Skip to content

Why The #1 Goal Of Manufacturing Day May Need To Change

Manufacturing day
⏱ Reading Time: 3 minutes

Why The #1 Goal Of Manufacturing Day
May Need To Change

 

 

Manufacturing DayThe #1 goal of Manufacturing Day is to inspire the next generation into the industry by changing the perception of manufacturing in America. This is a worthy goal for all who care about the industry. Manufacturing Day was the brainchild of Ed Youdell, President and CEO of the Fabricators & Manufacturers Association, International, (FMA). His idea was to bring together leading manufacturing organizations to draw attention to the awesome career opportunities within the manufacturing community. However, there is a danger brewing that must be addressed. Here’s why the #1 goal of Manufacturing Day May Need To Change.

 

We Need New Blood To Acquire Manufacturing Businesses

We’ve all heard about the “Silver Tsunami” of retiring manufacturers. Right now in lower middle market manufacturing M&A, we’re dealing with a Seller’s market. However, with the number of manufacturing business owners expected to retire in the next 10-15 years, the market will hit a tipping point where there are more Sellers than there are Buyers to take over these companies. While I understand and agree that we must inspire youth into the industry, I would argue that inspiring entrepreneurial acquisition of these companies might have to become first priority. There must be new blood taking the helm of these companies to be able to hire the young people for which Manufacturing Day is trying to attract.

 

Who Is Currently Buying Businesses From Retiring Manufacturers

manufacturing day

Interestingly, the latest statistics from the mergers & acquisitions community for the 2nd quarter of 2016, show that the largest percentage of acquirers were first time buyers. My firm’s own experience reflects this, as EVERY Manufacturing company we closed this year was sold to a first time buyer, from an entirely different industry. The buyers ranged from Wall Street hedge fund executives to retired US Navy officers. In every case, the buyers had a wealth of business experience and in some cases, more than our selling client. They will take these manufacturing businesses to new levels, and some will more than double in size in a short amount of time.

 

The #1 Goal Of Manufacturing Day May Need To Change

If this trend of acquisition by people that know how to grow businesses is nurtured and grows, do we not guarantee the future of manufacturing in America? If more titans of business, strategy and growth take the helm of these companies, we ensure that there will be jobs for the younger generation that we’re all trying to attract through Manufacturing Day.

 

What My Firm Will Do To Participate In Manufacturing Day 2016

At Accelerated Manufacturing Brokers, Inc., our #1 goal for Manufacturing Day 2016 will be to help 10 new buyers from other industries take the leap into manufacturing entrepreneurship. We will help 10 people find the perfect manufacturing acquisition for which their skills will add value and grow the business, thus creating jobs in the industry. If you’ve always wanted to acquire a business, you may know that manufacturing is currently THE most sought after sector in M & A transactions. What you may not know is what to do next in order to make your dream a reality. You may not know how much money is required as a down payment or how to finance the rest of the deal. These are all things we can help with. Acquiring a manufacturing company, rather than building one from scratch, is the smart way to build. You can acquire cash flow, customers, history and reputation that would take you decades to build organically. Contact us today to find out if acquiring a manufacturing business is right for you.

About Frances Brunelle

Frances Brunelle is the founder of Accelerated Manufacturing Brokers, Inc., which specializes in the sale of lower middle-market manufacturing companies nationally. Fran and her team help to ensure the continuity of U.S. Manufacturing by transitioning ownership to the next generation of entrepreneurs. Recently Fran was named to 2020 Most Influential Women in Mid-Market M&A (Mergers & Acquisitions). Fran is also the host of the WAM (Women and Manufacturing) podcast, a Jacket Media production. Fran writes on topics that help manufacturing business owners prepare their companies for sale and navigate the sale process to ensure a positive financial result in support of their retirement.

2 Comments

  1. Patricia Lee on 2016-09-25 at 6:16 pm

    Would love to see your firm sign up as an endorser of MFG DAY. Takes just a couple of minutes at: http://www.mfgday.com/sponsors/become-endorser.
    Think you have a very valid point and a worthy goal.

    • admin on 2016-09-26 at 1:16 pm

      Hi Patricia,

      Thanks for taking the time to read. We’ve signed up to endorse Manufacturing Day. As far as we’re concerned, it should be Manufacturing Month! If everyone really understood how much manufacturing affects our economy, everyone would support and endorse a Manufacturing Month!

      Best regards,

      Fran Brunelle

Leave a Comment





Scroll To Top