Ron Martin

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  • Ron Martin

    1. 1. O’Neil Relocation Industry & Relocation Trends August 7, 2008 Ron Martin Regional Sales Manager-UniGroup, Inc.
    2. 2. Agenda <ul><li>UniGroup, Inc. </li></ul><ul><li>Relocation & Industry Trends </li></ul><ul><li>Surface Transportation Board / UniGroup Pricing Model </li></ul><ul><li>Direction - Operations </li></ul><ul><li>Challenges </li></ul><ul><ul><li>Energy – Fuel </li></ul></ul><ul><ul><li>Van Operators/Drivers </li></ul></ul><ul><ul><li>Economy </li></ul></ul>
    3. 3. UniGroup, Inc. Web based move management system to leverage uniform service, pricing and performance metrics from multiple providers Equipment supply and leasing company for moving and storage industry Niche insurance service provider for moving and storage industry America’s largest van line system Emerging leader in portable container storage and moving Specialist international forwarder with global footprint Most recognized name in the moving industry for nearly 80 years
    4. 4. UniGroup Inc. <ul><li>Over $2 billion in revenues since 2005 </li></ul>Revenue in USD (billion) $2.16 billion
    5. 5. UniGroup Debt-to-Equity <ul><li>Strong balance sheet and cash reserves </li></ul><ul><li>Virtually debt-free </li></ul>
    6. 6. Unique Ownership Structure <ul><li>Agents Retain Identities </li></ul><ul><li>Typically family-owned </li></ul><ul><li>Representatives as Shareholders UniGroup/United Van Lines </li></ul><ul><ul><li>18 agent Board of Directors set corporate policy and direction </li></ul></ul><ul><li>Agents remain self-directed </li></ul><ul><li>Compensation structure is best in van line industry </li></ul><ul><li>No ownership change since company’s inception (1947 ) </li></ul><ul><li>Benefits </li></ul><ul><li>Vested interest in local community </li></ul><ul><li>Consistent service delivery </li></ul><ul><ul><li>Partnership between agents and van line headquarters </li></ul></ul><ul><li>Customized, personal service </li></ul><ul><li>Reinvestment in people, equipment and facilities </li></ul><ul><li>Stability </li></ul>
    7. 7. Network Advantages <ul><li>Alliance Program – U.S. Footprint </li></ul><ul><ul><li>Leverages strength of UVL/Mayflower </li></ul></ul><ul><ul><li>Fewer peak season restrictions </li></ul></ul><ul><ul><li>Uniform performance standards </li></ul></ul><ul><li>Greater capacity </li></ul><ul><ul><li>Over 7,900 power units (tractors – straight trucks) </li></ul></ul><ul><li>Commitment to technology </li></ul>
    8. 8. UniGroup Alliance Network <ul><li>North America’s largest household goods network </li></ul><ul><li>Combined coverage and capacity of 1,100 locations </li></ul>17 7 23 121 30 14 58 27 13 8 32 15 15 8 17 20 22 9 22 21 14 16 14 31 9 10 6 19 20 9 34 29 12 21 29 1 16 4 14 85 7 25 3 43 18 7 3 1
    9. 9. Recognition – UniGroup, Inc. <ul><li>Information Week Magazine (2007) </li></ul><ul><li>Ranked No. 137 among top 500 U.S. companies utilizing technology for process improvement </li></ul><ul><li>International Data Group CIO Magazine (2007) </li></ul><ul><li>UniGroup Chief Information Officer ranked among top 100 for business and IT excellence </li></ul><ul><li>Transport Topics (2007) </li></ul><ul><li>Ranked No. 13 among top 100 “For-Hire Carrier” list, up two positions from No. 15 in 2006. </li></ul><ul><li>Forbes Magazine (2007) </li></ul><ul><li>Forbes 200 – U. S. Largest Privately Held Companies - Rank: 172 </li></ul>
    10. 10. Trippel Survey & Research <ul><li>’ 07 Relocation Program Managers’ Survey </li></ul><ul><ul><li>United Van Lines controlled largest share of transportation agreements (65%) </li></ul></ul><ul><ul><ul><li>2nd consecutive year </li></ul></ul></ul><ul><ul><li>United Van Lines ranked “#1” when relocation managers were asked: </li></ul></ul><ul><ul><ul><li>Whether they would “recommend their current carrier” </li></ul></ul></ul><ul><ul><ul><li>Which carrier has “greatest overall quality service” </li></ul></ul></ul><ul><ul><ul><ul><li>2nd consecutive year </li></ul></ul></ul></ul><ul><ul><ul><li>How satisfied they were with their carrier’s “ability to meet their needs” </li></ul></ul></ul><ul><ul><ul><li>Which carrier most often “added to approved carrier list” </li></ul></ul></ul>41
