The Economy is Growing! The Economy is Stagnant! ...Which is it? Does Anyone Know?

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Everyday, conflicting reports are issued by the media, the White House, and the economic experts about our economy: it’s improving, it’s holding steady, it’s declining. Who knows what to believe. This article studies a specific company in the same day transportation industry, and how their service industry is adjusting to the real market conditions by helping their customers to consolidate vendors.

This move has been a dream of mine since 1983 when I started this company

American Expediting, a national courier and logistics company specializing in same-day delivery of time critical packages and freight, is experiencing growth in many regions across the country. With this expansion comes the need to hire new operations and sales staff, therefore bucking the unemployment trend. We’re told that the unemployment level is one barometer for gauging economic health. When the unemployment numbers go down, the economy is thought to be growing. But there is a flaw in this theory. Could it not be that unemployment remains high while the economy grows healthier?

The answer is yes. Years ago when this country began feeling the effects of the economy’s illness, companies everywhere learned how to operate more efficiently. Consider: what once took eight employees to accomplish now takes seven. Businesses discovered and pared their “fat;” they learned and utilized the endless available technological applications and they perfected the art of redistributing the workload.

In other words, companies, such as American Expediting Company, are now working smarter and, despite the economic gloom, it is paying off.

This transportation service provider has created a network of carriers and has positioned itself to offer the benefits of such a program to companies utilizing multiple carriers.

“This move has been a dream of mine since 1983 when I started this company,” says Victor Finnegan, President and CEO. “We are now able to provide same-day transportation solutions throughout the United States and into Canada through a highly skilled and professional group of employees and courier agents.”

Director of Marketing, Glenn Berger, says, “CFOs from companies across the country love the idea because they can consolidate their vendor relationships using a single source rather than 20 or 200 different vendors. This enables them greater control of their spending and provides uniform pricing resulting in significant savings on all fronts.”

Mark Sanner, Director of Operations, heads up the company’s National Call Center. He notes the investments recently made in people and technology helped streamline order-taking and the vendor management aspects of those transactions. “We like being able to pass the savings onto our customers and it’s great when they express amazement at being able to rely on us to handle all of their delivery requirements and still see savings on the bottom line.”

As the positive results of the program became tangible, American Expediting Company sought to maximize their existing locations by expanding their warehouses. In one month, three of their facilities expanded: the Pittsburgh, Cleveland and Orlando sites.

In Pittsburgh the office moved into a new location to make room for added parts storage and medical distribution customers. The new office location also accommodates the addition of a National Call Center staff, which operates on a 24/7/365 basis.

An increased demand for airport pick-ups and deliveries resulted in the company’s Cleveland facility to relocate to a site 25 percent larger than its previous space. In the same time period, (American Expediting’s) Orlando office more than doubled their existing warehouse space due to a greater demand for computer parts storage.

“These moves were the easy part of growing our business,” says Finnegan. “We have always believed in a slow and controlled growth process, growing from a one-facility operation initially to 34 locations currently.”

Additional company growth is evident in the mid-year opening of three new branches in Chicago, Hartford, and Clarksburg, West VA. These geographical markets have a built-in customer base that is already using the company’s services in other parts of the country.

This is a prime example of how to prosper under questionable economic times. Growing a business model that fits what the customer is looking to accomplish.....Consolidation. Whether you are in the courier industry or another service industry, this is the future. Teaching us the importance of staying ahead of the competition regardless of the publics perception of economic climate.

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Glenn Berger
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