PIA/GATF Summit Looks at Industry M&As

According to Davis, consolidating offers four advantages: economies of scale, access to advanced technology, financial stability and lower equipment costs.

Part of the economies of scale is negotiating insurance rates across a much larger base. Also, economies of scale allow a plant to concentrate on operations and sales for further growth and profitability. Management doesn't have to spend time and energy meeting with lawyers, bankers and accountants.