The US division of Mainfreight believes there is strong growth prospects for the logistics provider despite the current economic downturn in the US and world economy.
The company bases its confidence as a growing force in logistics on a number of potent reasons including a solid base of operations in the US, a network of offices in Asia and the South Pacific, a skilled and experienced work force and perhaps of most significance, the financial sales, sales and marketing backing by its parent, Mainfreight, a billion dollar logistics firm headquartered in New Zealand and with worldwide operations.
Chris Coppersmith, President of Mainfreight’s US division, believes there are “pockets of opportunity for a strong, well financed logistics provider even in a recessionary climate.’ We intend to take full advantage of these opportunities,” stated Coppersmith.
The Mainfreight executive noted the economic recession, generally expected to last until at least the middle of 2009, “will force a number of poorly financed freight forwarders to merge, be acquired or go out of business.’ Not only will there be less competition, but the economic slowdown may well aid Mainfreight’s future plans for expansion.’ Mainfreight believes the current recession will enable the forwarder to consider acquisitions of freight forwarders who may be in financial difficulty but have solid sales and marketing histories.’ Mainfreight believes the most suitable candidates for acquisition would be in the $100-$200 million revenue range.
Internally, Mainfreight has in place a carefully planned program of growth for domestic and international shippers.’ These include a number of additional service options and further improvements in its already commanding position in hi-tech. The company expects to realize its goal in providing customers with a “one stop” logistics center as it expands a range of services that now includes a new customs brokerage service available in each of the company’s 38 domestic locations. The brokerage operation allows the processing of customer imports in one continuous, efficient flow from ship or aircraft to final destination.
Mainfreight, currently known primarily as an airfreight forwarder, also is moving aggressively into ocean transport.’ Aided by its parent in New Zealand who has a long history of expertise in ocean freight and is a major player in South Pacific-Asian trade, the Carson-based division’has developed sales strategies for ocean shipping. These strategies are expected to generate substantial volume in the years ahead.’ While ocean shipping now is in a depressed state, fully 95% of the $1 trillion international transportation market moves by ship. The company believes renewed growth in ocean shipping is inevitable as world economies improve. Mainfreight expects to share in that growth.
Looking to the future, Mainfreight believes the company has the people, the physical facilities and IT capabilities to make the company a growing force in the world of logistics and 3PL operations. Now a $200 million company, Mainfreight is confident it can’expand at a 15-20% annual rate when normal economic times return. The company’is confident it has the financial, sales and marketing muscle to make it an even more successful logistics provider in the years ahead.