Playing it Prudently

This slowdown could easily shift back into high gear, however. If narrowing profit margins persist well into the coming year, maintains Clark, small- to medium-sized companies who have had enough of dealing with the squeeze may get a good deal in a buy-out by a larger player.

Just 40 percent of FPA converter members currently plan to pursue expansion via a merger, new plant, or existing plant upgrade in 2001—a historical low. Of these, 50 percent intend to explore a domestic merger strategy, and 70 percent expect to build or upgrade a domestic plant.