FROM THE DESK OF THE PRESIDENT: RICHARD LICATA – Page 2
Dear Team,
As we move into the final quarter of the year, I want to take a moment to express my gratitude for your continued dedication and hard work. This year has presented challenges, but thanks to our diversification and not being solely reliant on the Household Goods business, we are faring better than many of our peers in the moving industry. While the broader market has been slow, we’ve managed to maintain steady performance by expanding in other areas of our business.
Cost Control and Adaptability
A special thank you to everyone for your efforts in controlling costs. As we all know, when we’re unable to grow the top line, it’s essential to reduce the bottom line. Your commitment to operational efficiency has been key to our success, allowing us to remain competitive even in a challenging economic climate. Let’s continue this focus as we head into the close of the year.
Interest Rates and Market Conditions
Earlier this year, I was hopeful the Federal Reserve would reduce interest rates sooner, which could have positively impacted mortgage rates and the housing market. However, the first rate cut came only in September and has yet to stimulate much movement in the real estate market. Many homeowners are holding on to their existing homes with fixed 3% mortgage rates, preferring to renovate rather than face much higher mortgage rates on a new property.
Despite this, we remain optimistic. Once rates begin to decrease further, there could be a pent-up demand that will spur more activity in the moving market. Currently, the moves we’re seeing are primarily driven by life-changing events such as new jobs that require relocation. Hopefully, lower mortgage rates in the near future will inspire more families to move.
Business Growth
While the residential market has been slower, our growth continues to come from other sectors. Our Office and Industrial business is up 19% year-to-date, and we’ve seen a 20% increase in our International business, continuing the momentum from last year. Additionally, our DataBank and Self-Storage businesses at Store Your Things, along with SmartBox, are having a good year. Our Household Storage in Naperville is also up despite a down turn in the household goods business thanks to our merger with All Chicagoland Moving & Storage.
A Special Thank You
I’d also like to give a big shout-out to our internal marketing committee for organizing our first-ever Touch a Truck event in Elmhurst. It was a fantastic success with long lines of kids eager to sit in our replica truck for photos, while their dads were excited to climb into Frank Russell’s big rig to experience what it’s like to be the King of the Road. A special thanks to Frank for giving up his Sunday morning to provide these future truck drivers with an unforgettable experience. I attached some photos of the event below.
A Realistic Outlook
Finally, I want to be transparent about the challenges ahead. While we’ve been able to weather some of the uncertainties of this year, the outlook for the coming year remains unclear. The economic environment is still volatile, and we don’t know how long it will take for interest rates to fall enough to stimulate growth in the housing market. As we approach the new year, we must remain focused on what we can control: maintaining our efficiencies, serving our customers well, and continuing to adapt to changes in the market. Thank you for all your hard work and commitment. We’ll need that same level of dedication as we head into what could be a challenging year.
