Industrials M&A update: Q2 2025

Rising consumer demand for personal care products is expected to support growth in the specialty chemicals market.

Industrial trends

  • Automotive
    As the anticipation of tariffs has moderated sales momentum, many automotive dealers are pivoting toward sustainable volume growth.1
  • Engineering and construction
    Total US engineering and construction spending is projected to rise by 2.0% by the end of 2025—a notable slowdown from 7.0% growth in 2024.2
  • Distribution, transportation, and logistics
    Tariffs, geopolitical tensions, and the economic environment continue to shape transportation and logistics deal activity, with greater trade policy clarity poised to unlock momentum.3
  • Metal, plastics, and paper packaging
    The transition toward fiber-based packaging accelerated, with advancements in barrier properties and finishes enabling paper to compete with traditional materials in food, beverage, and e-commerce applications.4
  • Specialty channels
    Following another year of volume decline in 2024, the specialty chemicals industry is set for a modest recovery in 2025, with global chemical production projected to rise by 3.1%, led by strong growth in the Asia-Pacific, Eastern Europe, Africa, and Middle East regions.5

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References

1.  Ashby Lincoln, “U.S. auto sales slow in June despite strong Q2 results from GM and Ford,” CBT News, July 2, 2025.

2. Brian Strawberry, Jay Bowman, and Jacob McCann, 2025 North American engineering and construction outlook: Third quarter, July 2025.

3. PwC, “Transportation and logistics,” June 18, 2025.

4. Olga Kachook, 2025 sustainable packaging trends report, Sustainable Packaging Coalition, April 2025.

5. Karina Trevizan et al., Chemical trends H1 2025, S&P Global Commodity Insights, 2025.

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