Ron Martin
Transcript of Ron Martin
O’Neil RelocationIndustry & Relocation Trends
August 7, 2008Ron MartinRegional Sales Manager-UniGroup, Inc.
Agenda
UniGroup, Inc. Relocation & Industry Trends Surface Transportation Board / UniGroup
Pricing Model Direction - Operations Challenges
Energy – Fuel Van Operators/Drivers Economy
America’s largest van line system
Most recognized name in the moving industry for nearly 80 years
Specialist international forwarder with global footprint
Emerging leader in portable container storage and moving
Web based move management system to leverage uniform service, pricing and performance metrics from multiple providers
Niche insurance service provider for moving and storage industry
Equipment supply and leasing company for moving and storage industry
UniGroup, Inc.
UniGroup Inc.
Over $2 billion in revenues since 2005
Re
ven
ue
in U
SD
(billio
n)
Revenue Growth
0
0.5
1
1.5
2
2.5
1987 1989 1991 1993 1995 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007
$2.16 billion
UniGroup Debt-to-Equity
• Strong balance sheet and cash reserves • Virtually debt-free
$756,000
$301,000,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
Mill
ions
UniGroup
2007
Debt, Net Equity
Unique Ownership Structure
Agents Retain Identities Typically family-owned
Representatives asShareholders UniGroup/UnitedVan Lines
18 agent Board of Directorsset corporate policy anddirection
Agents remain self-directed Compensation structure is best
in van line industry No ownership change since
company’s inception (1947)
Benefits Vested interest in local
community Consistent service delivery
Partnership between agents and van line headquarters
Customized, personal service Reinvestment in people,
equipment and facilities Stability
Network Advantages
Alliance Program – U.S. FootprintLeverages strength of UVL/MayflowerFewer peak season restrictionsUniform performance standards
Greater capacityOver 7,900 power units
(tractors – straight trucks) Commitment to
technology
1717
772323
121121
3030
1414
5858
2727
131388
3232 15151515
88
1717
2020
2222
99
2222
2121
1414
1616
1414
3131
99
1010
66
1919
2020
99
3434
2929
1212
2121
2929 11
1616
44
1414
8585
772525
33
4343
181877
33 11
UniGroup Alliance Network
North America’s largest household goods networkNorth America’s largest household goods network Combined coverage and capacity of 1,100 locationsCombined coverage and capacity of 1,100 locations
Recognition – UniGroup, Inc.
Information Week Magazine (2007)• Ranked No. 137 among top 500 U.S. companies utilizing
technology for process improvement
International Data Group CIO Magazine (2007)
• UniGroup Chief Information Officer ranked among top 100 for business and IT excellence
Transport Topics (2007)
• Ranked No. 13 among top 100 “For-Hire Carrier” list, up two positions from No. 15 in 2006.
Forbes Magazine (2007)• Forbes 200 – U. S. Largest Privately Held Companies
- Rank: 172
Trippel Survey & Research
’07 Relocation Program Managers’ Survey United Van Lines controlled largest share of
transportation agreements (65%) 2nd consecutive year
United Van Lines ranked “#1” when relocation managers were asked:
Whether they would “recommend their current carrier” Which carrier has “greatest overall quality service”
2nd consecutive year How satisfied they were with their carrier’s “ability to meet
their needs” Which carrier most often “added to approved carrier list”
41
“Best in Class”
Logistics Management Magazine’s 24th Annual “Quest for Quality Survey” Two of three van lines are UniGroup companies –
United and Mayflower Recognized as household goods and high-value
product service supplier Measurement
On-time performance Value Information Technology Customer Service Equipment
United Van Lines Migration Study
Result States in Great Lakes region showed largest outbound
trend Ranked No. 1 Michigan (67.8%) once again captured top
outbound spot
California (50.8%) saw its lowest outbound percentage in five years
Integrity - Responsibility
Assists consumers who fall victim with “disreputable/rogue movers”
Illegally holding household goods “hostage” until additional unsupported charges are paid
Internet creating avenue for rogue mover activity
U.S. DOT cites nearly 4,000 move-related scam reports per year
Offers Connection for legal assistance
Nationwide network of legal professionals
www.moverescue.com or (800) 832-1773
Labor Policy
1.2
1.3
1.4
1.6
2.3
2.4
2.7
3.1
3.8
4.0
4.2
4.5
6.4
6.0
5.6
5.3
4.7
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
Service for unwanted items before move
Information on destination
Contact to arrange services at new community
Contact to arrange services at new home
Guaranteed 60-minute delivery window
Online tracking information
Guaranteed 60-minute load window
Unpacking Service
Simple pricing format
Packing Service
Dedicated representative
Service that assesses damages
Timely damage resolution
Guaranteed delivery date
Guaranteed pick up date
Guaranteed price
Professionally trained / safe crews
What’s Important to What’s Important to Customers?Customers?
