Nasdaq announced today that Hyster yale are to buy bolzoni attachments. But is really such a good deal or will it add to the pressure on hyster Yale, in the short term it might look like a good deal but in the longer term this will hurt Hyster yale for a couple of reasons. The first it will add the Hyster Yale manufacturing cost base the second many companies now wont buy Bolzoni attachments because it will help increase Hyster yale turnover.
If you look at the worlds top two value companies Google and Apple they don't manufacture products they both design platforms. Apple designs the platform for the iPhone, iPad, iWatch but these are maunfactured by companies like Foxconn in Asia. Google designes plafoms Like the Android and chrome and the search engine with other products. these companies create value by concentrating on core products , when apple produce printers they nearly went bankrupt. Now they just basically design products that fit people life style.
So Hyster Yale increasing its cost base will hurt the company over time, Companies in this market will slowly find out that they can make better products and therefore stronger products by just concentrating on a small number of core products these will be assembled in smaller more local assembly lines not large high cost manufacturing plants like today's manufactures. They will be able to lower costs and be more flexible to customers needs.
Companies like this will be the Googles and Apples of our industry not the old style companies that will struggle with higher cost bases.
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