Metal Fabricating, Machining and Stamping
INDUSTRY MARKET UPDATE Download our Metal Manufacturing Industry Market UpdateKey Metal Processing Industry Statistics
12.4%
increase in metalworking technology orders in NOV 2024 versus NOV 2023
35%
of manufacturers predict an increase in economic activity in the next three months
64%
of fabricated metal companies are in the South and Midwest U.S.
Sources: Association for Manufacturing Technology, The Fabricator, Metal Fab Blog, Industry Select
Metal Fabricating, Machining, and Stamping Industry Overview
The metal processing industry includes companies engaged in metal fabrication, metal stamping, precision machining, and other value-added processes. Major markets include, but are not limited to, aerospace and defense, automotive, and medical. The industry is expected to experience a compound annual growth rate (CAGR) of 4% through 2030.
Industry Key Trends
- Advanced Materials: Using new and innovative materials—such as advanced high-strength steels, cutting-edge alloys, and ceramics—is revolutionizing metal stamping and precision machining, allowing for greater durability and performance. (1)
- High-Speed Machining and Stamping: New technologies are redefining productivity standards, enabling faster, more efficient production processes, and reducing energy use and waste production. (1)
- Automation and Robotics: Integrating automation and robotics is becoming increasingly prevalent – enhancing precision, shrinking cycle times, and reducing labor costs. (2) In particular, Computer Numerical Control (CNC) machining and automation is driving the automated control of drills, lathes, mills, grinders, routers, and 3D printers and revolutionizing the metal fabrication industry.(3)
- Additive Manufacturing: Bridging the gap between prototyping and production, additive manufacturing is being integrated into traditional processes within the metal processing industry – enabling complex geometries, material savings, and shortened lead times.(1)
- IoT and Industry 4.0: The adoption of the Internet of Things (IoT), Industry 4.0, and other smart manufacturing technologies are transforming operations, improving real-time data analytics and optimizing production.(1)
Source: 1) IBIS World; 2) McKinsey.com; 3) Fanuc America
Metal Stamping & Forging
U.S. MAJOR MARKET SEGMENTATION
Industrial Production
FABRICATED METAL PRODUCTS
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M&A Driver Considerations
Key factors determining the rationale in recent M&A transactions include the following:
- M&A in metal fabrication drives consolidation for scale and efficiency, offering cost optimization and operational improvements
- Companies seek geographic expansion and diversification into new industries to broaden their market reach
- Technological advancements, including automation and advanced manufacturing techniques, fuel innovation and help integrate new capabilities
Investor Interest
Higher interest rates, volatile raw materials prices, and global trade disruptions have impacted M&A activity in the metals fabricating industry. Despite this, the sector consistently shows that both financial and strategic buyers remain active in the market due to the rising reshoring trend and constant progress in automation.
M&A Activity
DEAL COUNT
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Valuation Trends
TEV/EBITDA Multiples
| Date | Target | Acquirer |
| Dec-24 | Millennium Metals, Inc. | OmniMax International, Inc. |
| Dec-24 | WM. A. Schmidt & Sons, Inc. | Elmsley Capital |
| Dec-24 | Addison Precision Mfg. Corp. | BTX Precision, Inc. |
| Dec-24 | Ozark Steel Fabricators Inc | Dakota Holdings, LLC |
| Dec-23 | A. Zahner Company Inc. | Armstrong World Industries, Inc. |
| Nov-23 | Wick – Fab, Inc. | SOLV Metals, LLC |
| Nov-23 | MetalWorks, LLC | Olympic Steel, Inc. |
| Nov-23 | Maryland Metals Processing | Mill Steel Company, Inc. |
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