FROM THE DESK OF THE PRESIDENT: RICHARD LICATA – Page 2
As we navigate through the current economic landscape, I want to provide you with an update on our business and the challenges we’re facing. Our business has been impacted by sluggishness due to persistently high interest rates, making it unaffordable to buy homes. Despite hopes for a reduction in rates by the second half of this year, the slow response from the Federal Reserve amidst high inflation is causing concern. It now appears that we may not see a decline in interest rates until late 2024 or even into 2025, resulting in higher rates for a longer period.
However, despite these challenges, I’m confident in our ability to remain stable and resilient. Our diversification across various product lines has proven advantageous during these uncertain times. Bob LoBianco’s exceptional leadership at Northwestern has kept our Office and Industrial business performing admirably. Additionally, Brandon Capshaw’s efforts have positively contributed to this division’s performance.
Our DataBank business has maintained stability throughout February, a significant achievement given the economic environment. Furthermore, our Self-Storage business, Store Your Things, has seen remarkable growth, with a notable increase of over 42%. Furthermore, our International Division is continuing to see much growth. We are already seeing a 52% increase on top of a 62% increase lapping a strong performance last year. Additionally, the completion of the storage merger with All Chicagoland Movers is a significant win for us, allowing us to increase our storage revenue in Naperville by 4% in February.
As we look ahead, I’m feeling optimistic about the upcoming busy season and the onset of spring weather. In certain markets, we’re already witnessing improvements as individuals and businesses adapt to higher rates. Rather than letting these rates deter them, they’re proceeding with their home purchases, resulting in increased moving activity. We’re hopeful that our market will follow suit soon. By retaining our current sales and support staff, we’ll be well-positioned to capitalize on opportunities as conditions improve.
As we move forward, let’s remain proactive and adaptable, ready to seize opportunities as they arise. By staying focused on our goals and delivering exceptional service to our customers, I’m confident that we will emerge stronger than ever. Thank you for your commitment, and let’s continue working together towards our goals.