Local Trucking With Storage

SIC 4214

Industry report:

This category covers establishments primarily engaged in furnishing both trucking and storage services, including household goods, within a single municipality, contiguous municipalities, or a municipality and its suburban areas. Establishments primarily engaged in furnishing warehousing and storage of household goods when not combined with trucking are classified in SIC 4226: Special Warehousing and Storage, Not Elsewhere Classified. Establishments primarily engaged in furnishing local courier services for letters, parcels, and packages weighing less than 100 pounds are classified in SIC 4215: Courier Services Except Air.

The local trucking and storage industry consists of firms that provide storage, warehousing, and other services in addition to transport within an operating radius of 50 miles, which usually includes an urban area and its suburbs. The industry is divided between firms that transport and store furniture and household goods locally and firms that transport and store other goods locally.

In the 2000s, about three-quarters of the industry's revenues were derived from motor carrier work (including the leasing of trucks with drivers). More than half of these revenues came from local trucking and the remainder from long-distance trucking. The industry's nonmotor carrier derived revenues from such activities as parking and storing vehicles, snow plowing, repair work and truck terminal leasing for other carriers, and the lease and rental of vehicles without drivers. Industry firms generally are classified as "specialty freight" carriers, because the materials they transport--typically household goods--require special equipment for loading, unloading, or transport.

Local firms that both moved and stored household goods comprised roughly 20 percent of the total U.S. household goods moving industry in the late twentieth century, with the remainder divided between nonlocal household goods movers and local truckers that did not offer storage. Typically, most residential moves occur in the summer, and industry revenues often drop by as much as 50 percent during the winter months. As a result of such revenue fluctuations, many local moving and storage firms supplement their core moving business with other services, including off-season commercial and business office relocation, less-than-truckload (i.e., less than 10,000 pounds of goods per truckload) freight transport, third-party logistics, and warehousing.

In the late twentieth century, the "just-in-time" production management system gained popularity in the United States. Just-in-time production allowed manufacturers to lower their inventory costs by maintaining only a short-term stock of manufacturing materials. Shippers of manufacturing materials responded to this trend by warehousing goods in the same locality as their customers, enabling them to respond more quickly to continual changes in their customer's orders while also lowering shipping expenses. Local trucking and storage companies participated in this trend by providing transport, warehousing, and logistics services to shippers and their customers. In third-party logistics arrangements, local trucking and storage firms provided storage, inventory control services, packing or crating of goods, or pickup and delivery of shipments. Goods were stored in the customer's warehouse, the trucking firm's warehouse, or in "dedicated" warehouses owned by the trucking firm but maintained exclusively for the customer. Inventory management could be handled by the customer in the trucker's storage facility or by the local trucking firm itself. Some firms maintained small warehouses called "parts banks" where important components were kept ready for immediate (one- to four-hour) delivery to customers.

Many of the same firms that dominated the national intercity moving industry in the 2000s--Bekins, Mayflower, Allied, North American, and U-Haul, for example--also operated in the local trucking and storage industry and were among the leaders in developing the nontraditional less-than-truckload and logistics services markets. Far more common, however, were smaller firms such as Kane Is Able Inc., Nice Jewish Boy Moving and Storage, Frozen Food Express, and Beverly Hills Transfer and Storage Inc.

In the early 2010s, industry leaders included Reno, Nevada-based AMERCO, owner of U-Haul; Bekins Van Lines LLC of Hillside, Illinois; and Atlas Van Lines Inc. of Evansville, Indiana. In 2009 AMERCO, which had 15,000 independent dealers and 1,400 company-owned stores in the United States and Canada, had more than $2.0 billion sales and 17,600 employees. Bekins Van Lines, founded in 1891, registered annual sales of more than $200 million in the 2000s, whereas Atlas Van Lines' parent company Atlas World Group recorded revenues of $715 million in 2009.

Other important players in the industry included UniGroup's St. Louis-based subsidiaries United Van Lines LLC and Mayflower Transit; Arpin Van Lines (formerly Paul Arpin Van Lines) of West Warwick, Rhode Island, which had revenues of $113.4 million in 2009; Jacksonville, Florida-based Arnold Transportation Service Inc.; and SIRVA Inc. of Westmont, Illinois, which operated Allied Van Lines, Global Van Lines, and North American Van Lines.

In addition to national moving companies and smaller trucking and storage firms, the local trucking and storage industry includes a variety of specialized carriers, such as merchants' goods delivery services, refrigerated meat transporters, data transport and storage firms, liquid tank truckers, container and intermodal companies, cement hauling firms, bus companies, farm goods transporters, crane and excavation companies, as well as the local trucking and storage divisions of such national rail carriers as CSX and Norfolk Southern.

Important trends in the local trucking with storage industry included continued diversification into new areas of business: some companies, for example, would offer to pack up a company's computers, move them to a new office location, and reinstall them so employees could begin work immediately.

