Keep on Truckin’

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Apparently Walmart is all in on this with the recent announcement of an increase in pay for in-house truck drivers and an expansion of a program to train existing workers to become drivers.  Walmart will be offering some of its current employees an opportunity to participate in a 12-week course to become a certified truck driver and join the company’s internal fleet. Walmart has indicated that starting salaries for in-house drivers will range between $95-110,000 per year.

Walmart is not alone in building its internal trucking fleet.  Many other companies have expanded, and are continuing to expand, their ability to take over more of the supply chain tasks formerly handled by third party vendors.  Perhaps the most aggressive in this area is Amazon, which has not only been expanding its trucking and home delivery capabilities, but has also purchased and operates a fleet of cargo airplanes. 

Investors should consider the possible effects on companies focusing on logistics.  “If you want something done right, do-it-yourself,” may work for some but not for everyone.

All comments and suggestions are welcome.

Walter J. Kirchberger, CFA

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