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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:
Note: The source used in the 2025 midyear outlook is S&P Global Market Intelligence.
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 LeaderDespite 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.