Acquisition Trend Sweeps Moving Industry
In the moving and storage industry, if you’re not the hunter, you could become the hunted.
As with previous deals, Allied Worldwide hopes to improve the efficiency of its business by combining back-office functions, such as billing and training, and sharing information and financial resources among all of its van lines. By maintaining separate brand names and agent networks, company officials contend that competition in the market can be preserved.
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The merger last year of North American Van Lines and Allied Van Lines to create Allied Worldwide, and Allied Worldwide’s current bid for Global Van Lines, have refocused attention on consolidation and its potential impact on competition among household goods carriers.
While most industry analysts view the trend in a positive light, the latest transactions could force many smaller companies and independent van lines to re-evaluate their position in the market. One insider predicts that consolidation will accelerate, especially among local agents.
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