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Waypoint Private Capital’s Industrials group combines deep industry knowledge and relationships with the best M&A advisory services in the middle market. We are committed to serving the needs of middle market companies within the global industrial sector.

We specialize in the following sectors:

  • Advanced Manufacturing

  • Agricultural / Mining Equipment

  • Automotive and Heavy Duty Truck

  • Building / Construction Materials

  • Capital Goods

  • Chemicals

  • Commercial / Specialty Vehicle

  • Electrical Equipment

  • Filtration / Water Treatment

  • Flow and Process Control

  • General Industrial

  • Industrial and Environmental Services

  • Machinery / Capital Goods

  • Metals & Metals Processing

  • Natural Resources and Mining

  • Paper, Plastics, and Packaging

  • Plastic / Polymer Processing

  • Power Connectivity and Control

  • Test and Measurement

  • Transportation

  • Transportation Equipment

  • Wind Power Equipment

Current State of the Industry

There will be a significant shift towards the integration of advanced technologies in the manufacturing and industrial industry in 2024. Workforce challenges and cybersecurity concerns are also top on mind for industry leaders. 

Here's a brief overview of the current state of the industry:

  1. Technology Integration and Automation: There's a significant shift towards the integration of advanced technologies like artificial intelligence (AI), the Internet of Things (IoT), and robotics. This integration is aimed at increasing efficiency, reducing costs, and enhancing production quality. Automation is becoming more prevalent, especially in repetitive and labor-intensive tasks. 

  2. Supply Chain Resilience: The industry continues to focus on building resilient supply chains in response to the disruptions caused by the COVID-19 pandemic and geopolitical tensions. Companies are diversifying their supplier base, increasing inventory levels, and investing in supply chain visibility tools. 

  3. Sustainability and Environmental Concerns: Manufacturers are increasingly adopting sustainable practices in response to environmental regulations and consumer demands. This includes reducing waste, using sustainable materials, and minimizing the carbon footprint of manufacturing processes. 

  4. Workforce Challenges: The industry faces a skills gap and labor shortages. There is a growing need for workers with digital skills to operate and maintain advanced manufacturing technologies. Companies are investing in training and development programs to upskill their workforce. 

  5. Globalization vs. Localization: While globalization remains a dominant trend, there is also a move towards localization or regionalization of manufacturing to reduce dependency on long-distance supply chains and to cater to local market demands more effectively. 

  6. Customization and Flexibility: There is an increasing demand for customized products, which requires manufacturers to be more flexible in their production processes. This often involves adopting more agile manufacturing systems that can quickly adapt to changing customer requirements. 

  7. Cybersecurity Concerns: With the increased adoption of digital technologies, cybersecurity has become a crucial concern. Manufacturers need to protect their digital infrastructure and intellectual property from cyber threats. 

  8. Economic and Political Influences: Economic fluctuations, trade policies, and geopolitical tensions continue to impact the industry. Manufacturers must navigate these challenges while maintaining competitiveness and profitability. 

Current Trends and Challenges

As of late 2023, the manufacturing & industrials industry is witnessing several notable trends in mergers and acquisitions (M&A):

Consolidation for Scale and Diversification: Many manufacturing companies are engaging in M&A to achieve scale, diversify their product lines, and expand their market reach. This trend is particularly evident in sectors like automotive, aerospace, and industrial machinery, where companies seek to strengthen their market position and broaden their capabilities.

Technology Acquisition: There's a growing focus on acquiring companies with advanced technological capabilities, such as automation, digital manufacturing, and sustainable technologies. This is driven by the need to stay competitive in an increasingly digitalized industry and to meet evolving environmental regulations and standards.

Supply Chain Resilience: In response to recent supply chain disruptions, manufacturers are looking at M&A as a strategy to secure their supply chains. Acquiring suppliers or integrating vertically can help companies gain more control over their supply chains, reducing vulnerability to external disruptions.

Private Equity Involvement: Private equity firms are showing increased interest in the manufacturing sector, drawn by the potential for growth and transformation through digital and technological investments. These firms often bring capital and expertise that can drive operational improvements and accelerate growth.

Cross-Border M&A Activities: Despite geopolitical tensions and trade uncertainties, cross-border M&As continue, driven by the desire to enter new markets and access foreign expertise and technologies. However, these deals are becoming more complex due to regulatory scrutiny and geopolitical considerations.

Focus on Sustainability: M&A activity is increasingly influenced by sustainability considerations. Companies are looking to acquire businesses that align with their sustainability goals, such as those offering green technologies or with strong environmental, social, and governance (ESG) practices.

Post-Pandemic Recovery and Adaptation: As the world recovers from the pandemic, there's a surge in M&A activities, with companies seeking to adapt to the new normal. This includes acquiring businesses that have thrived during the pandemic or those that offer solutions for the post-pandemic era.

Regulatory and Antitrust Challenges: Regulatory scrutiny is intensifying, particularly in key markets like the United States and Europe. Companies engaging in M&A must navigate complex regulatory landscapes, including antitrust laws and foreign investment regulations.

These trends reflect the ongoing evolution of the manufacturing industry, driven by technological advancement, globalization, and changing market dynamics. M&A is being used as a strategic tool to navigate these changes, drive growth, and enhance competitive positioning.

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