ArcBest President on Customer Needs: Nimbleness, Visibility, and Communication in Logistics

Customer Challenges and Adaptations

• 🚚 Customers are facing widespread challenges due to macro-economic factors, but ArcBest offers solutions and expertise to help navigate them.
• 💡 Customer strategies vary, with some in a "wait and see" mode, others utilizing in-bond warehousing to defer tariffs, and a segment shifting to domestic manufacturing.
• 📦 A notable success story involved partnering with an Italian kitchen component manufacturer that moved its production to the United States.
• 🌍 Despite shifts, a significant portion of customers continue with business as usual, with no material impact on their operations.

Evolving Logistics Landscape

• 📈 Over the past five years, the industry has experienced continuous disruption from the pandemic, weather events, and geopolitical concerns.
• 🤝 ArcBest, with over a century in business, partners with customers to navigate these complex supply chain challenges.
• 📊 The majority of companies are not yet ready to shift all manufacturing, with many still importing from Asia.

Key Customer Priorities in Logistics

• 🎯 Nimbleness is a top priority, enabling customers to quickly adapt to changes like shifting manufacturing or reordering supply chains.
• 🔍 Enhanced visibility into their supply chains is crucial for customers to track their goods and operations.
• 💬 Great communication and open channels are essential for logistics partners to keep clients informed as circumstances change.
• 🚀 The pipeline shows a 55% increase in deals since the start of the year, indicating a strong customer desire to partner with adaptable logistics providers.
• 📊 Approximately 50% or more of ArcBest's customers are currently experiencing business as usual, maintaining their typical shipping patterns.