enroute
BY JAMES A. COOKE, EDITOR AT LARGE
PRIVATE FLEET MANAGEMENT
an expert hand at the wheel
After a string of acquisitions left it with
tion campaign, acquiring a st
DIVERSIFICATION MAY NOT BE FOR EVERYONE, BUT
for Gibraltar Industries, it proved to be a prescient move. In
the mid ’90s, management at the Buffalo, N.Y.-based metal
products maker decided the corporation had become overly
reliant on business from the U.S. automotive industry. Over
the next decade, Gibraltar pursued an aggressive diversifica-ring of smaller companies in order to expand into markets like
building and construction products, farm equipment, and hand tools.
In light of recent developments, Gibraltar’s decision to lessen its dependence on the auto
industry is looking more prudent by the day. But the strategy has also created some complications. For one thing, the spate of acquisitions resulted in a sharp rise in the number of private
fleets operated by Gibraltar companies. As the fleet tally rose, so did the associated challenges—including truck availability, trailer utilization, and empty return trips. Eventually, it
became clear that the corporation was going to need some outside help.
“Gibraltar had grown through acquiring building products companies, all of which had
multiple private fleets, Gibraltar Industries
decided to put a 3PL in the driver’s seat.
