It's not a consolidation trend. It's gone from vertical monopolies to syndicates and vendors. It's become the norm for parent companies to segregate out child companies to do specific work that operate as subsidiaries. They're literally breaking up the central control of the company.
I don't disagree with your complaint on fiancialization, but it's less centralized than a vertical monopoly.
That's not consolidation, it's the same owner, but it has to be broken out for legal purposes. Then you can potentially sell that company to someone else when it becomes less profitable.
I have actually noticed exactly this since I started working in that machine shop.
We make transmissions for a completely separate car company.
We are the prime manufacturer for a certain lawnmower companies gearboxes.
We have had a lot of really random stuff being made by us (one of our big machines spent the whole week making fire hydrants).
Just this week, we had a major tractor maker coming through inspecting our facility because they were interested in us making parts for them.
Other than the constant of that lawnmower gearbox and the car transmissions, we get all kinds of companies ordering from us that have nothing to do with each other. The only unifying force is "We need these parts made out of ductile iron. You can cut ductile iron and your machines meet our specifications. Here is the order."
Yeah, and that's basically what's going to continue to happen. The economic complexity and growth is going to primarily come from B2B transactions to make better products for consumers IF AND ONLY IF the government could take their dick out of the economy's ass for like 5 minutes.
It's not a consolidation trend. It's gone from vertical monopolies to syndicates and vendors. It's become the norm for parent companies to segregate out child companies to do specific work that operate as subsidiaries. They're literally breaking up the central control of the company.
I don't disagree with your complaint on fiancialization, but it's less centralized than a vertical monopoly.
Child companies aren't independent of their parents.
No they aren't. Companies having the same owner = consolidation.
That's not consolidation, it's the same owner, but it has to be broken out for legal purposes. Then you can potentially sell that company to someone else when it becomes less profitable.
That's exactly what consolidation is.
I have actually noticed exactly this since I started working in that machine shop.
We make transmissions for a completely separate car company.
We are the prime manufacturer for a certain lawnmower companies gearboxes.
We have had a lot of really random stuff being made by us (one of our big machines spent the whole week making fire hydrants).
Just this week, we had a major tractor maker coming through inspecting our facility because they were interested in us making parts for them.
Other than the constant of that lawnmower gearbox and the car transmissions, we get all kinds of companies ordering from us that have nothing to do with each other. The only unifying force is "We need these parts made out of ductile iron. You can cut ductile iron and your machines meet our specifications. Here is the order."
Yeah, and that's basically what's going to continue to happen. The economic complexity and growth is going to primarily come from B2B transactions to make better products for consumers IF AND ONLY IF the government could take their dick out of the economy's ass for like 5 minutes.