FOR IMMEDIATE RELEASE

Big Deal – 2014 3PL Results and 2015 Estimates

WEST ALLIS, WI, June 11, 2015 – Big deals have dominated the 3PL Market. In January of 2014, FedEx purchased GENCO, a high quality, value-added warehousing and distribution (VAWD) third-party logistics provider, for $2 billion. In August, Norbert Dentressangle expanded to the U.S. by purchasing Jacobson Companies for $750 million in cash. Then, in the spring of 2015, Norbert Dentressangle sold itself to voracious acquirer XPO Logistics for $3.5 billion. Along with the U.S. and Europe, Asia has seen significant large deal volume making 2015 potentially the largest year for $100 million plus deals.

These acquisitions are reflective of a third-party logistics (3PL) sector that is now dominated by around 50 companies based in post-industrial countries. These third-party logistics providers have scale based on geographical coverage, IT and processes that create threshold levels which bar smaller rivals from overtaking them by organic growth alone.

In 2014, the Global 3PL Market expanded to $750.7 billion and the U.S. 3PL Market grew 7.4% to $157.2 billion. Two U.S. 3PL Market Segments experienced double digit growth. Both were domestic segments reflecting U.S. economic growth. Non-asset based domestic transportation management (DTM) gross revenues grew 15.4%, while net revenues grew 20.5%. Dedicated contract carriage (DCC) gross and net revenues both increased by 10.4%. DTM is the modern and sophisticated offspring of freight brokerage. DCC provides dedicated truck capacity in a market often dominated by tractor shortages which are driven by a lack of drivers. DCC is a primary protection mechanism for shippers when demand outpaces supply.

The complete report and other A&A market research can be found at: http://www.3plogistics.com/shopsite/index.html.

ABOUT ARMSTRONG & ASSOCIATES, INC.

Armstrong & Associates, Inc. is a supply chain management market research and consulting firm specializing in strategic planning, logistics outsourcing, competitive benchmarking, mergers and acquisitions, 3PL service/cost benchmarking, and supply chain systems evaluation and selection. Armstrong & Associates’ Who’s Who in Logistics Online Guide to Global Supply Chain Management provides Internet access to its continually updated 3PL database. Recent research papers include “Global and Regional Infrastructure, Logistics Costs, and Third-Party Logistics Market Trends,” “Trends in 3PL/Customer Relationships,” “3PL Brand Recognition, RFP Activity and Expected Profit Margins for 3PLs – 2013,” and “Mexico: Trucking, Railroads and Third-Party Logistics Market Report.”

For more information, please contact:

Richard Armstrong at +1-608-873-2110, or email Dick@3PLogistics.com.

Cheri Grabowski at +1-414-545-3838, or email Cheri@3PLogistics.com.

Source:

Armstrong & Associates, Inc.

10401 West Lincoln Avenue

Suite 207

West Allis, WI 53227 USA

Phone: +1-414-545-3838 Fax: +1-414-545-3906

Website: www.3PLogistics.com