XPO Logistics named top performing US company on Forbes 2017 Global 2000 list
The Forbes Global 2000 list ranks public companies according...
XPO Logistics has been named the top performing US company on the Forbes 2017 Global 2000.
The Forbes Global 2000 list ranks public companies according to annual growth in four metrics: sales, profits, assets and market value.
Troy Cooper, Chief Operating Officer of XPO Logistics, said: “We’re honoured to be recognised by the Forbes Global 2000 as the U.S. leader among the world’s top brands.
“Our goal is to always be the best at what we do, and the growth follows. This ranking is a testament to the passion we have for continuously building value for our customers, employees and investors.”
In addition to the 2017 Global 2000 ranking, Forbes earlier named XPO one of America’s Best Employers for 2017.
XPO has made a number of eye-catching moves in the US logistics market in recent months.
In September, unveiled plans to nearly double its current last mile footprint to 85 service hubs by late 2018.
The expansion, which is currently underway, will position XPO’s last mile footprint within approximately 90% of the U.S. population, further reducing transit times.
In August, CEO Brad Jacobs confirmed that a “record level of revenue” for the second quarter has allowed the company has set $8bn aside for investment deals.
Profits increased 11% in the second quarter, as the logistics giant set records for net income and revenue. Sales were up 2% to $3.76bn, and adjusted net income rocketed by nearly half, to $75mn.
Jacobs said: “The most notable growth came in last mile and contract logistics, two of the fastest-growing parts of the supply chain, where we hold leading positions in e-commerce."
Elon Musk's Boring Co. planning wider tunnels for freight
Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports.
A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers.
Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US.
The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two.
Boring Co.'s new freight tunnels
The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.
The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete.
Tesla’s supply chain woes
Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue.
Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely.
Top Image credit: The Boring Company / @boringcompany