Labor Policy
Mandatory background checks on all “new” production personnel Value customer personal safety - safeguard
property Rollout with validation number 5-Star Check
Validate SSN Check against National Criminal
and Felony registers 1-3 day processing, valid three years
Instant Check – valid 10 days Validate SSN Check against National Criminal register
InnovationGPS Tracking Systems
Real-time communication link between United Van Lines agents UniGroup Headquarters Van operators
Last-minute changes and urgent shipments processed easily
Street-level mapping Determine exact van location Motion detection on trailers
Smart Phones – Van Operators
32
“Enhanced” GPS Tracking Systems
Route Tracking
“Enhanced” GPS Tracking Systems
“Enhanced” GPS Tracking Systems
“Enhanced” GPS Tracking Systems
UniGroup’s “Full-Service” Container
ObjectivesReduce underlying “core business” costsProgram built where entire agency system
will benefitReduce peak season “lease” trailer
requirementswooden containers
Create new marketReduce cargo claims
UniGroup’s “Full-Service” Container
Dimensions (outside) Length 102” Width 84” Height 97”
Cubic capacity = 450 cubic feet Empty weight = 1,200 lbs. Containers “stackable” – 3 high Walls – fiberglass with reinforced plywood
floors Cargo control – logistics track
UniGroup’s “Full-Service” Container
Convenient One price – all inclusive
Transportation Load / Unload Pack / Unpack Valuation Debris removal
Security Load / Lock / Seal Certified / Trained / Drug Tested Labor Reduced claims and missing items
UniGroup’s “Full Service” Container
Customer FeaturesNo DrivingNo LiftingNo enlisting family and friendsLarger and stronger containerExclusive useDay certain pickup/deliveryHigh security storage facility
New Direction - Pricing
New World - In its recent decision, U.S. Surface Transportation
Board withdrew approval of ratemaking bureaus to collectively set transportation rates
Includes Household Goods Carriers Bureau that formerly set rates for moving & storage industry
Effective January 1, 2008 “all” household goods carriers required to establish carrier specific pricing structures
Independent of other van lines
InnovationNew Pricing Structure
STB UVL1 – January 1, 2008 3-digit ZIP-to-ZIP pricing structure
Electronic format Tariff Reduction
60% reduction in base tariff 40% reduction storage-in-transit and SIT pickup/delivery
Included in transportation rates/charges Insurance Related Surcharge Origin/Destination Service Charge Fuel Adjustment (up to $3.00/gallon) Mini warehouse Bulky item
5
Invoice AppearanceComparison
HGB Tariff 400-N - 3,760 lbs. 1,009 miles
Transportation = $4,995.55 Full Packing = 2,081.91 Origin Svc. Chg. = 122.95 Dest. Svc. Chg. = 101.52
Sub Total = $7,301.93 Less Disc. 62.4% 4,556.40
Sub Total = $2,745.52
Fuel Surchg 10.0% = 187.83 Ins. Rel. Surchg. 4%= 75.13
Total = $3,008.48
STB Tariff UVL1 – 3,760 lbs. 1,009 miles
Transportation* = $2,259.00 Full Packing = 809.38
Sub Total** = $3,068.38 Fuel Surchg*** = 110..38
Total = $3,178.76****
*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
Questions & Answers
Will new pricing program increase client cost? “Price-neutral” objective
Analysis of over 800,000 shipments indicates marginal increase over industry’s HGB Tariff 400-N pricing
UVL took 3.4% increase effective December 31, 2007 based on industry’s “General Price Adjustment” formula
Annual cost index review and adjustment
Real savings – client and UVL Efficiencies gained from simplified pricing system
Time Understanding Reduced complexity
Questions & Answers
Will clients be economically disadvantaged moving to new pricing program? NO, opposite is true!! HGB Tariff 400-N - “Tariff of Compromise”
Industry pricing historically controlled by industry competitors Not specific to individual client Inefficient pricing mechanism
Redundant tariff items “Exorbitant” discounts “Annoying” invoice line items
Advent of zip-zone pricing Pricing based on costs between geographic areas