    11. 11. “Best in Class” <ul><li>Logistics Management Magazine’s 24th Annual “Quest for Quality Survey” </li></ul><ul><ul><li>Two of three van lines are UniGroup companies – United and Mayflower </li></ul></ul><ul><ul><li>Recognized as household goods and high-value product service supplier </li></ul></ul><ul><ul><li>Measurement </li></ul></ul><ul><ul><ul><li>On-time performance </li></ul></ul></ul><ul><ul><ul><li>Value </li></ul></ul></ul><ul><ul><ul><li>Information Technology </li></ul></ul></ul><ul><ul><ul><li>Customer Service </li></ul></ul></ul><ul><ul><ul><li>Equipment </li></ul></ul></ul>
    12. 12. United Van Lines Migration Study <ul><li>Result </li></ul><ul><ul><li>States in Great Lakes region showed largest outbound trend </li></ul></ul><ul><ul><ul><li>Ranked No. 1 Michigan (67.8%) once again captured top outbound spot </li></ul></ul></ul><ul><ul><li>California (50.8%) saw its lowest outbound percentage in five years </li></ul></ul>
    13. 13. Integrity - Responsibility <ul><li>Assists consumers who fall victim with “disreputable/rogue movers” </li></ul><ul><ul><ul><li>Illegally holding household goods “hostage” until additional unsupported charges are paid </li></ul></ul></ul><ul><ul><ul><li>Internet creating avenue for rogue mover activity </li></ul></ul></ul><ul><ul><li>U.S. DOT cites nearly 4,000 move-related scam reports per year </li></ul></ul><ul><ul><li>Offers </li></ul></ul><ul><ul><ul><li>Connection for legal assistance </li></ul></ul></ul><ul><ul><ul><ul><li>Nationwide network of legal professionals </li></ul></ul></ul></ul><ul><ul><li>www.moverescue.com or (800) 832-1773 </li></ul></ul>
    14. 14. Labor Policy What’s Important to Customers?
    15. 15. Labor Policy <ul><li>Mandatory background checks on all “new” production personnel </li></ul><ul><ul><li>Value customer personal safety - safeguard property </li></ul></ul><ul><ul><li>Rollout with validation number </li></ul></ul><ul><ul><li>5-Star Check </li></ul></ul><ul><ul><ul><li>Validate SSN </li></ul></ul></ul><ul><ul><ul><li>Check against National Criminal and Felony registers </li></ul></ul></ul><ul><ul><ul><li>1-3 day processing, valid three years </li></ul></ul></ul><ul><ul><li>Instant Check – valid 10 days </li></ul></ul><ul><ul><ul><li>Validate SSN </li></ul></ul></ul><ul><ul><ul><li>Check against National Criminal register </li></ul></ul></ul>
    16. 16. Innovation GPS Tracking Systems <ul><li>Real-time communication link between </li></ul><ul><ul><li>United Van Lines agents </li></ul></ul><ul><ul><li>UniGroup Headquarters </li></ul></ul><ul><ul><li>Van operators </li></ul></ul><ul><li>Last-minute changes and urgent shipments processed easily </li></ul><ul><li>Street-level mapping </li></ul><ul><ul><li>Determine exact van location </li></ul></ul><ul><ul><li>Motion detection on trailers </li></ul></ul><ul><li>Smart Phones – Van Operators </li></ul>32
    17. 17. “ Enhanced” GPS Tracking Systems Route Tracking
    18. 18. “ Enhanced” GPS Tracking Systems
    19. 19. “ Enhanced” GPS Tracking Systems
    20. 20. “ Enhanced” GPS Tracking Systems
    21. 21. UniGroup’s “Full-Service” Container <ul><li>Objectives </li></ul><ul><ul><li>Reduce underlying “core business” costs </li></ul></ul><ul><ul><li>Program built where entire agency system will benefit </li></ul></ul><ul><ul><li>Reduce peak season “lease” trailer requirements </li></ul></ul><ul><ul><ul><li>wooden containers </li></ul></ul></ul><ul><ul><li>Create new market </li></ul></ul><ul><ul><li>Reduce cargo claims </li></ul></ul>
    22. 22. UniGroup’s “Full-Service” Container <ul><li>Dimensions (outside) </li></ul><ul><ul><li>Length 102” </li></ul></ul><ul><ul><li>Width 84” </li></ul></ul><ul><ul><li>Height 97” </li></ul></ul><ul><li>Cubic capacity = 450 cubic feet </li></ul><ul><li>Empty weight = 1,200 lbs. </li></ul><ul><li>Containers “stackable” – 3 high </li></ul><ul><li>Walls – fiberglass with reinforced plywood floors </li></ul><ul><li>Cargo control – logistics track </li></ul>
