Recalibrating for impact: Strategic M&A amid market realignment.
Industrial manufacturing M&A in the first half of 2025 signals a recalibration of capital allocation in response to shifting macro conditions. Deal volume moderated amid new US tariffs, geopolitical volatility and selective private equity (PE) engagement. Yet, investors are pursuing high-conviction opportunities aligned with long-term structural trends. Strategic buyers and sponsors are doubling down on automation, defense and energy transition — sectors where innovation, policy support and resilience to cyclicality are driving premium valuations and sustained interest.
Key developments include:
76% of deal value in the first quarter of 2025 came from transactions over $1 billion, compared to 53% in 2024. This reflects buyers’ focus on transformative investments tied to technology advancement and supply chain realignment.
Source: Copyright © 2025, S&P Global Market Intelligence (and its affiliates, as applicable)*
As we enter the second half of 2025, dealmakers must remain agile in a market shaped by both volatility and long-term opportunity. Key strategic considerations include:
“The future belongs to those who invest boldly — whether in innovation, resilience or strategic reinvention — to not only navigate disruption but define the next era of industrial growth.”
— Michelle Ritchie, Industrial Products Deals Leader
Despite ongoing macroeconomic and geopolitical challenges, industrial manufacturing M&A remains active, fueled by innovation, rising defense spending and supply chain restructuring. Companies are targeting acquisitions that enhance digital capabilities, operational resilience and proximity to key markets. Strategic buyers and investors who stay agile and focused on long-term value creation will be best positioned to capitalize on these shifts. The remainder of 2025 offers meaningful opportunities to reshape portfolios and drive competitive advantage through transformation-focused dealmaking.
From tradition to transformation Sequoia Brass & Copper has stood for excellence in American manufacturing. In this episode, we sit down with Kim MacFarlane, President of Sequoia Brass & Copper, to hear the inspiring story of a family-owned company founded by her father, built on craftsmanship, trust, and a relentless commitment to quality. Kim shares how she’s guided the company through the challenges of modern industry while honoring its heritage, and how the next chapter will be carried forward by her son Kyle. This is more than a story of brass and copper; it’s about resilience, innovation, and the enduring strength of family legacy. If you’ve ever wondered how tradition can meet the demands of today’s industry hit play and be inspired.