We are barely into February and already have a number of major acquisitions in our industry. Our EFC weekly InfoElectro has listed industry activity and will continue to update members on industry changes. And this is just the beginning. Over the next several years, I believe we will continue to see aggressive consolidation. This consolidation will affect both the manufacturing and distribution communities.
Why is merger and acquisition activity on the rise?
- New regulation and trade agreements are rapidly taking shape, making entrance to the global markets more viable
- Companies must re-balance their product and market portfolios
- Companies must look for smart ways to use the cash they have been protecting for the past few years
- European companies have found their base/home markets stagnant and look for expansion into faster growing regions
- Concerning GDP growth, North American markets in the short-term will out-perform European markets
- There are a number of attractive, strong North American manufacturers and distributors that are prime to be acquired by the European giants
What does this mean to our industry, members and in particular to EFC – change, adapt or die. More than ever we need to be resilient and innovative. We can embrace change or fight it. I believe The EFC staff and its members must continue to embrace these challenges and enhance existing and new services that will be valued by member companies. This will require alignment and adjustments to our strategic plan and the association’s structure.
EFC will adapt to the industry consolidation and thrive – stay tuned! Please contact me at firstname.lastname@example.org I would like to hear your comments
President & CEO