    23. 23. UniGroup’s “Full-Service” Container <ul><li>Convenient </li></ul><ul><ul><li>One price – all inclusive </li></ul></ul><ul><ul><ul><li>Transportation </li></ul></ul></ul><ul><ul><ul><li>Load / Unload </li></ul></ul></ul><ul><ul><ul><li>Pack / Unpack </li></ul></ul></ul><ul><ul><ul><li>Valuation </li></ul></ul></ul><ul><ul><ul><li>Debris removal </li></ul></ul></ul><ul><li>Security </li></ul><ul><ul><li>Load / Lock / Seal </li></ul></ul><ul><ul><li>Certified / Trained / Drug Tested Labor </li></ul></ul><ul><ul><li>Reduced claims and missing items </li></ul></ul>
    24. 24. UniGroup’s “Full Service” Container <ul><li>Customer Features </li></ul><ul><ul><li>No Driving </li></ul></ul><ul><ul><li>No Lifting </li></ul></ul><ul><ul><li>No enlisting family and friends </li></ul></ul><ul><ul><li>Larger and stronger container </li></ul></ul><ul><ul><li>Exclusive use </li></ul></ul><ul><ul><li>Day certain pickup/delivery </li></ul></ul><ul><ul><li>High security storage facility </li></ul></ul>
    25. 25. New Direction - Pricing <ul><li>New World - </li></ul><ul><ul><li>In its recent decision, U.S. Surface Transportation Board withdrew approval of ratemaking bureaus to collectively set transportation rates </li></ul></ul><ul><ul><ul><li>Includes Household Goods Carriers Bureau that formerly set rates for moving & storage industry </li></ul></ul></ul><ul><ul><li>Effective January 1, 2008 “all” household goods carriers required to establish carrier specific pricing structures </li></ul></ul><ul><ul><ul><li>Independent of other van lines </li></ul></ul></ul>
    26. 26. Innovation New Pricing Structure <ul><li>STB UVL1 – January 1, 2008 </li></ul><ul><ul><li>3-digit ZIP-to-ZIP pricing structure </li></ul></ul><ul><ul><ul><li>Electronic format </li></ul></ul></ul><ul><ul><li>Tariff Reduction </li></ul></ul><ul><ul><ul><li>60% reduction in base tariff </li></ul></ul></ul><ul><ul><ul><li>40% reduction storage-in-transit and SIT pickup/delivery </li></ul></ul></ul><ul><ul><li>Included in transportation rates/charges </li></ul></ul><ul><ul><ul><li>Insurance Related Surcharge </li></ul></ul></ul><ul><ul><ul><li>Origin/Destination Service Charge </li></ul></ul></ul><ul><ul><ul><li>Fuel Adjustment (up to $3.00/gallon) </li></ul></ul></ul><ul><ul><ul><li>Mini warehouse </li></ul></ul></ul><ul><ul><ul><li>Bulky item </li></ul></ul></ul>5
    27. 27. Invoice Appearance Comparison <ul><li>HGB Tariff 400-N - 3,760 lbs. 1,009 miles </li></ul><ul><ul><li>Transportation = $4,995.55 </li></ul></ul><ul><ul><li>Full Packing = 2,081.91 </li></ul></ul><ul><ul><li>Origin Svc. Chg. = 122.95 </li></ul></ul><ul><ul><li>Dest. Svc. Chg. = 101.52 </li></ul></ul><ul><ul><ul><li>Sub Total = $7,301.93 </li></ul></ul></ul><ul><ul><ul><li>Less Disc. 62.4% 4,556.40 </li></ul></ul></ul><ul><ul><ul><li>Sub Total = $2,745.52 </li></ul></ul></ul><ul><ul><li>Fuel Surchg 10.0% = 187.83 </li></ul></ul><ul><ul><li>Ins. Rel. Surchg. 4%= 75.13 </li></ul></ul><ul><ul><ul><li>Total = $3,008.48 </li></ul></ul></ul><ul><li>STB Tariff UVL1 – 3,760 lbs. 1,009 miles </li></ul><ul><ul><li>Transportation * = $2,259.00 </li></ul></ul><ul><ul><li>Full Packing = 809.38 </li></ul></ul><ul><ul><ul><li>Sub Total** = $3,068.38 </li></ul></ul></ul><ul><ul><ul><li>Fuel Surchg*** = 110..38 </li></ul></ul></ul><ul><ul><ul><li>Total = $3,178.76**** </li></ul></ul></ul>* Includes transportation, origin/destination service charge and insurance related surcharge ** Applied 6.0% down as applicable price adjustment based on transportation agreement ***Fuel as rate per mile 1,009 miles @ .1094 per miles ****Includes 3.4% increase effective 1/1/08
    28. 28. Questions & Answers <ul><li>Will new pricing program increase client cost? </li></ul><ul><ul><li>“ Price-neutral” objective </li></ul></ul><ul><ul><ul><li>Analysis of over 800,000 shipments indicates marginal increase over industry’s HGB Tariff 400-N pricing </li></ul></ul></ul><ul><ul><ul><li>UVL took 3.4% increase effective December 31, 2007 based on industry’s “General Price Adjustment” formula </li></ul></ul></ul><ul><ul><ul><ul><li>Annual cost index review and adjustment </li></ul></ul></ul></ul><ul><ul><li>Real savings – client and UVL </li></ul></ul><ul><ul><ul><li>Efficiencies gained from simplified pricing system </li></ul></ul></ul><ul><ul><ul><ul><li>Time </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Understanding </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Reduced complexity </li></ul></ul></ul></ul>
