{"id":1923,"date":"2016-04-06T16:11:10","date_gmt":"2016-04-06T16:11:10","guid":{"rendered":"https:\/\/cantruck.ca\/biz-consultants-ma-activity-set-for-take-off\/"},"modified":"2025-01-10T16:50:22","modified_gmt":"2025-01-10T16:50:22","slug":"biz-consultants-ma-activity-set-for-take-off","status":"publish","type":"post","link":"https:\/\/cantruck.ca\/fr\/biz-consultants-ma-activity-set-for-take-off\/","title":{"rendered":"Biz Consultants: M&#038;A Activity Set for Take Off"},"content":{"rendered":"<p>Mergers and acquisition deal making among global transportation and logistics companies is expected to soar past the $73 billion mark this year, according to consulting firm KPMG.<\/p>\n<p>That\u2019s up from about $67 billion posted for last year, and the fourth straight year of increased M&amp;A activity in this sector, according to <em>Fleet Owner<\/em>.<\/p>\n<p>\u201cWe expect investment activities in the transport and logistics sector to remain high driven by the search for growth; changes in demographics and supply chains; evolution of business models; and changes to the regulatory environment,\u201d noted James Stamp, head of transport in the U.K. for KPMG, in a statement.<\/p>\n<p>\u201cWith interest rates remaining low, returns on asset acquisitions remain attractive, he added.<\/p>\n<p>Andrew Tipping, a principle with Strategy&amp;, the strategy consulting business unit of PricewaterhouseCoopers (PwC), noted in research brief late last month that such \u201cdynamics\u201d are rooted primarily in the changing needs of commercial transportation and logistics customers, reports Fleet Owner.<\/p>\n<p>\u201cShippers\u2019 supply chains are becoming ever more complex, even in market segments where their needs have been relatively straightforward in the past,\u201d he said, pointing to five trends that are helping to fuel more M&amp;A activity in the transportation and logistics industry:<\/p>\n<ul>\n<li>The fracturing of supply chains, which increasingly feature a mix of offshore, nearshore, and onshore locations, and the expanding number of \u201cnodes\u201d in shipper distribution networks aimed at reducing delivery time to customers from days to hours.<\/li>\n<li>The rising recognition among shippers that transportation and logistics can yield a considerable competitive advantage for them. \u201cShipping is no longer a tactical decision influenced solely by cost, but rather a strategic consideration based on such factors as customer expectations, sales volume, and product mix,\u201d said Tipping.<\/li>\n<li>The expanded presence of high-margin shippers selling valuable and sensitive products, such as specialty pharmaceuticals and fragile electronic equipment, that require exceptional handling, security, reliability, and tracking procedures from their transportation companies.<\/li>\n<li>The frequency and magnitude of disruptive events \u2014 higher peaks in demand, \u201c100-year\u201d storms and other natural disasters, labor strikes, and geopolitical uncertainties \u2014 that are causing shippers to reevaluate their procurement tactics and the efficacy of their logistics networks.<\/li>\n<li>The double-digit growth of e-commerce and the in-roads that it is making in the business-to-business arena, where shipment complexity is higher and transparency and tracking requirements are greater.<\/li>\n<\/ul>\n<p>\u201c[Those] trends are creating new demand patterns for the commercial freight transportation and logistics industry,\u201d Tipping noted. \u201cShippers want logistics partners that can operate across their diverse supply chains and distribution networks and that are strategically inclined [and] particularly seek carriers that can accommodate spikes in volume and maintain a high level of performance during disruptions.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mergers and acquisition deal making among global transportation and logistics companies is expected to soar past the $73 billion mark this year, according to consulting firm KPMG. 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