Being a vertically integrated company provides a number of advantages for the manufacturing company itself, as well as servicing the product throughout its lifecycle. Notable manufacturers and brands such as Amazon, Apple, Tesla, and NVidia have placed vertical integration at the center of their operating and manufacturing strategies (1). BYD Material Handling is no different. Because BYD manufacture the battery cells, battery management system, complete battery assembly, the forklift that uses this battery, and the charger that recharges it, they reach a level of efficiency not previously seen in the Material Handling Industry.
Portland – based Allied Market Research agrees that Vertical Integration is allowing BYD to offer these benefits, to you, the customer, and in a sustainable way, “vertical integration is giving BYD long-term staying power while smaller rivals that aren’t yet vertically integrated will be driven out,” (2)
“That list also includes semiconductors—BYD’s chipmaking arm, BYD Semiconductor, specializes in making the chips used in EVs, which has allowed the firm to get around shortages that disrupted sales of other EV makers. In a global EV market projected to reach $824 billion by 2030 (at a CAGR of 18%), according to Portland-based Allied Market Research, “vertical integration is giving BYD long-term staying power while smaller rivals that aren’t yet vertically integrated will be driven out,” says Bill Russo, CEO of investment advisory firm Automobility in Shanghai.
Vertical Integration is another buzzword that permeates the business landscape, but, this practice provides tangible benefits to you, the Material Handling Equipment user. One manufacturer being able to provide the truck, battery, and charger, all managed from component creation through final build with one call to make for regular maintenance and any other service required is a recipe for success in an industry where uptime matters most.
(1) Into the Minds – The Return of Vertical Integration
Quote: Since 2021, vertical integration has been at the center of the strategies of companies like Amazon, Apple, Ferrero, Tesla, and NVidia. In this article, we explain why big companies are changing their approach.
(2) Forbes Magazine – Plugged In: BYD’s Wang Chuanfu Explains How China’s No. 1 EV Maker Caught Up With Tesla