    29. 29. Questions & Answers <ul><li>Will clients be economically disadvantaged moving to new pricing program? </li></ul><ul><ul><li>NO, opposite is true!! </li></ul></ul><ul><ul><li>HGB Tariff 400-N - “Tariff of Compromise” </li></ul></ul><ul><ul><ul><li>Industry pricing historically controlled by industry competitors </li></ul></ul></ul><ul><ul><ul><ul><li>Not specific to individual client </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Inefficient pricing mechanism </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Redundant tariff items </li></ul></ul></ul></ul></ul><ul><ul><ul><li>“ Exorbitant” discounts </li></ul></ul></ul><ul><ul><ul><li>“ Annoying” invoice line items </li></ul></ul></ul><ul><ul><li>Advent of zip-zone pricing </li></ul></ul><ul><ul><ul><li>Pricing based on costs between geographic areas </li></ul></ul></ul><ul><ul><ul><ul><li>Fair and equitable approach to pricing </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Common sense program </li></ul></ul></ul></ul>
    30. 30. Am. Moving & Storage Association <ul><li>Industry Facts - </li></ul><ul><ul><li>8,300 companies providing moving/storage services – van lines, independent/van line agents and forwarders </li></ul></ul><ul><ul><li>Employs 172,000 people nationwide </li></ul></ul><ul><ul><ul><li>47.8% of companies employ 5 people or less </li></ul></ul></ul><ul><ul><ul><li>8.5% of companies employ 100 people or more </li></ul></ul></ul><ul><ul><li>Operates fleet (equipment) 50,000 units (32,000 tractors/18,000 straight trucks) regulated by U.S. Dept. of Transportation </li></ul></ul>
    31. 31. Am. Moving & Storage Association <ul><li>Industry Facts (continued) </li></ul><ul><ul><li>Americans – who move = 13.0% </li></ul></ul><ul><ul><ul><li>40 million (17 million households) @ 2.34 people per household (’05 US Census) </li></ul></ul></ul><ul><ul><ul><ul><li>19.0% move to different state (interstate) = 7.6 million </li></ul></ul></ul></ul><ul><ul><ul><li>Average cost = $4,200.00 </li></ul></ul></ul><ul><ul><ul><li>Average weight = 7,400 lbs. </li></ul></ul></ul><ul><ul><ul><li>Average distance = 1, 225 miles </li></ul></ul></ul><ul><ul><ul><li>Moves without claim = 80.0% (4:5 shipments) </li></ul></ul></ul>
    32. 32. Industry Challenges Volume - All Business Lines Annual HHG Revenues (2003-2007) Transportation Revenue for Interstate HHG Moves Between ‘06 and ‘07 Reduced Revenue –6.1%. Source: AMSA – Monthly Market Study – All Processed Revenue
    33. 33. Industry Challenges Corporate Relocations Declining National Account Market Industry National Account Shipments Down ~ 6.4% Between ’06 and ‘07 Source: AMSA – Monthly Market Study – All Processed Revenue
    34. 34. Industry Challenges Corporate Revenue Annual HHG Revenues (2003-2007) Transportation Revenue for Interstate HHG Moves Between ‘06 and ‘07 Reduced Revenue –3.0%. Source: AMSA – Monthly Market Study – All Processed Revenue
    35. 35. UniGroup, Inc. Business Volume YTD July 10, 2008 *Business Volume Based on Registration Statistics
    36. 36. UniGroup Seasonality - Relocations
    37. 37. Relocation Trends 20 *ERC ’07 Transfer Volume & Cost Survey – Mobility Magazine September ’07
    38. 38. Relocation Trends 20 *ERC ’07 Transfer Volume & Cost Survey – Mobility Magazine September ’07 $10,342 $9,514 $10,387 Household goods transportation $15,255 $9,331 $11,551 Loss-on-sale assistance $1,343 $1,404 $1,828 $2,986 $4,993 $5,092 $5,900 $6,048 $6,737 $7,756 2005 $1,246 $1,520 $1,836 $3,030 $4,882 $4,457 $6,764 $6,388 $7,707 $8,818 2006 $1,555 Spouse employment assistance $2,136 Home-finding trips $3,079 Duplicate housing assistance $5,492 Temporary living $5,457 Misc. expense allowance $6,936 Bonuses/incentives employee home sale $4,581 Preferential rate mortgage $8,767 Federal Tax Liability $7,944 Purchase closing costs $1,384 Travel/lodging expenses 2004 Average Relocation Component Costs
    39. 39. Relocation Trends -Policy Type Source: Worldwide ERC, 2007 New Hire Survey
    40. 40. Relocation Trends - Shipment of Household Goods <ul><li>Percentage of Organizations Who Provide Household Goods Relocation for Employees </li></ul>Single Policy: Based on 40 organizations with one policy (not menu-drive) that do not provide only a lump sum to cover the entire move.) Percentages do not total 100% due to multiple responses. Source: Worldwide ERC, 2007 New Hire Survey Entry Level 74% Experienced 98% Executive Level 98% Single Policy 98%
