“The reality is the trucking industry is short of drivers at the same time the demographic is changing the workforce and the economy is at full employment” – Murray Mullen, CEO, Mullen Group
The trucking/logistics segment is enjoying record revenue, but Alberta-based Mullen Group CEO Murray Mullen says finding truck drivers as baby boomers retire will be a challenge for the company and the industry.
“We are on the cusp of a tightening supply chain, driven by 10 years of easy money policy, creating millions of new jobs,” Mullen said. “We have a virtually full employment situation, the likes of which I have not seen in my career.”
“The reality is the trucking industry is short of drivers at the same time the demographic is changing the workforce and the economy is at full employment,” Mullen said. “My firm belief is we have entered into a new era of rising prices for trucking and logistics.”
But with the lack of drivers, growth will have to come through acquisition.
“Without drivers, you can’t expand your business,” Mullen said. “This is why we consider acquisitions key.”
Mullen also believes a recovery in the oil and gas industry is underway, but it’s a tough market now, with customers under extreme cost pressures. Mullen speculated many competitors in the oilfield services segment are selling equipment to pay debt or leave the business, so Mullen Group will be well positioned to take advantage of an improving market.
“When demand increases, and it will as commodity prices improve, there will be virtually no service companies that have the cash to grow,” Mullen said.
