Transportation & Warehousing Industry

Q4 2023: Mergers and Acquisitions Trend Report

Industry Overview

• The industry includes players engaged in the transportation and support operations of passengers and cargo by air, water, water, pipeline, and road.
• As the sector involves the movement of goods and passengers in the US, its performance falls in line with the overarching United States economy. As such, the financial stability of the industry is heavily reliant on consumer spending and the health of domestic/global supply chains.
• Today, the transportation & warehousing industry is plagued by concerns regarding the Russia-Ukraine conflict.
• The industry, as a whole, is extremely regulated in the US due to concerns regarding security, safety, and environmental risk. These regulations are even stricter when considering transportation into or from international markets.

Key Industry Trends

• Industry profits are expected to be lower as energy prices increased significantly. Energy price volatility will continue to pose major uncertainty for investors.
• The increased likelihood of economic activity slowdown may push the industry to a subpar performance level.
• Particularly, the air transportation sub-sector will continue to subject to significant macro and geopolitical vulnerabilities as it has yet to recover to its pre-pandemic levels and the recent Russia-Ukraine war.

Recent M&A Transactions

Historical Performance

• Aggregate industry revenue grew at a CAGR of 1.9% from 2018–2023, fueled by consumer spending, notably in e-commerce, boosting transportation and warehousing demand.
• Expanding trade solidifies the role of transportation and warehousing.

Future Industry Growth

• Volatility induced by the conflict in Ukraine affects sector operations and revenue streams, alongside declining fuel prices due to increased global crude oil production from sanctions on Russian oil.
• Online sales growth fuels demand for courier, express delivery, and outsourced logistics service.
• The Transportation & Warehousing industry is expected to grow at a CAGR of 1.5% over the period from 2024 – 2029.