    41. 41. Fast Growing Jobs Source : U.S. Department of Labor Fastest Growing Jobs – 2004-2014 43% 146,000 Computer Software Engineers 44% 26,000 Physical Therapist Assistants 48% 222,000 Computer Software Engineers 50% 31,000 Physician Assistants 52% 202,000 Medical Assistants 55% 126,000 Network Systems, Data Communications Analyst Percent of Growth New Openings Occupation
    42. 42. Relocation Trends-ERC/Runzheimer <ul><li>National Survey Data – Household Goods </li></ul><ul><ul><li>57% of companies contract directly with van lines </li></ul></ul><ul><ul><li>85% do not impose weight restrictions </li></ul></ul><ul><ul><ul><li>Companies with weight restrictions have 18,000 pounds as most common limit </li></ul></ul></ul><ul><ul><li>83% provide full replacement protection (valuation) </li></ul></ul><ul><ul><li>92% offer storage-in-transit </li></ul></ul><ul><ul><ul><li>30 days (47%) and 60 days (40%) as most common time frames </li></ul></ul></ul><ul><ul><ul><ul><li>60 days for homeowners and 30 days for renters </li></ul></ul></ul></ul><ul><ul><li>100% of companies include packing </li></ul></ul><ul><ul><li>90% include for unpacking </li></ul></ul><ul><ul><li>77% of companies include one or more autos </li></ul></ul><ul><ul><ul><li>Two autos most typically covered </li></ul></ul></ul>Source: Employee Relocation Council & Runzheimer Reports
    43. 43. Where Consumers Look For Movers (Residential) <ul><ul><ul><li>The Internet and past experiences are key reference points for choosing a moving company </li></ul></ul></ul><ul><ul><ul><li>Phone book continues to decline </li></ul></ul></ul>Proprietary and Confidential Maritz Inc. Q1: How did you look for moving companies who could meet your needs?(multiple responses allowed) Base: All Respondents, n=258, Full-Service moves only, n=166 All Respondents Full-service moves only 7% 18% 20% 23% 20% 34% 39% 3% 6% 16% 16% 18% 24% 26% 43% 45% Bank, mortgage or title company recommended Realtor recommended Word-of-mouth Advertising Saw in neighborhood Phone book Neighbor, friend or relative recommended Past experience / used before Internet search 33% 52%
    44. 44. Full-Service Moving Companies Considered and Used <ul><ul><ul><ul><li>United Van Lines considered, quoted and used most often </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Mayflower comparable Allied; conversion from quote to purchase slightly higher than both UVL and Allied </li></ul></ul></ul></ul>Proprietary and Confidential Maritz Inc. S6: What company did you primarily use for your move? Q2: Please check the names of the moving companies you considered in addition to your choice of (answer from primary mover). Q3: Please check the names of the moving companies from which you received a quote. Base: All Full-Service Respondents, n = 166 63 52 52 47 42 30 29 50 37 36 34 32 19 23 22 13 13 8 8 12 18 United Van Lines Mayflower Transit Allied Van Lines Atlas Van Lines North American Global Van Lines Two Men and a Truck % Considering % Quoted % Used 79% Conversion from Consideration to Quote 71% 71% 49% 49% 69% 69% 36% 36% 72% 72% 38% 38% 76% 76% 25% 25% 63% 63% 42% 42% 79% 79% 52% 52% 44% from Quote to Usage
    45. 45. National Account Decision Makers <ul><ul><ul><li>How corporate America selects a van line … </li></ul></ul></ul>Proprietary and Confidential Maritz Inc. Q10: How did you researchor look for moving companies who would meet your corporate needs? Note: Multiple responses allowed Base: All Respondents, n = 250 50% Employee input 28% 32% 34% 36% 38% 42% 44% 49% 49% 50% Phone book (Yellow or White Pages) Direct mail Formal RFI - Request for Information Corporate preferred provider list Word-of-mouth Presentation by moving companies Recommendation of business colleague Internet search Competitive bidding process Past experience / used before
