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A large and diverse industry, the industrial products sector consists of a range of industrial firms that supply equipment that other companies need to run their manufacturing operations. VRC has extensive experience with flow control equipment, electrical equipment, and industrial automation segments of the market.
The industrial products industry segments share trends with respect to consolidation, globalization, cost containment, customer demand for value and innovation. Consolidation continues in the industrial machinery sectors as smaller acquisitions allow manufacturers to expand product lines or sales territories. The market is historically global but demand is greater in emerging markets than in developed parts of the world. With China’s rapid industrialization, there is a strong demand for steel, coal, nickel, copper, electric motors and other plant equipment. Globalization is encouraging suppliers to relocate production to low-cost regions of the world.
Customers of industrial machinery firms are demanding greater value for their money. The equipment they use is at the heart of the production process so customers are willing to pay for fewer breakdowns, more output, or less downtime for routine maintenance. For industrial equipment manufacturers, advancements in technology lead to shorter life cycles.
Suppliers of industrial machinery use various raw materials and commodities to manufacture their products: oil, natural gas, steel, and copper are examples. These raw materials have surged in price since the beginning of economic recovery in 2002.
In terms of acquisitions, large cap industrial conglomerates continue to acquire smaller industrial machinery companies in order to drive sales growth and fill in product offerings. These larger companies are expected to continue to make acquisitions.
VRC has extensive experience in flow control equipment, electrical equipment, and industrial automation segments of the industrial products market. We provide valuations of intangible assets, personal property and real estate to multinational corporations for financial reporting and international tax issues. Our services support mergers and acquisitions, divestitures, and recapitalizations.
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