The investments reflect a broader shift in specialty distribution as security, access control, networking and audiovisual systems become more integrated and technically complex.
UPS has completed its transition away from low-margin ecommerce volume and is now competing more aggressively for the freight many distributors ship.
Carrier executives say the improving freight mix reflects stronger manufacturing activity rather than a broad recovery across the economy.
The acquisition adds Southern Parts & Equipment’s customer relationships, product expertise, and sourcing capabilities to FreightCar America’s existing aftermarket business.
Trex also expanded regional distribution agreements with WS Building Materials across the Midwest, Coastal Forest Products in New England and BlueLinx across the South-Central region. Boise Cascade will no longer distribute Trex products.
For distributors, Amazon’s expansion represents more than another parcel delivery option. The company now offers freight transportation, inventory storage, warehousing, fulfillment and final-mile delivery through a single platform.
Together, the two facilities total approximately 1.63 million square feet, more than replacing the capacity lost in the June 11 fire while increasing Medline’s customer-facing distribution footprint in Northern California by 45%, according to the company.
Through May, on-time deliveries increased by more than 4% compared with the same period a year earlier, while average miles driven per delivery declined by nearly 5%.
The transaction continues a broader pattern of consolidation in specialty building products distribution as distributors expand into new geographic markets and add specialized product capabilities to support contractors
The acquisition is the latest example of consolidation in the automotive aftermarket distribution industry, as distributors expand regional footprints and add service capabilities to strengthen customer relationships and broaden their product offerings.