The Blueprint – June 2021 Coverage
Over the past decade, industrial manufacturers have faced pressure to make smaller and smaller products, in higher volumes, with greater flexibility – all at a reduced cost. In Automation World’s recent survey of more than 300 automation professionals from factories and processing plants, organizations shared plans for the future use of integrators. Nearly half of the respondents (46%) recently used a system integrator (within the past year). Only 25% of them have never used an integrator. The most significant benefit of using an integrator was the ability to complete a project that couldn’t have been done with in-house resources. In addition, 25% of respondents said they learned lessons about processes through the integration project that company personnel was unaware of before the project. Another noteworthy response is that there has been a net increase in internal automation engineering staff over the last three years, suggesting that companies will continue to hire in-house engineers if they can find them.
Organizations that adapted to the environment in 2020 were highly diversified, leaders in emerging technologies, and exceptional at risk management of their supply chains. These characteristics will continue to be essential to thrive in Industry 4.0. One organization that exemplifies these characteristics is Beckhoff Automation. “We don’t have more than 15% of our business in any one particular vertical,” said Kevin Barker, president of Beckhoff USA, “so when some of our existing customers did not invest in new theme parks or new oil and gas exploration, we still saw new projects with electric vehicles, semiconductor manufacturing, intralogistics, and packaging.”
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 50% higher than last June. 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.
- MES Software Gives Distilleries Needed Insight via Automation World
- Mars Partners with Microsoft for Global Digital Transformation. via Automation World
- Automation Strategies: Impactful Manufacturing Insights for a Changing Industry via Automation News
- Three Manufacturing Tips to Strengthen America’s Competitiveness & Maintain National Security via Manufacturing Tomorrow
- What Will Industrial Equipment Plants Look Like in the Next Decade? via Manufacturing Tomorrow
Transaction Talk
Insights and intelligence on recent notable industry transactions.
- ATS Automation Tooling Systems Inc., an automation solutions provider, announced the acquisition of Control and Information Management Ltd. (CIM), an industrial automation system integrator based in Ireland. With the acquisition of CIM, ATS adds to its automation and service capabilities for Biopharma, Pharmaceutical, and other Manufacturing and Services industries and enhances its digitization strategy. CIM will operate as part of ATS’ Process Automation Solutions (PA) business which is an independent provider of complete automation solutions for the process and manufacturing industries. The terms of the transaction were not disclosed.
- TTTech Industrial Automation AG has acquired core technology and strategic customers from pioneering fog/edge computing start-up Nebbiolo Technologies. Integrating features and know-how from Nebbiolo Technologies will support TTTech Industrial’s commitment to delivering the world’s most advanced industrial edge computing platform to its customers. TTTech Industrial is a leading provider of industrial IoT solutions and partners with key players in IoT such as Intel and Microsoft. The company’s Nerve software platform has been at the forefront of industrial edge computing since its launch in 2016. The foundation of TTTech Industrial North America supports the expansion of commercial operations in the US and Canada, with the technology and customer assets acquired from Nebbiolo Technologies forming the nucleus of these activities. The terms of the transaction were not disclosed.
- AVT Industriteknik AB (”AVT”), a designer and manufacturer of industrial automation equipment primarily for the Manufacturing, Pharma, and Automotive industry, has been acquired by Addtech. The offering includes electrical and mechanical design, programming of PLC and industrial robots, vision technology, installation, and service. AVT will very effectively complement Addtech´s current operations in the business area of automation and additionally add valuable integration competence. The terms of the transaction were not disclosed.
About 7 Mile Advisors
7 Mile Advisors provides Investment Banking & Advisory Services to the Business Services & Technology industries globally. 7 Mile Advisors advises on M&A and private capital transactions, and provides market assessments and benchmarking. As a close-knit team with a long history together and a laser focus on our target markets, 7 Mile Advisors helps its clients sell companies, raise capital, grow through acquisitions, and evaluate new markets. For more information, including research on the M&A markets, visit www.7mileadvisors.com.
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