Top-down Trucker Consolidation Improves Canadian Economy

Manitoulin Transport has been making some power plays in a second acquisition of another trucking company within the past two months. This acquisition has led to the Transport company being one of the largest in the entirety of North America. Of course, Manitoulin Transport isn’t the only Canadian trucking and transport company that is buying up smaller companies; it seems to be a growing trend in the northern country. And it may be a trend that American companies might want to take hold of, if they plan to keep many truckers around.

The acquisition of smaller companies, allows Manitoulin transport to obtain shipping in multiple parts of Canada, while still keeping it local by having the company continue to operate as they previously did. This starts to make trucking entirely owned by one company, which can lead to problems, but it can also lead to many boons. There’s a reason Google has done so well over the years, by recognizing and buying out other companies that could do something well that Google hadn’t figured out yet, they could then integrate the smaller companies. Manitoulin Transport isn’t any different.

With all these Canadian buyouts occurring though, it can certainly be a bit cutthroat at the moment, as bidding wars occur with these small companies. Of course, these bidding wars are actually the perfect thing to help stimulate an economy, on top of all the businesses still coming out ahead when it comes to funds.

We’ve seen this before with companies like TransForce, which had soared in revenue by upwards of a billion, simply by acquiring smaller companies and connecting them together to create a larger business. The operation does seem to have merit, and best of all with all the buying and revenue increases it means more money being supplied from transport companies into the economy, which is something Americans have been concerned with, considering the economy can largely already be controlled by transport companies. This would at least give smaller trucking companies the chance to survive as part of a bigger company, which will lead to truckers staying around and our economy not dropping into a tank.

Only time will tell though if the Manitoulin Transport acquisitions will truly be worth it to both the Canadian economy and the company as a whole.

Source: http://www.joc.com/trucking-logistics/ltl-shipping/canadian-truckers-consolidate-economy-improves-trade-grows_20140909.html