The US manufacturing sector has undergone tremendous change over the past several years, mainly because so much of the industrial output in this country has shifted to less expensive offshore suppliers.  As a result, entrepreneurs looking to purchase a manufacturing business for sale by owner will need to look for a business model that is still strong enough to be profitable in this environment. 

 As a general rule, it makes sense to look for opportunities on a manufacturing business FSBO web site.  Once you find a listing that interests you, make sure the business isn’t vulnerable to overseas competition.

Here are some tips to help you choose the right manufacturing business for sale:

• Look for a company that makes a patented or proprietary product that cannot be purchased overseas. 
• Businesses that are able to deliver their products “just in time” to customers with a short lead time will also be able to skirt the competition offshore.
• Another factor that prevents overseas companies from competing with U.S. based manufacturers is shipping costs.  If the products they make are too heavy to be shipped economically from another country, then the U.S. based company has a distinct advantage.
• If a manufacturing business is “for sale by owner”, you can usually learn a lot about the daily operations of the business by starting a conversation with the current owner. 
• The first thing you should learn about a manufacturing company is which industries drive their business, and then do a thorough investigation on the health of these industries.
• Prior experience in manufacturing is the single most important quality that you should have before embarking on an ownership venture.  Manufacturing is not the type of business you can “learn as you go”.  It requires a specific skill set that is not easily transferred from one owner to the next.

If you are ready to start searching for an existing industrial venture for a potential acquisition, the best way to begin is by searching under “Manufacturing for Sale by Owner” in a reputable business FSBO directory.