![]() Rising fuel costs also contributed to increased costs of truck operations. This good news was dampened by other factors that hurt profit margins: Winter storms and very low temperatures caused reduced utilization of equipment. In the first quarter of 1996 the company recorded double-digit growth in revenue. The company ’s operating efficiency (the ratio of expenses to revenue) had improved from 5.1 percent to 7.4 percent in one year. By June 1995, the company ’s operating revenue grew some 12.5 percent, gains due again to growing business from existing customers. While many competitors had experienced lower demand in the transportation business, Transport America credited their gains to increased freight activity from current customers. The most impressive statistic was the ratio of operating expenses to operating revenue from 96.9 percent in the previous year ’s first quarter to 93.4 percent the current first quarter. The first quarter of 1995 showed Transport America with noticeably improved earnings. The infusion of revenue helped the company keep abreast of the competition in an industry that relied heavily on capital resources to routinely replace $150,000 trucks every 46-60 months. The company ’s initial public offering raised $14.5 million. In 1994 Transport America went public as the Transport Corporation of America, Inc. 1994 –98: Going Public and Financial Growth By 1993 Transport America ’s expanding fleet pushed the company to purchase a new, larger headquarters building in Eagan. The company gradually expanded the size of its fleet and service centers and established small service centers in various locations. Soon after, Transport America was using satellite tracking to trace freight movement and share information with drivers via two-way information exchange. In 1988, the company implemented an automated interactive voice-response system that interfaced with the computer to allow drivers to communicate locations by phone. For Aronson, use of technology offered one more avenue for enhancing customer service. By the late 1980s the company was testing the use of technology to maximize efficiency and reliability in the trucking industry. In Transport America ’s first full year of operation in 1985, it recorded $15 million in revenues.Įarly on, Transport America was seen as a technological leader in the industry. He was known for his excellent rapport with customers and commitment to timely deliveries. Aronson was a hands-on manager, focusing on marketing and operations. The company espoused a strong commitment to high-quality customer service. Aronson had been a driver and held management positions with Overland Express, Inc. 1980s: Founding and Early Growthįounder James Aronson founded Transport Corporation of America in 1984. Johnson and Sons, Target, 3M, Federal Express, and Ford Motor Company. The company ’s primary customers include Sears, General Mills, Dupont, S.C. Transport America primarily moves freight in retailing, manufacturing, consumer goods, and recreational products. ![]() The company can even coordinate transportation details with third-party transportation providers. Transport America has regional and local operations that offer line haul (from point A to point B), loading and unloading capabilities and multiple stops, temperature-controlled trailers, trailers to support decking, satellite monitored transport, electronic data interchange, load optimization, and information technology services. Transport America has the capability of offering “time-definite ” pick-up and delivery to support a growing industry trend of “just-in-time ” delivery, designed to reduce warehouse and inventory management. The company has a strong commitment to customer service, providing detailed and customized “logistics ” services to help clients manage their inventory traffic. Transport America offers customers a wide range of transportation services for cargo requiring various shipment distances. Transport America ’s trucking routes are primarily in the Midwest, East, and Southeast. Transport America, legally named Transport Corporation of America, Inc., is a trucking firm headquartered in Eagan, Minnesota, with a fleet of some 2,200 cabs, or “tractors, ” pulling nearly 6,000 trailers throughout the United States and Canada. Public Company Incorporated: 1984 Employees: 1,815 Sales: $290.6 million (2000) Stock Exchanges: NASDAQ Ticker Symbol: TCAM NAIC: 484121 General Freight Trucking, Long-Distance, Truckload 484110 General Freight Trucking, Local 484122 General Freight Trucking, Long-Distance, Less Than Truckload 541614 Process, Physical Distribution, and Logistics Consulting Services 1715 Yankee Doodle Road Eagan, Minnesota 55121 U.S.A. ![]()
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