2H 2019 Manufacturing M&A Report

In an ideal world, the performance of the Manufacturing Industry would depend solely on supply and demand, efficiency, ingenuity, and predictable economic cycles. But that is not reality. Politics, too, play a role. In 2018, the question was whether escalating tensions among the United States and its trading partners – including tit-for-tat tariffs – would hamper manufacturing. In 2H 2019, the numbers have erased any doubt. Positioning the results of the Institute for Supply Management’s Purchasing Managers Index (known as the ISM PMI) over incremental tariffs and trade restrictions, it’s become apparent so-called “trade wars” have negatively impacted the sector. In August of 2018, the PMI approached 61, the highest since 2004, a strong indication of positive sentiment. As tariff spats lingered, a year later, in September 2019, the PMI indicator had slipped to a concerning 47, crossing the line from positive into negative sentiment…