Sector Performance

In 2025, M&A activity in the manufacturing and industrials sector experienced a measured recovery compared to 2024, as inflation eased and interest rates stabilized. Dealmaking remained selective, with corporates and private equity sponsors focused on portfolio optimization through bolt-on acquisitions and carve-outs.

Key deal drivers included strengthening supply chain resilience, building digitalization and automation capabilities, and advancing energy transition and decarbonization strategies. Cross-border activity increased, while ongoing geopolitical uncertainty continued to shape valuation, structuring, and transaction timelines, making rigorous diligence and early regulatory planning critical.

Hogan Lovells Activities

In 2025, our Manufacturing and Industrials team continued to support clients on key global issues, including geopolitical disruption, supply chain realignment, technological change, evolving financing structures, and regulatory compliance across multiple jurisdictions. We expanded our thought leadership to address these evolving legal and commercial challenges.

We launched our Manufacturing on the Move video series, examining how manufacturers are navigating these pressures in an increasingly complex global environment. Our Construction and Engineering team also published a multijurisdictional review of the most significant legal and industry developments of 2025.