Vertical Integration in Business

 

Vertical Integration pic
Vertical Integration
Image: investopedia.com

As CEO of PBS SA Capital Group and President of Portland Marine Group, Alexander Christodoulakis oversees a varied portfolio of companies, with primary interests in the Transportation,shipping and energy industries. Alexander Christodoulakis utilizes a vertically integrated management system to provide financial growth and effective capital optimization within the business portfolios under the management of PBS SA Capital.

Vertical integration is a strategy used by corporations to streamline business and reduce costs. If a business has a product or service that requires several different steps, vertical integration posits that by bringing those steps “in house,” the need for outside vendors or services is eliminated, thereby increasing supply chain movement and reducing costs.

A manufacturing company that owns both supplier and distributor of its product is an example of vertical integration. For instance, if a company produces a device that requires a particular chip to make it work, by making the chip or parts for the chip within the same corporation, it will have greater control over production speed. Further, if the same company also creates a distribution center, not only does it increase supply chain speed, but it also reduces transportation expenses.

Tax Incentive Barriers in the Way of Green Energy Adoption

renewable energy
renewable energy

 

Alexander Christodoulakis guides PBS SA Capital Group and the Portland Marine Group of Companies. It manages a host of maritime and energy holding-investment companies. Focused on expansion strategies for businesses, he has helped effectively reposition major companies worldwide. Alexander Christodoulakis’ interests extend to the environment, and he was particularly interested in clean energy.

In the United States and elsewhere, a major constraint to the expansion of renewable energy capacities had to do with availability of tax equities that underpin large-scale projects. Given the right incentives to mitigate long-term risks, investors are more than willing to place capital in clean energy facilities.

Tax equity bolsters green capital through enabling projects to be repaid through tax credits and other forms of cost savings. U.S. renewable power does enjoy some government incentives in the form of the Production Tax Credit (which favors wind energy) and the Investment Tax Credit (which favors solar). Unfortunately, the system of front-loaded tax credit-based subsidies does not allow the plant operators and investors to fully utilize the credits during the early years of operation, when cash flow is tight and returns have not been realized.