"In recent years, we have made significant investments throughout Europe, greatly expanding our network coverage and improving service to customers".
FedEx business expansion in Europe is certainly a thumb up. Despite Europe's ongoing economic crisis. Investment of this nature is highly required to kick start the economy. Brilliant!
Considering the recent acquisitions esp in the logistics sector by the US companies, the news might also give a kick to the share prices of the European logistics companies. With a speculation, esp when backed by a reputable investment bank like Morgan Stanley, that US companies are performing feasibility analysis on European logistics providers, investors would love to invest in those shares esp the ones who are looking for short term gains. Whatever may be the benefits accruing to the individual shareholders, these speculations and acquisitions are likely to give a helping hand to the European economy which is good for the Euro society as a whole.
You're absolutely correct WaqasAltaf. The shareholders will benefit so will the European stagnated economy. At least it'll help to reduce the high unemployment rate in Europe.
With money getting in the European capital markets through acquisitions, the European corporations may well get their liquidity problems solved. This in turn might stabilize the debt crisis in Europe as debt repayment schedules will be met and therefore financial institutions will be able to offer funds to the corporations looking to expand.
Also investment in the logistics sector is an indication of confidence by investors in the European manufacturing and service corporations who are definitely the prime customers of logistics providers. If these corporations expand, so will the logistics corporations. All these developments will also mean that the investors are seeing a potential of growth in the already mature markets of Europe.
WaqasAltaf - Agree acquisitions like this could stimulate some economic recovery for the region, but many other issues need to be addressed before the debt crisis is under control. Guess we'll see what comes out of the European Central Bank summit next week in Barcelona.
Unfortunately Europe's loss is other nations' gain. It doesn't look like these acquisitions were heavily discounted, but you have to think that companies are worried about their shareholders and will sell now rather than later.
Barbara - good question.. this is just a guess, but I think many companies here are still worried about effect a prolonged recession could have on balance sheets for the next four to eight quarters. Many parts of Europe are still struggling considerably, and that weighs down the whole continent.
These trends could indicate rosy prospects for the logistics business in Europe or simply be the normal consolidation that goes on during tough times where bigger fish eat smaller fish. I believe Europe is in for tough times for several years to come so I reckon it is consolidation in a tough market.
This is definitely a case of some countries or regions woes benefiting others. With FedEx and UPS continuing to build on their shipping empires, we should hope that it strengthens overall global logisitcs.
Not only will it strengthen global logistics but will probably encourage more fierce competition amongst the two logistics giants. Strong competition may also lead to price cuts for the customers.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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