Now, according to the predictions of the CEO of a financial service firm called Canaccord, we’re told that the continuing supply crunch will likely cause businesses to cut deals with other brands and land acquisitions in an effort to beat what is still a volatile market.
The reasoning behind this prediction? When supplies are limited, both clients and companies looking to supply product to the masses have a tough time finding what they need at a good price – or any price at all.
“You can’t build stuff today,” Canaccord CEO Dan Daviau says in an interview on The Globe and Mail.
“If I’m a car manufacturer and I want to get into the motorcycle business, I can’t go and build a motorcycle plant. There’s no supply of metal, there’s no supply equipment … everything has got a very long lead time, so if I really want to be in something, I have to go out and buy it.”
With Daviau letting us in on the tidbit that Canaccord has a robust pipeline for deals in other areas of the market to continue generating revenue (and sitting back to take a look at our end, with recent moves/acquisitions in the Powersports space proper), it appears that a few practical ways for a firm to continue forging ahead in a limited supply market are by venturing out on the following limbs: