Today we’d like to introduce you to Brian Fielkow.
So, before we jump into specific questions about the business, why don’t you give us some details about you and your story.
Growing up in Appleton, Wisconsin, in a family-owned business, I earned my law degree from Northwestern University in 1989 and focused my corporate law practice on emerging companies. I learned from the successes and failures of a myriad of entrepreneurial clients. In 1996, Fielkow joined my favorite client, The Peltz Group, a Midwest recycling company, as its COO, and led the company to record growth. Waste Management purchased the business in 2002, and I relocated to Houston as EVP of Waste Management’s $700 million recycling subsidiary
Wanting to fulfill a longtime dream of owning a business, I purchased then30-year old Jetco Delivery in 2006. , Fielkow led Jetco to enjoy robust growth. In the eleven years that I have owned Jetco, the company has grown over seven-fold.
Since purchasing Jetco Delivery in 2006, I have maintained a business philosophy of providing an extra level of service to anticipate customers’ every need. To accomplish this philosophy, I have focused on safety, maintaining employee continuity, integrating technology and improving the quality of the company’s fleet. Jetco operates an intermodal, van and flatbed fleet of over 150 trucks and 300 trailers/chassis. Jetco has built three new companies: Jetco Heavy Haul, transporting out-of-gauge cargo, Jetco Logistics, a freight brokerage business; and Jetco Warehouse, allowing us to store our customers’ cargo. Jetco also has successfully integrated three acquisitions. Jetco operates terminals in Houston, Dallas, and San Antonio. By developing long-term, fully engaged employees, We are able to create an unparalleled customer experience.
I am also a public speaker on the topic of creating a healthy company and safety culture. I have written two books: Driving to Perfection: Achieving Business Excellence by Creating a Vibrant Culture and Leading People Safely: How to Win on the Business Battlefield (co-authored with Jim Schultz). I have published articles on several national media topics and was featured in a Wall Street Journal article.
Jetco Delivery website: https://www.jetcodelivery.com/
Brian Fielkow website: http://www.brianfielkow.com/
Published articles: http://www.brianfielkow.com/press/featured-in
I have a B.A. from the University of Wisconsin and a J.D. from Northwestern University School of Law.
Has it been a smooth road?
It’s never a smooth road. Here are examples of a few of the challenges we faced and how we overcame them:
Chronic driver shortage and 90% annual driver turnover as an industry average: The trucking industry continues to suffer from a severe lack of qualified drivers. We developed a cutting-edge driver compensation program. At the same time, we recognized money alone wouldn’t solve the problem. Therefore, we developed a plan to bring drivers on the inside. We established the Jetco Driver Committee so that their voices could be heard, and we could go above and beyond to meet their needs. Jetco drivers elected the members of the committee, and the head of the committee now attends every company operations and managerial meeting, thus creating an unparalleled level of alignment between Jetco drivers and the team. Meeting customers’ needs and expectations is essential, yet at the same time, it starts with engaged employees. My philosophy of “employees first” is what has allowed Jetco to flourish during all economic cycles. “Houston Chronicle” reporter Chris Tomlinson recognized our approach in his article “Trucking business facing lower rates, fewer drivers and tougher roads”. We’ve been selected as a Houston Chronicle top workplace 5 of the last 6 years – based solely on employee survey data. Our driver turnover is 15% as compared to the above-stated industry average of 90%.
The Severe business downturn in the energy sector:
The past several years were a challenge the Houston economy, and we were not immune. Entrepreneurial skills are tested greatly during times of adversity. We developed a focused plan to survive and thrive through the downturn that continues to impact the Houston area due to the decline in oil and gas. Components of the plan included:
• Investing in a new operating system to enable employees to work more efficiently (allowing the number of loads managed by each person to skyrocket);
• Investing in sales and marketing to grow through the downturn. We have successfully grown and diversified customers and industry profiles;
• Adding talent to our team when it is readily available, particularly during a time of mass layoffs in the Houston area; and,
• Maintaining complete transparency with our team during the market slow down. We understood the need to be empathetic.
In 2017 our sales will grow 30% over 2016.
So let’s switch gears a bit and go into the Jetco Delivery story. Tell us more about the business.
Founded in 1976 with one truck, Jetco now has a fleet of more than 125 trucks, as well as a rapidly growing freight brokerage business to continue diversifying our service offering.
Before purchasing Jetco, I saw many buyers focus their efforts on the acquisition itself, and not on integration. I watched as buyers needlessly destroyed value by chasing away sellers and their key employees. I ensured that the same situation did not happen to Jetco. Eleven years later, pre-acquisition employees still work at the company, providing a wealth of knowledge and continuity. When Jetco acquired two other businesses, I followed this same, proven philosophy to further cultivate an environment where other entrepreneurs could prosper under the Jetco umbrella.
