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- SMB Manufacturing Current - May 2025
SMB Manufacturing Current - May 2025
brought to you by Tupelo
Happy May! 🧾✏️
Welcome back to SMB Current – Manufacturing Edition. Last month, manufacturing businesses took advantage of Tupelo’s free valuation tool to add real value for their companies. This month, we’re serving fresh industry updates, AI manufacturing tools, and business tips that will keep you on your toes.
Did you know? 80% of businesses that go to market never sell. The top reasons?? Owners don’t know what their business is worth or how to sell it. Tupelo gives you real-time insight into your business valuation, so you’re always prepared.
Curious? Check out a sample valuation here:
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📰 Manufacturing Press
🏭 Clean Energy Manufacturing Sees Significant Growth
The American Clean Power Association reports that clean energy manufacturing contributes $18 billion annually to the U.S. GDP and supports 122,000 jobs. With over 800 facilities across the country, projections indicate potential growth to $86 billion in GDP contribution and over 575,000 jobs by 2030. (altenergymag.com, ACP)
🔧 Labor Shortages Persist in Manufacturing Sector
Despite efforts to boost domestic manufacturing, companies report difficulties in filling open positions. Factors include a lack of skilled workers and challenges in attracting talent to manufacturing roles. (NPR)
🏗️ Surge in U.S. Factory Construction Amid Tariff Policies
In response to tariff implementations, companies, especially in the pharmaceutical sector, are investing heavily in U.S. manufacturing. Factory construction spending has reached an annual rate of $234 billion, up from $79 billion in February 2020. However, economists caution that while this may create 100,000 new jobs, the broader economic impact of tariffs could result in a net loss of 500,000 jobs. (Investopedia)
🇯🇵 Nippon Steel Reaffirms Commitment to U.S. Steel Acquisition
Nippon Steel remains dedicated to acquiring U.S. Steel, proposing a $14 billion investment to enhance operations, including a potential $4 billion new mill. The company emphasizes that a full buyout is essential for effective technology transfer and strengthening U.S. Steel, aligning with goals to boost domestic manufacturing. (Reuters)
🛠️ Manufacturing AI Tool of the Month
Intrinsic.ai is an AI and robotics software company under Alphabet, dedicated to making industrial automation more accessible and adaptable across various industries. Their flagship platform, Intrinsic Flowstate, empowers developers to design, simulate, and deploy robotic applications without requiring deep robotics expertise.
Key features of Intrinsic's platform include:
AI-Driven Motion Planning: Utilizes machine learning to generate efficient, collision-free paths for robots, streamlining complex multi-robot operations.
Advanced Perception Capabilities: Employs synthetic data and deep learning to enable robots to understand and interact with their environments, enhancing adaptability to new tasks.
Sensor-Based Control: Integrates real-time sensor data for precise force control and manipulation, allowing robots to perform delicate tasks with accuracy.
By lowering the barriers to robotic automation, Intrinsic aims to democratize access to advanced manufacturing technologies, enabling businesses of all sizes to enhance productivity and innovation.
🗯️ SMB Squawk Box
Manufacturing - Adjusted EBITDA
Industry (Click below for a detailed blog!) | Q1 - Low | Median | Q4 - High |
3.00x | 4.80x | 7.80x | |
2.50x | 2.80x | 6.40x | |
2.00x | 2.30x | 4.30x | |
2.00x | 2.50x | 5.90x | |
2.10x | 3.15x | 3.90x |
Industry Overview, Market Size/Projections, Key Financial Metrics, Future Outlook and more | Tupelo’s industry reports get thousands of views monthly by owners, buyers, and your fellow brokers. |
🧠 Growing your Business Tip:
🏢 B2B Sales: Focus on Lifetime Value, Not One-Time Orders
Tip: Build long-term relationships by becoming a trusted partner, not just a supplier.
Offer subscription-based models for consumables or maintenance services.
Use CRM tools (like HubSpot or Salesforce) to track client interactions and forecast reorder cycles.
Provide dedicated account managers and proactive performance reviews.
Why it works: In manufacturing, recurring contracts and steady volume are gold—this approach helps secure both.
George Wellmer, CEO Tupelo |