New, larger companies are better prepared to successfully navigate upcoming legislation, meet changing demands and tackle logistical challenges quickly and efficiently.
However, these large-scale consolidations have some concerned about competition, jobs and customer service. An article recently published by Trucks.com explores these consolidations and mentions how XPO reduced jobs at Con-way after buying the company.
Daseke, Inc., which has grown to #1 in the flatbed, specialized and heavy haul category, was heavily involved in new partnerships over the last few years, and is offered as a counterpoint to these industry fears. Don Daseke, Chairman, President and CEO of Daseke, Inc., offered his unique insight on the matter of downsizing:
“What that does is it in effect destroys the culture of the companies,” said entrepreneur Don Daseke, who runs open-deck flatbed company Daseke Inc. “In the interest of ‘efficiency,’ accountability for each company goes away.”
So, how does Daseke keep up and continue to grow in a season where the rate of mergers and acquisitions has cooled off? By strategically targeting companies who are already profitable on their own, and celebrating and preserving the culture that makes them profitable. Focusing on smaller companies that are profitable allows Daseke to find success while the operating companies remain efficient and autonomous. The culture and structure remain intact, giving them the opportunity to operate even more successfully.
“We don’t follow the normal rules of how you consolidate,” Daseke said.
Read more about this in the original Trucks.com story, here.