KDG Acquires Square Foot, Forging Manufacturing AI & ERP Powerhouse

ALLENTOWN, PA – March 03, 2026 – Professional services firm KDG today announced its acquisition of Square Foot Consultants, a move that merges two Pennsylvania-based technology leaders and significantly deepens their combined capabilities in serving the mid-market manufacturing sector. The deal, which follows a five-year collaboration between the firms, creates a more formidable player in the high-growth fields of Enterprise Resource Planning (ERP) and Artificial Intelligence (AI) consulting.

This strategic integration brings Square Foot's specialized expertise in business process improvement, data intelligence, and organizational training under the umbrella of KDG's broader portfolio of technology, accounting, and advisory services. The combined entity is poised to offer a more comprehensive suite of solutions aimed at helping manufacturers navigate the complexities of digital transformation, streamline operations, and harness the power of their data.

"After five years of collaboration, it became clear that our combined potential far exceeded what we could achieve as independent entities," said Kyle David, CEO of KDG, in a statement. "This acquisition isn't just about expansion; it's a strategic alignment of cultures that reinforces our commitment to growth driven by excellence, rather than growth for its own sake."

A Strategic Play in a Booming Market

The acquisition is timed to capitalize on explosive growth in the technology sector, particularly within manufacturing. The global market for AI in manufacturing is projected to surge from just over $5 billion in 2024 to nearly $48 billion by 2030, representing a compound annual growth rate of over 46%. This trend is mirrored in the ERP market, which is rapidly evolving with the integration of AI and a massive shift toward cloud-based systems. By 2027, industry analysts at Gartner predict that over 62% of ERP spending will be on solutions with embedded AI, a dramatic increase from just 14% in 2024.

For mid-market manufacturers, these trends present both a massive opportunity and a significant challenge. While larger corporations have the resources to build extensive in-house teams, mid-sized companies often struggle with digital skills gaps, fragmented data systems, and the budget constraints necessary to implement transformative technologies. KDG's acquisition of Square Foot Consultants appears to be a direct move to address this specific market need, creating a firm with both the scale and the specialized knowledge to guide these businesses.

"Square Foot's deep proficiency in manufacturing technology, ERP, and artificial intelligence complements KDG's existing scale and service diversity," David noted, highlighting the strategic fit that underpins the transaction.

Building an End-to-End Toolkit for Manufacturers

For years, Square Foot Consultants built its reputation by working hands-on with manufacturers to untangle complex workflows, break down data silos, and implement sustainable systems. Their approach focuses on creating durable competitive advantages by empowering employees with the processes and training they need to succeed long-term. This expertise directly addresses the primary barriers holding back many mid-market firms from successful digital transformation.

By integrating this deep, process-oriented expertise, KDG can now offer a more holistic toolkit. Where manufacturers might have previously needed one firm for business strategy, another for ERP implementation, and a third for AI-driven data analytics, the combined KDG can now provide a single, integrated point of contact. This is crucial for tackling issues like the "digital Tower of Babel," where disconnected IT systems prevent a unified view of operations and hinder the successful application of AI.

The acquisition promises to unlock significant value for clients of both firms. As Nate Shaffer, President of Square Foot Consultants, explained, the merger provides his clients with a much broader network of talent and resources.

"What excites me most about this transition is what it unlocks for our clients," Shaffer stated. "Square Foot clients are gaining access to a broader network of talented professionals across technology, business consulting, accounting, and artificial intelligence, as well as experience spanning a wide range of industries. That expanded pool of expertise will enable us to move faster, solve more nuanced challenges, and bring more durable solutions to the table."

More Than a Merger: A 'People First' Integration

Leaders from both companies have been quick to frame the acquisition as a cultural and philosophical alignment, not merely a financial transaction. The five-year history of close collaboration has, by all accounts, created a foundation of mutual respect and shared values, which executives believe will lead to a seamless integration.

Kalyn DeHaven, AVP of Design and Marketing at KDG, described the long-standing partnership in glowing terms. "From the start, our work together with Square Foot has felt truly collaborative," she commented. "They've operated alongside us in a way that already felt like part of the KDG team... this transition feels like a very natural next step."

This emphasis on culture and people is a core part of the merger's narrative. Matt Harwick, VP of Professional Services at KDG, stressed the importance of the talent joining the firm. "From my perspective, this is about people first," Harwick said. "Adding strong, experienced professionals to our team doesn't just increase capacity - it elevates the quality, insight, and impact we're able to deliver to every client."

This focus on a smooth cultural integration is critical in the professional services industry, where talent retention and consistent client relationships are paramount. By emphasizing a shared, client-first mindset, KDG aims to avoid the common pitfalls of mergers that can lead to employee turnover and disruptions in service.

Expanding Horizons and Future Trajectory

The immediate plan involves fully integrating the Square Foot Consultants team into KDG's structure. They will continue to serve their existing manufacturing client base while also lending their specialized expertise to projects across KDG's diverse industry portfolio, which includes healthcare, finance, and nonprofit sectors.

This cross-pollination of expertise represents a significant growth opportunity. The process optimization and data integration strategies honed in the demanding manufacturing environment can be adapted to solve complex problems in other industries. For KDG, the acquisition is not just about dominating a single vertical but about acquiring a powerful set of methodologies that can be leveraged across its entire business.

With this move, KDG solidifies its position as a key player in the regional technology consulting landscape. It is now better equipped to compete against both larger, global consulting firms, which mid-market clients may find too costly and impersonal, and smaller niche players that may lack the breadth of services to provide a complete solution. By combining strategic breadth with deep operational expertise, the newly expanded firm is making a compelling case that it offers the best of both worlds for businesses looking to grow stronger and adapt with confidence.