CONTRACT & TOLL MANUFACTURING
“ Some sites are more heavy on custom manufacturing, some for our proprietary manufacturing, but all of them are as versatile as possible in terms of having the pots and pans to support both. There are ebbs and flows between those, but with that versatility we can be opportunistic to meet the moment.”
Not surprisingly, the growth strategy is opportunistic as well, swinging between organic growth when demand supports it and acquisition when deals present themselves. Each operating site is a stand-along facility, but Peri notes that a potential for synergies with existing sites is a criteria for potential acquisitions.
“ We are not a fix-and-flip acquirer,” he says.“ We integrate our acquisitions and they become a part of the continuum of our company. That is why we look for operations with a strong asset base, technology portfolio, and talent pool. We have a standing M & A team within our ownership structure that evaluates each opportunity through those lenses.”
Supply-chain uncertainty and evolving tariff structures“ have certainly renewed interest in domestic manufacturing and local sources,” according to Todd Emslander, who
Wilson – Biggest growth challenge is finding qualified operators became CEO of Kurita America in April 2025.
“ For companies like ours, that dynamic underscores the value of having a strong North American manufacturing footprint,” Emslander adds.“ More than 90 % of the products we sell are of US origin, which helps insulate customers from tariffrelated volatility. We just opened a new manufacturing facility in Texas that further expands our capacity and capability.”
“ For toll and custom manufacturers, the shift toward domestic supply does create more attractive opportunities for acquisition. The differentiator for these manufacturers isn’ t just capacity, it’ s capability. Customers are prioritising reliability, sustainability and regulatory compliance. That’ s why companies with robust quality systems, technical expertise and ESG alignment will be most attractive to buyers and partners alike.”
Still fragmented
Despite the consolidations across the speciality and custom-chemical industries, those segments remain highly fragmented. Emslander believes this is both a challenge and an opportunity.
Peri – Monument’ s plants have flexibility to support custom and proprietary production
“ Fragmentation remains because these markets are defined by specialisation, and many companies succeed through deep technical focus, along with customer intimacy in niche applications. That makes large-scale consolidation challenging, but it also means there’ s high value in selective, strategic combinations” he says.
“ We’ ve seen both strategic acquirers and private equity active in the market,” Emslander continues.“ Strategic investors are looking to expand their technological or regional footprint, while private equity tends to aggregate capabilities into scalable platforms. Ultimately, the real value lies in acquisitions that create synergies around innovation, sustainability and digitalisation.”
Emslander expects continued M & A activity in 2026,“ but with a sharper focus on strategic fit, sustainability and digital enablement. Buyers are prioritising technologies that address global challenges, such as water reuse, decarbonisation, and PFAS treatment, along with those that can demonstrate measurable ESG impact.”
Segments tied to semiconductors, advanced manufacturing and municipal water treatment are particularly active, supported by federal funding and reshoring efforts. Not surprisingly, Kurita’ s own growth areas, high-purity water systems, sustainable chemistries, new partnerships in PFAS removal and destruction, as well as membrane technologies, align with these trends.
“ Contracting and [ buying ] strategies have matured from reshoring rhetoric to pragmatic regionalisation, balancing domestic security with global efficiency,” notes the Contract Manufacturing Outlook Report 2026 released by SOCMA in late October 2025.“ Contracting practices have become more practical and outcomeoriented. However, persistent supply chain uncertainty and elevated costs continue to make long-term agreements difficult, reinforcing reliance on shorter terms and flexible pricing mechanisms.”
JAN / FEB 2026 SPECCHEMONLINE. COM
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