MANUFACTURING
INDUSTRY OVERVIEW
The US manufacturing sector comprises 290,000 companies with annual revenue of $5.5 trillion. We service all manufacturing companies across all sectors including: food and beverages, chemicals, metals, textiles, products, power, utilities, renewables, machinery, equipment, computers and electronics.
2020 has been a difficult year for the US manufacturing sector, which contracted by 6.5%. The Pandemic slowed production, forced shutdowns, canceled orders and caused a significant dip in manufacturing employment levels.
TRENDS & CHALLENGES
Globalization has opened the market frontiers to manufacturing, creating both opportunities and challenges for US manufacturers. While the manufacturing of high volume low cost goods has generally moved overseas, US manufacturers are still excelling in the delivery of technical and specialized manufactured goods. Managing far-flung supply chains and distribution channels poses persistent challenges. Meanwhile, improved operational efficiency has accelerated product development, design, production, distribution and marketing, while shortening the sales cycle.
FORECAST
Even before the Pandemic, the manufacturing industry was trying to regain momentum from a general exodus to lower-cost markets. Looking ahead to 2021, the recovery may take longer than expected, with a moderate growth forecasted at 3.5%.
Agility is key to the resilience of the manufacturing industry. Opportunities lie in its transformation: digital investment, supply chain resilience, agility in its operations and adaptation to the new workplace.
key performance indicators
EBITDA MULTIPLE
SALES MULTIPLE
The information contained has been obtained from different sources deemed reliable, including DealStats, Deloitte, Dun & Bradstreet and Business Reference Guide. PBB does not make any representation or warranty as to the accuracy of the data.
- Costs of Goods Sold: 49%
- Gross Margin: 51%
- Net Margin: 9%
