The Top 50 3PLs
July 02, 2012
European sovereign debt issues, a tepid U.S. recovery, and a hard landing in emerging markets—among a slew of factors—could provide macroeconomic shocks to the third party logistics (3PL) industry, say leading market analysts. Still, many catalysts are expected to drive merger and acquisition activity over the
rest of 2012.
According to PricewaterhouseCoopers (PwC), the transportation and logistics industry continues to be highly cyclical. “A continuing theme in the first half of this year has been infrastructure deals, particularly in emerging markets, that reached a historic high in the logistics sector,” says Ken Evans, U.S. transportation and logistics leader at PwC. In fact, in the first quarter of 2012, the proportion of deal volume involving infrastructure targets leapt to a 12-year high. This “secular trend” toward more infrastructure privatizations and transactions, adds Evans, also drove the relative increase in 3PL “deal value” and volume as a percent of the overall merger and acquisition market during the first quarter.
“Overall, logistics deal activity seems more likely to rise than fall given continued global economic expansion and the secular trend of rising infrastructure concessions,” says Evans.
 |
This complete article is available to subscribers
only. Click on Log In Now at the top of this article for full access. Or, Start your PLUS+ subscription for instant access. |
Not ready to subscribe, but need this article?
Buy the complete article now. Only $20.00. Instant PDF Download.
Access the complete issue of Supply Chain Management Review magazine featuring
this article including every word, chart and table exactly as it appeared in the magazine.
|
|
Download Article PDF |
European sovereign debt issues, a tepid U.S. recovery, and a hard landing in emerging markets—among a slew of factors—could provide macroeconomic shocks to the third party logistics (3PL) industry, say leading market analysts. Still, many catalysts are expected to drive merger and acquisition activity over the
rest of 2012.
According to PricewaterhouseCoopers (PwC), the transportation and logistics industry continues to be highly cyclical. “A continuing theme in the first half of this year has been infrastructure deals, particularly in emerging markets, that reached a historic high in the logistics sector,” says Ken Evans, U.S. transportation and logistics leader at PwC. In fact, in the first quarter of 2012, the proportion of deal volume involving infrastructure targets leapt to a 12-year high. This “secular trend” toward more infrastructure privatizations and transactions, adds Evans, also drove the relative increase in 3PL “deal value” and volume as a percent of the overall merger and acquisition market during the first quarter.
“Overall, logistics deal activity seems more likely to rise than fall given continued global economic expansion and the secular trend of rising infrastructure concessions,” says Evans.
|
|
SUBSCRIBERS: Click here to download PDF of the full article. |
About the Author
Executive Editor
Subscribe to Supply Chain Management Review magazine
Subscribe today. Don't miss out!
Get in-depth coverage from industry experts with proven techniques forcutting supply chain costs and case studies in supply chain best practices. Start Your Subscription Today!
Post a comment
Commenting is not available in this channel entry.