Industrials M&A update: Q3 2025

Tariffs have increased costs for parts and components across the industry, but automakers have largely absorbed these expenses rather than raising vehicle prices.

Industrial trends

  • Automotive
    Automotive sales in Q3 2025 are up 4.7% year over year, fueled by Federal Reserve rate cuts and the expiration of electric vehicle tax credits, which accelerated September purchases.1
  • Engineering and construction
    Residential improvements are expected to remain flat in 2025, driven by aging homes and selective renovation efforts despite ongoing market constraints and cautious consumer sentiment.2
  • Distribution, transportation, and logistics
    Private equity and strategic buyers are actively seeking scalable, tech-enabled mid-market transportation firms with strengths in cold chain management and regulatory compliance.3
  • Metal, plastics, and paper packaging
    Material and inventory costs are rising as the Producer Price Index for packaging materials and industrial inputs increases.4
  • Specialty channels
    In response to tariff impacts, the chemical industry is realigning supply chains and refining pricing strategies.5

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