Fair and equitable approach to pricing Common sense program
Am. Moving & Storage Association
Industry Facts - 8,300 companies providing moving/storage
services – van lines, independent/van line agents and forwarders
Employs 172,000 people nationwide47.8% of companies employ 5 people or less8.5% of companies employ 100 people or more
Operates fleet (equipment) 50,000 units (32,000 tractors/18,000 straight trucks) regulated by U.S. Dept. of Transportation
Am. Moving & Storage Association
Industry Facts (continued)Americans – who move = 13.0%
40 million (17 million households) @ 2.34 people per household (’05 US Census)
19.0% move to different state (interstate) = 7.6 million
Average cost = $4,200.00 Average weight = 7,400 lbs.Average distance = 1, 225 milesMoves without claim = 80.0% (4:5 shipments)
Industry ChallengesVolume - All Business Lines
$2,100,000
$2,200,000
$2,300,000
$2,400,000
$2,500,000
$2,600,000
$2,700,000
Reve
nue
(000
s)
Industry $2,498,926 $2,652,721 $2,599,186 $2,439,697 $2,291,626
2003 2004 2005 2006 2007
Annual HHG Revenues (2003-2007)
Transportation Revenue for Interstate HHG MovesBetween ‘06 and ‘07 Reduced Revenue –6.1%.
Source: AMSA – Monthly Market Study – All Processed Revenue
Industry ChallengesCorporate Relocations
Declining National Account Market
215,000
220,000
225,000
230,000
235,000
240,000
245,000
250,000
255,000
Shi
pmen
ts
Shipments 227,111 239,041 248,577 246,093 230,361
2003 2004 2005 2006 2007
Industry National Account Shipments Down ~ 6.4% Between ’06 and ‘07
Source: AMSA – Monthly Market Study – All Processed Revenue
Industry ChallengesCorporate Revenue
$730,000
$740,000
$750,000
$760,000
$770,000
$780,000
$790,000
$800,000
$810,000
$820,000
$830,000
Reve
nue
(000
s)
Industry $764,971 $793,321 $821,470 $807,188 $782,963
2003 2004 2005 2006 2007
Annual HHG Revenues (2003-2007)
Transportation Revenue for Interstate HHG MovesBetween ‘06 and ‘07 Reduced Revenue –3.0%.
Source: AMSA – Monthly Market Study – All Processed Revenue
UniGroup, Inc.Business Volume YTD July 10, 2008
AS OF: 7/10/08
MONTH 2007 2008 2007 2008 2007 2008 2007 2008
JAN $45,866,108 $42,745,691 $45,866,108 $42,745,691 $20,023,045 $20,388,558 $20,023,045 $20,388,558FEB $42,949,798 $39,219,833 $88,815,906 $81,965,524 $19,771,545 $21,354,693 $39,794,590 $41,743,251MAR $52,887,714 $44,563,976 $141,703,620 $126,529,500 $24,322,131 $21,768,954 $64,116,721 $63,512,205APR $50,802,430 $46,728,880 $192,506,050 $173,258,380 $21,474,803 $21,418,956 $85,591,524 $84,931,161MAY $73,062,705 $72,513,926 $265,568,755 $245,772,306 $22,956,188 $22,010,740 $108,547,712 $106,941,901JUN $111,289,685 $103,047,817 $376,858,440 $348,820,123 $23,723,351 $21,042,543 $132,271,063 $127,984,444JUL $74,565,355 $77,250,289 $451,423,795 $426,070,412 $10,823,495 $10,514,156 $143,094,558 $138,498,600AUG $11,040,419 $7,714,057 $462,464,214 $433,784,469 $913,346 $725,904 $144,007,904 $139,224,504SEP $1,415,613 $391,053 $463,879,827 $434,175,522 $313,731 $245,533 $144,321,635 $139,470,037OCT $701,975 $58,696 $464,581,802 $434,234,218 $158,961 $116,281 $144,480,596 $139,586,318NOV $408,067 $14,523 $464,989,869 $434,248,741 $209,962 $43,804 $144,690,558 $139,630,122DEC $259,485 $8,031 $465,249,354 $434,256,772 $37,102 $22,781 $144,727,660 $139,652,903
MONTH 2007 2008 2007 2008 HHGS SPEC PROD HHGS SPEC PROD
MONTH TOTAL TOTAL
JAN -4.2% -4.2%
BY MONTH CUMULATIVE
HOUSEHOLD GOODS
*Business Volume Based on Registration Statistics
UniGroup Seasonality - Relocations
$42,745,691$39,219,833$44,563,976$46,728,880
$72,513,926
$103,047,817
$77,250,289
$0
$25,000,000
$50,000,000
$75,000,000
$100,000,000
$125,000,000
Revenue
2008
January February March April May June July
20
*ERC ’07 Transfer Volume & Cost Survey – Mobility Magazine September ’07
Relocation Trends
Reluctance to Relocate
5%
3%
11%
23%
29%
55%
63%
66%
71%
0% 20% 40% 60% 80%
Slowed real estate appreciation
High housing costs
EE/family reluctance to move
