Executive Briefings

It's Good That Low-Cost Capital Fuels 3PL Acquisitions, C.H. Robinson CEO Says

C.H. Robinson CEO John Wiehoff says there's a pretty straightforward reason why there was so much acquisition activity in the third-party logistics and freight brokerage markets the last two years: the low cost of capital and an active investment community.

"There were new people in the industry deploying that capital to get scale, because being bigger has benefits," Wiehoff said.

He would know, since Wiehoff directs the largest freight brokerage in North America, and sizable divisions in freight forwarding and managed transportation services.
Wiehoff said investors backing everything from major multibillion-dollar acquisitions to logistics technology start-ups is good for his company and the industry for two reasons: it means capital is flowing into logistics and transportation, and it's pushing established companies to innovate.

"It's good for us as an industry that capital is coming in and that supply chain is being seen as important," he said.

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"There were new people in the industry deploying that capital to get scale, because being bigger has benefits," Wiehoff said.

He would know, since Wiehoff directs the largest freight brokerage in North America, and sizable divisions in freight forwarding and managed transportation services.
Wiehoff said investors backing everything from major multibillion-dollar acquisitions to logistics technology start-ups is good for his company and the industry for two reasons: it means capital is flowing into logistics and transportation, and it's pushing established companies to innovate.

"It's good for us as an industry that capital is coming in and that supply chain is being seen as important," he said.

Read Full Article