The MHEDA Journal

The Material Handling Industry’s Distribution Expansion, Strategic Alliances and Dealership Consolidation Are Brought Into Focus

The latest issue of The MHEDA Journal features commentary from our own Ben Rudman on the state of mergers and acquisitions in the material handling industry. In the article, Ben lays out three clear trends that have informed successful M&A strategies for Original Equipment Manufacturers (OEMs) and equipment dealers.

MHEDA Journal - Material Handling M&AThe first strategy is focused on expanding distribution networks. Ben explains that OEMs seeking to improve their distribution have done so by acquiring dealerships, competing manufacturers and manufacturers of adjacent products. He cites manufacturers Crown, Mitsubishi Heavy Industries and Toyota as proof of these strategies in action.

Other companies have chosen to improve operations through strategic alliances, rather than outright mergers or acquisitions. MHI’s partnership with Jungheinrich is one such example.

The third strategy driving M&A in material handling, according to Ben, is consolidation of dealers. He maintains that consolidation can offer access to capital, regional efficiencies, new customers and greater influence for transacting dealers. He concludes by noting that “strategic mergers and acquisitions, at both the OEM and dealer levels, can improve margins, reduce the competition and lead to firmer control over the business.”

To read Ben’s full commentary, check out the Q4 issue of The MHEDA Journal.