High cost-of-living areas
Spouse reluctance to leave his/her job
Undesirable areas
Less than adequate relocation policy
Employee satisfaction with position
Other
20
Relocation Trends
Average Relocation Component Costs 2004 2005 2006
Loss-on-sale assistance $11,551 $9,331 $15,255
Household goods transportation $10,387 $9,514 $10,342
Purchase closing costs $7,944 $7,756 $8,818
Federal Tax Liability $8,767 $6,737 $7,707
Preferential rate mortgage $4,581 $6,048 $6,388
Bonuses/incentives employee home sale $6,936 $5,900 $6,764
Misc. expense allowance $5,457 $5,092 $4,457
Temporary living $5,492 $4,993 $4,882
Duplicate housing assistance $3,079 $2,986 $3,030
Home-finding trips $2,136 $1,828 $1,836
Spouse employment assistance $1,555 $1,404 $1,520
Travel/lodging expenses $1,384 $1,343 $1,246
*ERC ’07 Transfer Volume & Cost Survey – Mobility Magazine September ’07
Relocation Trends -Policy Type
64%
11%
25%
0%
10%
20%
30%
40%
50%
60%
70%
Pe
rce
nt
of
Org
an
iza
tio
ns
Multiple/TieredPolicies
Menu-driven/Cafeteria-
style Policy
One Policy
Source: Worldwide ERC, 2007 New Hire Survey
Relocation Trends - Shipment of Household Goods
Percentage of Organizations Who Provide Household Goods Relocation for Employees
Entry Level
74%
Experienced
98%
Executive Level
98%
Single Policy
98%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
Fast Growing Jobs
Fastest Growing Jobs – 2004-2014
OccupationNew
OpeningsPercent of
Growth
Network Systems, Data Communications Analyst
126,000 55%
Medical Assistants 202,000 52%
Physician Assistants 31,000 50%
Computer Software Engineers 222,000 48%
Physical Therapist Assistants 26,000 44%
Computer Software Engineers 146,000 43%
Source: U.S. Department of Labor
Relocation Trends-ERC/Runzheimer
National Survey Data – Household Goods 57% of companies contract directly with van lines 85% do not impose weight restrictions
Companies with weight restrictions have 18,000 pounds as most common limit
83% provide full replacement protection (valuation) 92% offer storage-in-transit
30 days (47%) and 60 days (40%) as most common time frames 60 days for homeowners and 30 days for renters
100% of companies include packing 90% include for unpacking 77% of companies include one or more autos
Two autos most typically covered
Source: Employee Relocation Council & Runzheimer Reports
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
Where Consumers Look For Movers (Residential)
The Internet and past experiences are key reference points for choosing a moving company
Phone book continues to decline
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%
Full-Service Moving Companies Considered and Used
United Van Lines considered, quoted and used most often Mayflower comparable Allied; conversion from quote to
purchase slightly higher than both UVL and Allied
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 3634
32
19
2322
13 13
8 8
12
18
United Van LinesMayflower TransitAllied Van Lines Atlas Van Lines North AmericanGlobal Van LinesTwo 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
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
National Account Decision Makers
How corporate America selects a van line …
Deciding Factors For National Account Clients
Consistency of quality service, guaranteed price and dates, and professional crews
Brand name and national moving company are least important factors
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
1614 20 16
11 1314 10 6
9 98 10 8
5 5 8 6 66
56
54
4 64 4
84
811
12
A B C D E F G H I J K L M N O P Q R S T
MostImportant
MoreImportant
SomewhatImportant
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 1812
18 17 14 17 16 21 20 20 20 185 7 5 7
7 11 67
1010 11 14 10 10
14 14 17 1511
4 54 4 4
8 6 8 14
7
44 4 5 7 5 6
4
LeastImportant
LessImportant
SomewhatUnimportant
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 3.54Mean 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
Proprietary and Confidential Maritz Inc.
