Super specialisms

The news that American Superconductor Corporation (AMSC) has bought up a smaller Finnish rival might not at first glance warrant interest. But look again. As the deal is certainly worthy of note.

Why? For two key reasons. First, it marks a milestone in the evolution of key industry suppliers that have started to benefit from the market expansion and growth.

Second, because it is these specialist market suppliers that have demonstrated the benefits of sticking to an industry niche. It is precisely this laser focus that has won them the big contracts, enabled them to rapidly develop a strong market presence and has seen them move and react quickly to customer challenges and demands.

Within the international energy markets, these are all too often company characteristics that are significantly under valued and sometimes, not even recognised at all. However, to dismiss these super specialism’s would be to miss a trick. As we invariably enter an age of consolidation, let’s hope that the mergers and acquisitions don’t kill this off.