Transportation & Logistics Industry Update
What We’re Reading
With the automotive aftermarket undergoing significant evolution and change, AAPEX 2018 featured the latest new products and innovations, advanced training by industry experts, and current and futuristic technology demonstrations to keep attendees ahead of the curve. AAPEX represents the $740 billion global automotive aftermarket industry and took place Oct. 30 – Nov. 1, at the Sands Expo in Las Vegas.
When auto parts retailers talk about their financial performance – past, present or future – the impact of weather patterns often enters the conversation. But as we look ahead to 2019, AutoZone Chairman and CEO Bill Rhodes isn’t totally comfortable playing the role of meteorologist. Rhodes, however, is happy to talk about falling gasoline prices and other current fundamentals that look “favorable” to the automotive aftermarket.
“As our economy enters the later stages of an extended growth cycle, we know when economic times get difficult, our customers turn to us more frequently out of economic necessity to help them stretch their resources,” Rhodes explained.
It may not be surprising that most U.S. vehicle owners want full access to and control of their vehicles' telematics data, including maintenance and repair information, according to the results of a survey sponsored by the Auto Care Association (ACA). The survey results, along with independent repair shops' determination to not lose market share, served as an impetus for the ACA's launch of the Secure Vehicle Interface (SVI) during the recent Automotive Aftermarket Products Expo (AAPEX) in Las Vegas. SVI is an internationally standardized technical design that provides for secure and standardized access to the In-Vehicle Networks (IVN) for access to operational, maintenance and driver behavioral data by the automotive aftermarket and vehicle owners.
Today, 3-D printing is speeding design and prototyping processes, creating unique tools for each production line, and making an increasing number of end-use parts for standard and customized vehicles, as well as on-demand spare parts manufacture. With millions of parts already 3-D printed and in use, the automotive industry is set to continue to pick up the pace of adoption. The road ahead is clear for more automotive 3-D printing as the technology is both competitive advantage and, increasingly, necessary for keeping up with the competition.
Public Markets Overview1
Stock Price Performance1
(Indexed to November 15th, 2017)
Recent M&A Transactions
Harris Williams is a leading advisor to the transportation and logistics M&A market. Our Transportation & Logistics Group serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marine and air transportation, transportation equipment, and the automotive and heavy duty vehicle market.
Recently Closed Automotive Aftermarket Deals
Deep Experience Across T&L Sectors
Automotive & Heavy Duty Vehicle
Rail & Rail Services
Airport and Aviation Services
The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.
Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: firstname.lastname@example.org). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. awaited). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.