
Curious what your business is worth? Begin with a short survey to receive your business valuation.
Locations
Los Angeles
New York
San Francisco
St. Louis
More
Valuations
Iconic Rail
About
Team
Why Iconic
Partners
Buyers
Process
Valuations
Iconic Rail
Past Deals
Manufacturing
Healthcare
Financial Services
Business Services
Food & Beverage
Distribution
CPG
Transportation
Technology
Blog
FAQ
Jobs
Contact us
Iconic is a world-class advisory platform created to help owners sell their businesses faster, more efficiently and to higher-quality buyers.
© Iconic Business Technologies, Inc
Terms
Privacy
Legal
Any information publicly posted on or privately transmitted through this site is the sole responsibility of the person from whom such content originated. This site is not intended to contain any solicitation, offer, opinion or recommendation to buy or sell any assets or securities or other financial instruments or provide you with legal, tax, financial or related advice of any kind.