News / AIT has eyes on Europe and Latin America for expansion

Washington’s trade policies have not dented the appetite for international expansion at AIT Worldwide Logistics.

With fresh financial backing, the Illinois-based forwarder – one of the top 30 in the US – is looking to Europe and Latin America to grow its global footprint, through a mix of acquisitions and organic growth.

Last week, management announced a partnership with Greenbriar Equity Group to support its growth plans. Financial details of the agreement, expected to be completed in Q4, were not disclosed.

“With Greenbriar’s support, AIT gains momentum to pursue new expansion in key global markets, including investments in talent and technology, while continuing to deliver customised supply chain solutions that meet and exceed the needs of our customers,” said AIT president and CEO Vaughn Moore.

“We see some really exciting merger and acquisition opportunities in Europe,” he said, adding that the region offered many opportunities for AIT’s clients. The company moved into Poland last year, with an office in Warsaw, and Ireland and markets in Eastern Europe look promising, he added.

AIT’s expansion strategy is a mix, he explained: “We generally grow organically first, then bring in M&A,” he said.

With 14 acquisitions, plus opening offices in other international markets, AIT has expanded aggressively over the past five years, boosting its gross revenues by over 300%. Much of the focus was on the Asian market, which had become a major focus about ten years ago.

Its presence there enabled AIT to help clients better handle the repercussions of Washington’s tariff gyrations, Mr Moore said. And it has continued to widen its footprint with moves in into India and Indonesia last year.

“We’re very comfortable with where we are, being represented in over 90% of the world’s GDP, and in the right spots for our clients. However, with the changing landscape, with tariffs and all the different aspects of trade negotiations and things that are happening and flowing differently every day, it’s important for us to be able to pivot; and it’s important for us to react to our clients’ needs,” he said.

In terms of communication with clients, the pandemic ushered in a profound change that has facilitated joint planning in the current uncertainty, he noted.

“Covid brought us into the boardroom and into the area of being a true consultant,” he said. “The tariffs, particularly recently, have brought us closer to our clients than ever,” he said, helping them with forecasting and planning, also in real time – as in the digestion of the US Supreme Court’s verdict on the US president’s tariffs.

“We are in those discussions with clients. We are right there at the table, where arguably ten years ago, logistics professionals just weren’t,” he concluded.

Naturally responses to the shifting tariff landscape have varied – to some extent a reflection how different verticals were affected and their ability to stomach the repercussions. Clients in segments with high margins are in a better position to absorb them than sectors that offer less leeway, said Mr Moore.

In some cases, AIT suggested they wait until the landscape became clearer. Mr Moore reckons more decisions will be needed in the near future, as the situation gets more stable, especially in the latter part of the year.

Being diversified has helped AIT steer the course, he explained. Besides the geographic spread, this refers to the company’s focus on three key verticals: technology (including sectors like the aerospace industry); life sciences; and specialised home deliveries involving white glove services. Mr Moore expects to see growth in all three segments, above all in the technology arena, which has grown beyond expectation, and looks set to drive much momentum.

AIT’s strategic expansion is guided by five-year planning horizons. According to Mr Moore, the tariff turmoil has not prompted any re-think of its positioning and trajectory, and he is not aware of losing any tradelanes or clients.

“We have to make sure we have a world view when we’re talking to our clients, not a US-centric view, because we need to be agnostic in the approach to make sure that we’re giving the best advice. I think a world view gives a perspective to our clients that dialogue with different countries and working with different lane segments is just a smart move on how you approach your logistics plan,” he said.

He stressed that, while tariffs had prompted some shifts in sourcing strategies and caused national governments to seek new trade pacts, the established markets – including China and USMCA – remain relevant, and important, and cannot be ignored.

Nor does the US administration’s stance on Latin America’s largest economy, Brazil, affect AIT’s approach to the region, which is an area where management is set to build up its position.

“We will be putting, I expect, a flag there in the next two or three years,” he said. “Brazil stands out. We see more and more business coming out of there.”