Michael Dubois,
Head of Corporate at VG Global Holdings
(Published 14, July 2023)  

  

The Manufacturing-Electronics industry is made up of companies that manufacture electronic products like battery chargers, battery accessories, power transmission products, electrical motion controls and motive power devices, while some companies also provide water-treatment products, engineered flow components, process equipment and turn-key systems, and also offer state-of-the-art customer support and after-market services. They are increasing the investments that they are making in developing innovative new technologies, boosting customer and employee experience, and supply-chain modernization programs, while their end markets include robotics, semiconductor, defence, aerospace, medical equipment and satellite communications.  

 

Improving supply chains and a deceleration in inflation are the key catalysts to the growth of the Manufacturing Electronics industry, and the resiliency being shown in some important end markets bodes well for companies in this sector, while a focus on digitalization and inorganic activities should also help to bolster the growth of some of the industry leading companies in the field. Unfortunately, recession fears are looming large, so a turnaround in the manufacturing sector is not likely anytime soon, which would indicate a suppressed demand environment for the industry participants in the near term. However, demand across key end markets remains stable, and there are plenty of well-diversified end markets, such as gas, mining, refining, energy, renewable, and metals, which should help industry leaders offset weakness in demand in a single market.  

 

Emerson: This is a diversified global engineering and technology company which offers a wide range of products and services to customers in the consumer, commercial and industrial markets – improving supply chains and strong demand in the process and hybrid end markets are the two key growth drivers for this company, which aims to transform into a global automation company to drive growth and profitability. It is also worth noting that the company recently bought National Instruments  for $8.2 billion.  

  

EnerSys: This company engages in manufacturing, marketing and distribution of various industrial batteries, it has healthy backlog levels, a robust demand in the electrification and automation end markets, and good pricing actions, which shows promise for future growth. Inorganic activities are what are expected to drive growth of this company, while its recent acquisition of Industrial Battery and Charger Services Limited has bolstered its motive power service offerings and strengthened its presence in the market.