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Company Report: Falcon Transport: A century of trucking |
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Falcon Transport: A century of truckingBased in Ohio, Falcon Transport spans 48 states and abroad and is focused on expanding its industry markets
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- Name: Falcon Transport: A century of trucking
Falcon specializes in dry van dedicated, van OTR, flatbed and brokerage transportation services for the automotive, steel and general goods industries. The company heavily services the automotive and steel industries, providing dedicated services to car giants GM, Toyota and Ford. The remainder of their business is comprised of general goods and consumer products. "We ship manufactured products for GE, Wal-Mart and Whirlpool, and handle paper and food products, etc.," says Brad Constantini, Executive VP.
A look back
Falcon's roots in the trucking industry trace back more than 100 years, to when J.V. McNicholas established a horse and cart operation in Youngstown, Ohio, in 1903. Falcon was primarily a steel hauler in the 1970s, but by 1982 union problems led Henry McNicholas, then CEO, to close its doors.
Shortly after, Henry's son-in-law, Don Constantini, and J.V. McNicholas' grandson, Joe Fleming, founded Compass Transportation. They purchased Falcon Transport, a nearly bankrupt Ohio company, and the two companies operated side by side, later merging under the Falcon Transport name. In 1995, Comprehensive Logistics, Inc. was created as a sister company to meet client demand and further diversify its service offerings beyond trucking.
Fourth-generation owners Brad and Mark Constantini both started in the family business around the age of 13. Over the years, they have worn many hats and worked in every department of the business.
David Carter, a 35-year industry veteran, joined the company in November 2008 as Senior VP and General Manager of Falcon Transport.
"Like Brad and Mark, I've sat in almost every chair in the trucking business," he says. "Prior to working in the trucking industry, I was an inland waterways pilot. Because both inland water shipping and trucking are controlled by the Department of Transportation, I've had extensive experience working with the government."
Adaptable and across borders
Falcon, an ISO-9001:2000 company, has received many industry awards from its automaker clients, and has the distinction of being one of General Motors Corporation's elite core carriers. Today, Falcon operates as a full truckload carrier for dedicated and irregular routes and is FAST approved, C-TPAT certified and Table 2 certified for HazMat transportation.
"We have cross-border operations in Laredo, Texas, and Canada," Brad Constantini says. "Falcon utilizes trans-loading at the border crossings for in-bound and outbound shipping with Mexican partners. We don't allow our equipment to cross the border into Mexico, but we do in Canada."
The company has averaged 8 percent growth in the past 10 years. The current economy has had some impact, but Carter is confident Falcon is well positioned to navigate this difficult environment.
"You look at how long we've been around and the fact is we're going through our second Depression. We're a company that's good at adapting," he says.
One opportunity arising from the economic downturn is the recent availability of drivers who've been cut from other companies. Their experience and need for work has helped Falcon in terms of curbing training and advertising costs.
Technology investments
Falcon utilizes various technologies to keep its operations rolling efficiently. Among them is ProFr8, a web-based transportation management system developed in-house by Falcon's own IT department. ProFr8 creates a digital marketplace to unite shippers and carriers. The more traffic generated in terms of the number of loads, the lower the prices. Clients' shipping requests are dropped into the marketplace of pre-qualified carriers to bid on - all taking place in real time.
"We utilize state-of-the-art ERP using TMW, which is a best-of-breed software application for the trucking industry," says Constantini. "We can track fuel usage by tracing route miles, and we also download engine information to see how much a driver is idling or if onboard warnings are going off about equipment issues."
Each of Falcon's trucks use the VORAD warning system, which tracks hard braking, instances of tailgating and warns drivers of lane departure with in-cab alarms. The company also uses Qualcomm satellite tracking for two-way communication and GPS to pinpoint locations.
"Our current technology has led to a more than 99 percent on-time delivery and customer service rate," Carter says.
Falcon maintains long-term supplier relationships for its technology and other specific equipment and bids around for the rest. The company also holds national accounts for many of their larger suppliers, enabling them to obtain the most competitive pricing.
Diversifying business
Falcon has also made a commitment to becoming more environmentally responsible and efficient. It's a member of the EPA's SmartWay program to reduce emissions, and to save on fuel, Falcon has reduced the maximum speed on their trucks from 68 to 65 mph. Within its facilities, the company has invested in CFL light bulbs and monitors the temperature.
Looking toward the future, the company has private ownership in its favor as it can plan growth over a five-year period, versus quarter to quarter. For the upcoming year, Falcon projects business to stay at a steady pace.
"We want to diversify our business away from the auto industry because of the troubles it's been having and are focusing on growing the flat-bed side of the business," Carter says.
"We're considering growth within the consumer goods market- based on recent food, home and auto sales. The unemployment rate might be around 9 percent, but that means 91 percent are working and buying things. Our focus is on customer goods with dedicated operations."
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