Exploring Private Equity Investments in U.S.-Based Niche Manufacturing Companies
The Manufacturing ISM® Report On Business® earlier in 2020 (pre-COVID-19) reported increases in economic activity for U.S. manufacturing. While there has been a slowdown due to COVID-19, the industry has returned to strong growth starting in June and is expected to continue an upward trend for the foreseeable future supported by the current macro-economic and political climate in the U.S.
U.S. manufacturing was challenged as an industry by two major pieces of legislation enacted in the 1990s and early 2000s that proved detrimental to the U.S. economy — NAFTA and the acceptance of China into the WTO. These developments introduced a much cheaper labor force for U.S. businesses and companies took advantage of lower cost labor by moving their plants, factories and supply chains offshore. This created a substantial difference in U.S. imports/exports resulting in a large trade deficit. U.S. companies are bringing their manufacturing and supply chains back to the continent for a number of business reasons. Among them are quality, security, better customer relations and post-sale support & service. The narrowing of the cost differential between the U.S. China augmented by the recent trade agreements is also driving this reshoring.
According to an article in IndustryWeek, over 1,300 companies have announced their plans to re-shore and that can positively impact manufacturing plants, supply chains and supporting services. According to Bank of America, “A ‘tectonic shift’ in manufacturing is about to bring supply chains and jobs back to shores that exported them in previous years. Investors need to be adequately prepared for this shift. Join this webinar as we discuss:
- Views on the U.S economy and its impact on manufacturing businesses
- Factors driving the continued re-shoring of manufacturing
- Attractive investment opportunities in U.S-based niche manufacturing companies
Russell J. Greenberg, Managing Partner & Founder, Altus Capital
Marco Antonio Soriano IV, Chief Investment Officer, Soriano Family Office
Kirk L. Feuerbach, Former President and CEO of D.S. Brown Company