Dealmakers continue to forecast that M&A in the manufacturing sector will expand, but the pace of growth will slow down, according to Mergers & Acquisitions’ Mid-Market Pulse (MMP). (See related graphic.)
Transaction pros gave the sector a 3-month Composite Score of 79.3, but the 12-month Composite Score dipped to 68.1. While still healthy, the rankings have plummeted over the last year.
In early 2014, survey respondents gave manufacturing a 3-month Composite of 80.6 and a 12-month Composite of 81.8. In the fall, the 3-month Composite had dropped to 77.3 and the 12-month Composite to 76.2.
Our data dovetails with the Institute for Supply Management index, which measures U.S. manufacturing growth and was at its lowest levels in March and April since May 2013. Manufacturers have been hurt by a stronger U.S. dollar that is limiting exports and fewer sales to U.S. energy companies struggling with low oil prices.
The MMP is a forward-looking sentiment indicator, derived from monthly surveys of approximately 250 executives and published in partnership with McGladrey LLP.