Technology up-sells are strongest new services among national account respondents
Debris removal and maid service are also among popular options
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
What National Account Clients Want Added …
ConnectionStraight Talk Gold/ Flagship
Protection $340 Claims Assist $165 Geek Squad PC Setup
$130Home Theater Setup
$200 Delay Payment Destination Connection Date Change Destination Waiting Time
Value $1,000+Price $ 545
Includes $25,000Additional Coverage
EssentialStraight Talk Gold/ Flagship
Protection $340
Claims Assist $165 Destination Connection Date Change
Value $540+
Price $195
Includes $5,000
Additional Coverage
DestinationStraight Talk Gold/ Flagship
Protection $340 Claims Assist $165 Geek Squad
PC Setup $130
Destination Connection Destination Waiting Time Date Change
Value $700+Price $295
Includes $10,000
Additional Coverage
EntertainmentStraight Talk Gold/ Flagship
Protection $340 Claims Assist $165 Geek Squad
Home Theater Setup
$200 Delay Payment Destination Connection Destination Waiting Time Date Change
Value $850+Price $395
Includes $25,000
Additional Coverage
ProtectionStraight Talk Gold/ Flagship
Protection $340 Claims Assist $165 Destination Debris Pickup
$165 Delay Payment Destination Connection Destination Waiting Time Date Change
Value $850+Price $395
Includes $25,000Additional Coverage
TechnologyStraight Talk Gold/ Flagship
Protection $340 Claims Assist $165 Geek Squad PC with
Networking Setup $225 Delay Payment Destination Connection Destination Waiting Time Date Change
Value $930+Price $445
Includes $25,000Additional Coverage
PremiumStraight Talk Gold/ Flagship
Protection $340 Claims Assist $165 Geek Squad PC Setup w/ Networking
$225Home Theater Setup
$200 Delay Payment Destination Connection Destination Waiting Time Date Change
Value $1,300+Price $ 795
Includes $30,000Additional Coverage
Value-Add Options
ATA Van Operator/DriverShortage
National shortage of 20,000 drivers Current demographic trends predict driver shortage
to increase 111,000 drivers by 2014, if labor force continues to grow at slow pace
Fueled by two events “Baby boomers” starting to retire (219,000
drivers - 55 years and older) Increase freight tonnage 30.0%
(914 billion tons) by 2018 Lack of drivers to move freight, more
then any other challenge, could bring U.S. economic growth to a halt
Staple commodities for human consumption Price of bread, milk, etc.
Cost Driver - Diesel Fuel vs. Gasoline History
7/14/08 7/21/08 7/28/08 Change week ago* Change year ago
U.S. $4.764 $4.718 $4.603 -$.115 $1.717
*Energy Information Agency - DOE
What Are We Paying For?* Diesel Fuel vs. Gasoline
*Energy Information Agency - DOE
Fuel Statistics
Am. Transport Association – March 12, 2008 2nd highest cost after driver wages
Some carriers fuel expense surpasses cost of labor Potential to create ripple effect on U.S. economy
High truck fuel prices increase “individual” product costs 80.0% US communities depend on “trucks” to deliver goods
Trucks consume 53.9 billion gallons each year 39 billion gallons (73.0%) is diesel
One-penny increase in dieselprice creates additional $391 million in costs
42 gallons of oil in “barrel” yields: Canada is U.S. top “import” oil producer (16.0%)
U.S. Diesel Prices – Energy Information Agency
$0.00
$0.40
$0.80
$1.20
$1.60
$2.00
$2.40
$2.80
$3.20
$3.60
$4.00
$4.40
$4.80
Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09
Pri
ce P
er M
on
th
Crude Oil
On-Highway Diesel
WholesaleDiesel
Short-Term Energy Outlook, June 2008
History Projections
Short-Term Energy Outlook
Global supply uncertainties, combined with significant demand growth in China, the Middle East, and Latin America expected to continue to pressure oil markets
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. Higher prices reflect strength in diesel demand,
particularly in emerging markets Oil market remains tight, evidenced by:
Rising prices, low surplus production capacity, and concern that global supply growth may not keep pace with demand