    46. 46. Deciding Factors For National Account Clients <ul><ul><ul><li>Consistency of quality service, guaranteed price and dates, and professional crews </li></ul></ul></ul><ul><ul><ul><li>Brand name and national moving company are least important factors </li></ul></ul></ul>Proprietary and Confidential Maritz Inc. 23 19 18 20 17 19 14 13 15 18 18 13 12 13 10 11 11 12 11 15 16 14 20 16 11 13 14 10 6 9 9 8 10 8 5 5 8 6 6 6 5 6 5 4 4 6 4 4 8 4 8 11 12 A B C D E F G H I J K L M N O P Q R S T Most Important More Important Somewhat Important Base: All Respondents, n = 250 A. Quality service consistency B. Guaranteed price C. Guaranteed pick - up and delivery dates D. Professionally trained crews E. Our company gets a good value for the cost F. Pricing was clear and easy to understand G. Past experience with the moving company H. Timely resolution of employee claims I. Recommendations from a trusted source J. Repair and replacement coverage K. Financial stability of the moving company L. Pricing components were easily broken out M. Advanced technology services N. Background checks for all labor provided O. Fair resolution of employee claims P. Ability to use storage units with moves Q. Ability to pick up items at several places R. Wanted a national moving company S. Corporate diversity policies and diverse culture T. Wanted a brand name moving company 10 8 10 10 8 13 14 15 18 12 18 17 14 17 16 21 20 20 20 18 5 7 5 7 7 11 6 7 10 10 11 14 10 10 14 14 17 15 11 4 5 4 4 4 8 6 8 14 7 4 4 4 5 7 5 6 4 Least Important Less Important Somewhat Unimportant Mean Score: 4.62 4.56 4.48 4.37 4.28 4.20 4.10 4.00 3.98 3.97 3.96 3.88 3.88 3.86 3.76 3.71 3.68 3.59 3.57 3.54 Mean Score: 4.62 4.56 4.48 4.37 4.28 4.20 4.10 4.00 3.98 3.97 3.96 3.88 3.88 3.86 3.76 3.71 3.68 3.59 3.57 3.54 Q40a-t: The following is a list of criteria for choosing a moving company. Please the one most important and the one least important. Note: Multiple responses allowed for Q4a-p. Mean based on 5 point scale. Base: All Respondents, n = 250
    47. 47. <ul><ul><ul><ul><li>Technology up-sells are strongest new services among national account respondents </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Debris removal and maid service are also among popular options </li></ul></ul></ul></ul>What National Account Clients Want Added … Proprietary and Confidential Maritz Inc. 48% 48% 32% 29% 26% 26% 25% 14% Computer Installation Home Electronic Installation Clutter and debris removal from old home Maid service at old home Return visit to reposition furniture Bar code scanning GPS Truck tracking Interest free 12 month payment deferral Q130: Which of the following services would you like to see offered to further complement future employee moves? Base: All Respondents, n = 250
    48. 48. <ul><li>Essential </li></ul><ul><li>Straight Talk Gold/ Flagship Protection $340 </li></ul><ul><li>Claims Assist $165 </li></ul><ul><li>Destination Connection </li></ul><ul><li>Date Change </li></ul><ul><li>Value $540+ </li></ul><ul><li>Price $195 </li></ul><ul><li>Includes $5,000 </li></ul><ul><li>Additional Coverage </li></ul><ul><li>Connection </li></ul><ul><li>Straight Talk Gold/ Flagship Protection $340 </li></ul><ul><li>Claims Assist $165 </li></ul><ul><li>Geek Squad </li></ul><ul><li>PC Setup </li></ul><ul><li> $130 </li></ul><ul><li>Home Theater Setup </li></ul><ul><li> $200 </li></ul><ul><li>Delay Payment </li></ul><ul><li>Destination Connection </li></ul><ul><li>Date Change </li></ul><ul><li>Destination Waiting Time </li></ul><ul><li>Value $1,000+ </li></ul><ul><li>Price $ 545 </li></ul><ul><li>Includes $25,000 </li></ul><ul><li>Additional Coverage </li></ul><ul><li>Destination </li></ul><ul><li>Straight Talk Gold/ Flagship Protection $340 </li></ul><ul><li>Claims Assist $165 </li></ul><ul><li>Geek Squad </li></ul><ul><ul><li>PC Setup $130 </li></ul></ul><ul><li>Destination Connection </li></ul><ul><li>Destination Waiting Time </li></ul><ul><li>Date Change </li></ul><ul><li>Value $700+ </li></ul><ul><li>Price $295 </li></ul><ul><li>Includes $10,000 </li></ul><ul><li>Additional Coverage </li></ul><ul><li>Entertainment </li></ul><ul><li>Straight Talk Gold/ Flagship Protection $340 </li></ul><ul><li>Claims Assist $165 </li></ul><ul><li>Geek Squad </li></ul><ul><ul><li>Home Theater Setup </li></ul></ul><ul><li> $200 </li></ul><ul><li>Delay Payment </li></ul><ul><li>Destination Connection </li></ul><ul><li>Destination Waiting Time </li></ul><ul><li>Date Change </li></ul><ul><li>Value $850+ </li></ul><ul><li>Price $395 </li></ul><ul><li>Includes $25,000 </li></ul><ul><li>Additional Coverage </li></ul><ul><li>Protection </li></ul><ul><li>Straight Talk Gold/ Flagship Protection $340 </li></ul><ul><li>Claims Assist $165 </li></ul><ul><li>Destination Debris Pickup </li></ul><ul><li> $165 </li></ul><ul><li>Delay Payment </li></ul><ul><li>Destination Connection </li></ul><ul><li>Destination Waiting Time </li></ul><ul><li>Date Change </li></ul><ul><li>Value $850+ </li></ul><ul><li>Price $395 </li></ul><ul><li>Includes $25,000 </li></ul><ul><li>Additional Coverage </li></ul><ul><li>Technology </li></ul><ul><li>Straight Talk Gold/ Flagship Protection $340 </li></ul><ul><li>Claims Assist $165 </li></ul><ul><li>Geek Squad PC with Networking Setup $225 </li></ul><ul><li>Delay Payment </li></ul><ul><li>Destination Connection </li></ul><ul><li>Destination Waiting Time </li></ul><ul><li>Date Change </li></ul><ul><li>Value $930+ </li></ul><ul><li>Price $445 </li></ul><ul><li>Includes $25,000 </li></ul><ul><li>Additional Coverage </li></ul><ul><li>Premium </li></ul><ul><li>Straight Talk Gold/ Flagship Protection $340 </li></ul><ul><li>Claims Assist $165 </li></ul><ul><li>Geek Squad </li></ul><ul><li>PC Setup w/ Networking </li></ul><ul><li> $225 </li></ul><ul><li>Home Theater Setup </li></ul><ul><li> $200 </li></ul><ul><li>Delay Payment </li></ul><ul><li>Destination Connection </li></ul><ul><li>Destination Waiting Time </li></ul><ul><li>Date Change </li></ul><ul><li>Value $1,300+ </li></ul><ul><li>Price $ 795 </li></ul><ul><li>Includes $30,000 </li></ul><ul><li>Additional Coverage </li></ul>Value-Add Options
    49. 49. ATA Van Operator/Driver Shortage <ul><li>National shortage of 20,000 drivers </li></ul><ul><ul><li>Current demographic trends predict driver shortage to increase 111,000 drivers by 2014, if labor force continues to grow at slow pace </li></ul></ul><ul><ul><ul><li>Fueled by two events </li></ul></ul></ul><ul><ul><ul><ul><li>“ Baby boomers” starting to retire (219,000 drivers - 55 years and older) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Increase freight tonnage 30.0% (914 billion tons) by 2018 </li></ul></ul></ul></ul><ul><ul><li>Lack of drivers to move freight, more then any other challenge, could bring U.S. economic growth to a halt </li></ul></ul><ul><ul><ul><li>Staple commodities for human consumption </li></ul></ul></ul><ul><ul><ul><ul><li>Price of bread, milk, etc. </li></ul></ul></ul></ul>
    50. 50. Cost Driver - Diesel Fuel vs. Gasoline History   *Energy Information Agency - DOE -$.115 Change week ago* $1.717 $4.603 $4.718 $4.764 U.S. Change year ago 7/28/08 7/21/08 7/14/08
    51. 51. What Are We Paying For?* Diesel Fuel vs. Gasoline *Energy Information Agency - DOE
    52. 52. Fuel Statistics <ul><li>Am. Transport Association – March 12, 2008 </li></ul><ul><ul><li>2nd highest cost after driver wages </li></ul></ul><ul><ul><ul><li>Some carriers fuel expense surpasses cost of labor </li></ul></ul></ul><ul><ul><li>Potential to create ripple effect on U.S. economy </li></ul></ul><ul><ul><ul><li>High truck fuel prices increase “individual” product costs </li></ul></ul></ul><ul><ul><ul><ul><li>80.0% US communities depend on “trucks” to deliver goods </li></ul></ul></ul></ul><ul><ul><li>Trucks consume 53.9 billion gallons each year </li></ul></ul><ul><ul><ul><li>39 billion gallons (73.0%) is diesel </li></ul></ul></ul><ul><ul><li>One-penny increase in diesel price creates additional $391 million in costs </li></ul></ul><ul><ul><li>42 gallons of oil in “barrel” yields: </li></ul></ul><ul><ul><li>Canada is U.S. top “import” oil producer (16.0%) </li></ul></ul>
    53. 53. U.S. Diesel Prices – Energy Information Agency Crude Oil On-Highway Diesel Wholesale Diesel Short-Term Energy Outlook , June 2008 History Projections
    54. 54. Short-Term Energy Outlook <ul><li>Global supply uncertainties, combined with significant demand growth in China, the Middle East, and Latin America expected to continue to pressure oil markets </li></ul><ul><li>Retail diesel fuel prices, which averaged $2.88 in 2007, are projected to average $4.35 per gallon in 2008 and $4.48 per gallon in 2009. </li></ul><ul><ul><li>Higher prices reflect strength in diesel demand, particularly in emerging markets </li></ul></ul><ul><li>Oil market remains tight, evidenced by: </li></ul><ul><ul><li>Rising prices, low surplus production capacity, and concern that global supply growth may not keep pace with demand </li></ul></ul>Energy Information Agency – July 8, 2008
