Autac Inc

Private Equity Didn't Raise My Prices. They May Have Decided I Can't Buy the Product at All.

Most people assume businesses compete by offering better products, better service, or lower prices.

But what if a company couldn't even buy the raw materials it needed to compete?

That's a situation many small manufacturers are beginning to face.

Recently, my company attempted to purchase a copper product used in our manufacturing process. We weren't asking for special pricing. We weren't asking for special treatment. We simply wanted the opportunity to buy the material.

The response was surprising.

The supplier explained that they were not interested in serving businesses of our size and would instead focus on larger customers.

Think about that for a moment.

Imagine walking into a grocery store and being told you can't buy bread because the store would rather sell to larger families. Not because the bread is unavailable. Not because you can't afford it. Simply because you're considered too small to matter.

That's essentially what happened.

My company has been manufacturing in Connecticut for nearly 80 years. We employ American workers. We pay American taxes. We buy American-made materials whenever possible. Yet we were effectively told that our business was too small to participate.

This is where private equity enters the conversation.

Over the past two decades, private equity firms have acquired companies throughout countless supply chains. In many cases, those acquisitions have improved operations and helped businesses grow.

But consolidation also creates power.

When fewer companies control more of the market, they gain the ability to decide who gets access to products, who receives favorable treatment, and who doesn't.

For large corporations, that may not be a problem.

For small manufacturers, it can be devastating.

Small businesses are often told to innovate, invest, hire workers, and compete. Yet how can a company compete if it is denied access to the very materials required to make its products?

This isn't just a manufacturing issue.

It's a competition issue.

It's a small-business issue.

And ultimately, it's a consumer issue.

When fewer companies have access to materials, fewer companies can compete. When fewer companies compete, customers have fewer choices. Innovation slows. Prices rise. The market becomes less resilient.

I am not suggesting every supplier should be forced to sell to every customer. Businesses have the right to choose who they work with.

However, when entire segments of the market begin shutting out smaller competitors, we should all be paying attention.

Because the greatest threat to competition isn't always a company that beats its competitors.

Sometimes it's a company that decides who gets to compete in the first place.

Friday Fun Day!!! We had AI create an "unhinged bio" of our CEO. It's funny because it's true!!!!
“CEO of replying in my head but never in real life.”
“Emotionally available from 9:12–9:14 PM EST.”
“Built like a final warning email.”
“Professionally composed. Spiritually one inconvenience away from arson.”
“Former gifted child. Current liability.”
“Runs on caffeine, resentment, and forwarded emails marked ‘per my last message.’”
“Too corporate for therapy. Too unstable for management.”
“Probably typing an email that starts with ‘Just to clarify…’”
“Hot girl with a manufacturing lead time.”
“Smells like burned coffee and operational excellence.”
“Making lemons out of lemonade while the customer insists the lemons are out of spec.”
“Not arguing. Providing supporting documentation.”
“Human equivalent of ‘see attached.’”
“UL compliant but emotionally ungrounded.”
“Lean manufacturing. Heavy emotional damage.”
“Can and will escalate this internally.”
“Please advise. Respectfully.”
“Powered by spite and Outlook.”
“Customer-facing personality installed successfully.”
“Somewhere between ‘warm regards’ and a federal investigation.”