Rv manufacturer announces production consolidating
However, there can be an upside to consolidation for buyers.Often, a company that acquires another supplier becomes more financially sound and may be in a better position to make investments in new technology and capacity.In other cases, OEMs decided to centralize purchasing to manage supplier selection, negotiation, and management on a company-wide basis.
However, for purchasing professionals, consolidation can mean fewer choices and less competition. In the early 1990s there were about 20 DRAM suppliers.
Over the last year or so, semiconductor companies and other component manufacturers seem to be consolidating at a faster rate, with more brand-name companies merging or acquiring other suppliers.
“There’s no question there has been a lot more merger activity in the last six months, and maybe over the last year-and-a-half, than there has been in a very long time,” said Brian Matas, vice president of market research for IC Insights.
It’s not just semiconductor companies that are merging.
Passives components and connector companies are also consolidating.