Where is the Logistics Service Provider Industry Going? Logistics Today: The World Turned Upside Down Benjamin Gordon Managing Director BG Strategic Advisors, Inc. April 20, 2006
BG Strategic Advisors: Leading Mergers & Acquisitions Advisor to the Logistics Industry Representative Clients / Relationships
The World Turned Upside Down
1783: surrender of Lord Cornwallis at Yorktown, to the tune of “The World Turned Upside Down”
2006: same tune?
State of the Logistics Industry: The Year in Review Conventional Wisdom Surprising Reality
An era of asset-light giants like Menlo, K&N, and UPS…
And the first Class 1 Railroad startup in over 100 years!
In a market dominated by the West, a little-known logistics company from Kuwait…
Buys Trans-link, TransOceanic, and GeoLogistics to become an $8 billion powerhouse!
The ports of California get more crowded…
And Wal-Mart decides to build Houston into a port competitive with Long Beach!
Assets: an Albatross…
For the past decade, asset-light logistics firms have outpaced the market
Firms like Expeditors, UTi Worldwide, and CH Robinson have led the way, becoming multi-billion-dollar giants due to their ability to manage freight networks and take advantage of an abundance of capacity
… or an Advantage?
Assets are back in vogue
Class I Railroads saw share appreciation of 29%, outpacing non-asset logistics companies for the first time in three years!