By Lisa Henthorn, V.P., Corporate Communications

Fueled by a rash of mega-deals, merger and acquisition activity in the U.S. transportation and logistics industry exploded in the second quarter of 2015. Nine major M&A transactions with a combined value of $23.6 billion – including the headline-grabbing $1.8 billion UPS Coyote acquisition  – took place during the quarter, pushing the average deal value in the sector to $564 million, according to a recent study by PricewaterhouseCoopers.

Looking to expand across borders and leverage advanced economies, transportation and logistics companies are increasingly joining forces. Other key drivers of the increased M&A activity include:

  • Low fuel prices and the improving economy boosting the amount of freight that needs to be moved
  • The ongoing driver shortage, combined with decreasing shipping lanes, is driving a need for greater efficiency

The bottom line? Transportation and logistics is increasingly taking a bigger – and more mission-critical – seat in the board room.

To remain competitive in this new environment, companies must find new ways to not only boost efficiency and drive down costs, but also to communicate more effectively and increase visibility across their businesses. Collaborative and cloud-based software can play a key role in answering these demands – as Levi’s, Mango, Tata, and Heineken continue to demonstrate each day.

What’s this mean to you? Now’s a great time to get your house in order to better prepare for a cloud-based TMS and stay a step ahead of your competitors.

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