Industries Consolidate to Stay Competitive
Mergers and acquisitions help the big get bigger in an effort to reduce costs, reach more customers and expand product lines.By IBISWorld Lead Industry Analysts Agata Kaczanowska and Mary Nanfelt
Big companies are getting even bigger, mainly through mergers and acquisitions (M&A), resulting in fast-paced consolidation in various industries. The main driver for M&A is economies of scale, which means that companies earn a higher margin on each additional unit produced. Economies of scale are most prominent when an industry has high input costs, which can diminish when inputs are bought in
