Healthcare Manufacturing, The Perils of Green Hydrogen, Big Schneider Electric News
Hope you’re all staying safe out there with the tariff madness.
As it stands today, peak to trough, the S&P 500 is down almost 20%. To put that in perspective, peak to trough COVID was about a 35% correction (but also saw upwards of $5 trillion in bail out stimulus), and the 2022 bear market was down 27%.
Trump, Bessent, and Lutnick all seem to be saying the same thing: this is short-term medicine for long-term prosperity, but the policy isn’t changing (it may still get worse for China). Meanwhile, Marco Rubio seems to be coming at this from a slightly different angle, hinting that this is all still a negotiating starting point.
Either way, the long-term macro & geopolitical trend of Reshoring has never been more front and center. As an anecdote, an owner of an auto parts manufacturing plant told me this morning “we went from unsure about what this year will look like” to “we just talked to GM and they’re trying to give us more work than we can handle… everything changed this weekend”.
Black Book Finds Tariff Pressures Driving Reshoring of U.S. Healthcare Manufacturing
“Q1 2025 ad hoc survey conducted by Black Book Research of 60 pharmaceutical and biotech manufacturing executives - half based in the U.S. and half operating offshore - reveals mounting momentum for reshoring U.S. healthcare manufacturing. The findings point to tariff-driven incentives, automation adoption, and supply chain vulnerabilities as central catalysts prompting a strategic shift in sourcing strategies across pharmaceuticals, diagnostics, and medical supplies.”
Full release here.
Green Hydrogen: Just Don’t Do It
“Electrolyzers, which do not exist, are supposed to use surplus electricity, which does not exist, to feed hydrogen into a network that does not exist in order to operate power plants that do not exist. Alternatively, the hydrogen is to be transported via ships and harbors, which do not exist, from supplier countries, which - you guessed it - also do not exist”
-Hanns Neubert in the June 2024 German MIT Technology Review
Full substack post here.
Schneider Electric Plans to Invest Over $700 million in the U.S., Supporting Energy & AI Sectors and Job Growth
“The investment is the largest planned single capital expenditure commitment by Schneider Electric in its' 135+ year history in the U.S. It includes manufacturing expansions and job growth, reflecting the company's robust customer demand for solutions to increase energy efficiency, scale industrial automation, and deliver a more reliable grid. Coupled with previous investments in 2023 and 2024 to strengthen its North American supply chain, Schneider Electric's latest U.S. planned investment will surpass $1 billion so far this decade.”
Full release here.
Other Headlines
PE: Private Equity Pushes for Two-Letter Tax Change to Save Billions
Specialty Chemicals: TCP Analytical Welcomes New Investment from Audax Strategic Capital, Alongside Expanded Commitment from Existing Sponsor Riverarch Equity Partners
Pumps & Fluids Handling: May River Capital Establishes a New Flow Control Platform, Tusk Industrial
Automotive Materials: AURELIUS Private Equity to acquire Teijin Automotive Technologies North America
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