    55. 55. Annual Existing-Home Sales Exuberance Over Source: National Association of Realtors
    56. 56. National Foreclosure Activity <ul><li>July 25, 2008 – RealtyTrac® “Q2 U.S. Foreclosure Market Report™” </li></ul><ul><ul><li>739,714 U.S. properties foreclosure filings </li></ul></ul><ul><ul><ul><li>14% increase from the previous quarter </li></ul></ul></ul><ul><ul><ul><li>121% increase from the second quarter of 2007 </li></ul></ul></ul><ul><ul><ul><li>One in every 171 U.S. households received foreclosure filing during quarter </li></ul></ul></ul><ul><ul><li>California </li></ul></ul><ul><ul><ul><li>202,599 properties foreclosed during second quarter </li></ul></ul></ul><ul><ul><ul><ul><li>Highest total among U.S. states (one in every 65 households) </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Nation’s second highest state foreclosure rate </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Foreclosure activity increased 19% from previous quarter </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Nearly three times level reported in second quarter of 2007 </li></ul></ul></ul></ul></ul>
    57. 57. National Foreclosure Activity Source: RealtyTrac®
    58. 58. GDP Growth – Percent Annualized Source: U.S. Bureau of Economic Analysis
    59. 59. Corporate Profits $ billion Source: U.S. Bureau of Economic Analysis
    60. 60. Stock Market – S&P Index Source: NYSE
    61. 61. Business Spending – Gross Domestic Product
    62. 62. Monetary Policy Report July 15, 2008 <ul><li>After having posted robust gains in middle ‘07: </li></ul><ul><ul><li>Real business fixed investment lost some steam in 4 th quarter </li></ul></ul><ul><ul><li>Eked small advance in 1 st quarter of 2008 </li></ul></ul><ul><li>Economic and financial conditions that influence capital spending deteriorated appreciably late last year and early this year: </li></ul><ul><ul><li>Business sales slowed (cars/technology) </li></ul></ul><ul><ul><li>Corporate profits fell (stock market results) </li></ul></ul><ul><ul><li>Credit conditions for borrowers tightened </li></ul></ul><ul><ul><li>Heightened concern about economic outlook has caused firms to postpone/abandon plans for capital expansion </li></ul></ul>
    63. 63. Consumer Spending % year-over-year growth rate The growth rate of consumer spending slowed some in the first half of 2008 from its solid pace in the second half of 2007.
    64. 64. Questions <ul><li>Discussion Topics </li></ul><ul><ul><li>What “value added” services would be helpful to you and for your transferees beyond what UniGroup has identified? </li></ul></ul><ul><ul><li>Containers as a mode of transportation for household goods movements, do see value and would your organization consider using containers to transfer your employees? </li></ul></ul><ul><ul><li>What do you see as the future of relocation and where do you see the movement of household goods in the picture? </li></ul></ul>
    65. 65. Questions <ul><li>Discussion Topics </li></ul><ul><ul><li>Where do you see economy going? Will November ’08 election positively impact U.S. economic environment? </li></ul></ul><ul><ul><li>Will pressure from “price at the pump” continue to hinder business expansion? </li></ul></ul><ul><ul><li>Will your company expand or constrict hiring in ’08?...in ’09? </li></ul></ul><ul><ul><li>How can we (O’Neil Relocation/UniGroup) improve our performance with and for your company? </li></ul></ul>
    66. 66. O’Neil Relocation Industry & Relocation Trends August 7, 2008 Ron Martin Regional Sales Manager–UniGroup, Inc.
    67. 67. Scariest Road in the World
    68. 68. Scariest Road in the World
    69. 69. Scariest Road in the World
    70. 70. Scariest Road in the World
    71. 71. Scariest Road in the World
    72. 72. Scariest Road in the World
    73. 73. Scariest Road in the World
    74. 74. Scariest Road in the World
    75. 75. Scariest Road in the World
    76. 76. O’Neil Relocation Industry & Relocation Trends August 7, 2008 Ron Martin Regional Sales Manager–UniGroup, Inc.

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