Beyond the Bottom Line: The Dual Impact of Private Equity on U.S. Manufacturing and Recruitment

Welcome to our first issue! We're taking a closer look at how private equity (PE) firms have changed how manufacturing businesses work and grow in America. Since 2000, these firms have played a big part, and we want to understand whether they're improving things.

PE firms try to make companies more valuable by improving their work, cutting unnecessary costs, and teaming up with similar businesses for better results. Some think these firms only care about quick money, but many aim for lasting growth and success. They can give factories the money and know-how they need to compete globally, help them do things better, and create new jobs.

But there's a debate. Some worry that these firms focus too much on fast profits, leading to job losses and less spending on essential things like R&D and automation. Others say that the smart moves and financial changes these firms make can help a company grow and shouldn't be blamed for all the failures.

Recruitment in PE: For nearly two decades, our firm has been at the forefront of recruiting for PE, focusing on leadership roles within manufacturing. These positions promise significant career advancement and the opportunity to lead transformative projects. However, they're not without challenges, including uncertainty and demanding work conditions, often in less-than-desirable locations. We leverage tools like the Predictive Index to identify candidates who thrive in these settings, with final hiring decisions made by the PE firms’ hiring managers.

?The truth is that the effect of private equity isn't simple. Studies show they might cut jobs, but they also make companies more efficient. And the impact is different across the U.S.—some areas see a boom, others see factories closing.

Looking forward, we must find a way to ensure these investments help both the money and the people sides of manufacturing.

Stay tuned for our following issues, where we'll talk about the latest trends in private equity, like how they handle environmental and social issues (issue 2) and how they specifically work with portfolio companies to build up their value (issue 3).

Jim Baran-Founder-MFG Leaders

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