2024 Event Recap

• China has experienced significant growth in the global economy, impacting trade dynamics. 

• Supply chains need to focus on controlling risks, with key concerns being geopolitical tensions and government interventions (i.e. trade laws, forced labor protections). 

• Nearshoring is effective in Asia and increasingly adopted in the US with investments in Mexico, but less effective in Europe. 

• Future international trade will emphasize food over manufactured goods, with an increased focus on sustainability and risk management in shipping.

China and Trade Relationships: Companies are exploring alternatives to China, with nearshoring in Asia growing; Mexico is emerging as a viable option, though the transition is slow, and China’s manufacturing dominance remains strong. 

Section 321 and Trade Walls: Section 321 is expected to remain in place with anticipated compliance changes, influenced by shifts in administration and market demand. 

Mexico and Trade Agreements: Mexico is a viable option despite border complexities and political factors; support for Mexico is strong, though infrastructure development is needed. 

COVID-19 and Vertical Integration: The pandemic has led to streamlining logistics to manage costs and adjustments in the market; larger companies will continue to impact the industry. 

Consolidation and Trade Impact: Smaller companies face challenges due to consolidation; creativity and consultation are key, and government interference can disrupt free trade. 

Future of Logistics M&A: The logistics M&A market is expected to be active in 2025, with a focus on geographic and expertise expansion; private equity involvement is growing, emphasizing non-asset-based businesses. 

Pandemic Impact on Valuation: Valuation methods remain largely unchanged, focusing on long-term performance; recent performance drives higher multiples due to scale and innovation.