Contract Manufacturing Sector Spotlight - Summer 2025

Report Highlights

Recent Elements Affecting the Dynamics and Outlook of the Contract Manufacturing Sector

• Economic activity in the manufacturing sector has indicated relatively stable performance for Q1 2025 with most sub sectors seeing an increase or decrease of less than 10% of the QoQ EV/EBITDA multiples.
  • Globally, the A&D Manufacturing segment has seen significant equity returns and growth in multiples as governments continue to allocate investments in advanced technologies such as hypersonic missiles, autonomous systems, and advanced drones in response to geopolitical tensions.
• Moreover, within the US specifically, a manufacturing reshoring renaissance is underway as geopolitical risks, such as trade tensions, global energy concerns, and political unrest, coupled with rising labor and shipping costs, have significantly altered the dynamics of global supply chains, subsequently incentivizing domestic manufacturing efforts.
• Furthermore, following the result of the recent US elections, American manufacturers are optimistic about potential growth and revitalization in American manufacturing under the new Trump administration, however, uncertainties remain regarding trade policies and regulatory changes that could affect various subsectors differently.

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Reach out to Dinan Capital Advisors Managing Director Tom Gerlacher for more report insights.