After a few years of “rest” XPO Logistics is again in acquisition mode. CEO Bradley Jacobs, speaking at a supply chain conference in Chicago, says the company is looking for potential takeover targets, including options in Europe.
The company has added more than a dozen businesses in the past few years, including its purchase of Con-way, which has since been rebranded XPO. XPO sold off Con-way’s truckload division to TransForce in Canada, which has since rebranded itself TFI.
According to reports, XPO is looking for businesses that will improve its existing businesses with a focus on contract logistics.
Did you know?
XPO Logistics has more than 89,000 employees in 1,431 locations across 34 countries and is the second largest provider of both freight brokerage and contract logistics services in the world.
Quotable:
“Will these locations become mini-fulfillment centers to help execute local deliveries of not only food but also other items? Will these locations become hubs for customer pickup, decreasing some traditional transportation last mile costs? Or will they simply remain as they are today? Which is very hard to believe.”
– Dave Beaird, a supply chain consultant, on Amazon’s plans for Whole Foods
In other news:
The new era of logistics
The logistics field is rapidly changing, and that change should accelerate due to the Internet of Things and automation, says a leading expert. (Inbound Logistics)
NAFTA suggestions roll in
According to a report, more than 12,000 comments have been submitted to U.S. Trade Representative Robert Lighthizer before a June 27 hearing on NAFTA modernization. The comments offer plenty of opinions on how to improve the pact. (Fleet Owner)
Cummins to produce all-electric powertrain
Engine maker Cummins said it will develop an all-electric powertrain by 2019 and a range-extended powertrain by 2020. (CCJ)
U.S. farm exports taking a hit
U.S. farm exports, particularly soybean, chicken and corn, are already feeling an impact of tensions between the U.S. and Mexico over trade, with exports dropping 15%, 11%, and 6% in 2017. (Wall Street Journal)
GM opening supply park in Texas
General Motors is looking to open a supplier park near its Arlington, TX, facility, to improve supply chain efficiency by having more parts made closer to plants. (Wall Street Journal)
Final Thoughts
With the Trump Administration’s tough talk on NAFTA and the quest for a better deal for America, there is some evidence that an impact is already being felt by the farming community, which is attributing a decrease in exports of some products in the first four months of 2017 to uncertainty around the trade deal. For some, it seems, negotiations can’t start soon enough.
Hammer down everyone!