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Aluminum Factory

INDUSTRY FOCUS

MANUFACTURING

OVERVIEW

The US manufacturing sector comprises 591,720 companies with an impressive annual revenue of $7.1 trillion. We provide services to manufacturing companies across a wide range of sectors, including food and beverages, chemicals, metals, textiles, power and utilities, renewables, machinery, equipment, computers, and electronics. Despite the impact of the pandemic on the manufacturing sector, the market size experienced a notable increase of 4.6% in 2022. However, it is worth noting that the number of manufacturing businesses declined by -0.3% in 2023 compared to the previous year.

TRENDS & CHALLENGES

In recent years, manufacturers have faced challenges related to the rising cost of raw materials, such as steel, aluminum, and oil. These increases have placed significant pressure on manufacturers, making it increasingly difficult to keep costs low while maintaining product quality and achieving favorable profit margins.

 

Additionally, the manufacturing supply chain has experienced disruptions not only due to the COVID-19 pandemic but also as a result of natural disasters and geopolitical tensions. On the positive side, advancements in robotic technology continue to evolve, compelling manufacturers to stay updated on the latest technological trends to remain competitive in the market.

FUTURE FORECAST

The manufacturing industry must maintain resilience in 2023. Last year, manufacturers had to navigate through inflationary pressures and tackle numerous unfilled talent positions and supply chain challenges. To overcome these obstacles and uncertainties, industry leaders must prioritize investments in digital solutions for manufacturing processes and supply chain management. Furthermore, fostering a strong vision and culture within the workforce is crucial for developing a skilled workforce capable of delivering both short- and long-term results.

INDUSTRY PERFORMANCE

5.5X

EBITDA MULTIPLE

1.0X

SALES MULTIPLE

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3. Due Diligence

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Disclosure: These key performance indicators are based on industry averages for a company with $10 million in revenue. The KPIs are not specific to the operational performance of your company or your sub-sector.

 

The information contained has been obtained from different sources deemed reliable, including DealStats, Deloitte, Dun & Bradstreet, and Business Reference Guide. Pacifica Advisors. does not make any representation or warranty as to the accuracy of the data. PA is a mergers and acquisitions (M&A) advisor and business broker.

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