John’s Blog

March 3, 2009

Dear Friends,

The economy continues to drive all of the news as markets get worse in every way.  Where is the bottom?  The fact is for most of us it doesn’t matter as we have to live with the circumstances as they are today.

The good news? 

• Fuel prices continue to fall and today’s price is $2.087
• The dollar is rising against other currency (bad for exports) but it provides a market to sell the massive debt the US is accumulating.
• Yellow Roadway has completed their integration.  Five years after spending over 1 Billion for Roadway they are combined as one operating as YRC.

From a transportation perspective business continues to trend at historically low numbers.  Carriers are doing everything possible to lower costs including following the lead of FedEx who cut salaries.  Schneider National just did the same (article attached in this week’s news).

At Wagner we have given back unused space tightening up operations and are finding opportunity as companies want to move out of leased space to adopt a more variable cost solution.  I have spoke with three such companies in the last week.

We are very busy with a QVC vendor in Kansas City doing a kitting and fulfillment project and have other exciting projects underway.  In our Grand Prairie TX facility we have a food client who has us now performing outbound bulk transfers. 

In transportation, we moved an expedited last minute three pallet refrigerated shipment to New York late Friday. 

As you can see we are doing a lot of special projects that we have not ordinarily done in the past.  The key is to not say no to customers but find a way to do it and add value to the relationship.

I will be attending the International Warehouse Logistics Association annual conference next week and will share any good news I hear.

Have a great week!

John Wagner Jr