Manufacturing Makes a Comeback: Strong Performance Boosts Demand and Investment

 

The manufacturing sector roared back in 2023, showcasing the strongest performance across all industries. This surge is evident in a 17% increase in the number of manufacturing business deals closed, coupled with a 15% jump in sale prices. The median sale price itself saw a significant rise, jumping from $700,000 to a healthy $797,000. Beyond just sales figures, these businesses are also boasting improved financial health. Compared to the previous year, median cash flow grew by 5% and median revenue by 4%.

This renewed vigor in manufacturing can be attributed to several key factors. The pandemic's impact on global supply chains, coupled with rising geopolitical tensions, has made reshoring – bringing production back to the U.S. – a more attractive option. Furthermore, a growing demand for automation technologies further incentivizes domestic manufacturing. Adding fuel to this fire are tax breaks offered by the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, making setting up shop within the U.S. an increasingly favorable proposition.

This national trend is reflected in states like Maine, where manufacturing has long been a cornerstone of the economy. Maine's diverse manufacturing sector encompasses a wide range of specialties, from shipbuilding and aerospace to food processing and wood products. With the national tailwinds pushing for domestic manufacturing, Maine's established infrastructure and skilled workforce position the state to capitalize on this exciting resurgence.

Written by Justin Cotta Holmes, Transworld Business Advisors of Maine    Find other articles here    TBA Blog