The Size of the Screw Machine Products Sector in the USA
According to Manufacturers News’ Industry Select, the nation’s oldest and largest compiler and publisher of B2B databases, there are over 800 screw machine manufacturers in the USA, with only 1% of those being publicly traded. The Midwest holds the highest percentage of these companies, with 53% and 25% calling the Northeast home.
This sector in the US is responsible for over 20,000 jobs and $2.3 billion in revenue.
Not All Screw Machine Manufacturers Are Created Equal
What you won’t read in these statistics is that manufacturers of CNC Turned and Screw Machine Products are NOT all equal. Some produce products for industries that do not require tight tolerances and are sold in large quantities with commodity pricing. Entire aisles in Home Depot, Lowes, or your favorite hardware store are loaded with these, and they are used in various everyday products.
Screw Machine Product for No-Fail Industries:
Some manufacturers working in the screw machine or CNC-turned products sector are in a completely different category. They work in incredibly tight tolerances with hard-to-machine exotic materials. They manufacture screw machine products for no-fail industries, including:
• Aerospace/Defense
• Semiconductor
• Transducer
• Medical Instrument
Acquisition Opportunity:
Accelerated Manufacturing Brokers, Inc. has exclusively listed a screw machine and CNC-turned-product manufacturer working in these no-fail industries. This is a second-generation company with a rich 50+ year history. They enjoy 40-45% gross margins and 19-27% adjusted EBITDA margins. Customer relationships are long and strong.
What the Perfect Acquirer Looks Like:
The perfect acquirer will have experience in CNC-turned and screw machine products and the manufacturing chops to work in exotic metals and tight tolerances. This client won’t sell to just anyone. They want someone with proven business development acumen to ensure the company’s future and opportunities for their team. Does this describe you? Learn more by returning the NDA, which you can access HERE.