Industrials M&A update: Q1 2025

In response to proposed tariffs on imported cars, many automotive producers are considering reshoring manufacturing capabilities to the United States.

Industrial trends

  • Automotive
    The heavy-duty repair market has seen substantial institutional investment, driven by expanding Class IV–VIII fleets following e-commerce growth over the past decade.1
  • Engineering and construction
    Single-family residential construction is expected to boost demand for institutional and nonbuilding structures, bolstered by rate cuts and expected housing affordability policies.2
  • Distribution, transportation, and logistics
    Freight volumes may decrease as companies evaluate inventory management strategies, and many firms may elect to hold more critical items on hand as a buffer against tariffs.3
  • Metal, plastics, and paper packaging
    The global sustainable packaging market is set for significant growth from 2025 to 2035, driven by regulations, consumer demand, and corporate sustainability goals.4
  • Specialty channels
    NSpecialty chemicals companies are increasing material discovery research by implementing artificial intelligence, reducing R&D costs by up to an estimated $140 billion.5

 

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References

1. Harris Williams, “Automotive & heavy-duty aftermarket,” accessed February 20, 2025.
2. FMI, “FMI releases 2025 engineering and construction industry overview and first quarter outlook,” press release, January 30, 2025.
3. Capstone Partners, “3PL market update – January 2025“, January 14, 2025.
4. Research and Markets, “Sustainable packaging global market report 2025–2035: Sustainable packaging industry poised for major expansion as global brands go green,” press release, March 12, 2025.
5. Elsevier, “Key chemicals industry trends in 2025,” accessed April 1, 2025.
 

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