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Companies going more "vertical"

Companies are starting to shift to becoming more vertically integrated — a function in which a company controls materials, manufacturing and distribution. That’s a departure from previous thinking when companies were becoming more specialized and shifting functions such as manufacturing to others, according to the Wall Street Journal.

Boeing, for example, bought a Vought Aircraft Industries factory so it could have more control over 787 manufacturing. Boeing has been plagued by supply and assembly problems, which has led to a two-year delay in the Dreamliner. (Boeing officials, however, say it’s still committed to outsourcing.) And PepsiCo. is planning to repurchase bottlers it spun off a decade ago, the article said.

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