FROM THE DESK OF THE PRESIDENT: RICHARD LICATA – Page 2
It’s hard to believe we’re already through the first quarter and heading into our busy season. As we all know, Q1 was slower than we would have liked. A combination of an extremely cold winter, low inventory in new homes, and broader uncertainty in the market all contributed to softer demand across our services.
We saw lower revenue across all moving segments—International, Interstate, Local, and O&I. That said, we’ve managed to stay in a healthy position, thanks in large part to our storage business, which continues to be a critical foundation for us. Notably, our Skyview storage operation is up 9.7%, driven largely by increased electronic storage from our Data Center accounts. This stability has made a meaningful difference during a slower start to the year.
The good news is that we’re starting to see momentum build. Activity is picking up, and we’re optimistic that we can work our way out of the early deficit as we move deeper into the season.
Anthony and I recently returned from our CEO Forum with a number of new ideas and insights. One key takeaway is that we’ve been a bit complacent when it comes to adopting new technologies that can improve how we operate day to day. Moving forward, a major focus will be on modernizing and streamlining our processes so we can operate more efficiently and stay competitive. We’ll also be hosting the CEO group at Reebie in the future, and we intend to be fully up to speed when that time comes.
I also want to share some important news. After more than 30 years in the record storage business, we have made the difficult decision to sell that portion of our company. This was not an easy choice, but it reflects the long-term reality of the industry. Record storage has been steadily declining as more businesses transition to digital solutions. At our peak, we managed over 500,000 boxes; today, that number has decreased to approximately 350,000—and it has continued to trend downward each year.
Simply put, we’ve been riding this business down for some time, and we now have an opportunity to exit while there is still meaningful value. Eventually, many clients will no longer need physical storage at all, and we want to be proactive rather than reactive in that shift.
While the business has been sold, the transition will take time. Over the next couple of years, the buyer will gradually remove inventory, and during that period, we will continue to service our customers with the same level of quality and professionalism they’ve come to expect from us.
As we look ahead, there’s plenty to be encouraged about. With activity beginning to ramp up, we’re entering our busiest time of year with renewed focus and energy. If the trends continue, we could see strong, pent-up demand that helps make up for the slow start.
Thank you, as always, for your hard work, adaptability, and commitment. Let’s carry that momentum forward and make the most of the opportunities in front of us.
Here’s to a strong and successful season ahead.