Favorable unemployment rates and consumer confidence further contribute to a stable economic environment, supporting the momentum in the M&A market. For the rubber industry, these macroeconomic conditions create a fertile ground for growth- oriented transactions, enabling companies to capitalize on emerging opportunities. Impact of U.S. Election Results The recent U.S. presidential election results are expected to have a significant impact on M&A activity. Anticipated deregulation, lower taxes, and changes in agency leadership are poised to STATE OF THE INDUSTRY Uncertainties in economic conditions and geopolitical factors remain a primary challenge for rubber businesses. The recent interest rate cuts indicate potential underlying economic concerns, adding complexity to strategic planning. Additionally, the results of the presidential election introduce further unpredictability, with differing policies and geopolitical views impacting economic outlooks and market conditions. catalyze deal-making. Historically, U.S. M&A transaction volumes tend to increase by up to 10% year-over-year in the first two years of a new presidential administration, provided there are no major macroeconomic headwinds. Sectors such as technology, financial services, manufacturing, oil and gas, and health care are likely to benefit most from these policy shifts. Additionally, certain sectors of national security and aerospace & defense (A&D) may experience increased activity. The rubber industry, closely tied to manufacturing and industrial sectors, stands to benefit from these favorable conditions, 30 / INSIDE RUBBER / 2025 Issue 1
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