Target Interstate predicting strong year
Target Interstate predicting strong year
Paul Kazan, president and owner of Target Interstate Systems Inc., which is located on the Hunts Point Terminal Market in the Bronx, NY, makes no bones about it: the recession definitely hurt the trucking business.
Target hauls both produce and dry freight so the downturn in the economy meant fewer loads and less revenue. But the situation is looking better. “For Target, 2014 was significantly better than 2013,” he said.
The company’s president said a combination of an improving economy, a nose-to-the-grindstone philosophy and an expansion of services for current customers led to the good year, where business started to approach pre-recession levels. Kazan said the breadth of his customers didn’t change that much, but the depth of business with each customer improved. “In the produce end of the business, we did a lot more runs out of the Northwest and Texas…offering more service for our existing customers,” he said.
The increased business allowed Target Interstate to expand its office staff. “We hired five new people in 2014,” Kazan said. “And I’ll be honest with you…most of that happened the second half of the year.”
On the general freight side, he said an improving economy even has a bigger effect, as consumers are spending more money on luxury items, which means more sales and more truck trips.
For 2015, Kazan expects Target’s business to continue to grow and that it might well be the company’s best year ever. Of course, Mother Nature will have a lot to do with the number of loads available as bumper crops need more trucks to move the product. But the economy will also play an important role.
Kazan said consumers will always buy potatoes, lettuce and the other staples but they don’t buy the impulse items unless they have a few extra bucks in their pockets. “As the economy picks up, there are more purchases (by the consumer), more freight and more business for us. I’ve heard some people say that the fourth quarter of 2015 may see a slowdown, but for Target we are expecting a very good year.”