Energy Information Agency – July 8, 2008
Annual Existing-Home Sales
0
2,000
4,000
6,000
8,000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 f
Exuberance Over
Source: National Association of Realtors
National Foreclosure Activity
July 25, 2008 – RealtyTrac® “Q2 U.S. Foreclosure Market Report™” 739,714 U.S. properties foreclosure filings
14% increase from the previous quarter 121% increase from the second quarter of
2007 One in every 171 U.S. households received
foreclosure filing during quarter California
202,599 properties foreclosed during second quarter Highest total among U.S. states (one in every 65 households)
Nation’s second highest state foreclosure rate Foreclosure activity increased 19% from previous quarter Nearly three times level reported in second quarter of 2007
National Foreclosure Activity
Source: RealtyTrac®
GDP Growth – Percent Annualized
-3.0
0.0
3.0
6.0
9.0
20
00
- Q
1
20
00
- Q
3
20
01
- Q
1
20
01
- Q
3
20
02
- Q
1
20
02
- Q
3
20
03
- Q
1
20
03
- Q
3
20
04
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1
20
04
- Q
3
20
05
- Q
1
20
05
- Q
3
20
06
- Q
1
20
06
- Q
3
20
07
- Q
1
20
07
- Q
3
20
08
- Q
1 f
20
08
- Q
3 f
Source: U.S. Bureau of Economic Analysis
Corporate Profits
$500
$1,000
$1,500
$2,0002
00
0 -
Q1
20
00
- Q
3
20
01
- Q
1
20
01
- Q
3
20
02
- Q
1
20
02
- Q
3
20
03
- Q
1
20
03
- Q
3
20
04
- Q
1
20
04
- Q
3
20
05
- Q
1
20
05
- Q
3
20
06
- Q
1
20
06
- Q
3
20
07
- Q
1
20
07
- Q
3
$ bi
llion
Source: U.S. Bureau of Economic Analysis
Stock Market – S&P Index
800
1000
1200
1400
16002
00
0 -
Ja
n
20
00
- J
ul
20
01
- J
an
20
01
- J
ul
20
02
- J
an
20
02
- J
ul
20
03
- J
an
20
03
- J
ul
20
04
- J
an
20
04
- J
ul
20
05
- J
an
20
05
- J
ul
20
06
- J
an
20
06
- J
ul
20
07
- J
an
20
07
- J
ul
20
08
- J
an
Source: NYSE
Business Spending – Gross Domestic Product
$1,000
$1,100
$1,200
$1,300
$1,400
$1,5002
00
0 -
Q1
20
01
- Q
1
20
02
- Q
1
20
03
- Q
1
20
04
- Q
1
20
05
- Q
1
20
06
- Q
1
20
07
- Q
1
GDP
Monetary Policy Report July 15, 2008
After having posted robust gains in middle ‘07: Real business fixed investment
lost some steam in 4th quarter Eked small advance in 1st quarter of 2008
Economic and financial conditions that influence capital spending deteriorated appreciably late last year and early this year: Business sales slowed (cars/technology) Corporate profits fell (stock market results) Credit conditions for borrowers tightened Heightened concern about economic outlook has
caused firms to postpone/abandon plans for capital expansion
Consumer Spending
0.0
2.0
4.0
6.0
20
00
- Q
1
20
01
- Q
1
20
02
- Q
1
20
03
- Q
1
20
04
- Q
1
20
05
- Q
1
20
06
- Q
1
20
07
- Q
1
20
08
- Q
1 f
% 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.
Questions
Discussion Topics What “value added” services would be helpful to
you and for your transferees beyond what UniGroup has identified?
Containers as a mode of transportation for household goods movements, do see value and would your organization consider using containers to transfer your employees?
What do you see as the future of relocation and where do you see the movement of household goods in the picture?
Questions
Discussion Topics Where do you see economy going? Will November
’08 election positively impact U.S. economic environment?
Will pressure from “price at the pump” continue to hinder business expansion?
Will your company expand or constrict hiring in ’08?...in ’09?
How can we (O’Neil Relocation/UniGroup) improve our performance with and for your company?
August 7, 2008Ron MartinRegional Sales Manager–UniGroup, Inc.
O’Neil RelocationIndustry & Relocation Trends
Scariest Road in the World
Scariest Road in the World
Scariest Road in the World
Scariest Road in the World
Scariest Road in the World
Scariest Road in the World
Scariest Road in the World
Scariest Road in the World
Scariest Road in the World
August 7, 2008Ron MartinRegional Sales Manager–UniGroup, Inc.
O’Neil RelocationIndustry & Relocation Trends