A decade ago, the transport, handling, and tracking of goods was a no-go segment for private equity – too closely tied to the vagaries of the economic cycle, too exposed to fuel and labor supply pressures, and too often dependent upon public policy constraints to meet suitable return and growth targets.
What a difference a new century makes! The industry has undergone dramatic structural change, given rise to new business models, and produced some stellar returns for the private equity players that were early to spot this dynamic shift. This transformation continues, as the forces that initiated this evolution continue unabated:
- An explosion in international trade leading to supply chains that stretch around the globe;
- The burgeoning demand of billions of middle-class consumers among the developing countries;
- Heightened security concerns, leading to new requirements in information handling and management;
- The rise of specialists, as more manufacturers either outsource these non-core activities completely, or seek to track and manage inventory throughout their supply chain. The warehouse no longer stops at the edge of the property;
- The awareness of government that this sector can provide not only jobs and long-term investment, but provides the basic industrial infrastructure on which a much broader, multi-industry economy can be built.
Florida is at the center of this evolution: 3 international airports, 14 deep water ports, year-round road reliability, the major gateway to Latin and South America, and the first stop on the East Coast for any Asian supply chain. Add to these geographic and infrastructure advantages an economic development climate that is actively promoting these vibrant new developments. Include a university system that is developing the focused workforce with the requisite skills to drive the continued growth of this industry. Finally, add in the $200 billion of investing capital that will be present at the show, all looking for an opportunity and a management team that can seize the day - and you’ll see why this is a day you won’t want to miss.
Currently Scheduled Presentations*:
Key Factors of a Tailored Supply Chain
An overview of the Supply Chain and it's role in an integrated logistics program designed to create and sustain competitive advantage. From managing logistics for the Gulf War to the worldwide operations of Sears, 3 Star General Gus Pagonis (retired) will discuss best practices to manage, structure, outsource, integrate, and digitize the flow of goods. A firsthand look at successfully managing the processes, people and information needed for large, complex global supply relationships.
In Concert or In Conflict?...... Financing a Global Supply Chain to INCREASE Corporate Equity Value
While global sourcing has decreased the cost of production, it has lengthened the supply chain and increased its complexity. As supply chains have elongated, it has created new risks as well as opportunities that effect corporate valuation. By using a 3rd party supply chain provider a company may be able to leverage the transportation and logistics network of that 3rd party, focus on its core competencies, improve sales, increase the velocity of inventory moving through the supply chain, and either reduce operating costs or increase operating leverage. This panel will cover supply chain trends, opportunities, and methods to mitigate risks through integrating the physical and financial supply chains.
The New Map of the World: Logistics Redraws the Lines
Company investment, acquisition, and relocation decisions are being driven by logistics as a strategic advantage. Port cities are gaining new importance on the world stage, and port operators are scrambling to add tenants and the ancillary economic development they bring. This places new emphasis on supporting infrastructure needs and the massive capital requirements needed to undertake them. Company site selection moves beyond short-term financial incentives to the longer-term strategic issues of maritime transport, rail access, and container throughput - and the trained and flexible workforce required to give a supply chain scalability and reliability.
Now Delivered by RAIL: Cash Flow and Competitiveness
For the first time in decades, the rail industry is covering their cost of capital and generating excess cash. Dramatic internal changes and exogenous shocks have transformed the railroad industry over the past decade and generated tremendous shareholder value. They are fiercely competitive with other modes of transport, and producers are turning back to rail after examining the cost/efficiency versus speed/flexibility tradeoffs. And the booming demand brings with it a continuing need for capital - as the existing rail network has to figure out how to squeeze more capacity out of last century's footprint.
Warehouses, 3PLs, and the New Supply Chain: Cost Center or Profit Center?
Warehousing has evolved from a money pit to a competitive advantage. Truckers have moved backwards in the supply chain to provide better value, producers have moved forwards to better control distribution, and warehousemen in the middle have added inventory management, packaging, and light fabrication to protect their turf. Specialists have evolved - and dissolved. A discussion of when the warehouse function can be a moneymaker - or a cost that is best outsourced to others.
Strong Currents: Why Capital is Flowing to Logistics
As cargo flows, so flows capital. As the dynamic changes in international trade and the flow of goods have reshaped the logistics and transportation industries, the financial community has snapped to attention. Rewards - and risks - have increased dramatically, and public and private money is taking notice and looking for the best operators with the best opportunities. A discussion of what factors are attracting capital, and driving company value, from the small opportunities to the big deals, and from the top of the balance sheet to the bottom.
* PROGRAMS SUBJECT TO CHANGE OR SUBSITITUION |
