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The Blueprint – July 2021

By Emily Halstenberg | July 20, 2021

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.

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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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