Firm Consolidation Hits the Trucking Industry

Trucking Firm Consolidation

Don't we all wish we could have a crystal ball and look into the future? You could see what you'll be having for dinner tomorrow night, what the weekend will bring, who wins the World Series or The Super Bowl or even what road you'll be traveling over next year, or next decade, for that matter.

Well, you are not alone here, and some of the big-time players in the trucking industry wish they had a crystal ball too.

Looking Towards the Future

Although trucking deliveries are still high, new contracts for goods are beginning to wane. Many of the original deliveries of goods was due to inventory stockpiling on the West Coast, due to a labor dispute. Companies over-ordered, not sure that they would be able to continue to get goods on a timely basis. Even though sales and distribution remain solid, it will take a while for the inventory to be depleted.

Mergers and Acquisitions

One of the best ways in the trucking industry to keep shipments of goods running strong, and employees on the job, is to diversify within the industry. To that end, some of the big guns of the trucking business are merging with companies or acquiring others. For example, FedEx is purchasing Dutch Parcel, UPS has acquired freight broker Coyote Logistics and Celadon has picked up Tango Transport. Other companies like Daseke, Roadrunner and Maverick, among others, have also made acquisitions to bolster their future productivity.

The Reality

Since no one can actually see the future, planning ahead for what might be is always the best course. The reality is that right now, there is no downturn in the trucking industry, but mergers and acquisitions, are the best way to brace for what the future might bring.

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