By Aleasha Sandley, Herald Bulletin Staff Writer
Give your employees something to work for and they will work harder.
That's Ed Lembcke's philosophy and what he claims has allowed his Private Fleet Backhaul business to thrive, even in difficult economic times.
His 30 employees share in the company's profits and receive a bonus check every month based on sales. The system makes the employees directly responsible for their wages, which Lembcke says makes them more likely to take their jobs seriously.
"If I put them in a position to make more money then they'll work harder," he said. "That's powerful. It literally on a grass-roots level inspires people to give all they've got. On a daily basis, these people are intense about their business."
Lembcke also provides his employees with perks like lunch every day and bonus programs - they have gone together for picnics, steak dinners, go-kart races and twice to jump out of an airplane. They are provided with all the tools they need to do their jobs efficiently.
"We just try to inundate these people with good things," Lembcke said.
So far, Lembcke's business model has been working. Private Fleet Backhaul, which he started out of his house in 2002, has grown from a start-up business to one that deals with major clients. The business matches private fleets - trucks used to ship products for a specific company and not to make a profit in the trucking business - with companies looking for cheap shipping options.
After a private truck delivers its goods, it often makes the return trip empty, while another company might be looking to ship goods to the same location. By matching them up, the private fleet can offer Private Fleet Backhaul a discounted shipping price, which it can pass on to the company looking to ship, reducing the cost of shipping and the number of trucks needed to ship goods.
"We're kind of like e-Harmony for freight," Lembcke said. "When we find those matches, we can give shippers a better price."
Private Fleet Backhaul operates in a specific niche in the trucking business, making it relatively recession resistant.
"The market is so big," he said. "Because of this niche we provide, we can even grow in a shrinking market. All of our business is national, so our growth opportunity is $300 million."
Although it's a shipping business, Private Fleet Backhaul doesn't actually own any trucks. It is an information-based business that Lembcke devised eight years ago.
"This is kind of like one of those 'Eureka!' moments that I had," said Lembcke, who invested all of his and his wife's retirement in the business. "We did all in. Failure was not really an option for us."
Although Lembcke started the business himself, it now has grown to 30 employees who work in business development, operations, accounting and carrier development. The business has grown to do about $12 million in sales annually with customers like General Electric, Kroger, Dial Corporation, Pepsi and SuperValu.
Lembcke credits the success to his hard-working employees, hiring those who are tech-savvy and goal oriented.
"He demands only the best, and we give it to him and he gives us his best," operations manager Mike Dennis said.
Account representative Diana Sager said Private Fleet Backhaul employees are dedicated to their jobs.
"We've got forward-thinking people," she said. "I think it's just a good mix of people. People actually look forward to coming to work."
Lembcke, who raised his family in Anderson, said the city was a good place from which to draw a dedicated work force. Although Anderson hasn't given Private Fleet Backhaul any financial incentives, it has given the company technical advice, helping it to find new locations to accommodate its growth, Anderson Economic Development Director Linda Dawson said.
"They are a growing company that has come upon a very specialized field, and from all appearances they're a company that's going to do nothing but grow," Dawson said. "They set a very good example for other businesses, and they are continuing to try different avenues to increase their business and they're not afraid to take risks on new ideas."
Private Fleet Backhaul is designed to thrive in any kind of economy. It offers shippers the cheaper rates they seek in a poor economy while allowing carriers to make extra money by hauling goods on their return trips.
"As these companies feel the pain in the economy, they become more interested in lowering transportation costs," Lembcke said.
On the other hand, when the economy is robust, companies will ship more goods, which is also good for business.
But the business has not been without its obstacles. One of its main clients, Value City, filed for bankruptcy in October, leaving Private Fleet Backhaul to regroup and decide on a future growth plan.
"I look at this business as a prize fight," Lembcke said. "We take off our gloves and we fist fight every day."
In the long run, Lembcke hopes to employ 128-130 people, which is based on the company's current growth curve. In five years, he hopes to become a publicly traded company.
But in the short term, Lembcke hopes to see the economy bounce back and the demand for trucks to pick up.
"Our goal in 2009 is hold the course," he said.