Packy McCormick

Packy McCormick explores the reasons behind the rise of vertical integrators across diverse industries like manufacturing, energy, aerospace, and housing. Drawing on theories from Joseph Schumpeter, Nikolai Kondratieff, and Carlota Perez, he argues that we may be entering a new Techno-Economic Paradigm driven by the integration of digital and physical technologies. As old systems crumble, vertical integrators are emerging to rebuild entire industries by combining cutting-edge technologies in novel ways. McCormick cites examples like Hadrian, Base Power Company, Anduril, and others, positioning vertical integration as a necessary strategy during periods of disruptive innovation when new products and business models must be developed from scratch. He suggests that large venture capital funds are well-suited to finance these capital-intensive ventures, potentially fueling the rise of vertically integrated companies reminiscent of past industrial revolutions.