Conway-Freight Bought Out By XPO Logistics

Not sure if this has been posted yet or not. XPO acquired Conway-Freight and Conway Truckload. Also included were some other companies.

XPO Logistics Acquires Conway

From the article:

"XPO intends to increase Con-way's annual operating profit by $170 million to $210 million over the next two years through synergies and operational improvements"

Translation: Some people in the offices are going to lose their jobs.

From the article:

All of the acquired operations - Con-way Freight, Menlo Logistics, Con-way Truckload and Con-way Multimodal - will be rebranded as XPO Logistics.

Bye bye forever Con-Way.......another "remember when" in the LTL market where they've been consolidating (dropping like flies) for two decades now.

Within 12 months of closing the acquisition, the company expects to realize cost synergies through the following actions:

• Improving purchasing and supplier management related to facility operations, equipment, fuel, professional services, maintenance, supplies and marketing;
• Leveraging its combined technology infrastructure to reduce Con-way's annual technology spend of $227 million, which is largely outsourced;
• Eliminating duplicative back office and public company costs; and
• Expanding its freight brokerage platform with the integration of Con-way's$200 million brokerage business, to share capacity and data through XPO's proprietary Freight Optimizer technology.

In the second year, the company expects additional profit improvements by:

• Reducing its $3.6 billion combined spend on purchased transportation;
• Using the larger flow of data from its combined $2.7 billion of freight under management to identify carriers, assign loads and fill backhauls more efficiently; and
• Utilizing its extensive intermodal network to improve LTL line-haul efficiency.

Now for those who wonder what the profit margins look like in trucking you'll see it here on this chart. This is the revenues, net income (profits), and profit margin for Con-Way. The giant blue towers are the revenues and the almost imperceptible red and orange lines running barely above zero are the net income (profits) and profit margin. And this is a company that has existed for 86 years. It's not like they're new to the game and trying to figure things out. So for those of you thinking about leasing or buying a truck because you're being told how much more money you'll make, remember this chart.

Frightening. I was considering Con-Way, as I see their trucks regularly where I live. Hopefully Prime will remain solvant and prosperous for a while.

Frightening. I was considering Con-Way, as I see their trucks regularly where I live. Hopefully Prime will remain solvant and prosperous for a while.

I don't think you have to be concerned about Prime remaining solvent. Clearly the owner Robert E Low wants to grow the company. I trained there in June 2015, Springfield Mo. In talking to the Training Director, Stan, he said they hired over 1800 people (I think 1893) in 2014. There were over 90 people in my class. I counted 80 computers and chairs, with people also sitting in the aisle.

That's a LOT of people in the class. How did they accommodate the students without seats/computers? I have read their instruction once in truck is one on one. Is this still true? Too big can be a bad thing sometimes.

That's a LOT of people in the class. How did they accommodate the students without seats/computers? I have read their instruction once in truck is one on one. Is this still true? Too big can be a bad thing sometimes.

This is orientation, the first 4 days at Prime. They divide the group up and people go to different rooms doing different things. There wasn't any problem with shortage of computers. We had the whole group in this room the first thing in the morning to take attendance and get other instructions.

Also the group becomes slimmed down. We would see people standing at the shuttle with their luggage, several times during the day, getting sent home for many different reasons.

Actually I was very impressed with how it was organized. Before I got to Prime, I had already passed the written test with endorsements. I passed and did everything the fIrst day- intervew, short lifting/physical test, DOT physical, drug test. I got the DOT medical card from Prime the second day and took shuttle to DMV and paid for and got my CDL permit. I'm not bragging. If a person is prepared, things can go real quick. And yes I'll put in a plug for Brett's High Road Training. I took it.

Yes the PSD- Prime student driver training is one-on-one.

Actually, it isn't entirely a done deal. The sale went through without permission from the board of directors and XPO offered below the stock price for the company which caused immediate legal action. It might still happen but apparently there's some litigation to be settled first.

Ah, gotcha. I'm definitely reading up on the training materials here. I've heard so much about how it helps people that it's silly not to avail oneself of the resources.

When you say you passed the written test with endorsements, was that at your local DMV?

Ah, gotcha. I'm definitely reading up on the training materials here. I've heard so much about how it helps people that it's silly not to avail oneself of the resources.

When you say you passed the written test with endorsements, was that at your local DMV?

Yes local DMV. I'm in Missouri.