According to Dun & Bradstreet's Industry Reports, the local trucking with storage industry generated $7.4 million in sales in 2009. About 90,213 people were employed by 8,334 establishments in the industry. A large majority of these firms--more than 93 percent--were small, employing fewer than 25 workers, although more than half of the industry's total revenues came from firms that had 25 or more employees. Although the industry was very diversified, with no one state or area accounting for a high percentage of sales or employment, California employed the most workers (13,801) and registered the most in revenues ($1.0 billion). Tennessee was number two in terms of revenue, with $847.1 million. Only three other states recorded annual sales of more than $400 million: New Jersey, New York, and Illinois.

In general, employment in this industry is tied to the general health of the economy. According to the Bureau of Labor Statistics' Occupational Outlook Handbook, a total of 3.2 million people were employed as truck drivers in 2008. The overall employment expectation was for steady growth into 2018, with better opportunities for long-haul drivers.

In 2009, the median salary for delivery and light duty truck drivers was $14.96 per hour. Intense competition in the industry drove up truckers' wages. At the same time, industry firms also concentrated on developing ways to retain drivers, such as only hiring drivers from within the company or offering generous benefits and profit-sharing plans.

One of the most significant challenges in the industry in the early 2010s involved government mandates to use alternative fuels. In fact, all segments of the trucking industry were dealing with concerns and regulations regarding the environmental effects of emissions. According to Richard Moskowitz of the American Trucking Association, the U.S. trucking industry accounts for less than 6 percent of greenhouse gas emissions. However, as stated in a February 2010 Bulk Transporter article, trucking will see "a significant impact from any climate-related legislation and regulation." Many large companies had already started to incorporate alternative-fuel vehicles into their fleets, but cost and a weak infrastructure were inhibiting factors.

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News and information about Local Trucking With Storage

Alaska business monthly's 2005 transportation directory.(Transportation)(Directory)
Alaska Business Monthly; June 1, 2005; 700+ words
...freight and cargo, local delivery services, local trucking with storage, special warehousing and storage, and household...transportation services, local delivery services, local trucking with storage and third-party logistics. Residential and...
2003 transportation directory.(Alaska transportation industry)
Alaska Business Monthly; June 1, 2003; 700+ words
...Transportation Services, Local Delivery Services, Local Trucking with Storage and 3rd Party Logistics E-Mail: alaskanace...Intercoast Transportation, Local Delivery Services, Local Trucking with Storage and Archiving E-Mail: schullem@americanfast...
Shippers (Freight Arrangements).(Directory)(Illustration)
Alaska Business Monthly; January 1, 2003; 700+ words
...Arrangement of trans. of freight 717 E. Ship Creek Ave. and cargo, local delivery services, Anchorage, AK 99501 local trucking with storage, Phone: 276-3506 special warehousing and storage and Fax: 258-3986 household goods moving and storage...
Alaska Business Monthly's 2002 transportation directory.(Directory)
Alaska Business Monthly; June 1, 2002; 700+ words
...E-Mail: move@aaa-moving.com Arrangement of Trans. of Freight and Cargo, Local Delivery Services, Local Trucking With Storage, Special Warehousing and Storage and Household Goods Moving and Storage Phone: 276-3506, Fax: 258-3986...
Newly certified woman-owned businesses.(Women's Business Enterprise National Council)(Directory)
Set-Aside Alert; July 9, 2004; 700+ words
...8906 Covey Court Austin TX 78758 Alice Lively 512-491-8116 F: 512-339-0794 alively@austin.rr.com Local Trucking with Storage Parallax Services Inc. 5320 Cornish Houston TX 77007 Janet McNerney 713-868-3753 F: 713-863-0033 www...
2004 Shippers and transportation directory.(2004 Shippers and Transportation Directory)(Directory)
Alaska Business Monthly; June 1, 2004; 700+ words
...and cargo, freight transportation Year Estab.: 1994 Fax: 349-4011 services, local delivery services, local trucking with storage and third party logistics and more. E-mail: alaskanace@ gci.net www.alaskanace.com Alaska Air Forwarding...
Resampling of Industries.(Standard Industrial Classification)(Brief Article)
PPI Detailed Report; July 1, 2001; 507 words
...Watches, clocks, watchcases, and parts 4212 Local trucking without storage 4213 Trucking, except local 4214 Local trucking with storage 4492 Tugging and towing services 4731 Freight transportation arrangement 7011 Hotels and motels
OSHA wants injury and illness statistics quicker. (Occupational Safety and Health Administration)
Material Handling Engineering; May 1, 1996; 700+ words
...following businesses high-hazard industries. Some of the industries on the list are: * Manufacturing; * Local trucking with storage; * Public warehousing and storage; * Marine cargo handling; * Packing and crating; * Wholesale metals service...

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