The logistics industry is a backbone of our economy. I purchased Jetco based on a single idea ― there was and continues to be a tremendous opportunity for innovation and improvement of the service
model. My strategy includes:
Newer fleet: Investing over $20 million since 2006, Jetco has one of the youngest fleets in the market. A new fleet attracts better drivers, carries less risk of breakdown and therefore offers greater reliability and enhances Jetco’s brand and image.
Employees: We adopts a “employee first” strategy. The company has laid out training and career advancement programs which have dramatically improved employee retention.
Technology: We installed GPS in our trucks in 2008, allowing customers to see their critical shipments in real time. In addition, as of 2015, all trucks are outfitted with DriveCam, an outward- and inward-facing on-board camera system. This technology encourages continuous learning for drivers. The return on investment has been profound, as it has not only encouraged education but has also dramatically reduced claim costs. Jetco launched the TransPortal, a proprietary portal which allows customers to obtain information on the status of current and completed loads. The TransPortal is saving Jetco customers needless wasted hours chasing paperwork and calling for status updates.
Innovative Approaches and Future Plans | De-Commoditizing and Investing in Employees:
The Jetco business model continues to evolve. Most importantly, Jetco does not consider itself solely a trucking company. Jetco’s stated purpose is to perform our service with honesty and integrity, as subject-matter experts, knowing we will go the extra mile to always safely delivery value-added results. With this philosophy in mind, Fielkow has “de-commoditized” the business to separate Jetco from its competitors in a price-driven industry.
How do you think the industry will change over the next decade?
I see the driver shortage getting much worse. This will go beyond an industry issue. Everyone is going to feel it.
Also, technology is entering the trucking business in a big way. Here is communication that we will be releasing to our customers in the next few weeks about both of these trends. This is part of our effort to be the “go to” resource for our customers. Included below are links to my interviews with ZDNET and YAHOO on these 2 topics.
Draft email communication to our customers:
We continue to see a growing capacity crunch in the trucking industry. When we look at capacity issues, we think long-term. Continually, Houston felt much less of a capacity crunch during the energy downturn. However, we advise you to ignore the cyclical peaks and valleys. Instead, look at long-term trends.
1. Demographics: The average age of a truck driver in the United States is on his or her mid-90s. Near term, the American Trucking Association is predicting a shortage of 50,000 drivers.
2. Growing demand: According to ATA Chief Economist, Bob Costello: “We experienced a freight recession last year, which eased the pressure on the driver market…Now that freight volume is accelerating again, we should expect to see a significant tightening of the driver market.”
3. Electronic Logging Device mandate: We’ve been talking about his for years. Now it’s here. The ELD mandate takes effect on December 18, 2017. Jetco installed ELDs in 2008. We’re ready. A concerning number of carriers are not ready, and this will further tighten capacity. Consider the following:
• Multiple legal challenges to the ELD mandate have been rejected, further cementing the December 2017 deadline
• 45.5% of carriers haven’t even made plans for implementation, and 11% haven’t even begun investigating
• Trucks.com estimates there are still 1 million trucks without an ELD, and drivers of those trucks “will be forced to adopt and learn the technology during the busiest part of the year
• Carriers who will have to implement ELDs will lose productivity and have to increase rates to stay in business
Shippers Must Strategically Secure Capacity:
Shippers who proactively secure capacity are far less likely to feel the capacity crunch. Select your core carriers. Make commitments and expect reciprocal commitments in return. Here are some tips to become an attractive shipper of choice:
1. Open pick-up and delivery times deepen your pool of drivers
2. Drop and hook freight is more efficient and driver friendly; this may differ for very specialized equipment
3. Pre-loading trailers/containers cuts pickup time and keeps drivers moving
4. Communicating earlier and providing volume forecasts helps the capacity planning
5. Efficient check-in and check-out processes improve driver and asset utilization
6. Use both day and night at ports to reduce the impact of capacity loss due to congestion
For more information, check out Brian Fielkow’s discussion with Yahoo News:
https://finance.yahoo.com/news/america-badly-needs-truckers-185645700.html
Will technology assist with the capacity crunch?
Yes and no. At least for the next ten years, we do not believe that truly autonomous trucks (i.e. no driver at all) will have an impact on driver capacity. The human factor is too critical. However, we do believe that technology will redefine the role of the driver and help attract a new generation of professional truck drivers.
Read interview with ZDNet here:
http://www.zdnet.com/article/50000-drivers-needed-can-technology-save-the-trucking-industry/
Contact Info:
- Address: Jetco Delivery
3010 Aldine Bender
Houston Texas 77032 - Website: https://www.jetcodelivery.com/
- Phone: 713-676-1111
- Email: [email protected]
- Facebook: @jetcodelivery
- Other: https://www.linkedin.com/in/brianfielkow/
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