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Industrials M&A update: Q2 2018

Industry 4.0, also known as smart manufacturing, has made a big impact in the industrial services as sectors such as aerospace and chemical enterprise have begun to take focus on smarter, better, and more careful production in order to meet demands and regulations. This Industrials mergers and acquisitions (M&A) update provides Deloitte Corporate Finance LLC insights and market data analysis that shed light on M&A trends in the industrial products industry.

Industrials M&A trends

  • Aerospace industry growth1: Commercial aircraft sector revenues are expected to grow 4.8 percent as production levels continue to be robust. Defense sector revenues are likely to record 3.6 percent growth as the US defense budget returns to expansion after experiencing multi-year declines. Global defense spending is anticipated to grow at a CAGR of about 3.0 percent over the 2017–2022 period.
  • US automotive tariffs2: The Trump administration launched an investigation in May into whether imported vehicles pose a national security threat. In June, President Trump suggested imposing a 20 percent tariff on all imports of EU-assembled cars. Automobile trade groups are pushing back claiming that these tariffs would result in the loss of hundreds of thousands of American jobs.
  • Chemical enterprises utilize digital technologies3: Aided and enabled by digital technologies, the chemical industry is poised to create more sustainable products with a lower environmental impact. Whether as a catalyst for disruption or a potential source of future revenue streams, a properly designed and deployed digital strategy may represent one of the biggest opportunities ever for the chemical industry.
  • Additive manufacturing implements industry 4.04: The rise of Industry 4.0, or smart manufacturing, has provided manufacturers with the opportunity to utilize advanced manufacturing capabilities and information technology throughout the product lifecycle. Industry 4.0 can improve production processes, increase efficiency and improve safety on the factory floor because it provides manufacturers with systems intelligence and enhanced asset analysis.

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1 Lineberger, Robin. “2018 Global aerospace and defense industry outlook.” Deloitte Consulting, 2018., accessed July 3, 2018.

2 Shepardson, David. “Automakers warn US tariffs will cost hundreds of thousands of jobs, hike prices.” Reuters, June 27, 2018,, accessed July 3, 2018.

3 Dickson, Duane. “Digital opportunities for chemical enterprises.” Deloitte Consulting, 2018., accessed July 3, 2018.

4 “Five manufacturing trends to watch in 2018.” Association of Equipment Manufacturers, January 11, 2018., accessed July 3, 2018.

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