WHY MULLEN GROUP’S SPENDING $100 MILLION THIS YEAR
Mullen Group recently announced its Board approved a $100-million capital budget it’ll use mostly to buy new equipment. About $25 million of that will go towards buying trucks and trailers for its trucking/logistics segment, Mullen announced. Murray Mullen, chairman and CEO, explained why Mullen’s investing so freely in the face of slow economic growth…
“We expect 2014 to be another good year for the Mullen Group, although growth will continue to be difficult to achieve given the current economic outlook as well as the near term prospects for the oil and gas sector in western Canada. However, looking to the future, growth opportunities are much brighter, which is the reasoning behind the board approving our request for a $100-million capital budget in 2014. Quite simply, we want to be prepared,” Murray Mullen said.
“While 2% annual GDP economic growth is not in itself significant, we believe that there is a compounding affect to this growth that should ultimately benefit our trucking/logistics segment. There is also another important reason to continue investing in our 26 business units. Providing our employees with the newest equipment ensures that they have access to best-in-class assets and a quality work environment – prerequisites to retaining, as well as attracting, a productive workforce in this market. Our investment of $100 million in 2014 will ensure that our business units are well positioned for the future.”
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