Our Gossip-Laden Industry
August 03, 2020
Author: Guy Soreq
Though many organizations are struggling in the current economic conditions, others with strong cash positions may see this as a time to grow through mergers and acquisitions (M&A). In the feed industry June and July saw over a billion dollars change hands through M&A deals intended to align synergies. Time will tell whether these mergers are able to create new value, but in the meantime we are likely to see a volatile rebalancing of the supply chain for many months to come.
Even before the impact of actual organizational reshuffling is felt across the supply chain, markets will undoubtedly react to news and gossip around these events. Rumors of consolidation can be enough to create turbulence, and as we all know, the more uncertainty there in an industry the more chatter has the power to create volatile swings in sales and purchasing. Sellers use gossip to sell and buyers often rely on gossip to plan their demand.
The big problem in all this is that these unconfirmed tidbits of information are often incomplete and inadequate to make sound business decisions. Gossip is only as good as the size of your network and the validity of your source. If your network is concentrated in one region but you buy raw materials from across the world, the right information may never reach you.
Glowlit allows you to join a global network sharing information from over 90 countries around the world. Whether the industry is responding to actual transactional shifts, or just a bit of buzz, you can see the change happen in real-time. That is the power of the Glowlit community.