The Blueprint – July 2021 Coverage
Actionable Intelligence for Leaders in the Architecture, Engineering, Environmental, Geospatial, and Construction Services Industries
It’s no secret that there is a significant talent shortage in the Technology industry. It was bad before COVID, and now it is even worse. People are afraid of their health, getting generous unemployment benefits, or they’re having to stay home and take care of children because of closed schools. Organizations are struggling with delivery issues, keeping up with demand, and running lines as usual because of new COVID requirements. In some cases, production lines have had to be redesigned to accommodate social distance guidelines. It’s becoming more important than ever to find innovative ways to increase productivity.
These ways of boosting productivity are through automating processes, rebalancing production lines, implementing KPIs, and cross-training and upskilling employees. Automating processes can be done in many areas of an organization. For example, material handling is a big opportunity for automation. Rebalancing production lines can be done in every area of the facility and starts with looking at all areas and seeing if there is a better way to design things that would improve processes and productivity. Implementing a KPI management strategy helps identify areas for improvement and gives valuable data to analyze what is working and what isn’t. Lastly, cross-training and upskilling employees is a great strategy. This compensates for shortages in one area and allows managers to have the flexibility to move people around to fill roles. If you are facing a decline in productivity, missing deliveries, turning down orders, or facing steadily increasing costs, it is critical to invest in automation and begin employing these strategies.
Over the past twelve months, Industrial Automation stocks have been rising with the overall market. Since the end of October, the overall market and the Industrial Automation index have risen sharply. Industrial Automation stocks have continued to rise so far in 2021 and are hovering around 45% higher than last July. Revenue multiples have stayed in between 6x – 7x since January and are currently around 6x. EBITDA multiples have been around 25x since January of this year.
The Download
The best articles from around the web for AEC industry leaders.
- How to Implement a Digital Knowledge Database via Automation World
- CC-Link IE TSN for Interoperability and Determinism via Automation World
- Four Ways Industrial Companies Can Accelerate their Digital Journey via Automation World
- How Digital Manufacturing Technology Can Fill the Talent Shortage via Manufacturing Tomorrow
- Kuka Releases New Version of its Robot Simulation Software via Robotics & Automation News
Transaction Talk
Insights and intelligence on recent notable industry transactions.
- Signify, the world leader in lighting, acquired Telensa Holdings Ltd, a UK-based expert in wireless monitoring and control systems for smart cities. With Telensa, Signify adds a narrow-band and TALQ-compliant solution to its feature-rich, open, and secured systems. This will enable Signify to service a broader group of customers, by making smart city infrastructure affordable to cities utilizing the unlicensed radio space. Telensa will continue to sell its systems under its own brand name. “We are very excited to welcome Telensa as part of Signify,” said Harsh Chitale, Division Leader Digital Solutions at Signify. “With its talented team and proven track record, we are adding a well-established technology and competitive offering to fuel the uptake of solutions for smart cities around the world.” The terms of the deal were not disclosed.
- Hy-Tek Holdings (“Hy-Tek”), a portfolio company of Dunes Point Capital, LP (“DPC”) has acquired BP Controls Inc. and Nogol Electric LLC (collectively “BP Controls”). Located in Manalapan Township, NJ, BP Controls designs, engineers, and integrates controls systems and warehouse control software for warehouse automation applications. BP Controls has one facility in New Jersey and employs approximately 25 people. Located in Columbus, OH, Hy-Tek Holdings is a material handling automation integrator serving clients in diverse end markets and applications, including e-commerce, third party logistics, and parcel. The terms of the deal were not disclosed.
- Multi-Tech Systems, Inc., a leading global supplier of Internet of Things (IoT) devices, services, and solutions, announced the acquisition of Radio Bridge, a Minnesota-based designer and manufacturer of long-range wireless sensors for the Internet of Things (IoT) industry using the LoRaWAN® wireless standard. Together, they will offer seamless integration based on an open architecture, and a cloud-based management console for provisioning, monitoring, and configuration of sensors and gateways – shortening time to market, simplifying device management, and lowering total cost of ownership throughout the life cycle of customer solutions. The terms of the deal were not disclosed.
About 7 Mile Advisors
7MA provides specialized Investment Banking & Advisory Services to the professional service firms in the Architecture, Engineering, Environmental, Geospatial, and Construction Services industries. We help our clients determine the right strategic partners for their businesses, transition ownership, raise capital, grow through acquisitions, and evaluate new markets. We advise our clients on M&A and private capital transactions, and provide unique market insights. Our team brings experience and energy to all of our engagements, with a focus on helping our clients navigate a changing marketplace.
To learn more about how 7 Mile Advisors can help you evaluate and execute on strategic M&A or private capital alternatives for your business, please visit our website www.7mileadvisors.com.
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