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Author Topic: You Can't Have a Company With 60 Names.  (Read 2443 times)

Rob Archer

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You Can't Have a Company With 60 Names.
« on: December 27, 2011, 01:22:49 PM »
I found this on the Financial Post website. It explains to me why the company list keeps changing and shrinking.
Montrealís TransForce Inc. has been on a buying spree as it looks to diversify its business away from traditional trucking into higher-margin work. A lot of that growth has been centred on the package and courier business with five subsidiary companies now operating under the TransForce umbrella: Canpar, ICS Courier, ATS Retail Solutions, Texas-based Dynamex and, most-recently, the Canadian operations of DHL, which were picked up this spring and will operate under the Loomis brand. But while TransForce is now the second-largest player in the Canadian package and courier business, behind only Purolator, it is still flying under the radar of most because of its large and disparate group of brands. At the same time, TransForce says it will continue to grow and is actively looking at more acquisitions south of the border, and through other services, like waste management. Alain Bťdard, TransForce chief executive, spoke to the Financial Postís Scott Deveau about the risks and the rewards of eventually bringing all of these different brands and services under a single name.
Q Youíve made several acquisitions in the package and courier business in recent years. What do these different services bring you?

A ATS and ICS are both what we would call ďniche players.Ē ICSís niche is financial, optical, dental, hearing aids, whereas ATS is entertainment and retail. Big players, like Bell. Those are niche. Canpar is general. But it is the next-day guy; itís not expedited. We bought Dynamex because it brings us a new product: the same day.

Dynamex has been built in Canada as the same-day product. Boom. We have another product. And then comes around Loomis. So, what do we have today? In that sector we have over $1.3-billion in revenue once we take over Loomis. We have the sameday product. We have the next-day product, plus we have two niche players, ATS and ICS. Now with Loomis, I have an expedited product and a connection to the world through DHL.

Now we are a significant player in Canada in that sector. Right about the same size as Purolator. Now, for us to grow in that sector it has to be in the U.S. In the U.S. there is a lot of potential with Dynamex.

Q: At the same time, you have your Q At traditional trucking services, and specialty services, like waste management. Are there any plans to consolidate the brands?

A Weíre not FedEx or UPS. But, down the road, if you look at the number of brands that we have today versus what we had two years ago, a lot of brands have disappeared. We keep on working on it all the time. This industry is very sensitive to culture and name. I just merged, late in the fourth quarter, three of my business units in the [traditional trucking segment].

If you look at the numbers in my first quarter of this year, Iíve lost $7million, or 6% of my revenue, because if theyíre used to dealing with you, and itís not A anymore, itís B, theyíre confused. You have to be very careful. UPS bought Overnite in the U.S. and they turned Overnite just like that into UPS. They are still losing sales.

Q Is brand consolidation something that youíll contemplate later on?

A Yes, later on, and donít forget, what name am I going to use? Today, if you say TransForce, people are starting to recognize it. Three years ago, TransForce was a big name, but today it is an even bigger name. So, if you want to consolidate, you consolidate to what?

Q Is it TransForce that you want to consolidate under?

A Thatís it. Weíre not ready yet. But, for sure, when we had the discussion with DHL, those guys are pros at marketing, we had the discussion on whether we should call it Canpar Express, or Loomis. We said weíre going with Loomis because DHL came to Canada through the acquisition of Loomis in 2001. A lot of people are still attached to the Loomis name. Loomis is expedited, Canpar is not.

You have customers who say, ďI donít want to go with Canpar, because these guys are not express.Ē You say, ďNo, no. Itís Canpar Express.Ē But you have to be sure you donít mess with the revenue.

Q How long until you can consolidate these brands?

A I donít know. Itís something we have in the back of our mind, because you canít have a company with 60 names.

 

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You Can't Have a Company With 60 Names.
« on: December 27, 2011, 01:22:49 PM »

barraclou

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Re: You Can't Have a Company With 60 Names.
« Reply #1 on: December 28, 2011, 10:31:55 PM »
In plain English, take your pictures before many of their names go away.

G. Laplante

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Re: You Can't Have a Company With 60 Names.
« Reply #2 on: December 30, 2011, 07:10:01 PM »
Many carriers that were bought by Transforce were among my favorites to photography.  For most of them, I lost much interest after the take over. But it is always sad to see a carrier that have been in business for 65-70 years like Thibodeau  to disappear . I have heard that many clients will not follow and are looking for new carriers. It give the chance to others carriers to grow and  to new one  to start a business.

IowaSuperTrucker

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Re: You Can't Have a Company With 60 Names.
« Reply #3 on: January 30, 2012, 07:14:59 PM »
Many carriers that were bought by Transforce were among my favorites to photography.  For most of them, I lost much interest after the take over. But it is always sad to see a carrier that have been in business for 65-70 years like Thibodeau  to disappear . I have heard that many clients will not follow and are looking for new carriers. It give the chance to others carriers to grow and  to new one  to start a business.

I agree....it's like all the greats are "gone"...they might as well be, they all look the same.

Papineau
McGill-Air
Transport SAS
Besner
Transport Couture
Transport Gregorie

Seems like it was just yesteday.

Hank's Truck Forum

Re: You Can't Have a Company With 60 Names.
« Reply #3 on: January 30, 2012, 07:14:59 PM »

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