Why You Want To Acquire In The Manufacturing Sector
American manufacturers are primarily small businesses. These savvy entrepreneurs are our nation’s renegades & rebels who would rather work hard for themselves than make someone else rich doing the corporate thing. They call their own shots, manufacture their own destinies and contribute big time to the health of our economy.
According to the US Census Bureau, in 2014, there were 251,901 firms in the manufacturing sector, with all but 3,749 firms considered to be small. How small are they? Better than three-quarters of these firms have fewer than 20 employees. Don’t let that number fool you. Manufacturing employs about 12.3 million workers nationally.
Manufacturing Impact to Our Economy
This group isn’t only known for contributing $2.17 trillion to our economy, they’re known for something else that should make you stop in your tracks if you’re considering acquiring your way into business ownership. This mighty group upon which our economy depends are not only the renegades and rebels we all admire and aspire to be, they’re the ones driving innovation in our country. They’re industry disruptors.
According to the Bureau of Economic Analysis, US manufacturers perform more than 75% of all private-sector R&D. They drive more innovation than any other sector. Manufacturing R&D rose from $126.2 billion in 2000 to $229.9 billion in 2014. US manufacturing also outperforms all other sectors for productivity, growing 2.5 times since 1987, as opposed to 1.7 for other non-farm sectors.
Manufacturing, A Smart Acquisition
No other sector in the US economy can make these claims. There’s a reason that manufacturing companies are the most sought-after acquisitions in the lower middle market. Industry disruption can provide growth not otherwise possible. If you’ve got a little bit of renegade and a little bit rebel in your soul and are considering leaving corporate America for business ownership, I encourage you to examine the opportunities within the manufacturing sector. The growth opportunities far surpass that in service industries.
If the thought of manufacturing YOUR own destiny makes your heart skip a beat, but you don’t know where to begin, we can help. Some buyers contact us years in advance of finally getting the nerve enough to pull the trigger. We can help you figure out what, how and when. Think about the guy in your department who’s your age…and he just got laid off. If you’re confident in your abilities and understand what it takes to grow a business, maybe it’s time to control your own destiny. Maybe it’s time to “manufacture” your own retirement insurance by building something you can sell later to ensure your lifestyle in retirement.
Having worked only for myself for almost 25 years, I look back and acknowledge that there have been hard times, but I wouldn’t trade places with anyone. God Bless and Long Live the renegades, rebels, and innovators among us. May we continue to disrupt our way into economic growth for the health of our nation!
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