Mastering M&A: Risk Management in Manufacturing Transitions

Mergers and acquisitions (M&A) activity in the manufacturing sector creates a complex risk landscape for companies in transition. How are risk managers responding, and what should insurance agents and brokers know to support their manufacturing clients? In this webinar, the third in a series on mergers and acquisitions, we analyze the manufacturing-specific findings from Travelers’ 2025 M&A Study. Timed with National Manufacturing Month, we explore regional and global trends, examine the prevalence of strategic versus private equity buyers and share insights from real-world case studies. Discover what's driving manufacturing expansion and how risk teams are adapting to challenges, plus gain actionable strategies to help your clients successfully navigate the evolving M&A landscape. 

This program is the final webinar in a three-part series on Travelers’ 2025 M&A study. Explore the series:

Part one: Mastering M&A: Strategies for Risk Management  
Part two: Mastering M&A: Opportunities and Challenges in Tech and Life Sciences 

This program is presented as part of the Travelers Institute’s Forces at Work initiative, an educational platform to help today’s leaders navigate the shifting dynamics of the modern workplace and prioritize employees and their well-being. 

Please note: Due to the nature of the replays, survey and chat features mentioned in the webinar recordings below are no longer active.

Summary

What did we learn? Here are the top takeaways from Mastering M&A: Risk Management in Manufacturing Transitions:

Positive trends signal an expansion in U.S. manufacturing, said Brian Gerritsen, Assistant Vice President, Middle Market Manufacturing Segment Leader at Travelers. New construction spending in manufacturing reached $228 billion in 2024, primarily in computing, electrical and electronics, as well as in chemicals, food and transportation. “That’s a material shift that will impact the sector positively,” he said, adding that tax credits and incentives from recent federal legislation have helped spur this growth. Nearshoring is on the rise, with manufacturing moving to or back to North America, but “going global” still represents an important growth strategy for large and midsized companies, said Tony Giannone, Vice President of Multinational Accounts at Travelers, noting that Travelers estimates that one in three manufacturers face significant global exposures.

Manufacturing remains an attractive growth sector for M&A, a Travelers study shows. Strategic deals, in which one company acquires another for long-term value, far outpaced private equity (PE) deals in manufacturing M&A, according to the 2025 Travelers M&A Study, which includes a detailed analysis of $200 billion in recent manufacturing M&A deals and insights from surveys of 150 risk professionals in the industry. “Manufacturers are looking to scale up, improve their competitiveness and ultimately grow their business,” Gerritsen said. That means managing new and emerging exposures, and risk managers surveyed cited their top focus areas as: cultural integration and workforce, cyber risks, geographic issues, product liability, and supply chain and trade risk.

The Great Lakes region leads the way in manufacturing M&A dealmaking. The Great Lakes region drove 22% of manufacturing M&A activity in the past five years, with the automotive, chemical and electronics sectors attracting the most M&A interest, according to the study. The South was the only U.S. region to experience annual growth (11%) last year, driven primarily by the automotive and aerospace sectors, with steel and aluminum production in Alabama’s “Golden Triangle” attracting high-tech manufacturers. While deal flow for PE firms has been down, PE hold periods are increasing, Gerritsen pointed out. “Many PE firms are taking more time to focus on risk management across their entire portfolios,” he said.

Employee safety plays a vital role in manufacturing M&A deals. One reason it’s crucial to emphasize employee safety during an M&A transition period: A manufacturing worker misses 74 days on average due to a workplace injury, according to the Travelers Injury Impact Report, Gerritsen pointed out. This could lead to an operational slowdown or stoppage and cause fatigue in other employees who must cover missed shifts, he added. Globally, employees outside the U.S. face unique safety challenges, Giannone noted, adding that a global policy typically includes executive support services, which provide 24/7 medical, personal and travel assistance to employees. “That can really be key, especially if there’s an emergency,” he said.

Brokers should get involved early to guide clients through manufacturing M&A deals. “We frequently hear from brokers that they’re the last to know about an M&A deal involving their customer,” Gerritsen said. “But they can add value to the due diligence process to mitigate potential costly surprises and advocate for optimal outcomes with their insurance carrier partners and underwriters.” Brokers also can help clients proactively review business continuity plans, including employee safety considerations and changes that must be made to operational processes or systems. Finally, brokers should remind clients to evaluate the global footprint of the new entity, reviewing all locations where they do business, manufacture products and sell goods, Giannone said. “These are critical questions not to be overlooked during due diligence,” he said.

Speakers

   
Tony Giannone
Vice President, Multinational Accounts, Travelers 





   
Brian Gerritsen 
Assistant Vice President, Middle Market Manufacturing Segment Leader, Travelers

Host

   
Jessica Kearney
Vice President, Public Policy, Travelers Institute

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