Why the Uptick in Mergers in Manufacturing?

Reuters has the story of a recent Standard & Poor’s report on the manufacturing industry:

U.S. manufacturers and transportation companies we rate have engaged in a number of mergers and acquisitions (M&A) this year, despite indications of an increasingly fragile economic recovery, according to a report published by Standard & Poor’s Ratings Services. The article is titled “U.S. Manufacturing And Transportation Companies Boost M&A, With Trends Varying Among Sectors.

While there are probably a number of factors affecting this finding, one explanation is that manufacturing’s successes and failures have been very different from company to company. Some firms are better equipped to adapt to changing market conditions than others, and those that aren’t are being consolidated into those that are. U.S. manufacturing is still a vital and important part of the economy, but it’s also volatile. It’s more important than ever for a company to be ahead of the curve.

Eagle Techologies Group is an industry leader in the design and installation of factory automation systems worldwide.

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