PE M&A Activity ↑12.4%│ Industrial EBITDA Multiples 7.2×│ B2B Buyer Trust Index ↓31%│ SEO Click-Through Rate ↓44%│ LMM Deal Volume ↑8.1%│ Sales Hire Failure Rate 67%│ Organic Growth Gap 2.3× plan│ PE Dry Powder $2.59T│ PRESS: Ed Marsh at PE Operating Partners Summit│ DEAL: Midwest controls automation acquired at 7.8×│ PE M&A Activity ↑12.4%│ Industrial EBITDA Multiples 7.2×│ B2B Buyer Trust Index ↓31%│ SEO Click-Through Rate ↓44%│ LMM Deal Volume ↑8.1%│ Sales Hire Failure Rate 67%│ Organic Growth Gap 2.3× plan│ PE Dry Powder $2.59T│ PRESS: Ed Marsh at PE Operating Partners Summit│ DEAL: Midwest controls automation acquired at 7.8×│

Dianna Huff on Industrial Private Equity and American Manufacturing

Industrial private equity can impact manufacturers in different ways. American manufacturers can grow revenue for financial strength and options.

Ed Marsh
Ed Marsh
INDUSTRIAL REVENUE GROWTH
5 MIN READ
industrial private equity can play an important role in helping industrial manufacturers survive during difficult times

An Industrial Marketing Journey that Turned Into an Adventure in Industrial Private Equity

industrial-private-equity-and-made-in-america

Dianna Huff is a writer. 

She stumbled into marketing and made it a career, along the way developing a commitment to buying American products as a consumer, and focusing her consulting on helping small American manufacturers thrive.

That journey of working with small manufacturers and focusing on buying American has taken her through twists and turns. Recently she's begun to post online about the negative impact she believes that industrial private equity is having on companies, workers and communities.

I enjoy reading Dianna's blog and following her Made in the USA efforts, so as this theme developed in her writing, I invited her on the podcast to talk about industrial marketing as well as the impact of private equity.

In the end we agreed on most, maybe disagreed on a bit, and settled on a final conclusion. Industrial manufactures should take marketing and sales more seriously. By doing so they can establish and defend financial strength that will give them options even in difficult conditions. This is perhaps the greatest accomplishment they can offer their owners, legacy, community and stakeholders.

Connect with Dianna for tips on buying Made in America and to exchange opinions on private equity's impact on industrial manufacturing.

Check out Dianna's Huff Industrial Marketing website |   

Industrial Private Equity and American Manufacturing - Dianna Huff on Industrial Growth Institute Episode 54

 

Show Transcript

Episode Recap

Summary

is-industrial-private-equity-good-for-american-manufacturers

Diana Huff, a marketing expert focused on American manufacturing chats with host Ed Marsh. They discuss her journey from a background in English literature to industrial marketing, her passion for promoting Made in USA products, and the challenges faced by small manufacturers in the current economic landscape.

The conversation delves into the impact of offshoring, the role of private equity in manufacturing, and the importance of effective marketing strategies for small manufacturers. Diana shares her insights and opinions on various topics including:

  • the evolving nature of industrial marketing
  • the significance of maintaining a strong manufacturing base in the U.S.
  • the complexities of automation in manufacturing
  • the impact of private equity on American jobs
  • the critical need for effective marketing strategies.

They discuss the balance between profit and employee welfare, the importance of manufacturing jobs in providing stability, and the necessity of building trust in marketing. The conversation emphasizes the need for manufacturers to adopt a continuous improvement mindset in both production and operations, and marketing and sales to thrive in a changing landscape.

Takeaways

  • Diana Huff has a rich background in industrial marketing and manufacturing.
  • The role of private equity in manufacturing can be both beneficial and detrimental.
  • Offshoring has significantly impacted American manufacturing jobs.
  • Effective marketing is crucial for small manufacturers to compete.
  • Websites should communicate expertise and attract talent, not just generate leads.
  • Diana's blog focuses on promoting Made in USA products based on personal experiences.
  • The manufacturing industry has become more efficient due to competition.
  • Automation can help address labor shortages in manufacturing.
  • Diana's journey reflects a passion for revitalizing American manufacturing. Automation helps ensure consistent quality in manufacturing processes.
  • The precision of automated tools can reduce waste and improve safety.
  • Balancing profit maximization with employee welfare is a complex challenge.
  • Many American manufacturers struggle with marketing and sales effectiveness. Improving their revenue growth can improve resilience and reduce the need to sell.
  • Private equity can provide important options for business owners.
  • Different firms and philosophies may emphasize business cuts while others embrace owners, legacy, employees and community.
  • Manufacturing jobs are vital for community stability and individual dignity.
  • Building trust in marketing is essential for long-term success.
  • Effective marketing requires consistency and a clear budget.
  • Manufacturers should adopt a continuous improvement mindset in marketing.
  • Consumers can support American manufacturing by being informed and intentional in their purchases.

Takeaway Quotes from Dianna Huff

  • "There is no straightforward, easy answer."
  • "Private equity may actually serve a purpose."
  • "The focus on profits has led to offshoring."

Outline

00:00 Introduction to Diana Huff and Her Journey 
12:00 The Impact of Offshoring on American Manufacturing
19:57 The Role of Private Equity in Manufacturing
28:04 Challenges Facing Made in America Manufacturing
32:06 The Future of Manufacturing and Automation
33:41 The Role of Automation in Manufacturing
35:54 Balancing Profit and Employee Welfare
39:05 Marketing and Sales: The Missing Link
43:05 Private Equity: A Double-Edged Sword
47:56 The Importance of Manufacturing Jobs
52:01 Building Trust in Marketing
56:06 Strategies for Effective Marketing
01:00:54 Resources for Buying American
01:04:02 Final Thoughts on Manufacturing and Marketing

Private Company Governance and Financial Strength

Ed Marsh is certified in Private Equity Portfolio Company Governance by the Private Directors Association and consults with sponsors and portcos on his Quality of Sales Framework. 

 
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KEY TAKEAWAYS
  • Most complex industrial purchases must clear five separate buying decisions.
  • Decisions 2 and 3 determine whether a purchase happens at all — and most reps don't know they exist.
  • Most big-ticket B2B industrial forecasts are fantasies because they ignore those decisions.
  • Buying teams typically include eight to twelve people.
  • Reps need business acumen — not just product knowledge — to engage decision-makers early.
Ed Marsh
Ed Marsh
Ed was going to be an architect because he loved the nexus of engineering and design. That was before was going to be an engineer; before he graduated from Johns Hopkins; before he was an Army Infantry Officer (Airborne Ranger); before he set B2B industrial sales records; before he was partners with a German capital equipment manufacturer; before he founded a distribution/rep company for industrial products in India; until he decided that managing a business and employees wasn’t what he enjoyed. Now that Ed’s got all of that out of his system he runs a consultancy that helps US manufacturing companies grow by applying process excellence to business development – completing the full circle back to an engineering & design combination. His practice is built on a unique methodology which combines powerful digital marketing methodologies (a HubSpot partner) with his extensive international biz dev experience.
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