Mullen Group is increasingly likely to invest capital into the U.S. market if Canadian politicians don’t “get their act together” in response to the threat of U.S. tariffs, reports James Menzies of Trucknews.com.
Speaking to analysts on a Q4 earnings call on Feb. 13, chairman and senior executive officer Murray Mullen made no secret that he’s more bullish on the U.S. market than in Canada, reports TN.
“It really depends on Canada’s response to how it’s going to be competitive with the Americans,” Mullen told analysts. “If Canada doesn’t get its act together – the politicians and Canadians – we’re going to turn our attention to the U.S.”
So far, he doesn’t like what he sees. He noted that trucking businesses in the U.S. are excited about the growth opportunities they see under the Trump administration. “Up here, we’re on our heels a bit,” he said.
Mullen sees no economic growth for Canada this year. “If they’re going to win, we’ve got to follow the money,” Mullen said of the U.S., noting the Canadian dollar is “worth nothing.”
“If Canada is not a place to deploy capital, we’re not going to deploy it here,” he added, noting the company has pivoted in the past due to changing market dynamics, such as when it lessened its reliance on oil and gas. “I hope I don’t have to pivot away from Canada, but I have to do what’s best for our shareholders and if pivoting away is required for our shareholders, I’ll pivot.”
The U.S. trucking industry, Mullen reiterated, is flashing signs of improving demand and increased optimism. Mullen Group currently operates a 3PL business in the U.S.
While Mullen remains poised to make acquisitions on either side of the border, those will have to fit three criteria: the target must be a good fit with Mullen Group; the price must allow for an ROI; and there must be synergies available.
Mullen was coy about the type of acquisition he’d seek south of the border, but he indicated it wouldn’t be LTL. “We can’t get big enough,” he said of becoming an LTL player in the U.S. “We’re looking at other verticals where we think there’s opportunity. I can’t say more than that. We’re going to go where the capital goes.”
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