Clear Channel Outdoor Should Exit The Fabrication Business

Screen Shot 2016-03-09 at 12.58.02 PMDid you know that Clear Channel owns a steel fabrication company?  Here’s quote from the company’s 10k:

We typically own the physical structures on which our clients’ advertising copy is displayed. We build some of the structures at our billboard fabrication business in Illinois and erect them on sites we either lease or own or for which we have acquired permanent easements.

Companies which are in crisis jettison non-core businesses.  Insider thinks that Clear Channel should exit the billboard fabrication business.

Insider is skeptical of “synergies” from ancillary businesses.   Billboard companies are not better at manufacturing than the digital sign manufacturers.  Billboard companies are not better at fabricating than fabricators.  Billboard companies are not better at printing than printers.  These disparate business require intense focus to reach the highest efficiency and creativity.

Insider has heard rumors of Clear Channel outdoor managers who are upset at having to use an expensive in-house fabrication company when they can get cheaper, more responsive service using outside fabricators.

Lamar and Outfront don’t have the distraction of running a fabrication business.  Clear Channel should join them.


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Jag Inc Wisconsin and Link Media

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