Both US and Global Industrial Distribution M&A volume rose above Q3 2020 levels in Q3 2021. Moreover, YTD 2021 US Industrial Distribution M&A activity increased 36.2% to 237 transactions year-over-year. YTD Global M&A activity far surpassed 2020 levels, increasing 38.4% to 562 transactions.
When comparing quarter-over-quarter, both US and Global Industrial Distribution M&A saw an increase. US levels increased 45.9% vs only 3% globally. This surge is likely due to an extreme uptick in consolidation among strategic buyers, as well as owners capitalizing on favorable valuations and the current tax environment.
Manufacturing sector indicators primarily increased towards the end of Q3 2021, after the slight retraction seen near the end of Q2 2021. The Institute for Supply Management (“ISM”) Production Index slightly decreased to 59.4 in September 2021. The ISM Purchasing Managers’ Index increased to 61.6, still below 64.7 value in March 2021. The ISM New Orders Index increased to 66.7 in September 2021. The Industrial Production Index, which measures the real production output of manufacturing, mining, and utilities, decreased slightly to 100.0 in September 2021.
Read Industrial Distributor M&A Pulse Q3 2021 Full Report