XPO Logistics’ In-House Trailer Manufacturing Gives it a Competitive Edge
XPO Logistics Chairman and CEO Brad Jacobs recently highlighted that the company’s less-than-truckload (LTL) network covers 99% of North American ZIP codes, with trailers supplied from its own Searcy, Arkansas, plant. This private-label operation is unique in the industry, allowing XPO to quickly add trailers to its fleet—something most carriers struggle with. Unlike others, XPO does not source trailers from external manufacturers; instead, it refurbishes older units and builds new trailers in-house, giving the company greater control over costs, specifications, and lead times.
Mario Harik, acting president of the LTL division and chief strategy officer, revealed that this year the company aims to double last year’s production of over 4,300 units, with plans to increase output by another 50-100% in 2023 depending on raw material availability. Standardizing trailer specifications has helped streamline manufacturing and improve efficiency.
Since acquiring Con-way in 2015—whose trailers were still built in Searcy—XPO has maintained its in-house manufacturing model. Industry veteran Charles Willmott noted that, despite industry-wide trailer order volumes remaining strong, supply chain disruptions and staffing shortages continue to challenge trailer makers. Harik emphasized that XPO’s ability to forecast production a year in advance helps secure raw materials and mitigate delays.
This fall, XPO plans to review equipment, safety, and telematics upgrades at the Searcy plant, including exploring electrification and advanced trailer telematics. Notably, XPO is now holding onto its used trailers rather than selling them to third parties—despite high prices—aiming to better control its fleet amid ongoing production delays across the industry.
