Inorganic growth in the industrial sector: trends and the importance of Culture.

A few months ago during the Brand Pulse celebration, I had the pleasure of having an open conversation with Jorge Álvarez-Naveiro from Grupo Antolín where we addressed many of the challenges of the industrial sector and came to the conclusion that in expansive processes with inorganic growth in addition to To have a clear roadmap, it is key to have a solid culture in which the acquired companies are integrated.

Subsequently, I have had the opportunity to speak with many companies in the industrial sector and I have obtained a series of conclusions that I want to share in this post.

As we know, the industrial sector is experiencing a wave of mergers and acquisitions (M&A) in recent years, driven by a series of factors, such as globalization, technological innovation and the search for operational efficiencies.

  • Market consolidation and search for synergies.
    Market consolidation is a key trend in the industrial sector, as companies seek to merge or acquire competitors to achieve economies of scale, diversify their product and service portfolios, and improve their competitive position. In addition, the operational and financial synergies resulting from M&A can generate significant savings and increase the profitability of the companies involved.
  • Technological innovation and digital transformation.
    The rapid evolution of technology and the growing importance of digitalization are driving M&A activity in the industrial sector. Companies seek to acquire or merge with other companies that possess advanced technological capabilities or disruptive business models to stay competitive and adapt to changes in the market. An example of this in Spain is the acquisition of the technology company Asti Mobile Robotics by ABB, which allowed ABB to expand its offer in automation and robotics solutions.
  • Globalization and geographic expansion.
    Globalization has led industrial companies to seek growth opportunities in new markets and regions. The industrial sector is relying on this growth model as an effective way to expand geographically and access new customers, resources and distribution channels.
  • Purpose and Sustainability.
    The growing concern for the environment and social responsibility is also influencing the industrial sector. Companies seek to merge with or acquire companies that share their values ​​and approaches to sustainability and social responsibility to strengthen their reputations and attract investors and customers who are aware of these issues.
    A recent example is the acquisition of the plastic recycling company Envaplaster by Indorama Ventures, which reinforces its commitment to sustainability and the circular economy.

Despite the opportunities offered by inorganic growth, companies also face great challenges in the integration of operations, corporate culture and business strategies.

Since Baud, we have seen firsthand that it is crucial to address these challenges through careful strategic planning, effective communication and the implementation of change and adaptation processes through a solid brand culture.

Working on brand culture in cases of mergers and acquisitions is key:

  1. Facilitates the integration of different corporate cultures.
  2. Create a shared identity and set of values ​​among employees.
  3. Reinforces the reputation and perception of the brand in the market.
  4. Helps retain and attract talent.
  5. Promotes innovation and adaptability in the face of challenges and opportunities.

No matter how B2B we areIt is difficult to try to get talent to identify with a new project, if they join a company that does not have an attractive brand and culture.