Strong Growth for Express-1

Expediters Online.com

Carrier Profiles
Strong Growth for Express-1
By Jeff Jensen, Editor
Feb 1, 2007 - 11:02:00 AM

Express-1 of Buchanan, Michigan just keeps on growing. Founded in 1989 by CEO Mike Welch, the carrier, which began as a local two-cargo van operation has grown into a publicly-traded company with nationwide coverage. Now is an appropriate time to catch up with the company's growth and new programs.

Says CEO Welch, "Our revenue projections are public knowledge and we're shooting for 40-42 million dollars in revenue this year (2006). I can't point to a single spectacular year, but it's been a rather steady, consistent growth over a number of years."

The company continues that growth and recently added another 3,500 square feet to it's corporate headquarters area with the opening of its new training facility that incorporates a drivers' lounge.

"The move turned out quite nicely," says Jeff Curry, Express-1's Vice President of Corporate Development.

The building, a former recording studio, is located next to the Express-1 headquarters building. "We had no plans for another building but the owner offered us a great deal, so we took him up on it. It resulted in a much larger training/orientation area for our two-day orientations."

In the middle of the building is a drivers' lounge with wireless access, flat panel TV, men and women's showers. The Express-1 recruiting group will work out of the front of the building. Remodeling of the structure took around 3 months and provides the company with a new parking lot to accommodate trucks.

"The old facility worked well but we outgrew it," says Curry.

Higher education
It was big news indeed when Express-1 announced that it would be the first company in the nation to offer tuition reimbursement and scholarships for courses in an accredited college program that truckers can take in the comfort of their cabs anywhere in the United States and Canada as a way to attract and retain drivers.

Express-1's contractors can earn two-year college associate degrees and certificates issued through Chattanooga State Technical Community College in Chattanooga, Tenn. by taking courses as varied as homeland security and criminal justice to small business management with emphasis on the transportation industry.

Chattanooga State and TransMarkets Technologies LLC, a Chattanooga-based trucking software and systems provider, developed the InCab University program as a response to truck drivers who wanted to further their education during idle time waiting at unloading docks, maintenance facilities and truck stops.

"Express-1 is the first company in the nation to offer scholarships and tuition reimbursement through the InCab University, which is the first and only accredited college education program for truck drivers," Express-1's Vice President of Corporate Development Jeff Curry said. "We are offering this benefit because we want to support our drivers as they progress in their careers in the transportation industry."

Curry said Express-1 has learned that it makes good business sense to offer benefits that cater to the trucking lifestyle, where long-haul driversâ€™ deal with constantly changing schedules and time away from home. Along with the InCab University program,

Express-1 has attracted new drivers by offering mileage bonuses, paying settlements weekly and providing convenient cash advances on the road.

Drivers who are in good standing with Express-1 for more than 90 days will be reimbursed 75 percent of their tuition if they complete their courses within the required 16 weeks and earn passing grades, Curry said. Express-1 also is offering two scholarships that pay 100 percent of the drivers first class.

Drivers can access courses through a laptop computer and start their courses at any time, but they must complete the study work within the 16-week period to receive credit and reimbursement.

Before they are allowed to teach at InCab University, professors must go through an orientation program to explain the challenges of the truck driving lifestyle.

Curry adds, "In-cab University has its first driver who just recently signed up. He will be receiving a full scholarship."

Communications
Curry addresses another new Express-1 initiative: "Our driver conference call program has been very well received. We hold these on a quarterly basis along with our quarterly financial conference calls that are held - these are a part of being a publicly-traded company."

He continues, "We cover current issues and financial results from the previous quarter among other topics. The calls are about thirty minutes long with questions emailed in from our contractors."

"We used to have driver meetings here at the headquarters on Saturdays but it was difficult for the contractors to make it to Buchanan so we began the conference calls. As a result, it more than doubled the participation in the program and we just completed our first full year of the calls."

"We do monitor every week - loaded miles per unit, loads per unit, and other data to ensure that we are not growing indiscrimately."

Incorporating technology
"Operations now has a large plasma screen "scoreboard" that the department uses to monitor on a minute-by-minute basis the runs that are booked," says Curry. "We shoot for a target number of runs per day that relates back to the goal of at least four runs per truck per week to keep our contractors profitable. We now have instantaneous real-time data retrieval by operations personnel."

CEO Mike Welch says, "We're goal oriented in that we try very hard to keep the drivers' wheels moving. The tote board has been very successful in raising the awareness of those in operations about how important it is to try and move the driver and the truck every day."

Enhanced insurance benefits
Since 2004, Express-1 has offered health nsurance packages to its contractors through a national medical provider network and Blue Cross Blue Shield(for Michigan residents only). The insurance provider has recently announced that its Managed Limited Benefit Plan has been enhanced for the 2007 benefit year.

By partnering with a new insurance carrier, the provider is able to offer new benefits at a small increase.

The enhanced benefits include:

Emergency room/sickness visits
Substance abuse
Skilled nursing
Mental health
Hospital confinement enhancement
Full insured co-op pay drug card

A truck-buying opportunity
Buying that first truck can be a difficult financial commitment for prospective expedited contractors. Curry says that Express-1's new program has helped a number of new owner-operators begin their careers with good equipment:

"Our Lease/Purchase program is off to a great start. The drivers who have opted for this program have been doing very well. They are now driving brand new trucks that are well-spec'd for this business and it gives the new owners a chance to own where before, they might not have had the opportunity. And, a lesser amount of money is required to participate."

"The dealership that is key to this program has thirteen locations situated throughout the midwest and the southeast, so this makes service very convenient to the truck owner. They provide the truck and the maintenance program."

Curry adds, "The trucks have been spec'd for business and comfort by Express-1 and the dealership with automatic transmissions, powered landing gear, etc. We've drawn upon our years of experience in the business to provide the contractor with a properly set-up expedited truck."

"This program offers a real turnkey operation."

Year in review
Jeff Curry: "Everyone knows that the industry is slower than expected, but Express-1 is swimming upstream pretty well. We grew in the third quarter of 2006. Dry van freight was significantly down for that time period this year by some 30% percent. We did everything we could to keep the trucks moving. It was not a typical third quarter and the fourth quarter followed suit."

"We are looking for the first half of 2007 to be similar to 2006, but we believe the last half of the year will show greater growth. It seems as though our industry can change on a dime sometimes. All it takes is a natural disaster or something to suck up truck capacity and boom, we're extremely busy."

Curry has some words of advice for the Express-1 contractors in 2007: "Have some faith and trust. Some contractors who have come to this company after time with other carrers don't have that trust in Express-1. It requires faith that we know what is best on a minute-by-minute, hour-by-hour basis because we're here and we see what is going on business-wise."

"If a driver doesn't trust us and tries to second-guess our recommendations, he'll wind up shooting himself in the foot. If you sign on with us, put your faith in our ability to help provide you with the business you need."